Addressing the silver tsunami in the accounting industry

Brian M Dorr,Shannon L Feuerhelm

doi:10.1108/jwam-11-2020-0049

Brian M Dorr, Shannon L Feuerhelm

Open Access

https://doi.org/10.1108/jwam-11-2020-0049

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Abstract

PurposeAs Baby Boomers continue to retire, organizations should have plans in place that successfully execute this transition. Some industries, such as accounting, are unique in that there is specialized knowledge required by employees, including education and work experience. This study examines what accounting organizations are doing to manage this transition. The research question posed is as follows: How are organizations in the accounting industry addressing anticipated retirements?.Design/methodology/approachThis is a qualitative study that is interpretive. In order to answer the research question, six managers who are involved in the hiring process at accounting organizations of varying sizes were interviewed. Semi-structured interviews were conducted and coded using the software program, Dedoose, in order to develop themes that addressed the research question.FindingsBy conducting semi-structured interviews that focused on efforts related to this issue, it was found that accounting organizations are focusing on three aspects related to the research question: Accounting firms are focusing on (1) culture, (2) knowledge and (3) transition as they lead their organizations through this time.Practical implicationsThis research project provides insight into how some accounting organizations are managing issues related to increasing retirements. By knowing how other organizations are handling these issues, accounting organizations can use this knowledge to prepare, themselves, for anticipated retirements. This knowledge is also valuable in other fields that provide professional services (e.g., medical and legal).Originality/valueThis topic has not been fully explored in the accounting industry. The findings of this study are useful to accounting firms, world-wide, as well as to organizations in other professional services fields, world-wide. This research could be further explored in other professional services organizations, such as the health and legal fields.

Highlights

This study examines what accounting organizations are doing as they navigate through this transition
Research question In order to better understand this situation and gain important perspectives on how this issue is being addressed, we asked the following research question: How are organizations in the accounting industry addressing anticipated retirements? We interviewed six professionals in the accounting industry who are involved with the staffing processes in their organizations to help answer this research question
Research methodology Research design This research study was designed to capture insight from those who know the accounting industry best: professionals who work in the accounting industry and who are involved in the staffing process for their organizations

Summary

Introduction

Though, the industry relies heavily on practitioner-based knowledge. Since accounting relies significantly on experience in the field, the industry, as a whole, could see a decline in its knowledge base when many experienced practitioners retire within a short period of time due to Baby Boomer retirements. This issue has been referred to as “The Silver Tsunami” in the business world (Cruce and Hillman, 2012). As experienced accounting professionals retire, organizations should have plans in place to help lead them through this transition. It is to the benefit of many human resource professionals to see what others are doing as they prepare for this transition

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