South African Journal of Accounting Research

ISSN: 1029-1954 (Print) 2376-3981 (Online) Journal homepage: https://www.tandfonline.com/loi/rsar20

Retaining newly qualified chartered accountants:

A South African case study

Nabeelah Daniels & Riyaan Davids

To cite this article: Nabeelah Daniels & Riyaan Davids (2019): Retaining newly qualified chartered
accountants: A South African case study, South African Journal of Accounting Research, DOI:
10.1080/10291954.2019.1638590

To link to this article: https://doi.org/10.1080/10291954.2019.1638590

Published online: 14 Aug 2019.

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South African Journal of Accounting Research, 2019
https://doi.org/10.1080/10291954.2019.1638590

Retaining newly qualified chartered accountants: A South African

case study
Nabeelah Daniels
College of Accounting, University of Cape Town, Cape Town, South Africa

Riyaan Davids*
College of Accounting, University of Cape Town, Cape Town, South Africa

(Received 8 March 2019; accepted 20 June 2019)

Retention of employees of the millennial generation is becoming an increasing problem

for employers throughout the world. It has been found in prior research that higher levels
of job satisfaction by employees in organisations was a key determinant in improving
employee retention levels. This had the effect of increasing the ability of
organisations to be competitive in the market. The focus of this study is to determine
the levels of job satisfaction of newly qualified chartered accountants. It then goes
further by analysing the factors which influence their overall levels of job
satisfaction. The results are valuable for employers of chartered accountants from the
millennial generation in that it allows employers to better understand and improve
working conditions in their organisations in order to increase overall job satisfaction
levels, reduce employee turnover and ultimately increase organisations’ competitive
positions in the market.
The study focused on analysing the overall levels of job satisfaction of chartered
accountants classified as millennials employed inside and outside of academia as these
were identified as the two broad groups within which chartered accountants were
employed. The findings found that chartered accountants employed in academia
experienced a significantly higher level of job satisfaction than their counterparts
employed outside of academia. The factors found to be most important in an ideal job
for newly qualified CAs were remuneration, flexibility, ability to grow professionally,
working hours, meaningfulness of work, and being challenged at work. The results
found that chartered accountants employed in academia experienced significantly
higher levels of fulfilment in the following factors; remuneration, flexibility, working
hours, and meaningfulness of work.
Keywords: Job satisfaction; accountant; academia; millennial; chartered accountant;
South Africa; SAICA; lecturer

1. Introduction and background

Job satisfaction is a crucial component in employee retention (Moyes, Shao, & Newsome,
2008). There is no universal definition of ‘job satisfaction’, but it can be described as a
multi-dimensional concept that includes a set of favourable or unfavourable feelings in
terms of which employees perceive their jobs (Davis & Newstrom, 1999). As the business
environment in which organisations operate becomes increasingly competitive, the level of
employee satisfaction takes on added importance. In order to maintain consistency and

*Corresponding author. Email: riyaandavids1@gmail.com

© 2019 South African Journal of Accounting Research
South African Journal of Accounting Research is co-published by NISC Pty (Ltd) and Informa Limited (trading as Taylor & Francis Group)
2 N. Daniels and R. Davids

continuity, organisations are working hard to reduce the ever-increasing problem of

employee turnover (Moyes et al., 2008). Prior studies have shown that employee turnover
disrupts productivity-related outcomes (Hausknecht, Trevor, & Howard, 2009; Shaw,
Gupta, & Delery, 2005) and has a negative effect on an organisation’s financial performance
(Heavey, Holwerda & Hausknecht, 2013; Park & Shaw, 2013).
Understanding generational differences and creating a work environment that motivates
and satisfies each employee is essential to the success of every organisation (Ruys, 2003). In
order for organisations to attract and retain the newest generation, leaders need to know how
to motivate, retain and encourage the newest employees (Penney & Neilson, 2010). For this
reason, this study only focuses on employees who are between the ages of 25 and 35 as
these individuals are the newest generation in business. According to Strauss and Howe
(1991), persons who were born between 1982 and 1995 are classified as millennials.
The study has focused particularly on South African chartered accountants (CAs) due to
the important role they play in shaping the business landscape within a South African
context. In 2016 it was found that over 75% of companies listed on the Johannesburg
Stock Exchange (JSE) had chief financial officers or financial directors that held the CA
(SA) designation (JSE Magazine, 2016). The aim of this study is therefore to determine
the level of job satisfaction of newly qualified CAs.
There is little research from a South African context relating to the job satisfaction of
CAs in general. This study therefore makes a contribution towards the literature related
to CAs as well as to the literature related to job satisfaction from a South African
perspective.

