How small firms can compete in the talent game
Editor’s note: Small firms frequently turn to Stephanie Otero, CPA, the AICPA’s small firm advocate, with questions. In this column, she shares practical guidance on talent recruitment and retention.
Q. My firm can’t compete with the compensation packages larger firms can offer recruits. How can I still attract and retain talent?
A. Large firms often have bigger recruiting budgets, more structured training programs, higher starting salaries, and more extensive benefit packages than small firms do. Compensation matters. We should never pretend it doesn’t. Everyone wants to be paid fairly and feel valued for the work they do.
But today’s professionals, especially younger ones, are looking for more than a paycheck. They want exposure early on to meaningful client work and a broad range of experiences; close relationships to leadership, including partners; flexibility in work arrangements, scheduling, and accommodations for personal needs, such as appointments and childcare; and a workplace culture that is personalized and gives them a sense of belonging. These are areas where small firms often outperform their larger counterparts.
In many small firms, employees don’t have to wait years to make meaningful contributions. They often interact directly with clients early on. They contribute ideas during team discussions. They see challenges firsthand and often have an opportunity to help create solutions. Their work isn’t hidden behind layers of management. They can see the impact they are making in real time.
Recognition also matters. Everyone wants to know their efforts are appreciated. In a small firm, leaders often have more opportunities to recognize accomplishments, celebrate successes, and acknowledge the contributions each person makes to the team. That sense of appreciation can have a significant impact on employee satisfaction and retention.
A strong culture built on trust, communication, and mentorship can become a powerful recruiting and retention tool for small firms. I’ve spoken with many professionals who chose to stay at a firm not because it offered the highest salary, but because they enjoyed the people they worked with, and they felt supported in their professional development.
Flexibility is another area where small firms can shine. Whether it’s remote work options or a greater ability to accommodate personal commitments, small firms are often better positioned to adapt to employee needs. For many professionals, particularly those balancing family responsibilities, that flexibility can be just as valuable as a larger paycheck.
Small firms can also gain an advantage through technology. Young professionals expect firms to invest in tools that help them work efficiently and reduce repetitive tasks. Firms that embrace automation, workflow improvements, and artificial intelligence (AI) send a message that they are focused on the future and committed to helping employees spend more time on meaningful work rather than administrative tasks.
Unlike larger organizations, which may require multiple layers of approval before new technologies can be tested or implemented, small firms are often able to move quickly. Staff members may have the opportunity to research new tools, pilot applications, experiment with AI, and help shape the firm’s technology strategy. For many young professionals, that level of involvement is exciting.
Small firms should consider making technology part of their recruiting strategy. They should highlight opportunities for employees to test emerging technologies, participate in AI initiatives, and bring new ideas to the table. For candidates who are eager to innovate and develop future-ready skills, the ability to have a direct impact on technology adoption can be a powerful differentiator.
Perhaps most importantly, small firms need to communicate the opportunities they provide. When recruiting, highlight what makes your firm unique. Although larger organizations may offer more resources and structure, small firms can offer something just as powerful: the opportunity to contribute, grow, and make a meaningful impact from day one.
About the author
Stephanie Otero, CPA, is vice president—Small Firm Advocate at the AICPA. She can be reached at SmallFirms@aicpa-cima.com. To comment on this article or to suggest an idea for another article, contact Jeff Drew at Jeff.Drew@aicpa-cima.com.
LEARNING RESOURCES
Stay ahead on issues shaping small CPA firms and earn one CPE credit. This webcast, free for AICPA members, offers insights on staffing, technology, compliance, and practice management, equipping firms with strategies to thrive.
Dec. 17, 2–3pm ET
WEBCAST
Firm practice management will be on the agenda at the biggest event in the accounting profession. Scan the QR code or go to aicpaengage.com.
June 7–10, ARIA Resort & Casino, Las Vegas
CONFERENCE
For more information or to make a purchase, go to aicpa-cima.com/cpe-learning or call 888-777-7077.
MEMBER RESOURCES
AICPA Private Companies Practice Section (PCPS) community
PCPS members are invited to join the PCPS Engage365 community. Whether you’re navigating firm management, exploring new technologies, or supporting your team’s development, this is your place to connect and grow together.
Brochure
