Thanks to the Deloitte spy who sent us the following comments over the weekend:
Deloitte Private in Sydney has lost another 2 audit seniors. The rate at which Deloitte Private loses audit seniors is phenominal and partners, including cluster lead, Michael Kaplan, are living in a sense of denial in which they state that ”nothing is wrong”. Could it be that the entire Deloitte culture says lets screw staff with all we’ve got for the enrichment of the partner group? I love how Giam Swiegers, CEO, defends his and the partner greed by referring to the fact that at Deloitte people are motivated by being engaged, not being paid bonuses. Well then why do the partners get bonuses? Recent access to a file that should probably have been confidential reveals that non equity partners bonus in “times of having to monitor costs” was around $60k pa. On top of an average salary of $240k makes a sweet $300k per year (I emphasise that this is relatively newly appointed partners and is only the base). No wonder a new audit partner was able to splash out on an expensive home in Mosman. So what do the other staff get? Well lets see, Brand new grads – $50k pa Exp analysts (pretty much doing the job of a senior without the title – $55k pa, a measely $5k more pa. Audit senior – about $60k pa Manager – starting on around $85k And then they wonder why the audit seniors are leaving the firm!!
Are senior staff walking out on your firm? Are partners giving themselves bonuses while juniors starve?
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yeah, but what’s going to happen? are the juniors going to strike? of course not. There’s plenty more where that came from, worst comes to worst, they’ll just hire some cadets and probably pay them even less. They are simply exploiting the most exploitable of workers, who are just happy to get ‘Deloitte’ on their resume. The staff turnover rate within 3 years of starting as a graduate is nothing short of obscene.
The manager pool at Deloitte is thin at best in both Deloitte Private and Deloitte Audit and Assurance. You could almost count the number of managers they have that are naturalised Australians on one hand, as no one is willing to put up with ridiculous hours and no pay for that long, when if you get 3 years Big 4 on your resume you can leave and get a job somewhere else on almost twice the salary for half the hours. Almost all of the manager pool are either secondees from the UK or South Africa which means that the partner pool has less to worry about in young whipper-snappers staying on for years and taking a share of their equity, as these secondees will either leave Deloitte for a better paying job while they’re here, or go back home. It’s simple really. The business model is protect the top by exploiting the bottom. You have an international labour market of seniors and managers to fill any gaps along the way and no one really knows, so who cares if you don’t hire locals, because you can’t get them to work for you????
It may be an average place to work, despite what BRW surveys say, but the fact remains that the labour pool is bottomless for juniors and their will always be secondees who are happy to come out to Australia and get paid less than market rates for a couple of years if their flight and some of their accommodation gets subsidised.
And meanwhile, the partners are smiling all the way to the bank. What a business model!
lol, well the GFC is pretty much old news so that can’t be the reason why people are still disengaged … think harder engagement comittee think harder
A lot of them are leaving because fresh grads are being paid freaking $57,000.
$5-10k more than your experienced analysts and 3k less than most seniors.
This is a dead business model. Effectively four of the worlds biggest pyramid schemes. The only people it works for is the sedentary partnership.
Dot Dot Dot Green – is that true? When you say fresh grads, you are referring to the 2011 intake surely, as there is no way grads hired for the 2010 intake could have been given $57K contracts for the following year I wouldn’t have thought? (In A&A and DP anyway)
My understanding was that they had cut back the grad salaries for 2010 back to $44K (super inclusive, all these figures are super inclusive). Are trying to say they are receiving $57K or 2011 are?
If so, I guess all the Deloitte EAs and seniors can expect a huge payrise to bring them into line!?!
Then again, maybe they’ll just play them off assuming that they will hang around because they like the work like they always do.
I was referring to 2010 grads who have recently joined the firm. This was confirmed by a couple of grads.
My understanding is our salaries will be adjusted to the “Market Rate” in June. So I am assuming $54-$57 is the current market rate for grads.
Not sure how much the 2011 grads will be paid, but it would be no concern to me anymore.
Geez didn’t know that, shows how long its been since I had to deal with the grad program. If I was an EA I would definitely not be sticking around now, at the very least I would be moving to the other big 4, especially now the market has picked up again!