1.1 The chartered accountancy profession in South Africa

The South African Institute of Chartered Accountants (SAICA) is a professional accoun-
tancy body in South Africa. Only members registered with SAICA have the right to use
the ‘chartered accountant’ designation. Registered CAs are therefore permitted to add the
CA(SA) designation behind their name and can perform work reserved for CAs. The
requirements for registration generally include a three-year undergraduate degree, a one-
year postgraduate degree, three years of practical experience at a SAICA-accredited training
office, and successfully passing two professional examinations that are both set and admi-
nistered by SAICA (SAICA, 2018). In South Africa, all members of SAICA are required to
maintain their professional competence and to participate in continuous professional devel-
opment (CPD) as professional competence is one of the fundamental principles of SAICA’s
Code of Professional Conduct (SAICA, 2013).
Once a candidate has met the requirements of qualifying as a CA, there are a number of
roles they are commonly employed to fulfil within organisations. The three broad roles a
chartered accountant is usually required to perform are managing, reporting, and advising.
Managing includes directing the business in the correct strategic direction, problem solving,
and implementing change. Reporting involves providing information related to the financial
performance of a company. Advising involves providing consultation services to firms on a
number of issues (Chartered Accountants Ireland, 2017). The types of jobs CAs could
therefore be employed to fulfil within organisations include but are not limited to financial
managers, financial analysts, management accountants, auditors and taxation consultants.
CAs are also able to fulfil academic posts at academic institutions where their respon-
sibilities usually include lecture preparation and teaching (Bitzer & de Jager, 2016), con-
sulting with students (Cross & Ndofirepi, 2015), test and/or exam setting and marking,
as well as meeting various research output demands (Samkin & Schneider, 2014). CAs
 South African Journal of Accounting Research 3

in academia are also usually expected to obtain a Masters and/or a PhD qualification in
order to qualify to apply for a promotion. In order to be eligible to become an accounting
lecturer for a SAICA accredited programme at most South African universities, an individ-
ual has to be a qualified CA and remain a CA during their academic career (Bitzer & de
Jager, 2016).
For the purposes of this study, CAs are classified as employed either in or outside of
academia.

2. Literature review
2.1 Employee satisfaction
South Africa is currently experiencing skill shortages in the labour market due to the emi-
gration of skilled employees to other countries (Nel, Werner, Haasbroek, Poisat, Sono, &
Schultz, 2008). Skilled employees are constantly being offered well-paying jobs globally
and these offers are too tempting for them to resist (Capelli, 2000). It is difficult to
recruit skills from other countries as there are legal requirements which need to be fulfilled
in order to obtain work permits in South Africa (Isaacson, 2007). Due to this situation, it is
becoming increasingly important for South African companies to retain their skilled
employees and to reduce the employee turnover rate. Since employee turnover is a direct
result of job dissatisfaction (Moyes et al., 2008) it is crucial for companies to focus on
the job satisfaction of their employees.

2.2 Employee satisfaction and motivation in the accounting field

There is a lack of research conducted on the job satisfaction of accounting and non-account-
ing professionals (academic and non-academic) worldwide as well as in South Africa. This
study was also unable to find any prior research that specifically compares the job satisfac-
tion of CAs in academia to CAs outside of academia.
Previous research that has been conducted on job satisfaction has been grouped into
three categories and is summarised below. The first category discusses research on job sat-
isfaction in non-accounting professions in South Africa. The second category discusses
research on job satisfaction of accountants worldwide. The third and final category dis-
cusses the research conducted on job satisfaction of academics (accounting and non-
accounting) worldwide.
Literature on job satisfaction in non-accounting professions in South Africa includes,
among others, a series of studies written on South African quantity surveyors and how
factors such as race, remuneration and age affect their job satisfaction (Bowen, Cattell,
Michell, & Distiller, 2007, 2008, 2009). It was found that the relationship between remu-
neration and job satisfaction is not significant. However, there were significant correlations
between race and job satisfaction, as well as between age and job satisfaction. In another
study, teacher job satisfaction in poorly performing high schools was evaluated where it
was found that highly motivated teachers experienced job satisfaction. Levels of motivation
were found to be directly influenced by working conditions, job security and perceived
growth opportunities (Iwu, Gwija, Benedict & Tengeh, 2013).
A number of papers have been published on the job satisfaction of accountants world-
wide. Research was conducted into the job satisfaction of male CAs from three professional
bodies in Scotland (The Institute of Chartered Accountants in Scotland), Ireland (The Insti-
tute of Chartered Accountants in Ireland), Wales and England (The Institute of Chartered
4 N. Daniels and R. Davids

