Deloitte Double TalkBy Francine • Jul 21st, 2008 • Category: Pure Content
This blog gets the most traffic and comments when I post about Big 4 layoffs. I make no excuses or explanations for this. Just stating a fact. Now if I were making this stuff up, as I have been accused of doing, then you would be justified in pummeling me in the press and in person.
Unfortunately, the stories are all too true and come directly from you, the readers, and my own reliable, on the ground sources. Now, I admit, sometimes the timing is off. Can you blame someone who has just been laid off from one of the Big 4 or is trying to make sense of rumors flying all over when they act precipitously?
I can only try to make sense of it all myself. What is especially infuriating about many of these stories is that the partners seem oblivious or immune. As I mentioned in a previous post… If they started laying off the partners or demoting them back to rank and file because they’re not producing, like the law firms have done, or even started firing the ones that have royally screwed up, we’d really have a story.
Instead, we have the same old story of executives, in this case partners, being duplicitous with staff and taking the money out instead of investing in those who produce it. They must know that the end of the latest embarrassment of riches to these firms is near. Until IFRS and XBRL kick in, (although they will never be Sarbanes-Oxley,) they really haven’t a clue how to keep the money flowing. So, partners will get theirs while the getting is still good. There’s always another crop of gullible graduates knocking down the doors begging to be exploited.
From a reliable source at Deloitte:
This past month, our region was told that the growth of the non-consulting practices was slow, behind schedule. We were told that our region was the worst performing in the whole nation. The Regional OMP stood up on a pedestal and informed us all that, although we would be getting some raises this year, we should be prepared for “far less” than last year (last year’s were between 4 – 8%). Obviously this has many upset. However, given the “tough” times, many were willing to accept it.
Fast forward a few weeks. Deloitte National Leadership sends all partners, principals and directors of the region a “congratulations email”. What, you might ask, is there to be congratulating the partners on, as we are “in a down year, and behind schedule?”
Well, those of us that were privy to the email were breathless when we noticed that the congratulations was given the region’s partners on the “best year ever!”
The average partner salary was almost US$1 million!
So on the one hand, we are being told that there won’t be any AIP bonuses, and that we should expect lower raises than we have seen in the past 5 years but then we find out that the partners had their best year ever.
Apparently, everything is great if you are a partner. The rest of us are looking for a new job.