Competing for Talent: Understanding the Recruiting Challenges and Strategies of Small Accounting Firms

51 Pages Posted: 6 Jan 2025

See all articles by Kenneth L. Bills

Kenneth L. Bills

Michigan State University - Department of Accounting & Information Systems

Christie Hayne

University of Illinois at Urbana-Champaign

Sarah E. Stein

Virginia Tech

Date Written: December 05, 2024

Abstract

Recruiting talent is a major issue for the accounting profession and is particularly salient for small accounting firms with limited resources and brand recognition. In this study, we investigate the challenges faced by small accounting firms when recruiting from universities and their strategies for overcoming these challenges. Drawing on interviews with 30 individuals directly involved with recruiting at 22 small firms, we create a process model of small firm recruiting and present evidence related to each phase of the model (i.e., developing organizational familiarity, image, and legitimacy). Consistent with theory, our findings indicate that small firms adopt a combined strategy of emphasizing their distinctiveness to discerning job candidates through strategic use of peripheral and central communication while also adopting certain practices of larger firms to establish their legitimacy. We conclude with a discussion of respondents’ perceptions of recruiting success including the quality-related implications of small firms’ recruiting approach. 

Keywords: small accounting firms, recruiting, field study, peripheral communication, central communication, organizational familiarity, organizational image, organizational legitimacy

JEL Classification: M12, M41, M42, M51

Suggested Citation

Bills, Kenneth L. and Hayne, Christie and Stein, Sarah E., Competing for Talent: Understanding the Recruiting Challenges and Strategies of Small Accounting Firms (December 05, 2024). Available at SSRN: https://ssrn.com/abstract=5045513 or http://dx.doi.org/10.2139/ssrn.5045513

Kenneth L. Bills

Michigan State University - Department of Accounting & Information Systems ( email )

270 North Business Complex
East Lansing, MI 48824-1034
United States

Christie Hayne

University of Illinois at Urbana-Champaign ( email )

1206 South Sixth Street
Champaign, IL 61820
United States
540-300-4577 (Phone)

Sarah E. Stein (Contact Author)

Virginia Tech ( email )

250 Drillfield Drive
Blacksburg, VA 24061
United States

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