Accountants in England and Wales) (Granleese & Barret, 1993); CAs in Canada (Aranya,
Lachman, & Amernic, 1982); Hispanic accountants in South Texas (Moyes, Owusu-Ansah,
& Ganguli, 2006); female CAs in Canada (Burke & McKeen, 1995); and accountants
employed by an accounting firm in the United States of America (Norris & Niebuhr,
1983). A few common variables that were found to significantly affect job satisfaction of
accountants included supervision, recognition, promotion opportunities, remuneration
and the cultural environment of the organisation.
Research conducted on the job satisfaction of academics worldwide (excluding South
Africa) includes a study focusing on the job satisfaction of Zimbabwean academics in ter-
tiary institutions. In the study it was found that the majority of the respondents were dissa-
tisfied with their job due to poor salaries (Chimanikire, Mutandwa, Gadzirayi, Muzondo, &
Mutandwa, 2007). Another study focused on academics’ job satisfaction across 19 different
countries (Shin & Jung, 2014). The study found that academics from European countries
were the most satisfied with their jobs due to the high social reputation of academics as
well as the level of academic autonomy they received. Academic autonomy refers to
how deeply involved they are in decision making regarding academic affairs. Since aca-
demics from European countries contribute to their society by discovering new knowledge
and teaching the next generation intellects, they are respected and honoured in their society.
It was also noted that there is an increase in job satisfaction amongst academics from Euro-
pean countries when their job is clearly stipulated and when the emphasis is defined – either
teaching or research. Academics who are expected to strike a balance between teaching and
research were found to have low levels of job satisfaction when compared to those who are
focused on either teaching or research output (Olsen & Near, 1994). A third study focused
on the life satisfaction of lecturers in Jammu, where one of the main reasons for job satis-
faction was the flexible working hours (Bakhshi, Kumar, Sharma, & Sharma, 2008).
Research was also conducted on South African academics (accounting and non-accounting)
in higher education and the factors influencing their job satisfaction (Schutze, 2006).
Schutze (2006) found that academics in South Africa are generally satisfied with their
jobs, mostly satisfied with the physical conditions and support and least satisfied with
the remuneration and benefits offered by universities.

2.3 Job satisfaction and motivation of the millennial generation

A generational cohort is a group of individuals similar in age who have experienced the
same historical events within the same period (Ryder, 1965). Generation membership is
based on the shared position of an age group in historical time (Mannheim, 1952). Gener-
ation members are born, start school, enter the workforce, have children and retire at about
the same time and age (Kowske, Rasch, & Wiley, 2010). One of these generational cohorts
has been classified as millennials and refers to persons who were born between 1982 and
1995 (Strauss & Howe, 1991).
A review of popular literature suggests that the millennials ‘want it all’ and ‘want it
now’ in terms of good pay and benefits, rapid advancement, work–life balance, interesting
and challenging work, and making a contribution to society (Ng, Schweitzer, & Lyons,
2010). Hiring managers have been reported as saying “we’re not interviewing [millennials],
they’re interviewing us” (Ng et al., 2010), which reinforces the demanding nature of the
millennial generation.
For businesses to survive and be competitive in the market, they are required to recruit
the most talented individuals of the newest generations (Elliot, 2009). Employers should
recognise that millennials have much potential, which they have not fully developed yet.
 South African Journal of Accounting Research 5

As a result, they should spend time grooming the younger generation and providing them
with opportunities for work variety, challenge and personal development (Ng et al., 2010).
It is becoming increasingly difficult to retain these employees, as research shows that “this
generation changes jobs up to nine times before age 30” (Moody, 2000).
The future existence of the accounting profession depends primarily on its ability to
adapt to the rapidly changing social and economic needs of the South African community
(Sadler, 2002). Maintaining relevancy of chartered accountants in society has been ident-
ified as a key objective by SAICA in its CA2025 project (SAICA, 2017). Considering
the high demands of the newest generation and the lack of research conducted on their
needs and wants in the workplace, the study focused solely on this generation and their
level of job satisfaction. The results should therefore be of great benefit to organisations
employing young CAs in South Africa.

3. Research objectives and contribution

The objectives of this study are:

1. To determine what the overall level of job satisfaction is amongst newly qualified
chartered accountants
2. To determine whether there is a difference in the overall level of job satisfaction
between newly qualified chartered accountants who are currently employed in aca-
demia and newly qualified chartered accountants who are employed outside of
academia
3. To consider the factors which influence the level of job satisfaction between newly
qualified chartered accountants employed in academia and newly qualified chartered
accountants employed outside of academia

Evaluating job satisfaction among accounting professionals is an increasingly important

area for employers that strive to recruit and retain quality employees and improve their com-
petitive position (Moyes et al., 2008). This study provides insight into the experience of the
millennial generation in their current positions, thereby assisting employers of CAs in South
Africa in recruiting and retaining these professionals, as it is stated that if organisations do
not “meet the millennials’ standard, members of this generation are more likely to leave or
create a similar business themselves” (Ruys, 2003).

