In an article aptly entitled Accountants feel duped on pay rises, the AFR (25/6) walked readers through the poor salary sentiment pervanding Big4 accounting firms:
A survey has found that 35 per cent of finance and accounting staff don’t believe their salary package is fair and in line with market rates… Employees were willing to put the effort in during the downturn … [but] as the economy improves, employees who see their company profiting now expect they should profit too.
…Employers are aware of the lack of satisfaction among their staff and 65% are concerned about losing employees in the next year … a looming skills shortage will demand that employers pay more for the best people.
But despite the apparent belief that employees willl leave, corporate partners bluntly refuse to do the one thing that will avert the propsepctive skills shortage; paying employees more.
Those doubting the authenticity of the results of the AFR survey should take one look in the Firm Spy inbox. We have been literally inundated with comments from our anonymous PwC spies in recent weeks, denigrating the firm for low pay and low morale. First this:
PwC Transaction Services salaries have really hit a new low. Pre GFC our group was the envy of the firm bringing in all the large transactions and therefore the best staff from across the firm. As a consequence our pay levels were generally higher than the rest of the firm as well. Not any more. After two years of being extremely quiet and all the quality staff members leaving (no bonuses or payrises last year makes the decision pretty easy for anyone with a sprinkling of talent), our pay levels are also the bottom of the barrel. Two years ago a newly promoted manager would recieve $105k, the new managers this year are on $88k. Is this saying something about the level of staff we have or the partners again being greedy?
Our vote? Partners are being greedy. We then this from another anonymous PwC spy:
Well it looks like PwC are about to lose a lot of employees. For those that weren’t lucky enought to be part of the “promote everyone” campaign (almost all staff were promoted this year regardless of experience as my partner told me – its easier to pass on fees to clients if we hire you out at a higher rank) 10% pay rises were handed out with no bonuses. After passing on 6% pay reductions last year (with the three weeks “optional” unpaid leave) passing on a 10% rise this year is effectively giving rises inflation over a two year period. A lot of talk of a mass exit in the coming months.
Finally, we received this absolute gem from another anonymous PwC spy:
PwC news: the situation with PwC is not undeserved nor is it a surprise. As a former auditor I spent 7 years towing the company line and protecting the culture until an epiphany hit me. The firms are run by Partners who have known no other profession. They started as annoying grads and have survived via attrition in a culture that rewards “old boys” and mechanistic automatons that espouse the ridiculous brand imagery. These people have an absolute void in understanding of culture, change management or high performance teams. The concept of reward and team work is an anathema to them. I personally witnessed a period in which the highest rating best performing individuals left the company to pursue other opportunities (some of which were less rewarding in the short term) because they couldn’t continue to perpetuate a culture of stupidity and arrogance and entitlement that permeates PwC and the big four in general.The partnership model is floored. Has there ever been a situation when so few get rewarded with so much for doing so little? I personally witness operational line managers in mining operations get paid substantially less but manage more headcount with greater daily output in far less salubrious surroundings. The quicker they bring in outside commercial managers to shake up culture, operating practices and provide some long needed innovation the better they will be , however the narrow view of the partners will never recongnise this need.
Can you see any sings of morale lifting at your firm?
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10%?!
TEN?!
We didn’t even get 5%!
Pre GFC = bringing in big transaction = great pay
Post GFC = struggling to bring in any transaction = lower pay
this ain’t rocket science…
yes – lets not forget the partners with their sports cars, luxury boats, children in private school, overseas ski holidays, it goes on and on..
I have not seen worse culture anywhere I have worked, its time for me to move on to other corporates that pay well and give bonuses based on performance – not the culture being promoted.
PwC has lost it for me – for life – i fully intend making sure all of my business contacts, relationships at other workplaces. friends and family NEVER engage with PwC.
Shallow, small minded management – the most selfish people I have ever met.
Keep outsourcing the work to India – just where other corporates want their private information kept. Great work by an incompetent leadership team – market strategy – what’s that?? to lose work to others that might actually care for the smart people delivering the work?
Thanks for nothing more than a name on my CV PwC, at least I was there when the former leaders were there…we miss you Tony!!
Its good to see our firm pays attention to FirmSpy. Managers within TS all got payrises over the last few days (to bring us in align to other divisions). Thanks to all those that complained.
With Payreviews now mostly complete, i can say that for sure MOST of AuIT/IFS staff didnt get no payrises or bonuses at all. They worked most of us to the bone when the time was tough, we took a paycut/force unpaid leave and now they give us nothing in return (except for a $275 gift voucher during Christmas).
I guess its their Grand master-plan to make life here so unbearable for us so we leave on our own accord and so they dont have to pay out any more redudancies. PwC Partners learnt the hardway that redundancy payouts are very expensive and it can hamper the payment of the Aston Martin.
these fat cats should learn to share the wealth and reward workers!
blood, sweat and tears.. for what? F.M.L
Would have loved a 10% raise. As said above I know for a fact many AuIT staff got a big fat 0 increase/bonus. Most copped it on the chin last year due to GFC but I have a feeling the same won’t be happening this year..
and is it any wonder that 22 people have resigned from AUiT since January??? when are the so called leadership team going to take notice? what a disgrace and PwC think they have collaboration and good culture? Its only a matter of time until something crashes and the firm will suffer, maybe then the Partners and rest of the firm will take notice!
The “Mass Exodus” this article refers to is now occuring within the ranks of AuIT. Alot is said when staff leave and opt in being unemployed rather than finding something else.
perhaps its time to desert the sinking ship?
F.M.L
Re: AB’s comment – Heard payrises in TS were crap and although they were slightly higher than the auditors, there were hardly any bonuses paid. I guess that justified my friends working most of the weekends in that financial year. Heard many of the directors were absolutely pi$$ed off with their payrises.