Addressing employee burnout issues can help you retain top talent.
You've probably seen the news about the Great Resignation, job vacancies at all-time highs, and the labor force getting younger as retirees call it a career. A number of factors are leading to a shortage of accountants and CPAs.
But the workload hasn't diminished—more work is put on the shoulders of fewer staff, which can lead to employee burnout.
One way to mitigate this shortage, stay competitive against rival accounting firms, and try to alleviate burnout involves having an employee engagement and retention strategy. Employee retention becomes an even bigger issue when you consider highly specialized personnel such as accountants and finance professionals. Read on to find out how to retain your staff by addressing employee burnout issues.
Why is there a shortage of accountants?
A whopping 75% of CPAs reached their retirement age in 2020[1]. The timing of that couldn't have been worse because a year later, COVID hit.
The Great Resignation still stings: in a Capterra survey, 62% of recruiters say it's taking longer than usual to fill job openings, and it's taking longer to get people into key positions[*].
With these shortages in mind, It's vital that accounting firms engage the employees they have, retain them, and alleviate employee burnout whenever possible.
What's leading to employee burnout in the finance sector?
In Capterra's HR in the New Era survey from January 2021[**], 77% of U.S. small-business employees who worked from home because of the pandemic said they experienced some burnout. For Gen Z workers ages 18 to 25, that number skyrocketed to 92%.
The finance sector, in particular, faces professional burnout from heavy workloads, high performance expectations set by company leaders, and working extended hours. Added to the stress are the volatile state of stock markets, rising inflation with fears of a recession, and coming up with cash flow strategies for businesses during times of economic stress.
Employee burnout can negatively impact your company in several ways. Collectively, employee burnout leads to healthcare costs for companies to the tune of $125 to $190 billion a year in the United States[2]. Absenteeism due to burnout puts added strain and stress on employees who remain at work, while a burned-out worker might bring a negative attitude to the workplace and make coworkers and teammates upset.
What are the signs of employee burnout and how do you identify them?
Identifying burnout in your employees becomes paramount to a retention strategy.
Signs of burnout include:
Exhaustion, either physical, emotional, or mental.
Job-related cynicism, which may manifest as feeling apathetic, detached, or negative towards their job overall.
Reductions in professional efficacy or efficiency.
Engage with your staff. Get to know them. Ask them what they want. Make them feel as if they're part of a unique team dedicated to a purpose. Mentor them.
Regular one-on-one meetings, weekly or biweekly, can help you identify burnout. Touch base with each employee to see how they're doing.
Team surveys, which can be taken anonymously, help managers identify any attitudes that are negatively affecting someone's job.
Professional development plans that help employees branch out from their current roles will let them know that they do have a future with raises, a promotion, and a new job title with continuing education.
Employee benefits can address burnout issues and improve retention
Giving employees what they want the most from their job can reduce burnout. Here are some benefits you should consider offering accountants in order to strengthen your employee retention efforts:
Flexibility: Accountants are just like many other people in the labor force. They want flexibility in their schedules, not just the flexibility of working from home, to have a better work-life balance.
According to Capterra’s 2022 Flextime Survey, 79% of organizations have lost out on at least one job candidate in the past year by not offering enough schedule flexibility[***].
Check out "The 'Where' of Work Has Been Upended—Next is the 'When'" for more on flexible schedules.
Professional development: Learning on the job and upskilling are two other benefits that employees want to see from their firms. In the same survey, 14% of respondents consider learning opportunities at work as one of the top three important factors for their job satisfaction. Employers should consider learning opportunities, upskilling, and paid continuing education benefits.
Nearly half (49%) of companies are spending more on upskilling employees in 2022, according to our survey of nearly 300 HR leaders, compared to 41 percent in 2021[****]. And close to half of these companies that are increasing learning and development budgets operate remotely.
With upskilling comes advancements in pay and position. A lack of upward mobility for accounting firms can lead to job dissatisfaction and job-hopping to another firm with promotion potential.
What do new CPAs really need to help them do their jobs better?
Understanding the reasons for burnout and regularly talking to your employees offer two big-picture ways to improve retention. Giving CPAs assistance to do their jobs more effectively can reduce burnout even further.
Technology and accounting software make a CPA's job so much easier. AI and cloud-based software can help finance professionals by giving them the information and edge they need to make the right decisions for their clients.
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