Fixing Turnover and Capacity Problems Inside Growing Accounting Firms with Erin Daiber

Growing accounting firms often misdiagnose turnover and capacity issues. Erin Daiber explains why these problems usually start at the partner level, how trust breakdowns create hidden churn, and what firms must fix first before hiring or offshoring. The firms that stabilize fastest focus on leadership alignment, clear expectations, and disciplined workflows.

Why Turnover Spikes in Growing Accounting Firms

When accounting firms lose multiple team members in a short period, leaders often assume the issue is training, compensation, or workload. According to Erin Daiber, that assumption frequently misses the real cause.

She explained that when firms come to her after losing key people, the first question she asks is simple and uncomfortable: what actually happened. Exit interviews rarely tell the full story, especially when people are already burned out and emotionally checked out.

Instead of relying on surface-level explanations, her team goes directly to the source by interviewing team members at every level, from administrative staff to partners. This allows firms to identify the root cause instead of treating symptoms.

The Hidden Cost of Partner Misalignment

One of the most damaging patterns Erin sees is misalignment inside the partner group. Firms may believe they have a manager training problem or a senior development issue, when in reality trust has broken down at the top.

She shared an example of a firm that lost an entire class of seniors in a single year. Leadership believed the solution was better manager training. After conducting firm-wide interviews, Erin discovered the real issue was a lack of trust among partners, combined with private disagreements leaking into the broader team.

When partners appear aligned publicly but disagree privately, staff quickly sense the inconsistency. Policies feel unfair, communication becomes unreliable, and people leave rather than fight a system they cannot influence.

Why Training Alone Does Not Fix Cultural Problems

Training programs cannot fix cultural fractures that start at the partner level. Erin is clear that any transformation must begin with leadership behavior, not downstream processes.

Before implementing new systems or training managers, firms must first determine whether partners are willing to do the hard work. That sometimes means addressing uncomfortable truths or even letting go of high-performing rainmakers who damage the culture.

Erin explains this boundary clearly to clients: if leaders are unwilling to make difficult decisions in service of the firm’s future, meaningful change is unlikely.

Real transformation requires:

• Alignment on values and decision-making

• Clear policies applied consistently

• Psychological safety within the partner group

• Accountability for both words and actions

How Long Cultural Turnarounds Really Take

Cultural repair is not quick. Erin emphasized that firms often underestimate the time required to rebuild trust and stabilize teams.

In cases involving deep partner misalignment, meaningful progress can take at least 18 months of focused effort. This includes offsite partner retreats, facilitated conversations, and structured processes for healthy conflict.

The key principle is consistency. Teams watch leadership behavior closely, and credibility is rebuilt only when actions match stated intentions over time.

Psychological Safety as a Practical Tool

To help partners and managers speak openly, Erin often introduces the concept of psychological safety. Rather than treating it as an abstract idea, she uses assessments to make the conversation practical and less personal.

These assessments help individuals understand what they need in order to speak up and disagree productively. This creates a neutral starting point for conversations that might otherwise feel confrontational.

In addition, Erin uses coaching and role-playing to help leaders prepare for moments of disagreement. Practicing how to raise objections and manage discomfort allows people to respond differently in real meetings instead of defaulting to silence.

Why Capacity Problems Are Rarely About Hiring

When client demand outpaces capacity, firms often jump straight to hiring or offshoring. Erin cautions that this is usually not the fastest or most effective solution.

Capacity issues often come from internal bottlenecks, such as:

• Managers fixing work instead of sending it back

• Undefined or inconsistent processes

• Poor scope control with clients

• Weak feedback loops between preparers and reviewers

One of the most common patterns Erin sees is work flowing upward and getting stuck with managers who are uncomfortable giving feedback. This creates review bottlenecks and exhausts leadership.

Before adding headcount, firms should examine how work actually moves through the firm and where it slows down.

The Role of Pricing and Scope Control

Pricing is closely tied to capacity, even when firms do not realize it. Underpriced work increases workload without improving profitability, making it harder to hire or invest in systems.

Erin recommends reviewing fees as an early lever because pricing adjustments can reduce workload while maintaining or improving revenue. Combined with tighter scope control and clearer client expectations, this often creates faster relief than staffing changes.

Staying Independent in a Consolidating Industry

As private equity and mergers reshape the accounting landscape, Erin works with many firms that want to remain independent. Her guidance is straightforward: the work required to stay independent is the same work required to build firm value.

That means focusing on:

• Efficient, documented processes

• Strong technology integration

• Leadership development and internal succession

• Consistent profitability aligned with market standards

Firms become most vulnerable when succession planning is delayed. Normalizing conversations about exit paths, even years in advance, reduces risk and preserves optionality.

Building Firms That Can Absorb Change

Whether a firm plans to sell, merge, or stay independent, the same foundation applies. Leaders must shift from working in the business to working on the business.

As Erin summarized:

That value comes from trust, clarity, and systems that do not rely on heroics from a few exhausted people.

How Jetpack Workflow Supports These Changes

Many of the issues Erin describes surface when work visibility breaks down. Firms struggle to see where work stalls, who owns what, and when deadlines slip.

Jetpack Workflow helps accounting firms document processes, assign accountability, and create consistent visibility across engagements. By clarifying workflows and expectations, firms reduce bottlenecks and support healthier delegation as they grow.

Frequently Asked Questions

What causes high turnover in accounting firms?
Turnover is often driven by leadership misalignment, lack of trust, unclear expectations, and unmanaged workloads rather than compensation alone.

Why do capacity problems persist even after hiring?
Capacity issues frequently come from internal bottlenecks, inefficient reviews, and poor scope control rather than a lack of staff.

How long does cultural change take in accounting firms?
Deep cultural change typically takes 12 to 18 months of consistent leadership alignment and behavior change.

Can firms stay independent despite private equity pressure?
Yes. Firms that invest in leadership, succession planning, and operational discipline are better positioned to remain independent.

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