4. Research design and methodology

In order to obtain information regarding the target population, a questionnaire was prepared
and distributed to CAs between the ages of 25 and 35 in South Africa.
The questionnaire obtained information about the population on the following:

. Demographic information such as age, gender and relationship status

. Information pertaining to current employment – whether the candidate is employed in
academia or not, as well as a brief job description and monthly salary received
. Level of overall job satisfaction
. Information regarding satisfaction in various aspects of their job, such as: meaning-
fulness of work, remuneration, job security, relationships with management and co-
workers, professional growth, promotion opportunities, employer’s brand and social
culture, hours spent doing work, overtime and flexibility
6 N. Daniels and R. Davids

. A ranking of the factors regarded as most important to the respondents in their ideal
job.

The Job Descriptive Index (Smith, Kendall, & Hulin, 1969) and the Job Satisfaction
Survey (Spector, 1985) are resources frequently used by researchers and workplace pro-
fessionals in measuring overall job satisfaction.1 The two resources also include questions
which analyse various factors which influence overall job satisfaction. These questions
were used in the survey to analyse some of the factors which influence overall job sat-
isfaction. Other questions used in the survey to analyse further factors used in assessing
job satisfaction were obtained from previous studies carried out by Lund (2003), Masum,
Azad & Beh (2005), Houston, Meyer & Paewai (2006), Kinman & Jones (2008), Shin
and Jung (2014).
On 9 May 2017 an e-mail was sent by SAICA to all members between the ages of 25
and 35, indicating its support on the topic as well as notifying members about the question-
naire and requesting them to complete it. The questionnaire was sent to 13 546 members.
The timing of when the questionnaire was sent to members was appropriate for CAs
employed in academia as it did not fall during the university examinations period which
may have had an adverse effect on the number of responses received. The timing also
did not conflict with conventional corporate financial year ends which may have negatively
affected the response rate of CAs employed outside of academia. A two-week time period
was allowed for participants to complete the survey which provided sufficient time for the
population to respond.
A total of 979 questionnaires were completed, of which 19 were removed due to incom-
plete answers. The results below are based on the remaining 960 responses and due to the
high number of responses, the confidence interval was able to be narrowed sufficiently in
order to provide reliable results for the population (Sparks & Hunt, 1998). The question-
naire also included a section where participants were required to acknowledge their willing-
ness to participate in the study. The major risk attached to the study was related to
maintaining the confidentiality of the identity and responses of participants. This risk
was mitigated by aggregating the results in the findings as well as not requiring participants
to disclose any identifiable personal information in the questionnaire.

5. Analysis of the data

5.1 Sample profile
The data of the study was collected from CAs between the ages of 25 to 35 years who were
registered as SAICA members at the time of the study. A total of 960 usable responses was
received, which was sufficient to carry out the analysis required for the study. A more
detailed analysis of the composition of the respondents indicated the following:

. 75 (8%) were full-time lecturers/researchers at an academic institution, while 885

(92%) were not.
. 517 (54%) were female, 439 (46%) were male and 4 (0%) did not indicate their
gender.
. 515 (54%) were married, 251 (26%) were single, 187 (19%) were in a serious
relationship and 7 (1%) did not define their relationship status.
. 628 (66%) indicated that they did not have any children, 167 (17%) had one child and
163 (17%) had two or more children.
 South African Journal of Accounting Research 7

Further analysis of the respondents also showed that the length of time employed in their
current job varied among the sample. Of the respondents, 288 (30%) had been in their
current job for less than one year, 223 (23%) for between one and two years, 275 (29%)
for between two and four years and 111 (12%) for more than five years.

5.2 Analysis of overall levels of job satisfaction

The respondents were required to rate their overall level of job satisfaction in their current
job position on an 11-point Likert scale (with 0 indicating extremely unsatisfied and 10 indi-
cating extremely satisfied). For the entire sample, an overall mean of 6.681 was found,
which indicates, that as a whole, CAs between the ages of 25 to 35 years are reasonably
satisfied in their current jobs.
In order to analyse the mean in more detail, the sample was grouped into CAs employed
in academia and CAs employed outside of academia. This revealed a significant difference
in the means between the two groups. The detail of this analysis is shown in Table 1, which
indicates the overall job satisfaction mean, standard error as well as p-value.
For CAs employed outside of academia, a mean of 6.569 was found, while CAs employed
in academia were found to have an overall job satisfaction mean of 7.961. A significant differ-
ence (at a 5% significance level) in the overall level of job satisfaction between the two groups
therefore exists due to a p-value < 0.05 being found. A 5% significance level was used through-
out the analysis to determine whether a difference in the means of the two groups was signifi-
cant or not. The results indicated that CAs between the ages of 25 to 35 years employed in
academia experience a significantly higher level of job satisfaction when compared to CAs
between the ages of 25 to 35 years employed outside of academia. The analysis of the
aspects that influence the level of job satisfaction was therefore critical for understanding
why this difference in the level of job satisfaction between the two groups exists.

