Content area
Full Text
Employee turnover is a persistent and expensive problem for public accounting firms. Turnover rates for staff and senior accountants are typically 25% per year, and each separation costs firms $4,000 to $8,000 in training and recruiting costs. The cost of losing outstanding accountants also extends to losing the value of their superior performance. While some accounting firm managers feel low levels of turnover help to keep a flow of new talent into the organization, there is no question that excessive turnover takes a severe toll, especially during peak periods. Some human resource managers use a technique called the "realistic job preview" (RJP) to reduce turnover.
What Are Realistic Job Previews?
RJPs are any method to give recruits a balanced picture of the job they are considering for employment. RJPs are typically brochures, videos, or personal presentations that inform recruits about both positive and negative aspects of the job. Positive aspects might include training and development opportunities, interacting with interesting and influential people, and the opportunity to use their acquired accounting skills. Negative aspects might include long hours during busy season, frequent travel, and repetitive tasks. Based on a complete job description, recruits form an accurate and realistic picture of the job.
The RJP approach differs from the traditional sales approach of emphasizing only positive job aspects. The traditional approach might point out that staff accountants have frequent contact with client personnel--the emphasis on working with new and interesting people. The RJP approach would add that client personnel can become frustrated with continual requests for documentation.
The staff accountant is then faced with finding a way to win their cooperation while maintaining good relations.
Realistic Job Previews--The Bottom Line
The primary benefit of using RJPs in the recruiting process is a decrease in turnover. According to S.L. Premack and J.P. Wanous in a 1985 Journal of Applied Psychology, a firm with an initial turnover rate of 50%, using RJPs should result in a turnover rate of 38%, a decrease of 12%. Firms with 25% turnover should be able to reduce their levels to between 15% and 20%. A reduction in turnover of one staff and one senior accountant...