Remote work takes toll on audit leaders

By Alexandra Richter

BUFFALO, N.Y. — Remote work in public accounting firms can offer flexibility, but it can also blur the line between work and personal life, especially for audit team leaders, according to new research from the University at Buffalo School of Management.

Forthcoming in Accounting Horizons, the study examines how the abrupt transition to remote work during the COVID-19 pandemic affected accounting professionals. The researchers found that audit leaders, such as managers and partners, were the most affected because they were forced to navigate more complex communications with clients and team members and take on new technical challenges requiring greater time and judgement.

“Remote work can disproportionally harm the work-life balance of those with the greatest responsibility to deliver high-quality audits,” says study co-author, Joshua Khavis, PhD, assistant professor of accounting and law in the UB School of Management. “Without the benefit of working on-site with clients or face-to-face with their teams, audit leaders may try to compensate by increasing both the volume and depth of electronic communication.”

To assess the impact of remote work on work-life balance, the researchers analyzed more than 1,900 ratings for 20 large U.S. accounting firms on Glassdoor.com, a website where employees rate their jobs. They compared data submitted between Jan. 1, 2018, and April 30, 2021, and found that work-life balance declined for auditors overall, with a greater drop among audit team leaders.

The negative effects were less pronounced at firms and offices better equipped for remote work, including Big 4 firms and those serving more clients with foreign operations, as these environments may already have had stronger systems and processes for coordinating work across distances.

The findings offer insights for firms as they consider return-to-office and hybrid work policies. The researchers suggest rethinking staffing models, investing in engagement management technology and allowing in-person work with more flexible scheduling. And, a healthier work-life balance could be critical to maintaining a strong, long-term talent pipeline.

“While accounting firms have expressed support for initiatives that improve work-life balance, programs that support senior leaders may be particularly beneficial,” says Khavis. “Recent surveys show that junior employees list work-life balance as one of the most important factors they consider when choosing an employer. When leaders struggle to maintain balance, it signals to junior employees what their own future may look like, impacting a firms’ ability to attract and retain talent.”

Khavis collaborated on the study with Jagan Krishnan, PhD, professor of accounting at Temple University Fox School of Business; Steven Maex, PhD, assistant professor of accounting at George Mason University Costello College of Business; and Colin Tipton, PhD, assistant professor of accounting at Georgia Southern University Parker College of Business.