6. Factors influencing feelings of job satisfaction

According to previous research, there are a number of aspects that influence employees’
levels of job satisfaction. Factors related to work conditions such as job security, resources,
workload, reward and recognition are critical aspects in ensuring job satisfaction (Gillespie,
Walsh, Winefield, Dua, & Stough, 2001).
Other factors found to have an influence on an employees’ level of job satisfaction are
meaningfulness of work, challenge of work-related activities, frequency of stress, relation-
ships with managers and co-workers, remuneration levels, promotion opportunities, super-
vision and learning opportunities, working hours, company culture and brand, flexibility
and job security (Smith, Kendall, & Hulin, 1969; Spector, 1985; Lund (2003); Masum,
Azad & Beh (2005); Houston, Meyer & Paewai (2006); Kinman & Jones (2008); Shin
and Jung (2014)).
The above list of factors was assessed in the survey in order to ascertain employees’
experience with a factor that influences their level of job satisfaction. Mean Likert scores

Table 1. Overall job satisfaction.

Outside of academia In academia P-value
Overall job satisfaction mean 6.569 7.961 p-value < 0.05
Overall job satisfaction standard error 0.074 0.193
8 N. Daniels and R. Davids

were calculated for each factor for both CAs employed in academia and CAs employed
outside of academia. The mean scores of the two groups were then compared to one
another for each of the factors to determine whether any significant difference exists
between how the two groups experience them. These results were analysed in order to
determine whether these differences in means could explain why CAs employed in acade-
mia experience a higher level of job satisfaction compared to CAs employed outside of
academia.
The mean Likert scores for the various factors, difference in mean Likert scores, stan-
dard errors and associated p-values of the two groups were calculated and are depicted in
Table 2.
The respondents were also asked to rank which factors they regarded as being the most
important in an ideal job (a job that would provide them with the highest level of satisfac-
tion). Figure 1 illustrates the choices made by the respondents.
In Figure 1, when two factors share no common letter (e.g. “ab” vs “cd”), then there is a
significant difference (p < 0.05) between the two factors in terms of the importance the
respondents placed on the factor in an ideal job. If two factors share at least one letter
(e.g. “ab” vs “bc”), then there is not a significant difference (p > 0.05) in the importance
the respondents placed on the factor in an ideal job. Figure 1 indicates that the six most
important aspects selected by the respondents in an ideal job are remuneration, flexibility,
ability to grow professionally, working hours, meaningfulness of work and being chal-
lenged at work.
The above results were then further analysed by determining the six most important
aspects for each of the two groups (i.e. CAs employed in academia and CAs employed

Table 2. Factors influencing job satisfaction.

Likert mean scores
(+/- standard error)
CA outside of CA in P-
Job satisfaction factors academia academia Difference value
1. Meaningfulness of work 2.60 (+/−0.03) 3.34 (+/−0.10) −0.74 0.000
2. Challenge of work-related activities 2.49 (+/−0.03) 2.35 (+/−0.11) 0.14 0.210
3. Frequency of stress 2.18 (+/−0.03) 1.68 (+/−0.11) 0.50 0.000
4. Inputs matter to management 2.63 (+/−0.03) 2.13 (+/−0.11) 0.50 0.000
5. Inputs matter to co-workers 2.66 (+/−0.03) 2.51 (+/−0.11) 0.15 0.186
6. Expectations of supervisor 2.28 (+/−0.03) 2.67 (+/−0.11) −0.39 0.000
7. Frequency of performing tasks that 2.32 (+/−0.03) 2.21 (+/−0.12) 0.11 0.383
assist in career development
8. Relationship with supervisor 2.87 (+/−0.03) 3.01 (+/−0.10) −0.14 0.170
9. Relationship with co-workers 3.02 (+/−0.02) 3.20 (+/−0.08) −0.18 0.032
10. Salaries 2.01 (+/−0.03) 2.31 (+/−0.12) −0.30 0.014
11. Bonus 1.87 (+/−0.04) 1.72 (+/−0.22) 0.15 0.504
12. Promotion opportunities 1.21 (+/−0.04) 1.18 (+/−0.12) 0.03 0.802
13. Level of supervision 1.59 (+/−0.03) 1.77 (+/−0.09) −0.18 0.059
14. Employee benefits 2.51 (+/−0.04) 2.86 (+/−0.14) −0.35 0.015
15. Employer’s brand 2.75 (+/−0.03) 2.86 (+/−0.12) −0.11 0.385
16. Hours spent doing work 2.37 (+/−0.04) 3.01 (+/−0.14) −0.36 0.000
17. Flexibility 2.62 (+/−0.04) 3.55 (+/−0.14) −0.93 0.000
18. Job security 3.11 (+/−0.03) 3.18 (+/−0.11) −0.07 0.513
19. Social culture 2.45 (+/−0.04) 2.45 (+/−0.14) 0.00 0.968
Scale value: 0 = very unsatisfied/very low, 4 = very satisfied/very high; p-values from the Mann-Whitney test
 South African Journal of Accounting Research 9

