The why comes down to this:
As for how, it's something of a holistic approach that includes:Their product is their employees' knowledge and their distribution channels are the relationships between their staff and clients. More than most they must worry about how to attract and retain the brightest workers.
Time is regularly set aside at the highest levels to chew over how best to do this. Detailed goals are set: Deloitte's 2010 business plan includes targets for staff turnover, the scores it seeks in its annual staff survey and the proportion of female partners it would like to have. Partners are increasingly measured and rewarded as managers of people, not just for the amount of money they bring in. People-related items account for one-third of the scorecard used to evaluate partners at PwC. KPMG's British firm has introduced time codes so that employees can account for how long they spend dealing with staff matters. The idea is that those who devote lots of time to people-related matters are not disadvantaged as a result in pay rises and promotion.
In addition, three points pop out:
First, "Gaps in one country can be plugged with people from another." So, for example, Canadian accountants can be shifted into the U.S. to help out during tax season.
Second, "Mobility is seen as a useful way to retain and help employees develop." In other words, graduates like the idea of knowing they'll get to do some work overseas.
Third, "Retaining good people is the biggest challenge." Jim Wall, Deloitte's managing director of human resources, told the magazine that every percentage-point drop in annual turnover means a savings of around $500,000. So historical turnover rate of 15 to 20 percent means real money to each firm.
Accounting for good people [The Economist]
1 comment:
The Economist almost always get it right. But I have to say, this time they've been completely duped by the Big 4. Note: all being private partnerships very little public info is avilable to base an objective and critical analysis on. I worked for PwC London and it was abysmall in people management from start to finish. Talent management. Remuneration. Rewarding. Recruitment. Retention. It is a well known secret for any non-partners. But as a partnership is akin to a collective dictatorship without any board, external shareholders or media scrutiny people that air discontent are offered a rough road. These places are noting but sweatshops, but not located at some distant poorly regulated island. They should certainly not been used as models for public companies as their methods would simply drain other companies of talented people. Which is, as a matter of fact, alo what happens at the Big Four. As soon as the banking market, or other alternative finance careers routes opens up, all the best people leaves.
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