Tax Practice Management: impact of Millennials on CPA firms.

• Author: Cozewith, Mindy Tyson
• Position: Certified public accountant

Over the past few decades, generational differences have clearly affected the cultures and workplace environments of accounting firms. Flexible schedules, greater percentages of female hires, telecommuting, and paternity leave represent a few of the changes that are now fairly commonplace. As members of the Millennial generation continue to enter the workforce, CPA firms will increasingly need to focus on how to successfully attract, motivate, develop, and retain these individuals.

In a comprehensive 2010 survey report, "Millenniais: A Portrait of Generation Next" (available at http://pcw research.org/millennials), the Pew Research Center focuses on the values, attitudes, behaviors, and demographic characteristics of the Millennial generation, which they defined to include individuals 18 to 29 years of age in 2010. The report describes Millennials as confident, connected, and open to change. In addition to exploring pertinent findings in the report, this column discusses the impact these findings could have on the recruitment, professional development, and retention practices of CPA firms.

Confident

Though many Millennial have not yet attained the educational level of Gen Xers, they will likely evolve into the most educated generation in American history. Unfortunately, in the midst of the recent recession, this high graduation rate has failed to translate into a high employment rate. Yet, in the face of the harshest economic challenges in years, this generation's confidence remains undiminished. Although two-thirds of Millenniais report earning less money than they need to live as they would like, 88% of them still "expect to earn enough in the future to live the good life." This optimism far exceeds that of Gen Xers (ages 30 to 45 in 2010) and Baby Boomers (46 to 64) with respect to their financial futures and earning power (Pew Report, Ch. 5, p. 40).

While self-confident, Millennials do not feel they have an edge over older generations with respect to their work ethic, moral values, or respect for others. Millennials agree that older adults excel in these areas. Of the four generations profiled in the report, Millennials are the only ones who do not cite "work ethic" as one of their principal defining characteristics (Pew Report, Ch. 1, p. 6).

Connected

Immersed in technology and social media platforms, Millennials identify technology use as their generation's most defining characteristic--and for good reason (Pew Report, Ch. 1, p. 5)...