Figure 1. Most important job satisfaction factors for newly qualified chartered accountants.

outside of academia). The results showed that the same six factors were the most important
factors in an ideal job for both groups.
Prior research on millennials has indicated that members of this generation look for a
number of things in their jobs, which include good pay and benefits, rapid advancement,
work–life balance, interesting and challenging work and making a contribution to society
(Ng et al., 2010). These factors correlate with the six factors selected by the respondents
as the most important in an ideal job and have therefore been used as a proxy for the domi-
nant factors that influence employees’ overall levels of job satisfaction. Differences in these
factors between CAs employed in academia and CAs employed outside of academia are
therefore used to explain the reasons why CAs employed in academia experience a
higher level of job satisfaction than CAs employed outside of academia.

7. Discussion of the results

7.1 Remuneration
This factor was ranked as the most important by the respondents as being a key determinant
in an ideal job. This is supported by the study that found that pay was the single most impor-
tant motivational factor for millennials (Ng et al., 2010). Remuneration relates to all aspects
of pay related to work or service. The term therefore incorporates an employee’s salary,
bonus and employee benefits. These aspects have been used in the analysis of the remunera-
tion factor in order to provide a more detailed analysis.
The median gross monthly salary (excluding bonus) of the respondents who are full-
time CAs employed in academia was found to be between R40 001 and R50 000, while
the median gross monthly salary (excluding bonus) of CAs employed outside of academia
was found to be between R50 001 and R60 000. One would typically expect that as
10 N. Daniels and R. Davids

individuals are paid more on a monthly basis, they would be more satisfied with their salary.
This theory is however contradicted by the results that indicate that CAs in academia are
significantly more satisfied with their salaries (mean of 2.31) when compared to CAs
outside of academia (mean of 2.01) (p-value < 0.05).
The reason for this could be explained by the fact that even though CAs outside of aca-
demia receive on average higher monthly salaries, the average monthly hours spent per-
forming work duties are also higher. When the median gross monthly salary (excluding
bonus) is divided by the median monthly hours spent performing work duties (assuming
a four-week working month), the gross salary per working hour for CAs in academia is
R321.43 compared to R305.55 for CAs working outside of academia. This could be an
explanation for CAs working outside of academia not being as satisfied with their salary
when compared to CAs working in academia.
The results also found that CAs working in academia (mean of 2.86) were more satisfied
with their employee benefits when compared to CAs working outside of academia (mean of
2.51) (p-value < 0.05). This higher level of satisfaction by CAs in academia with their
employee benefits compared to CAs outside of academia is expected to be due to a
similar reason as to why they were more satisfied with their salaries.
In terms of bonuses, both CAs in academia (mean of 1.72) and CAs outside of academia
(mean of 1.87) did not appear to be particularly satisfied; however, there was no statistical
difference between the scores resulting in one group not being more or less satisfied than the
other.

7.2 Flexibility
The need for work–life balance of millennials remains an important factor in their job
decisions (Ng et al., 2010). This was rated as the second-most important factor by the
respondents in an ideal job. CAs in academia had a mean Likert score of 3.55, which indi-
cates an extremely high level of satisfaction with the flexibility (when and where work
duties are completed) that their jobs provide. The mean Likert score of CAs outside of aca-
demia was 2.62, which also indicates a reasonable level of satisfaction with the flexibility
provided in their jobs. However, the difference between these two means is significant (p-
value < 0.05), which indicates that CAs employed in academia are significantly more sat-
isfied with their levels of flexibility. The higher level of flexibility may therefore be an
important factor in the higher overall level of job satisfaction experienced by CAs employed
in academia compared to CAs employed outside of academia.

7.3 Ability to grow professionally

This was rated as the third most important factor by the respondents in an ideal job. The
frequency of performing tasks that assist in career development as well as promotion oppor-
tunities (factors 7 and 12 in Table 2) are aspects that influence an individual’s ability to grow
professionally.
It was found that both groups felt that the level of frequency of performing tasks that
assist in career development was at a moderate level (mean of 2.21 for CAs employed in
academia and 2.35 for CAs employed outside of academia). The difference in the means
was too small to allow the study to conclude that there is a significant difference in the
means between these two groups (p-value > 0.05). According to Ng et al. (2010), millen-
nials generally have a realistic expectation of their first job and salary, but seek rapid
advancement and the development of new skills. The fact that both groups were satisfied
 South African Journal of Accounting Research 11

