Last Friday’s post by Caleb surrounding the Bonus Watch at Deloitte sparked a handful of intuitive comments from GC readers.
In case you didn’t read the post and subsequent commentary, Commenter Anon51 responded to the question “what do readers suggest firms do to retain practitioners” with the following:
1. treat every team member with respect
2. you can’t just force your team to work harder year after year with fewer people and a smaller budget
3. pay 4-7 year people more, pay new hires less, so it seems there is an incentive to working harder
4. reward your people with an extra day off without having to utilize vacation time, especially after a really busy month/audit
Point 3 is bolded because it resulted in the following comment from Guest:
“That’s a really good idea, and I’m not being sarcastic. There is no reason why new hires fresh out of college need to make $59k ($55k + $4k sign-on bonus), when they would happily work for $50k. Then, a $5k bump every year would be a reward, with maybe a higher bump during promotion years…Pay disparity is a bigger issue than actual pay.”
Well said, Guest and Anon51.
I’ve said it before and I’ll say it again – the Big 4 are constantly in cahoots with one another with regards to hiring benchmarks. So I propose that TBig4PTB get together and reassess their starting salaries. Behold, a template for all Big Wigs to follow:
1. Decrease starting total packages (salary + sign on) by seven percent. Lower the bar from the get-go.
2. Now is the time – blame the decrease on “a firm wide strategic response to the economic risks of being a major player in the professional services industry. Unofficial response – did you see the DOW sink like the Titanic the other day?!”
3. Spread gap created by initial decrease in salary over the next two years. This will create an artificial sense of accomplishment and praise.
4. Send internal emails stressing the “increase in raises for well deserving employees.” Everyone cheers.
5. In three years college graduates will not know the difference; this “decrease” becomes a non-issue.
Guest’s comment that “pay disparity is a bigger issue than actual pay” can become a non-issue with very little effort. Is this fair or ethical? Mehhhhh. I personally think it would be a slap in the face to those of you who have busted your humps and sacrificed career and personal opportunities all in the name of KPDeloitterhouseErnstMG. But it certainly wouldn’t be the most desperate attempt made by one of the firms in recent memory.
Raising morale – hardly. What are your thoughts?
I’ve called bullshit many times before on the supposed “talent shortage crisis” in accounting. Now would seem to be a good time to call bullshit again. I continue to contend that any company in America can fill any accounting position with a qualified candidate in a reasonable period of time if the company is willing to pay the market rate for said talent. The real crisis is the assholes who run businesses thinking that accountants aren’t worth the money.
I’ve also said before that the high turnover at public accounting firms (even if just a little lower than normal), is not a bad thing. It’s a good thing. It’s good for the firms because it allows them to continue to promote the people who stay and also bring in fresh talent. And its good for the staff because the high turnover is an indicator that their skills and experience are in high demand in private industry.
I’ve started emailing media contacts to ask for salary numbers if they aren’t readily available any time an entity claims they can’t find accounting talent.
screw the Big 4
They screw their staff
The industry model needs to change. The folks entering PA don’t see value in the hours they are forced to work vs. the pay. Consider an imputed hourly rate that equates with a job at Walmart! Not to mention, in an era of immediate gratification, why would associates and even managers aspire to be partners. Making partner doesn’t carry the prestige it once did. Its like winning a pie eating contest with the prize being more pie.