During their traditional Alberta reunion at Lake Louise, Bob and Steve contemplated their futures. At the age of 24, they were already wondering how to manage their careers better. Since graduating together three years ago, both had become chartered accountants and had enjoyed significant pay increases the first two years. But while Bob was contemplating advancement in the same firm he had joined two years ago, Steve was contemplating advancement in any firm except the one he had also joined two years ago.
Bob had had a favorable opinion of the large accounting firm where he worked even before his hiring. In his senior year, Bob had attended a recruitment party given by an office of this firm, one of the "Big 5." The party gave accounting students an informal opportunity to meet several partners, including the managing partner. It also gave the office a chance to look at the new crop of rookies. At this party, Bob met the managing partner as well as some of the other students who were eventually hired by the office.
Bob's first two years in the office were gratifying. He worked on a variety of assignments, each exposing him to different challenges, each requiring different skills. Any problems, personal or professional, were comfortably discussed with the senior accountant he was assigned. He would have felt just as comfortable, however, talking with a manager or even the managing partner. Upper management in this office practiced an open door policy that applied to all employees, especially new ones. Moreover, this office always hired for "anticipated growth." Although this meant "excess hiring" until business caught up, it also helped to ensure that managers and partners didn't exceed a 70 to 75 percent utilization rate. (Utilization rate is a measure of how busy the employee is; a utilization rate above 80 percent implies work overload.)
At his year-end reviews, Bob was told exactly how well he was doing relative to the other assistants. His two pay increases were directly related to the performance appraisal results. The office's pay-for-performance policy and candor in telling employees where they stood resulted in enhanced loyalty and a low premature turnover rate, which were further reinforced by the "excess hiring" policy. Thus, Bob's most pressing career question was whether he should stay in Audit or transfer to Tax in the next year or two.
Steve worked in a very different office of the same "Big 5" firm. His first two years in this office were frustrating. He was given a wide variety of job assignments, but was too exhausted to appreciate the challenge. During this period, he worked hundreds of overtime hours. He knew of three assistants who left because of the excessive overtime.
What Steve didn't know was that many of the managers and partners were working as much overtime as he was. Manager utilization rates had risen to 85 percent. This meant that the managers and partners had little time to support the assistants. Although Steve knew that the "Big 5" accounting firms weren't in business to "coddle" employees, he would have appreciated a pat on the back or a word of encouragement from time to time. Consistent with this nonsupporting environment, Steve had yet to meet the managing partner.
Performance reviews were another source of dissatisfaction. The managers and partners refrained from giving negative feedback because they thought it would demoralize the assistants. As a result, the assistants had little sense of how well they were performing. Steve's pressing career question was whether he should leave the firm now or stay on another year.