A Contemporary Analysis of Accounting Professionals' Work-Life Balance

Abstract

SYNOPSIS In recent years, work-life balance surpassed compensation as the most important job satisfaction factor among AICPA members (American Institute of Certified Public Accountants [AICPA] 2004). Despite the continued importance of this issue in the accounting profession (AICPA 2011), prior research has not examined work-life balance perceptions across different segments of the profession. We survey 1,063 practicing CPAs in order to assess the comparative work-life balance perceptions across (1) Big 4 versus smaller public accounting firms, (2) audit versus tax functions, and (3) public accounting versus industry work contexts. Consistent with predictions based on institutional logics theory, we find that work-family conflict and job burnout perceptions (our proxies for work-life balance) are highest in the Big 4. We are the first study to measure both support-for and viability-of traditional alternative work arrangements (AWAs), and we report an important distinction between these two constructs. Specifically, while CPAs across all public accounting firms (i.e., Big 4, national, regional, and local firms) report similar levels of organizational support-for AWAs, Big 4 professionals report significantly lower perceived viability-of AWAs (i.e., the ability to use AWAs and remain effective at one's job) compared to accounting professionals at smaller public accounting firms. Further, we find no differences between audit and tax professionals' perceptions across any of our work-life balance measures. We also document nuanced differences regarding work-life balance perceptions in public accounting versus industry. For example, contrary to conventional wisdom, work-life balance is not uniformly “better” in industry (e.g., burnout is actually lower in smaller public accounting firms compared to industry). Finally, we use open-ended responses from a follow-up survey to provide several recommendations for firms to improve their work-life balance efforts.

Auditor Perceptions of Audit Workloads, Audit Quality, and Job Satisfaction

“…As early as 1982, Maslach asserted that organizations should be cognizant of burnout symptoms among employees because there is often a negative relationship between burnout and performance (Maslach 1982). A number of studies have found that excessive workload can cause employees to experience burnout -emotional exhaustion, depersonalization, and reduced personal accomplishment (Rose 1983;Sanders 1998;Fogarty et al 2000;Almer and Kaplan 2002;Sweeney and Summers 2002;Jones, Norma, and Wier 2010;Herda and Lavelle 2012;Buchheit et al 2016). McKee (2014) explains that negative emotions experienced at work, often associated with burnout, lead people to not "process information as well, think creatively, or make good decisions.…”

“…However, while role conflict was found to be significantly lower among CPAs under a flexible work arrangement, neither role ambiguity nor role overload was significantly influenced by flexible work arrangements. In addition, Buchheit et al (2016), in a study examining accounting professionals' work-life balance, find that while audit, tax, and industry accountants report similar levels of support for alternative work arrangements (AWAs), Big 4 professionals report significantly lower perceived viability of these arrangements.…”

Does Work-Family Conflict Affect the Auditor’s Performance?: Examining the Mediating Roles of Emotional Exhaustion and Job Satisfaction

“…But instead of getting this support, some people may demand they prioritize their family time. This unsupported condition also causes an imbalance between their work and family responsibilities (Buchheit et al 2016). In other words, the work-family conflict exists in two dimensions, that is when work is interfering with family responsibilities and/or the family is interfering with work responsibilities (Pasewark and Viator 2006;Beutell 201).…”

The Work Environment in Large Audit Firms: Current Perceptions and Possible Improvements

“…Thus, there are concerns about the day-to-day workload and the predictability of one's schedule. Buchheit, Dalton, Harp, and Hollingsworth (2016) examine work-life balance and alternative work arrangements (i.e., flextime, part-time work, telecommuting, and compressed workweeks) in public accounting and industry. They find that work-life challenges are most acute in the Big 4 firms.…”