Accounting Firms Vulnerable to Turnover by People of Color
Deepali Bagati
Catalyst, July 2007
According to the Catalyst study Retaining People of Color: What Accounting Firms Need to Know, approximately 50 percent of people of color in the accounting industry who were surveyed do not feel obligated to stay with their current firm, and nearly one-third of women of color in the study were at risk of leaving within the year.
This report, the first report in Catalyst’s Women of Color in Professional Services Series, offers insights into the unique barriers facing women of color in the workplace and suggests action steps for senior leaders, human resources and diversity professionals, and managers to build awareness and more understanding regarding the experiences and perceptions of women and men of color.
In order to address why people of color are at risk of leaving accounting firms, the report examined key factors that "push" people of color, particularly women of color, out of their firms. One primary issue cited includes the imperfect execution of a firm's commitment to diversity. The study found that there is a perceived disconnect between a firm's commitment to diversity and the execution of the practices that support that commitment. This disconnect is clearly noticed by women and men of color, and it is clear that diversity policies aren't filtering down to racial and ethnic minority groups as effectively as they should.
Although employers have little impact on pull factors that lead individuals to leave organizations, such as offers of high-paying jobs at other firms, employers can help retain their workforce by focusing on the push factors that frequently stimulate employees to leave. The study recommends actions steps including assessing the work environment to determine the systemic and cultural factors that impede the progress of people of color; holding managers accountable for retention and advancement of women and men of color; and communicate and demonstrating your firm's commitment to diversity.
