Recruiter perception of online accounting degrees

Accounting students are graduating each year with an objective of being employed in the accounting industry, either in public accounting or within the business industry. With the increase in online degrees in this major, university administrators, faculty, students and businesses in both the public and private accounting are concerned with how this may impact the accounting industry. The purpose of the current study is to find the perception of online accounting degrees by recruiters in public accounting. Results showed that Big Four and medium size regional public accounting firms saw a significant difference between traditional and online education and preferred a traditional accounting degree over an online degree. Results also showed that small firms were more open to recruiting candidates who earned their degree online because these candidates had experience with technology tools and the ability to multi-task and problem solve, these characteristics mirrored the environment found within a small firm. Additional results showed the criteria public accounting firms used to recruit candidates including passing the Certified Public Accountant (CPA) exam, the alma mater and accounting program reputation of the undergraduate degree, communication skills and work experience. Concerns regarding online accounting degrees included program reputation and accreditation of online degree institution, negative opinions of an online degree in the marketplace, and motivation for earning an online degree. Recruiters from Big Four and medium size firms built a relationship with local universities and recruited from them exclusively, none of these universities currently offered an online accounting degree. Until these universities offer a comparable online program, these firms will continue to prefer the traditional education. Small firms indicated a willingness to hire a candidate with an online degree, however, they did not hire on a regular basis. RECRUITER PERCEPTION OF ONLILNE ACCOUNTING DEGREES 1 Chapter 1: Introduction Online coursework has been a part of higher education for over a decade. More and more traditional universities are offering courses online to keep up with demand and stay competitive. In addition, online universities have been established to solve the demand of students wanting more options when it comes to their educational goals. Students want more choices when it comes to their education, whether combing traditional undergrad programs with online courses or earning their entire degree online. Allen and Seaman (2016) report that enrollments in college and university online courses exceeded 5.8 million students in 2014, more than double the online enrollments of 5 years earlier. Today’s students are growing up surrounded with technology. In many ways, courses that are offered completely face-to-face and completely online are at opposite ends of the spectrum of learning and course delivery options. Online higher education is growing at a rapid pace that is creating challenges for academics institutions. Many higher education institutions have moved from offering individual courses online to providing programs that offer complete degrees online. This number grew from 34.5% in 2002 to 62.4% in 2012 (Allen & Seaman, 2013). These online options offer beneficial results for students who need greater flexibility in their education. In addition, online education allows students access to a higher education degree who might not have been able to attend college at all. On the other hand, faculty, students, and employers raise substantial concerns about online degree programs (Bunker & Harris, 2014). Concerns include quality of education, integrity of online courses, opportunities for live interaction and career preparation. In addition, when offering a course online, academic dishonesty is a valid threat to the integrity of the online learning process (Bryant, Kahle, & Schafer, 2005). RECRUITER PERCEPTION OF ONLILNE ACCOUNTING DEGREES 2 With the increase in online course offerings in the last decade, accounting courses have been included in these online course options. With the recent adoption of the 150 hour rule for the Certified Public Accountant (CPA) certification process in California and other states, more and more students are turning to online education as a part of their undergraduate studies or to complete the 20+ units after graduation to satisfy the new rule. With online accounting courses being relatively new to the university environment and the addition of the 150 hour rule, educators in the accounting area are struggling with teaching such a technical subject online. Since online education is altering the landscape of traditional higher education, it is important to the accounting industry that colleges and universities keep their standards high. In addition, since an accountants role is communicating financial information, educating students on communication and professional interaction can be challenging in an online format (Chen, Jones, & Moreland, 2013). According to Seibold (2007), the professional marketplace views traditional academic degrees more favorably than online degrees. In a study conducted by Adams (2008) in hiring officers in higher education such as deans, academic directors and others in a management role, findings indicated that applicants with an online degree were lacking in certain areas compared with a traditional degree. These findings included interactions with faculty, reputation of the institution and mentored learning experiences (Adams, 2008). Another study by Adams and DeFleur (2006) evaluated the perceptions of hiring managers when it came to accepting online degrees. They found that employers are much more reluctant to hire candidates with online degrees compared to candidates that earned their degree through face-to-face instruction. The main concern of the hiring managers was the perceived lack of interaction that they associated with an online degree (Adams & DeFleur, 2006). RECRUITER PERCEPTION OF ONLILNE ACCOUNTING DEGREES 3 When discussing online accounting degrees, a somewhat different set of problem exist between an online versus traditional education. As accounting combines technical information, synthesis in understanding and explaining complex computations, and overall communication skills, there is a question to whether this can all be taught in an online format. Unlike other business majors, the accounting profession has an industry assessment tool, the Uniform Certified Public Accountant exam (Bunker & Harris, 2014). Results from a recent study from Bunker and Harris (2014) indicate that students graduating with an online accounting degree underperformed on the CPA exam compared to students who earned their degree from a traditional program. While this may have been due to the institution granting the degrees, the marketplace should be concerned with this statistic. According to Allen and Seaman (2013), university administrators also are concerned with acceptance of online degrees by potential employers. Should students graduating with accounting degrees fail to live up to that of their traditional education counterparts, the industry will support the traditional education and make hiring decisions accordingly. This could be potentially disastrous for universities who are sinking millions of dollars into online programs, faculty training and marketing of an online degree (Allen & Seaman, 2013). Myring, Bott, and Edwards (2014) found when discussing online programs that “firms and companies hiring such individuals must review the program’s content and delivery methods carefully to ensure that it provides its graduates with the skills and abilities necessary to be successful in the field of accounting” (p. 71). Problem Statement Accounting students are graduating each year with an objective of being employed in the accounting industry, either in public accounting or within the business industry. With the RECRUITER PERCEPTION OF ONLILNE ACCOUNTING DEGREES 4 increase in online degrees in this major, the professional marketplace is concerned with how this may impact the accounting industry. Recruiters in this area understand that courses in accounting are conceptually difficult and therefore are concerned that communication gaps and misunderstandings can exist. They also understand that much of an accountant’s job involves communicating detailed financial information. Accounting students that earn an online degree may not be as prepared for a job in the accounting industry as those students that earn their degree from a traditional higher education program. This unfavorable perception by a recruiter plays a role in the hiring process. Therefore, students should be made aware that an online accounting degree may hinder their ability to get a job in the accounting field when they graduate. Purpose of Study The purpose of this qualitative case study is to determine the recruiter perception of accounting students who earned their degree online and subsequently seek employment in the public accounting profession. Research Questions 1. What are the criteria used by recruiters to hire students graduating with an accounting degree? 2. Does a recruiter have an unfavorable perception of online accounting programs? 3. Does the recruiter believe that there are differences between online and traditional accounting programs? 4. What are the concerns of online learning in an accounting program? 5. Are the perceptions of an online accounting degree changing? RECRUITER PERCEPTION OF ONLILNE ACCOUNTING DEGREES 5 Recent Statistics: Online Learning For 13 years, Elaine Allen and Jeff Seaman worked with the Babson Survey Research Group to create an annual report tracking online education. The most current report, entitled Online Report Card, Tracking Online Education in the United States, gives an upto-date review of individuals enrolling in online education. According to t