Origin Staffing’s Post

Will be interesting to see how this continues to progress. Especially as the other firms start to match/increase their own pay bands. As someone who talks to a lot of public accountants looking to exit, pure comp related issues are pretty low on the list of wanting to exit at this point. Firms have essentially caught up to similar level positions in private industry. More importantly, firms need to address work-life balance, career development opportunities, & mentorship to prevent the churn of staff and senior-level auditors and tax associates. https://lnkd.in/gqZJPkJK

⭕ KPMG has frozen pay for approximately 12,000 employees in the UK due to decreased demand for its services in the challenging economic climate ❄️ ⚪ Staff will not receive a pay rise unless they are promoted, affecting all four divisions of the firm 🚫💰 ⚪ This decision follows recent job cuts and pay freezes in KPMG's deals advisory arm 📉 ⚪ Employees at the Big Four accounting firms typically receive annual salary increases; a freeze this year will result in real-term pay cuts amid a 4.6% inflation rate 💸 ⚪ Bonuses will be reduced, with KPMG's tax and legal arm staff receiving 55% of the full amount 🎁 ⚪ The 12,000 figure includes staff moving to a higher pay band based on seniority without a formal promotion, a common practice in the Big Four 🔼 ⚪ KPMG partners, who share in the firm's profits, will largely be unaffected by the pay freeze 🤝 ⚪ The decision reflects broader challenges in the accounting and consulting industry amid market uncertainty 📊 ⚪ The pay freeze extends beyond the deal advisory team, affecting units typically more resilient during economic slowdowns, such as tax 📈 ⚪ KPMG attributes the pay freeze to ongoing market uncertainty and the failure to meet revenue targets in its tax and legal division for the 2023 financial year 📉 ⚪ All Big Four firms, including PwC, have announced redundancy programs and potential pay freezes in response to challenging market conditions 🔄 ⚪ KPMG is working to repair its image after regulatory fines for involvement in high-profile corporate scandals 🛠️ ⚪ The firm employs 17,000 people in the UK, with around 3,000 being graduates or apprentices. It promoted 950 staff in its latest round of promotions 🌐 ⚪ KPMG acknowledges the challenging economic environment and states that bonuses will be lower than in previous years, reflecting market conditions 📉💼 Financial Times #bigfour #economy

With the competitive landscape of the accounting industry evolving rapidly, firms are finding innovative ways to manage costs while maintaining quality services.   Higher payroll costs come with a downside, forcing CPA firms to make tough decisions. Joe Tarasco, CEO of Accountants Advisory Group, highlights the impact:   “Some may push even more work to offshore service centers in India or the Philippines where labor is cheaper."   Read the full article from Bloomberg News: https://lnkd.in/dXZk2G27   #Offshoring #ClientFees #Accounting

Prices for junior accountants have continued their upward trend, with EY's recent decision to increase starting salaries making headlines. Corporate tax leaders I regularly speak with are often surprised by the compensation levels for tax accountants and senior accountants, which are largely influenced by the Big 4 firms. As the rest of the Big 4 follow suit to align with EY, corporations will face continued pressure to adjust their own compensation packages to attract and retain talent. For tax accountants considering a move from public accounting, transitioning to industry can offer improved work-life balance, enhanced stability, full-cycle tax exposure, and competitive salaries. While significant salary increases from public to industry are less common nowadays, a lateral or slight increase is certainly possible, alongside these other valuable benefits. If you're contemplating a shift from public accounting or evaluating opportunities in industry, I encourage you to consult our tax salary guide to benchmark your compensation. Feel free to reach out to me for further insights and guidance. https://lnkd.in/eTHNSwFD https://lnkd.in/epWvFhSR

Business Insider analyzed the US Office of Foreign Labor Certification's 2023 disclosure data for permanent and temporary foreign workers to find out what PwC, KPMG, EY, and Deloitte paid US-based employees for jobs ranging from entry-level to executive roles. We looked through entries specifically for roles related to management consulting and accounting. This data does not reflect performance bonuses, signing bonuses, and compensation other than base salaries. https://lnkd.in/eFs4JTUN

As this FT article points out, whilst the Big 4 are getting a bit of a hammering in the press right now and job cuts across all 4 are on the horizon..it really isn't all doom and gloom for the mighty 4. We have seen similar patterns of recruitment happen across the Big 4 for many years, and I guarantee it will pick up again soon. There are still specialist areas like Energy where all 4 are keen to still add headcount to! In the background we are still incredibly busy recruiting across virtually all of the national tax teams for the Top 10 through to smaller boutique firms, and so the overall recruitment message across tax remains the same: jobs very much in abundance, tax specialists available = not enough. What I will say is the profile requirements have really stepped up. There seems to be an unwillingness to invest in significant upskilling and firms are just not taking any risks... If you want to discuss your current options in the market please do reach out asap https://lnkd.in/eMNytRgg

Salary alone isn't enough to set up young people for success... With the ever increasing cost of living, and the pressures that often come with junior jobs in the industry, we're huge advocates for increasing the entry salaries for junior auditors. But paying more isn't the only change we need to make. We need to fundamentally change the way employers have pay conversations, and remove the taboo around discussing money in the workplace. We're not taught how to manage money in school, so real life responsibilities can come as a shock when you start your career. Helping those employees not only earn more, but teaching them how to use the money they earn will be what defines stand out early career schemes going forward. (Thanks for your take Daniel McAvinue!) #accountingjobs #accounting #career

