Art of Accounting: No pipeline myth

July is a time when many firms promote new partners from within their firms. I also hear many people speak about how the young people coming into public accounting need to be treated differently because they are “different.” Different from what? To me, they are “different” in the minds of the people talking and writing about it, but I do not believe they are so different. 

When I started my first job, my boss told me that “the young people today are not as good as when I started.” Actually, the new staff today are smarter, more resourceful and better directed at what they need to do. What I think changed is the attitude of the bosses trying to explain away their inadequacies in hiring, training and retaining staff. A major publication recently listed the top 100 best firms to work for and included a Big Four firm that had a 25% turnover rate last year (according to their own annual report). How is that a best firm to work for? Is the turnover the fault of the “young” staff or management?

Today I want to disprove the myth of the inadequate staff pipeline by offering proof of the ability of today’s young staff when supported by proper staff management. That proof is with the 19 people Withum promoted to partnership on July 1. Of those 19 people, eight started their careers with Withum or a predecessor practice and one has been with Withum 17 years. So, nine of the 19 grew with one firm with careful staff management, training, mentoring and obvious energy, interest and focus.

Personally I am very proud of these 19 people and have worked with many of them, including some who started in my office as interns. Public accounting offers a bright future with opportunities for those who want it. These new partners have strong technical ability, provide great client service and nurture relationships, have the ability to supervise, train, motivate and mentor staff, are great leaders, have the ability to manage multiple projects and meet deadlines, and have exceptional buy-in of the unique and great culture at Withum. 

These 19 people traveled different paths on the same journey to leadership. Some grabbed opportunities as they arose, while some created their own opportunities by reinventing themselves to take advantage of the wide range of services clients needed. They all were consistently reliable with the quality of their work, meeting deadlines and demonstrated the willingness to go the extra mile to make sure clients received great value. Public accounting has changed tremendously since these 19 started their careers. Perhaps the changes in the last dozen years were greater than in any other similar period since public accounting became a recognized profession. Auditing and financial reporting, taxation, technology, advisory services and government oversight all have changed in giant strides during the period of employment of these new partners. 

They not only have adapted, but some have led those changes. Some moved to new offices to fill a need, some adopted new specialties in either technical or industry niches, and they all became leaders. One thing in common is they all had a different path, and whichever choices they made worked out. The new partners are working in offices throughout the country, and one is totally virtual. While most have accounting or business degrees, one has a bioengineering degree. Those who joined Withum worked at all size accounting firms or had stints in private beforehand.

The new partners’ individual skill sets were matched with client and firm needs to make Withum stronger as a well-functioning team. 

There is a bright future in public accounting for those who want it. These new partners prove that. Public accounting plays a unique role in the global economy, providing a reliable flow of company financial reports, overseeing client adherence to sound internal control procedures, compliance with government taxation requirements and providing unique consulting and advisory services to all types of businesses, not-for-profit organizations and governmental units. We are there, understand the needs, are able to apply our knowledge and experience to the many requirements of our clients, and have specialists who can assist clients in almost any situation.

Today’s new partners will be tomorrow’s leaders, just as yesterday’s new partners are today’s leaders. We are dealing with bright, responsible, focused leaders with personal fulfillment goals, and public accounting has the opportunities, pipeline and mechanism to provide and expand upon this.

The future is bright for public accounting; the need for our services is growing; our collective experiences are adapting and expanding; our responsiveness to what clients’ want and must have is proven; and we are the most trusted advisors’ clients turn to. What we are doing is working, and we get better at it each day. The 19 new Withum partners dispel the myth of the lack of a pipeline and are proof of the optimism I have for the future of public accounting. 

Do not hesitate to contact me at emendlowitz@withum.com with your practice management questions or about engagements you might not be able to perform.