Losing new talent too soon? Is it you, them, or something else?

Early turnover within the first year is one of the most expensive and disruptive challenges an accounting practice can face, yet it often catches many practices off guard and unprepared. The impact of losing a new recruit early goes far beyond the inconvenience of restarting the hiring process.

It represents lost time, lost money, and lost momentum, especially in a profession driven by deadlines, continuity, and client relationships. But within that disruption lies an opportunity: a chance to examine what went wrong and reflect on how to prevent it in the future.

By the time a new hire settles in, the practice has already invested heavily, not just in salary, but in the entire recruitment cycle that brought them on board. Advertising, screening, interviews, reference checks, and negotiations all require significant time and resources. When a new employee leaves much sooner than expected, the practice must repeat the process from scratch, effectively doubling the cost of filling a single position.

And the financial cost is only part of the story. Once the employee starts, managers and colleagues dedicate hours to training, coaching, answering questions, reviewing work, and helping them understand systems, client expectations, and compliance requirements.

When someone departs before these efforts translate into value, that investment disappears. Relationships, momentum, and knowledge are lost, leaving the team to absorb yet another transition, often with rising frustration, particularly during peak periods such as EOFY or BAS season.

Early turnover rarely affects only the departing employee and their manager. Workloads shift, morale dips, and trust in decision-making can erode. If turnover becomes a pattern, teams may begin questioning leadership choices or the practice’s ability to attract and retain capable people. Over time, this quiet erosion of confidence can negatively impact culture more significantly than the turnover itself.

Why early turnover happens

Early turnover is often explained too simply. Many practices default to “it was just a poor fit,” but when someone leaves within the first few months, the underlying reasons are usually far more complex. Something didn’t align, whether it be role expectations, support, capability, culture, or commitment and understanding exactly what didn’t click is essential. The typical reasons are explored below.

1. Expectations: Was the role presented accurately?

A significant number of early resignations stem from a gap between what was promised during recruitment and what employees experience once they start. In accounting practices, this often relates to workload volume, client complexity, expectations around billable hours, or support availability. If the reality differs from what was described, trust erodes quickly, and once trust is compromised, retention becomes far less likely.

2. Environment: Internal barriers that block momentum

Even highly capable accountants struggle when the environment works against them. Slow internal decision-making, unclear job allocation processes, outdated systems, or limited access to client information can hinder early progress. If a new hire spends more time navigating inefficient processes than doing meaningful work, frustration builds quickly and job satisfaction takes a hit.

3. Practical readiness for a new hire

Early turnover can occur when the practice itself isn’t ready for the role it has hired for. This is common in growing practices where roles are created quickly, responsibilities aren’t fully defined, or partners have different expectations of the position. New hires may receive conflicting directions, unclear priorities, or inconsistent feedback. Sometimes the team hasn’t been properly briefed on why the person was hired, leading to hesitation to delegate work or confusion about workflow changes.

When a practice isn’t prepared from day one, whether due to unclear processes, misaligned leadership, or a lack of an onboarding structure, the friction experienced by new hires often has nothing to do with their capability and everything to do with the practice’s readiness.

4. Workload reality vs. capacity

Another common driver of early turnover is the gap between the workload a new hire expects and the workload they walk into. Even when a role is accurately described, the intensity of client deadlines, the volume of compliance work, and the expectation to quickly contribute to billable hours can be overwhelming.

Smaller practices, in particular, rely heavily on each team member, and new starters may absorb extra responsibilities before they have found their rhythm. If the workload is unsustainable or expectations unrealistic, even strong performers may conclude early that the role isn’t viable for them long-term.

5. Capability and support: Can they do the job, and are they helped to succeed?

Sometimes a new hire discovers the work requires more technical depth, software proficiency, or autonomy than anticipated. The pace or client complexity may exceed anything they’ve experienced before. Without structured support, clear expectations, and consistent feedback, early enthusiasm can turn into anxiety or disengagement.

Leaders promoted for technical excellence may lack formal people-management capabilities. When managers lack time or skills in communication, coaching, or staff development, new hires can feel unsupported and disconnected.

Culture also plays a key role. Accounting practices can unintentionally feel siloed or hierarchical. If new hires don’t feel comfortable asking questions or seeking clarification – especially about client work – engagement drops quickly.

6. Commitment: Were they ever fully invested in the first place?

Another concern commonly raised by small and medium accounting practices is the fear that new recruits may use the role as a stepping stone, absorbing systems, processes, client management styles, and industry know-how before resigning to start their own practice. While this does happen from time to time, it is usually less about intentional opportunism and more about the individual’s long-term goals not being explored during the recruitment process.