with the level of frequency of performing tasks that assist in career development supports
the reasonably high mean scores of the overall level of job satisfaction of the two groups.
According to prior research conducted, millennials have high expectations when it
comes to promotion and pay raises (Erickson, 2009). Millenials have been reported to
wonder why they were not getting pay raises and promotions after six months on the
job. Millennials have also identified the opportunity for advancement as a top priority
(Ng et al., 2010). In terms of opportunities for promotion, CAs employed outside of acade-
mia had a mean score of 1.21, while CAs employed in academia had a mean of 1.18. The
difference in means indicates that the respondents of the two groups did not feel there is a
significant difference in terms of the number of opportunities to be promoted (p-value <
0.05).
The low average for both groups, however, indicates that both groups felt that they have
few opportunities for promotion. Employers looking to increase job satisfaction in their
organisation could therefore focus on improving promotion opportunities for their employ-
ees, as it appears that this is a neglected factor across the board for CAs between the ages of
25 and 35 years.
The lack of promotion opportunities may also indicate a possible saturation of CAs in
the market or may also be an indication of the current economic climate in South Africa,
which limits growth opportunities for organisations. It may also indicate that millennials
are impatient when it comes to being promoted, as millennials are known to ‘want it all’
and ‘want it now’ (Ng et al., 2010).
As there was no significant difference between how the two groups experienced the fre-
quency of performing tasks that led to career development as well as promotion opportu-
nities, no conclusion can be made as to whether the ability to grow professionally plays
a role in determining why the overall level of job satisfaction for CAs employed in acade-
mia is higher than that of CAs employed outside of academia.

7.4 Working hours

Work–life balance remains an important consideration for millennials when making their
job decisions (Ng et al., 2010). A significant difference in satisfaction with working
hours between CAs employed outside of academia (mean of 2.37) and CAs employed in
academia (mean of 3.01) exists (p-value < 0.05). Due to this being rated as the fourth-
most important aspect in an ideal job, this significant difference could explain the higher
overall level of job satisfaction experienced by CAs employed in academia compared to
CAs employed outside of academia.

7.5 Meaningfulness of work

The factor rated as the fifth-most important factor in an ideal job for CAs between the ages
of 25 and 35 years is the meaningfulness of the work they perform. This is supported by
prior research, which found that millennials are seeking much more in return for their
work than a pay check. They are also looking for work that is meaningful and fulfilling
(Lancaster & Stillman, 2002). The overall average for all CAs in terms of how meaningful
they felt their work is, was 2.65, which indicates that most CAs felt they perform at least
moderately meaningful work. However, in analysing the means of the two groups in
more detail, it was found that CAs employed outside of academia had a mean of 2.60,
while CAs employed in academia had a mean of 3.34. This difference in means is signifi-
cant (p-value < 0.05) and shows that CAs employed in academia feel that the work they
12 N. Daniels and R. Davids

perform is significantly more meaningful than the work performed by CAs employed
outside of academia. This factor may therefore explain why the overall job satisfaction
level of CAs employed in academia is higher than that of CAs employed outside of
academia.

7.6 Being challenged at work

This was rated as the sixth-most important factor by respondents in an ideal job. While mil-
lennials are concerned with making a contribution, they also place a high value on pro-
fessional growth that enables them to take on high-impact assignments. They have low
tolerance for less-challenging work, and often perform poorly with high-volume and
non-stimulating work (Ng et al., 2010).
The results of the mean scores show that both groups experience at least a moderate
level of challenge in their job positions (means of 2.49 for CAs employed outside of aca-
demia and 2.35 for CAs employed in academia) and that there is no significant difference
between these means (p-value > 0.05). As a result of the difference not being significant, we
therefore cannot conclude that the difference in level of challenge of work between the two
groups is a factor in explaining the higher level of overall job satisfaction of CAs employed
in academia compared to CAs employed outside of academia.

7.7 Other factors

Although not rated as top priorities in an ideal job by the sample, other aspects that were
found to be significantly different in current job positions between CAs employed in aca-
demia and CAs employed outside of academia were: frequency of stress related to work
activities, how realistic (in terms of quality and quantity of work) the expectations of super-
visors are, relationships with co-workers as well as how much inputs matter to management.
CAs outside of academia were found to have a higher frequency of stress related to
work activities (mean of 2.18) when compared to CAs in academia (mean of 1.68). This
difference in means was found to be significant (p-value < 0.05).
CAs in academia felt that the expectations of their supervisors are more realistic (mean
of 2.67) than the expectations of supervisors for CAs outside of academia (mean of 2.28)
(p-value < 0.05). This could be due to a number of factors (i.e. complexity of work, time
pressure, budgetary constraints, etc.) and further research in this field is needed in order
to better understand the reasons for the average scores.
Prior studies found that millennials went to school in an era in which they were fre-
quently assigned to group projects and presentations (Lowe, Levitt, & Wilson, 2008). As
a result, they emphasise the social aspect of work (e.g. friendly co-workers, fun environ-
ment) (Lyons, 2003). The results of the survey indicate that CAs employed in academia
(mean of 3.20) also get along with their co-workers significantly better than CAs outside
of academia (mean of 3.02) (p-value < 0.05). Although satisfaction with co-workers was
not listed as a key determinant in an ideal job by the sample, the researchers expect that
this factor plays a role in determining the overall level of job satisfaction of CAs and
would help explain why CAs employed in academia are more satisfied with their jobs
than CAs employed outside of academia.
Ensuring that employees are satisfied with their supervisors and co-workers is important
for employers, as research such as that by Lancaster and Stillman (2002) indicates that mil-
lennials may be more loyal to their colleagues and supervisors than to their organisations.
By ensuring that employees are satisfied with their interactions with their colleagues and
 South African Journal of Accounting Research 13

