10/13/2026
Why Representation and Retention Matter in Accounting
Rani Hoitash, John E. Rhodes Professor of Accounting at Bentley University, alongside co-authors, published a study in The Accounting Review exploring how race, ethnicity, and gender shape career paths in public accounting, using employment data from over 100,000 auditors.
The accounting profession faces a critical talent pipeline challenge, with early-career auditor turnover averaging roughly 19% annually. While public accounting firms have successfully increased diversity among entry-level hires, the research finds that racial and ethnic minority professionals depart these firms at a significantly higher rate, highlighting a major retention hurdle on the path to leadership.
The research provides data-driven evidence that representation is the key to retention. The study reveals that diverse professionals are significantly less likely to leave when they work alongside peers and leaders from similar backgrounds. As firms look to solve the human capital shortage, this research highlights the tangible, mutual benefits of building and advancing a truly diverse workforce at all levels.
You can download the full paper at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4488379
