Good morning!
America has an accountant problem. More than 300,000 accountants have left their jobs in the last two years, and fewer are taking the examination required to become a CPA.
As such, accounting firms, large and small, are experimenting with how to attract and retain an increasingly sparse talent pool.
In August, BDO USA, the U.S. member firm of the BDO International accounting network and sixth largest accounting firm in the country, announced the formation of an employee stock ownership program (ESOP), granting more than 10,000 eligible employees part ownership of the firm.
Through the program, BDO will invest an extra 10% of employees’ salaries annually into an allocation account, which workers can access upon retirement. The aim is that employees will be motivated to stay with BDO longer—including those who aren’t looking to make partner—since the plan has a six-year vesting period, and the longer a worker stays at the firm and contributes to the program, the more money with which they will retire.
“Many people coming into the profession today…they’re not necessarily looking to work 12, 13 years before they make partner in the firm,” says Wayne Berson, CEO of BDO USA. “This allows us to create something that’s called beneficial interest, where they get an interest in the firm’s future profits. The more the firm makes, the more we’ll likely payout to employees in an additional allocation.”
Berson may just be on the right track, as ESOP companies tend to see lower turnover and higher employee performance than companies without such plans.
However, the stock ownership program isn’t the only way BDO addresses the accountant shortage. The firm aims to double its offshore workforce to 5,000 people over five years and offers benefits to boost employee retention, such as allowing teams to set their own hybrid work policies.
“There’s no silver bullet” to driving retention, says Cathy Moy, BDO’s chief people officer. But she believes the investment plan is an important piece of the puzzle to attract and hold onto top talent.
Paige McGlauflin
paige.mcglauflin@fortune.com
@paidion
Reporter's Notebook
The most compelling data, quotes, and insights from the field.
Fortune released its ninth annual Change the World list last week, showcasing 50 companies with a significant social or environmental impact this year.
Included on the list are some companies that are making an impact within their workforces, including Walmart's Live Better U program, which supports hourly-wage workers’ career growth by supplementing their education costs, and Abbott Laboratories, which matches employee student loan payments with a 401(k) match. Look through the complete list here.
Around the Table
A round-up of the most important HR headlines.
- The U.S. Equal Employment Opportunity Commission filed a lawsuit against Tesla last Thursday, alleging it allowed widespread racial harassment of Black employees at a Freemont, Calif. facility. Washington Post
- During periods of economic downturn, job applicants prefer the security of large, established companies over startups. Harvard Business Review
- Baggage handlers, pest-control specialists, and welders are more likely to suffer workplace injuries than those working traditionally dangerous jobs like boilermakers or wellhead pumpers. The reason? Employees take more safety measures when they know their job is dangerous. Wall Street Journal
- Over 60,000 hospitality workers in Las Vegas voted almost unanimously to support a strike against the city’s major resorts. It's a show of force in their fight for higher wages and better safety measures. New York Times
Watercooler
Everything you need to know from Fortune.
Return to home. Childcare funding from the 2021 American Rescue Plan ran out over the weekend, removing essential support for working parents. With more than 3 million children expected to lose care without the funding, mothers may be forced to exit the workforce to take care of their kids.—Chloe Berger
Raising the bar. Fast-food workers in California will see their minimum wage jump from $15.50 to $20 thanks to a new law signed by Gov. Gavin Newsom last Thursday. The industry’s new minimum wage, the highest in the country, will take effect next April. —Adam Beam, AP
Swipe surveillance. BNP Paribas is the latest in a wave of employers monitoring employee badge swipes. London-based employees are the only ones under badge surveillance for now. —Ryan Hogg
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