Representation and Retention: New Study Explores Career Paths in Accounting
As corporate America questions the future of diversity, equity and inclusion initiatives, new research from Bentley’s Rani Hoitash, John E. Rhodes Professor of Accounting, and Eric Krause, PhD ’25 offers clear evidence of why they matter.
In a study published in The Accounting Review, Hoitash, Krause and their co-authors examine how gender, race and ethnicity shape careers in public accounting. Using employment data from LinkedIn, they analyzed the work histories of more than 100,000 auditors who began their careers in large U.S. firms. Their data captured not only when employees left, but also demographic details of the organizations they joined next — allowing them to draw a connection between workplace diversity and departure decisions.
Accounting’s Big Retention Problem
Retention is a longstanding issue in the public accounting industry. With long hours and tight deadlines, burnout can be common among early-career employees. Annual turnover rates among auditors average 19% — nearly double the rate (10.5%) of other professional services. This is cause for concern, Hoitash notes, since research consistently finds that higher turnover is linked with lower audit quality.
While auditors leave for various reasons, workplace culture can be a major factor — especially for younger workers, who prioritize working for equitable and inclusive organizations. In recent years, the nation’s largest audit firms have invested millions in DEI initiatives to attract and retain diverse talent. These efforts have increased diversity among entry-level hires but have had little effect on the C-suite: Roughly 80% of senior leaders are white and 60% are men.
The Study’s Findings
As Hoitash and Krause’s study shows, this lack of leadership diversity can influence the departure decisions of women and auditors of color. “Underrepresented employees may see this as a sign that growth opportunities are limited, fueling concerns about fairness and equity,” Hoitash says.
Among their key findings:
Racially and ethnically diverse auditors left their firms at higher rates than white peers.
Women in the study stayed slightly longer than men, but differences across race and ethnicity were striking.
Asian auditors were 16.8% more likely to leave their firms than white peers, Hispanic auditors 23.9% more likely and Black auditors 28.8% more likely.
Racially and ethnically diverse auditors were more likely to remain in public accounting.
More than 90% of auditors in the sample moved on to jobs with private companies. Fewer than 10% chose to work for other public accounting firms — but those who did were disproportionately auditors of color.
Black auditors were 11% more likely to choose another public firm, Hispanic auditors were 14% more likely and Asian auditors were 15% more likely.
According to Hoitash, “This suggests that individuals are leaving because of perceived barriers in their current firm, as opposed to a desire to leave the audit profession altogether.”
Women and auditors of color are more likely to seek new jobs with more diverse organizations.
LinkedIn data allowed researchers to see where auditors went next — and how the diversity of those new workplaces compared with the firms they left.
They found that women and auditors of color were more likely to choose organizations with greater diversity, particularly those with more visible representation from their own gender or racial/ethnic group.
Leadership Diversity
Together, these findings show that peer presence and leadership diversity are critical factors in addressing turnover among diverse employees. “When auditors see colleagues and leaders who share their gender or racial background, they’re more likely to stay,” Hoitash explains. “Representation and retention go hand in hand.”
Because promotion to partner level requires at least a decade of audit-specific experience, firms need to commit to supporting diverse employees in the early stages of their careers, he says. Mentoring and networking programs that connect peers and leaders with shared identities can foster inclusion and create clear pathways for advancement.
The study comes at a critical time, as U.S. firms scale back their DEI initiatives amid legal and political pressures. Hoitash and Krause’s findings offer a clear message for firms navigating a competitive talent market: Strengthening diversity at every level not only improves equity but also helps build the experience and leadership pipelines essential to the profession’s long-term success.