Mid Tier Firms VS Big 4 - What is the right fit for you? I often get Candidates simultaneous offers of employment from a Mid-Tier Firm and a Big 4 Firm, meaning Candidates often deliberate on which of these is going to be the right fit for them personally. When talking through their motives for moving and their options, I find it is always beneficial to explain the differences between them and what the experience of working for them might be like: ✔ Big 4 Firms can offer a broader range of specialisms and larger clients: Whilst recent audit reforms mean that more Mid Tier firms get to audit FTSE 100 and FTSE 350 companies than before, it is fair to say that the Big 4 – EY, KPMG, Deloitte, and PwC – tend to work on clients at the top of the mid-market through to the largest multinational and international firms ✔ When thinking about mid-tier accounting firms vs big 4, the first thing that comes to mind is money. It is widely accepted that Mid-Tier Firms can not compete with the salaries and packages offered by the Big 4 firms. This is why you will find Mid Tier Firms aiming to attract the brightest talent by providing a nicer working life. If you are lucky enough to get a role in a Big 4 firm, you can expect a ‘market-leading’ salary and benefits, but you will be expected to work extremely hard to earn this salary so the choice to work at a Big 4 depends heavily on what your priorities are. After all, money doesn’t buy happiness. ✔ A Big 4 Firm feels more Corporate: Whilst the Big 4 are still Limited Liability Partnerships, they are much closer to a corporate than any of the Mid Tier firms below those at the top of the Mid Tier. This means that there are generally more established processes and systems within Big 4 firms than in the Mid Tier, or a lot of red tape depending upon how you look at it and you may feel like you have less influence. ✔ The Big 4 can admit more Partners every year: Given that Big 4 accounting firms are a lot bigger, it is not surprising that there are more partners admitted every year. But within a Mid-Tier Firm that is growing, the opportunity to reach Partner is still there and there is certainly less competition. ✔The working hours are much longer in the Big 4: While the higher salaries offered by a Big 4 firm are a huge benefit, they almost always translate into a longer working week for fee earners than if they worked in a Mid Tier Firm. This means long hours, working weekends, and zero social life. And that’s not even mentioning that the targets you are expected to hit each year never get reduced! So when it comes to making that decision between an offer from a Big 4 Firm and a Mid-Tier Firm, it really is horses for courses. While Big 4 firms are likely to offer huge opportunities, challenges and benefits than most Mid Tier firms, not to mention that it looks great for the CV, these come at a cost of long hours, greater competition, and some great personal sacrifice. #accountancyrecruitment

🚨 𝐁𝐢𝐠 𝐂𝐡𝐚𝐧𝐠𝐞𝐬 𝐀𝐡𝐞𝐚𝐝 𝐢𝐧 𝐭𝐡𝐞 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠 𝐖𝐨𝐫𝐥𝐝! 🚨 When candidates entered the job market back in 2021-2022 they were getting multiple offers and big salary increases. To counteract this at the time, Big 4 and regional accounting firms increased salaries and implemented retention bonuses to retain talent or risked being heavily understaffed (or worse than what they already were). With EY announcing they’re looking to raise base salaries by 10% this fall and plans to implement over $1BN in the next three years to attract and retain accounting talent there will be a huge domino effect as seen last go around: ⭐ Other Big 4 firms and regional firms will have to match in order to be competitive with the market. This will continue to squeeze smaller CPA firms to find talent which may result in more small-medium size firms being acquired shrinking the market. ⭐ Private/Public companies will have to increase base salaries in order to attract Big 4 talent to leave public accounting. ⭐ Lastly, with an increase in salaries across the Big 4 and private sector this may have the knock-on effect for more companies to adopt AI to bridge the gap if they’re unable to attract talent. 𝐖𝐡𝐚𝐭 𝐚𝐫𝐞 𝐲𝐨𝐮𝐫 𝐩𝐫𝐞𝐝𝐢𝐜𝐭𝐢𝐨𝐧𝐬? #accountingjobs #Big4 #accountingsalaries #publicaccounting #accounting

In the face of growing accounting talent shortages, CPA, CA, and CFO firms, as well as bookkeeping firms, are increasingly feeling the pressure. Staffing gaps and rising costs are challenging, but there's a strategic solution: embracing outsourcing for bookkeeping, accounting, and tax preparation. Outsourcing doesn't just help cope with staffing shortages; it streamlines processes, boosts profitability, and ensures high-quality output with timely turnaround. Partner with Fourfold Global to revolutionize your practice in 2024. Experience the difference we can make with our expert offshore remote talent. Say goodbye to staffing worries and embrace a workflow tailored to your preferences, without compromising quality or efficiency. Start with a no-obligation trial and witness the impact firsthand. Connect with our experts today. It's time to elevate your practice with Fourfold Global, the best choice for global talent solutions. #AccountingOutsourcing #GlobalTalent #FourfoldGlobal #CPAFirms #CAfirms #CFOFirms #BookkeepingSolutions #StreamlinedAccounting #ProfitableOutsourcing #QualityAssurance #EfficientStaffing #2024PracticeRevolution