Not Your Fathers Job: Why More Millennials Are Getting Into Accounting

Concertive control emerges when team members collectively develop their own control system . Control is negotiated and manifested through formal and informal team-based interaction, causing members to develop a shared sense of responsibility for the team’s success. Group members come to believe that they are empowered to gain compliance from other members, causing workers to conform to mutually agreed upon norms . Future investigations could examine how Millennials respond to this type of group-based control when the team is composed of heterogeneous members with regard to age, seniority, and influence. If this claim holds, they are more susceptible to this type of pressure.

Along with a base salary, many accounting firms offer employees the opportunity for bonuses, stock options, raises and more. The millennial generation tends to view the work experience differently than my generation. Millennials are interested in career opportunities that have a healthy work/life balance. They seek a flexible, non-rigid schedule and the opportunity to work remotely or from various locations, as well as business travel opportunities. The accounting profession has evolved over the years to accommodate many of these qualities, with many firms instituting generous PTO policies and flexible schedules in less busy months to accommodate staff’s personal lives. Post-pandemic, many firms now allow and often encourage work-from-home policies with the paperless office model, and don’t require a commitment to commuting to an in-person office.

Millennials, Communication, and Adversity

They’re looking for information that helps them be better caretakers of their children. In that way, I think millennials are helping Gen Alpha become more brand-loyal in their behavior. Gen Alpha is also very accustomed to being doted on by their parents. Millennial parents like to indulge and seek out the best they can afford, because they want to feel like they’re being rewarded for what they have earned in their lives.

Not Your Fathers Job: Why More Millennials Are Getting Into Accounting

It goes without saying that this is a costly challenge, not only economically but also from a knowledge transfer perspective. And where positions sit empty for too long, the pressure falls on remaining workers, whose bandwidth is already tight and their morale decreasing. 47% of CFOs believe their teams are too shorthanded to meet future industry demands. Those demands include an estimated 773,800 new jobs added to the finance and accounting marketplace by 2026. But new jobs are only part of the problem; as Baby Boomers continue to retire in droves – and with Generation X being too small to replace them – hundreds of existing roles are suddenly vacant and a wealth of knowledge is in process of being lost. The typical millennial worker isn’t the go-it-alone type; they prefer to work with others in the company, often those in other departments. Collaboration is a key tenet of work for millennials – one that may have been more difficult during the pandemic if it weren’t for their comfort with technology.

Employees are leaving these industries at higher rates. Here’s how to keep them

It’s no secret that the millennial workforce is huge – but you may not realize what kind of impact it has on your firm and your clients. Learn about this generation and how to leverage their unique talents to improve your productivity. Business owners and professionals won’t delegate because they “can’t find anyone who can do the job as well as they can.” With today’s vast electronic networks, we now have the ability to link up with the best people in the world. Some may be contractors for you, some could be employees, and some might be strategic alliances. Stop trying to do everything.Superb results come not from a single individual, but rather from teams of individuals, all working within their own distinct areas of expertise toward a shared goal or vision. You’ve heard of the rule — 80% of your meaningful results come from only 20% of your activities.

Not Your Fathers Job: Why More Millennials Are Getting Into Accounting

Instead, and as touted in popular literature, work is a less significant part of their personal identities, instrumental to supporting the lifestyle they desire . Empirical studies demonstrate that throughout their careers, many Boomers have embraced competitiveness, and have focused on climbing organizational ranks (Gursoy et al. 2008). They are the original workaholics who, even as young adults, had little notion of work-life balance (McGuire et al. 2007; Stauffer 1997). Unsurprisingly, and consistent with preceding generations, millennial accountants place a high value on work-life balance.

Invest in your firm by attracting Millennial employees

Besides the differences between sectors, the focus groups revealed some differences in age between participants in their 20s and those in their 30s. Both groups showed an enhanced desire for security and stability, but their driver and the means to acquire it varied by age group. Participants in their 20s looked for security and stability through defined career paths, growth opportunities, and organizational culture. This desire was often driven by the need for a stable paycheck and secure job with learning opportunities. Participants in their 30s looked for security and stability in organizations that provided flexibility, work-life balance, supportive leadership, and company stability. The driver for security and stability was often due to family demands and past negative job experiences, including layoffs. In terms of practice, 23 participants were in public accounting and 44 participants were in private accounting.

