Staffing Interview With Paul McDonald Of RHI Management Resources.

• Author: McDonald, Paul

Q: What does the younger, recently graduated CPA want?

PMcD: What we've seen is that they want a broad base of experiences early on so they're not pigeonholed into one area of practice. In the past, a CPA would have settled into a practice, become an absolute expert over six to eight years--maybe a decade--make partner, and so on. What we're seeing today is they want to be business people, and they'll make a move if it's going to broaden their skills base. CPAs of the past would have worked for only two or three practices. CPAs today believe that they have to move to get another opportunity because firms don't identity their need for intellectual stimulation and new practice experiences. CPAs feel compelled to move because they're on a track and they don't see a turn in the road to broaden their skill set. I think that's number one, and I think that's true in many companies. It's not just the CPA firms.

Q: So, they are moving to find employers who can provide hands-on training. What else?

PMcD: Well, there are also the financial considerations. In the current hiring environment--and at least for the last two or three years--with each move, recently graduated CPAs can get a substantial raise and sign-on bonus. The vanity of additional money, bonuses, and of someone wanting you is pretty powerful. I would say the prime target for most companies outside of CPA firms would be the three-to-five or five-to-seven-year CPA who can come in as a business partner. They're prime targets for a company that wants to bring in a top financial mind at the controller or assistant controller level and grow them. So, companies have become much better and more aggressive in recruiting. And they will throw in options and other financial inducements. So, that's the other reason CPAs might change jobs: It's also the quickest way to get a raise.

Q: So, CPA firms are competing with these companies right now?

PMcD: Absolutely. I think that the three-to-five-year CPA who has been out on audit or tax engagements and has made a positive impression with the business community and clients is very attractive to corporations. They become prime targets. So, the exposure and background generated by their work creates a retention issue in itself.

Q: What other reasons entice CPAs to switch to industry?

PMcD: For some time, a major reason was flexibility. In accounting, it's a known that you're going to work extensive hours. You know many CPAs think it looks bad not to put in...