Breaking the mold: Retention strategies for generations X and Y in a prototypical accounting firm

The success of Canadian accounting firms depends on their ability to adapt their long‐standing HR structures and HRD practices to meet the expectations of today's workforce. Generational identity theory and theory explaining employee expectations informed our analysis of a multi‐method (interviews and appreciate inquiry workshops) case study which employed an action research approach. Data were collected from 36 Gen X and Y knowledge workers who were part of the firm's talent pool to determine how closely the work and career expectations of today's (i.e., Generation X and Generation Y) accountants align to the prototypical HR structures and practices of professional partnership (P2) accounting firms. Three main contributions arise out of our qualitative analysis. First, it contributes to generational identity theory by providing a comparison between Generation X and Y in terms of their career and work expectations. Second, it demonstrates why firms with traditional practices and structures may be having difficulty retaining talent in today's labor market. Third, it provides evidence as to why prototypical accounting firms need to change and suggestions on how they can change their HR practices and HRD strategies to enhance retention and better meet the expectations of today's workforce.