Recruiting (and Retaining): The Next Generation Accountant: One University's Experience

[ILLUSTRATION OMITTED] EXECUTIVE SUMMARY * The demand for qualified accounting graduates continues to exceed supply; demand is expected to continue growing. * Universities are increasingly concerned with retention of college students as they face projections of declining numbers of 18- to 24-year-olds. * A plan to recruit and retain accounting majors throughout a five-year program is presented. * Key features include early involvement in campus activities and with faculty, numerous opportunities for interactions with accounting professionals, and increased student-to-student mentoring. ********** What attracts students to accounting? Is it the appeal of social and forensic accounting in a post-Enron world? Is it the allure of big money? Or is it simply supply and demand? When it comes to attracting students to the accounting profession, faculty in university accounting departments face pressures from two sources: the accounting profession, which continues to demand more qualified accounting graduates; and university administrations, which want to increase enrollment. As a result, turning out well-qualified accounting majors in increasing numbers is of great importance to academia and the profession. More resources are being committed to recruiting accounting students and seeing them through to graduation. [ILLUSTRATION OMITTED] This article examines the successes (and challenges) of the accounting faculty at Ohio's Kent State University as we explore ways to recruit and retain talented students in our accounting programs from freshman year to completion of a master's program. The financial constraints of higher education in our state have motivated us to develop solutions that are either cost-neutral or depend on outside funding to help attract larger numbers of well-qualified accounting majors. [ILLUSTRATION OMITTED] SUPPLY AND DEMAND FOR QUALIFIED ACCOUNTING GRADUATES According to AICPA President and CEO Barry Melancon the pipeline of qualified students is one of the four forces shaping the CPA profession today. Although interest in accounting careers has increased (the number of accounting degrees awarded increased 19% from 2000-2005), Melancon says the current demand for highly qualified students still exceeds supply, and this trend is expected to continue in the foreseeable future. He adds that about 73% of current AICPA members will reach or approach retirement age in the next 15 years. On the supply side, the U.S. Census Bureau projects the number of collegeage students (18- to 24-year-olds) will peak in 2010 and then decrease through at least 2020. In states including Ohio, Michigan, Pennsylvania and New York these declines are expected to continue beyond 2020. Faced with these numbers, universities are focusing on ways to increase student retention. Research has shown that the following student characteristics and experiences tend to increase retention: * Higher academic performance and achievement. * Social and intellectual integration into the university * Institutional commitment through residential life, classroom experiences, and faculty interaction. * Early commitment to a major. * Voluntary involvement in freshman orientation courses. Our university has seen substantial growth in the number of pre-accounting (freshmen and sophomores) as well as accounting majors in recent years (see Exhibit 1). Although this trend is certainly welcome, we are still faced with the challenge of attracting the best-qualified students to accounting. And, once attracted to the program, we need to retain them through the 150 semester credit hours required to take the CPA examination in Ohio. Traditional four-year undergraduate programs generally require approximately 120 semester credit hours, so the 150 credit hour requirement means that students will need to add another year to their educational experience (Ohio does not require a graduate degree) as we do not recommend students try to take the entire requirement in a four-year curriculum. …