Underscored by the mainland's rapid economic growth and exacerbated by the shortage of skilled accountants, the recruitment and retention of high-calibre professionals has been a perennial nightmare for accounting firms over the years. In 2005, BDO McCabe Lo's senior management decided to address these issues head on by launching a full review and overhaul of its human resources (HR) practices. 'Management recognised the need to revamp our existing HR policies, so we initiated a three-year project with the aim of lowering staff turnover and improving staff commitment and their sense of belonging,' said Cecilia Yam, the company's technical and training director. BDO McCabe Lo, the first runner-up in the Medium Enterprise category, organises a mentoring system in which mentors help employees resolve professional and personal issues. It also enhanced internal communications with the launch of an intranet that distributed global, internal and technical news. 'The staff appreciate our open and harmonious working culture and the close working relationship with management,' Ms Yam said. She added that an increasing number of former employees had rejoined the firm in the past two years. There was also an overhaul of the appraisal system. Employee performance is now analysed twice a year and following the conclusion of significant projects. Its talent and development programmes were also redesigned. A key improvement was the incorporation of on-the-job consultancy, a concept aimed at enhancing the effectiveness of training. 'Our technical and training department will select at random a few staff members and review their working papers and the quality of their work following the conclusion of a training programme to ensure they put into practice what they have learned,' Ms Yam said. 'Based on findings, an enhancement course will then be carried out for all course participants to make sure they have properly understood the training and to enhance their learning effectiveness.' The other initiatives include an emphasis on work-life balance and corporate social responsibility to achieve the image of a caring employer. These combined efforts had improved recruitment and enhanced retention, Ms Yam said. Staff turnover has fallen to a market average of 26 per cent from a high of 40 per cent three years ago. Despite the continued shortage of accountants, the company has increased its workforce to 450 as of September this year from 230 in 2005. 'Though the project has concluded, we will be reviewing our talent management and development system continuously to ensure we adjust our strategy to meet changes in the market,' Ms Yam said.