Millennials play a vital role in the workforce, accounting for more than one-third of American employees. They’re an ambitious group who often value transparency and work-life balance over salary and title. Millennials are also more likely to take advantage of online tools for monitoring their investments. With such tools, investors can review their portfolios anytime they desire rather than waiting for quarterly reports to arrive in the mail—and this group takes full advantage. Sixty-one percent of millennials approved of robo-advisors for investing their money.

The Future of Accounting

The message for small business owners – both those early in the business, or those preparing to start a business is that you must make a personal, daily, and continuing commitment to sales. The tax and accounting practices that reported the most success with salespeople were usually large, successful practices. If their plan allows for Roth 401k contributions, it can make sense if you believe their tax bracket will be the same or higher in retirement. This may be difficult to project, but there is a high likelihood of this for young workers currently in the 15% tax bracket (which is the case for single taxpayers whose annual income is below $37,950 in 2017). Unlike a traditional 401k, which allow for pre-tax contributions, deferrals to a Roth 401k are made with after-tax contributions.

  • Interestingly, accountants in public practice did not mention potential for growth within the organization, whereas those employed in private practice stated this was an important criterion.
  • As our advisors, we want you to know our dreams and be a step ahead in helping us make them a reality.
  • Generation Z is quite different from the generations that have come before them, but they’re also entering the workforce in massive numbers.
  • By earning and saving money, Gen Z teens will develop a greater sense of accomplishment and value for their belongings.

Professional development programs and training opportunities are additional ways that organizations can proactively attract Millennials to their finance and accounting workforce. Initiatives like these do require that leaders are genuinely interested in the goals and challenges of their workers, checking Not Your Fathers Job: Why More Millennials Are Getting Into Accounting in to receive frequent feedback and leveraging opportunities to mentor and coach young professionals. Millennials want to make a difference and understand the impact they are making in their roles; thus, nurturing a culture that can provide meaning is also key to retaining this generation of workers.

Additionally, companies who put effort into developing their company culture earn higher revenue than those that don’t. If you’re interested in learning more about company culture, read our blog post that discusses the topic in-depth here. When it’s clear an employer wants an employee to do their best, it can help motivation and in turn increase productivity. Invest in your workers and make it clear you want them to learn and gain experience from their time at your firm. Help give them educational opportunities through training, trade shows and conferences.

Not Your Fathers Job: Why More Millennials Are Getting Into Accounting

They should also be actively putting aside money for the long-term future, investing in a 401 plan or a Roth IRA account. Young adults can also make other investments, such as the stock market. Individuals are never too young to begin implementing budget strategies into their daily lifestyles. While Gen Z teenagers may not yet have jobs, their parents can model budget techniques and teach their teens to value money.

If they have a 401k, they should enter the plan as soon as they are eligible. Some plans impose a one year wait, but many plans today allow employees to enter sooner (i.e., immediately, 3 months). Once you click “continue,” you will be brought to a third-party website. Please be aware, the privacy policy may differ on the third-party website.

Which countries need accountants?

  • Romania. Since the fall of communism in December 1989, Romania has undergone dynamic changes.
  • United Arab Emirates.
  • Singapore.
  • Malaysia.
  • China and Hong Kong.
  • Australia.
  • Mauritius.
  • Vietnam.

Gallup pegs the turnover cost to the economy at $30.5 billion annually. If your business doesn’t want to add to that figure, it is important to understand the ways to keep millennial workers happy, whether they are in the office or working from home. Managing millennials in the workplace requires business owners to be transparent, flexible and willing to embrace technology. Still, this is not the case for all millennials and their families. Some of them used retirement accounts when they lost their jobs during the pandemic, which impacted employment and housing for millions of Americans. Even if you’re planning to work throughout your life, you still need to save for retirement; you also need a safety net in case you can’t work forever because of illness or disability—or because you’re pushed out of your job and can’t find another.