supervisors, employers may be able to retain their employees for longer and improve their
productivity.
One of the factors found where CAs outside of academia were more satisfied than CAs
in academia was how satisfied employees were with how much their inputs mattered to
management. It was found that CAs outside of academia (mean of 2.63) felt that their
work-related inputs matter significantly more to management as compared to CAs in aca-
demia (mean of 2.13) (p-value < 0.05).

8. Conclusion
As employers strive to attract and hire high-value young employees, it is important for
employers to understand the expectations of young people in the labour market (Ng
et al., 2010). The retention of these young, talented employees is in the best interest of
an organisation as organisations that fail to retain high performers will be left with an under-
staffed, less-qualified workforce that ultimately will hinder their ability to remain competi-
tive (Rappaport, Bancroft & Okum, 2003)
The focus of this study was to determine the levels of job satisfaction amongst newly
qualified CAs employed in academia as well as outside of academia in order to provide
employers insight into the overall levels of job satisfaction of the two groups. The study
further analysed the factors that influenced the job satisfaction levels of the two groups
in order to determine areas on which employers could focus, to potentially improve
overall job satisfaction levels and promote employee retention to increase their organis-
ations’ competitive positions.
The study was performed by using a survey, focusing on CAs in South Africa between
the ages of 25 and 35 years. Respondents were required to indicate their overall level of job
satisfaction in their current role as well as their level of satisfaction in various factors that
influenced their overall level of job satisfaction. The research compared several factors
between the two groups, which included the levels of satisfaction in the following:
overall job satisfaction; remuneration levels (salary, bonuses and employee benefits); pro-
motion opportunities; flexibility; working hours in a typical working week; relationships
with co-workers, supervisors and management; and complexity of work.
Overall, it was found that there is a significant difference in the level of job satisfaction
between the two groups. CAs employed in academia expressed a significantly higher level
of job satisfaction compared to CAs employed outside of academia.
In the analysis of the factors that influence employees’ levels of job satisfaction, it was
found that CAs employed in academia experience a significantly higher level of satisfaction
in the following aspects: remuneration (salary and employee benefits) levels, flexibility
allowed in terms of when and where work duties may be performed, as well as meaningful-
ness of work. It was also noted that CAs employed in academia find their supervisors’
expectations to be significantly more realistic, which could explain why CAs in academia
experience a significantly lower frequency of work-related stress when compared to CAs
employed outside of academia.
The only factor found where CAs employed outside of academia experience a higher
level of satisfaction when compared to CAs employed in academia was that they felt that
their work-related inputs mattered more to management. This may therefore be an area
on which management at academic institutions could focus, in order to further improve
job satisfaction levels of CAs employed in academia.
The outcome of this study offers useful information as to how employers of CAs in
South Africa can create a healthy environment for professional staff. For employers of
14 N. Daniels and R. Davids

CAs outside of academia, by putting in place measures to improve remuneration levels,

flexibility, working hours and meaningfulness of work, employers could potentially
improve overall job satisfaction levels and retain their workforce over a longer period
leading to enhanced organisation competitiveness.
As this study analysed the level of job satisfaction of newly qualified CAs, an interest-
ing research opportunity exists in investigating the level of job satisfaction of CAs that have
been qualified for longer periods. Typically, as CAs employed outside of academia progress
in their careers, they move into roles that are often significantly different to those held in the
early parts of their careers. These different roles could result in a change in the level of sat-
isfaction CAs qualified for longer periods experience with their remuneration levels, flexi-
bility and meaningfulness of work (amongst other factors) which could potentially increase/
decrease their overall level of job satisfaction. For CAs employed in academia, as they are
promoted, there is usually an increase in their research output requirements as well as
administrative responsibility. In addition, CAs in academia may be required to obtain a
Masters and PhD qualification. This could result in a meaningful change in the roles,
responsibilities and experience of CAs employed in academia which could adversely
affect their frequency of stress and meaningfulness of work (typically teaching load
decreases as they are promoted). As a result, there is the possibility that the overall job sat-
isfaction results could look very different when comparing newly qualified CAs to those
qualified for longer periods.

Note
1. The Job Descriptive Index and Job Satisfaction Survey were used in the following studies con-
ducted by Mcintyre & Mcintyre (2010), Saiti & Yiannis (2015), Virk (2012) and Shah (2015).

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