Practices often discover, in hindsight, that the new hire had entrepreneurial aspirations or a desire for autonomy that the role couldn’t meet. This is why understanding motivations, future plans, and career ambitions is just as important as assessing technical fit. When conversations about long-term goals are open and honest from the start, surprises become far less likely.

7. Sometimes it’s simply personal

Occasionally, an early resignation has nothing to do with the practice, the role, or the individual’s capability. Life circumstances change, sometimes abruptly, and new hires may need to step away for reasons entirely unrelated to work. This could include family commitments, health concerns, financial pressures, relocation, or unexpected personal events that shift their priorities. In these situations, the decision to leave is less about “poor fit” and more about timing.

While these departures are disappointing and can still carry a cost to the business, they are largely unavoidable and shouldn’t be interpreted as a failure in recruitment or onboarding. Instead, they serve as a reminder that not every exit is within a practice’s control.

Catching issues early: The power of regular 1:1 check-Ins

One of the most effective ways to prevent early turnover is through consistent, structured one-on-one conversations. These sessions create space for open dialogue, clarification of expectations, and early identification of misunderstandings. For accounting practices, they are also critical for reviewing KPI progress, workload pressure, and technical development.

Regular check-ins help managers spot early signs of concern, hesitation, confusion about priorities, reluctance to take ownership, or repeated frustration with processes. These aren’t criticisms; they’re indicators that support or clarity is needed. Without proactive conversations, these signals can stay hidden until it’s too late.

What early exits can teach you

When feedback loops break down and an employee leaves early, the exit interview becomes an invaluable diagnostic tool for accounting practices. Early departures often expose issues that long-tenured staff have learned to work around, tolerate, or normalise, especially when it comes to outdated systems, uneven workflow allocation, unclear client ownership, or the “this is just how we do things around here” mentality that develops over time.

The perspectives shared at this point can highlight misaligned expectations, onboarding gaps, cultural friction, unclear processes, or structural inefficiencies that may not be visible to those who have been in the practice for years.

To use this feedback effectively, practices need to resist the instinct to minimise, defend, or place sole blame on the employee. Instead, insights should be reviewed with a genuine intent to learn, understand, and reflect. The goal is to uncover the experience from all angles, beginning with questions such as:

Were there early warning signs? If so, what were they?

Did the new hire hesitate to take ownership of client files, repeatedly seek clarification on standard compliance tasks, or avoid asking questions because they felt intimidated? Did they appear overwhelmed by the practice’s workflow system, quiet in team meetings, slow to build rapport with colleagues, or regularly confused about billable expectations? These subtle cues, especially in an accounting environment with strict deadlines and high accuracy demands, often surface weeks before a resignation.

What part did the practice play? Honest reflection is required here. Was onboarding rushed due to workload pressure? Was the new hire given structured training on the practice’s software, systems, and client portfolio, or were they left to “figure it out” in the middle of BAS or tax season? Were regular 1:1s scheduled, and when they were, did the manager use them to explore concerns, clarify expectations, provide technical coaching, and build rapport?

Did the culture feel inclusive and supportive, or did the new hire encounter siloed teams, unclear communication between partners, or a reluctance to share client knowledge? Did internal processes – such as workflow allocation, review turnaround times, or software setup – create friction that made the new hire’s early experience harder than it needed to be?

What changes could prevent the same issue for the next hire?

Take the time to reflect deeply before recruiting again. Does the position description accurately reflect the actual workload, client mix, and busy-season expectations? Are KPIs realistic for someone in their first months, especially if they’re transitioning from another practice with different systems or standards?

Was the employee paired with a manager or partner who had the capability, capacity, and communication style to support a new starter effectively? Is there an opportunity to strengthen onboarding checkpoints, offer more structured early training, introduce job shadowing, or implement a buddy system to help new hires build confidence faster?

This reflective approach not only strengthens recruitment, onboarding, and leadership capability within the practice but also elevates the overall employee experience. When accounting practices genuinely examine what contributed to an early exit rather than attributing it to “poor fit”, they uncover insights that sharpen decision-making, improve the conditions new hires walk into, and reduce disruption to clients and teams.

Over time, these learnings compound, creating clearer expectations, stronger internal systems, and more capable leaders. Most importantly, they foster a culture where new team members feel equipped to succeed, supported during steep learning curves, and confident in committing to the practice long term.

Early turnover then becomes less of a recurring setback and more of a catalyst for continuous improvement – ensuring the workforce you build is not only technically skilled, but engaged, supported, and here to stay.

Barbara Selmer Hansen is the director of Impact Business Consulting, a HR consultancy helping businesses build stronger HR foundations, navigate challenges, and create workplaces where people and performance thrive. Barbara can be contacted at This email address is being protected from spambots. You need JavaScript enabled to view it. or www.impactconsulting.com.au