1. Revenue Plateau
Photo by Scott Webb on Unsplash
Today's revenue growth for the accounting industry has yet to reach the double-digit rates seen in years leading up to the Great Recession. The industry’s average growth rate dropped to lows of 1.4% and 1.7% in 2009 and 2010, respectively. Although these growth figures have risen, organic firm growth has hit a plateau and merger activity is down, according to the Rosenberg MAP Survey.
2. Stagnant Partner Compensation
Partners today work as hard as they did 30 years ago and aren’t making more money, despite great advances in technology. Average partner compensation when adjusted for inflation is similar to what partners received in the 1980’s.
3. Time frame to Prove Yourself Shortened
Reaching the top of the food chain takes at least 10- to 15-years in the Big Four, national, and regional firms. But selection for the partner-path can take place much sooner as firms make decisions early about who is and who is not on the partner track.
4. Leadership Role Changes
The hand-off to younger partners is driving a cultural shift among new managing partners at firms, according to the Rosenberg MAP Survey. New managing partners are more sophisticated and management-oriented than their predecessors, and focus more on leadership development, partner accountability and strategic planning than on client work.
Let's talk
Brian Amann can be reached at 303.921.5310 or send an email.
Ready to get the Edge? Join the New Class.