A Case Study On Turnover Of CD Accounting Firm

Along with rapid economic growth in the last decade since China’s reform and opening up, the number of SMEs have gradually increased and continue to grow. With the growing number of economic entities, the demand for professional accounting services is also increasing accordingly, accounting services market is extending on the daily base as well. Big four international accounting firms have also entered the Chinese market for their development, but comparing with high expense charged by those Big Four Transnational consulting company eg PWC, Deloitte, local accounting firm who can give equal service is more favored to those SMEs.Accounting Firm is belonging to knowledge-oriented enterprise, its productivity is mainly from professional knowledge and ability of the accounting staff. Attracting, training and keep of talents are competitive ability and resources assurance for long term development of accounting firm. So the talent competition is main ccompetitiveness for accounting firms, it is resulted in the strategy of "highly paid to hire" to used for "high salaries to attract" strategy to vying talent in most of accounting firm. It is import task, for middle and small local accounting firm at the starting point, that how to use salary to attract talent and motivate talent to continuously serve the company, under comparatively weak financial abilityIn recent years, there are frequency personnel turnover in different departments of CD accounting firm. Especially the brain drain in important position, bring lots confusion to management and client. The first import issue accounting firm facing now is that how to keep, manage and motivate accounting professionals. In this paper, it analyses the case study of brain drain faced by CD accounting firm and dissecting the reason that lead to personal leaving, referring research result about salary theory and motivation system of scholars at home and abroad, and salary regulation in other similar company in same industry, using theory of salary management, equality theory of incentive management and career planning. This paper is given a proposal to establish incentive salary system to strengthen internal management and improve the appraisal system. Hope it gives a reference to CD accounting firm about human resource management and development.