Why Do Accountants Leave? The Role of Firm Size, Job Embeddedness, and Engagement

Public accounting firms face a talent retention crisis, but the solution may not be what they expect.

Retention is a persistent challenge in public accounting, with firms struggling to keep talent beyond the early career years. Dr. Amy Cooper, an assistant professor at the University of Alaska Fairbanks, tackled this issue in her research on job embeddedness, job engagement, and turnover intentions—and the results may surprise firm leaders.

Firm Size and Employee Retention
Dr. Cooper’s study found that larger firms actually foster higher job embeddedness—contrary to the expectation that smaller firms create a tighter-knit culture. She speculates that larger firms may provide more specialization, career pathways, and flexibility, allowing professionals to find their niche and build long-term connections.

Job Engagement vs. Job Embeddedness
Engagement—the enthusiasm and energy employees bring to their work—was expected to be a key predictor of turnover. However, job engagement did not significantly predict turnover intentions. Instead, job embeddedness, which includes an employee’s connections within the firm and community, was the stronger retention factor.

This suggests that firms need to focus on long-term relationship-building rather than just improving day-to-day work experiences.

Key Takeaways for Firms

• Understand Individual Motivations – Retention strategies must be tailored; a one-size-fits-all approach won’t work.
• Strengthen Community and Professional Links – Encourage employees to engage with professional organizations and local communities.
• Balance Flexibility and Structure – Firms that offer work-life balance while providing clear career progression opportunities are more likely to retain talent.

Watch the episode now.