A friend of mine, Stephen Harvard Davis is recognised as the UK’s leading authority on job transition and retaining top talent, He is the author of “Why do 40% of Executives Fail?”
The following observations were inspired by an item on Stephen’s blog in which he addressed the retention issues relevant to top executives in the corporate sector. Whilst some of Stephen’s points apply equally to ambitious accountants, I believe that there are also a number of crucial differences.
Replacing ambitious accountants can be costly and can easily involve as much as twice the salary in hard cash terms. Yet recent studies from the USA suggest that the opportunity costs when top talent leaving a company can be as much as twenty-four times the salary (Based on a salary of £62,000).
Most accountancy firms try to retain ambitious accountants by throwing money at the situation. Every single time I have witnessed this over the years the extra money only buys time; firms looking to poach the best partners and prospective partners will always pay more for potential because they have budgeted for the cost of the recruitment exercise and they are determined it should be successful.
I believe that there are four key steps to retaining your best ambitious accountants:
Step one is to recognise that top talent can be found at all levels within an accountancy firm. It’s not, and never has been, confined to the partner group. Once identified, however, top talent needs to be nurtured, developed and encouraged otherwise it walks. Partners (and managers in the larger firms) therefore, should be rewarded for identifying top talent, developing and nurturing it.
Step two is to understand the reasons for top talent leaving. This means learning what individuals want from their current and prospective role in the firm. Many firms view this as difficult because of the complexity of analysing human relationships. It also makes developing a one size fits all package of benefits difficult.
The result is that many accountancy firms ignore the real reasons for talent loss and blame attractive salaries and benefits on offer from competitor firms. Yet the fact is that top talent tends to be hungry for knowledge and experience and to seek out the firms that can offer them this.
Certain top talent can be therefore be categorised in three ways:
- “Knowledge nomads” moving from one firm to another seeking information that adds to their abilities;
- “Prospectors”, those that are looking for better career expectations; and
- “Relationship Migrants” who seek out a particular type of more senior experienced partner as a teacher and mentor.
Step three is to evidence the firm’s commitment to the individuals concerned in a way that motivates each of them. Top talent tends to be attracted by retention drivers such as, mentoring, coaching, training programmes and also by being able to contribute to the firm’s vision, direction and future. However paying lip-service to this communication will only create resentment. The engagement must be real and motivate the individuals concerned.
Step four is to provide constant feedback and stimulation. There is little point in hoping to retain one or more ambitious accountants if the partners merely pay lip service to their development process. Again external mentoring has a role to play here but partners cannot abrogate their own responsibility for finding out what motivates their star people and contributing to the process.