PwC Is Again the ‘Most Prestigious Accounting Firm’

About those year-end bonuses Wall Street bankers and traders were expecting just a few months ago: If they happen at all they’re going to be smaller than last year.

The compensation consulting firm Johnson Associates Inc. says the prolonged business shutdown, which has kept millions unemployed, is weighing on banks, which have upped their cash reserves anticipating the possibility of widespread credit defaults.

They’ve also taken a hit to lending and related activity, as consumers have dramatically reduced their spending.

With so many stores closed US consumers had few alternatives but to save. The personal savings rate soared to 33.5% in April, more than four times the 7.5% in April 2019. Savings, as a percent of disposable income, has since fallen to 19% in June, according to data from the government’s Bureau of Economic Analysis. But that’s still well above the pre-COVID rate.

According to a Bloomberg article, Johnson Associates predicts that bonuses and incentives for those in hedge funds, asset management and private equity will be lower by as much as 15%. Those in retail and commercial banking are looking at up to a 30% bonus cut.

“That is going to be a really troublesome finish of the year,” report author Alan Johnson, is quoted as saying.

For stock and bond underwriters and equity traders on the other hand are likely to get bigger bonuses. The Johnson Associates prediction is their year-end bonus will be 15% or even 20% above last year.

Underwriters have been kept especially busy as companies struggled to raise money to maintain payrolls and cover other expenses.

Traders, meanwhile, have worked to keep up with record volumes of transactions from investors trying to stay ahead of the highly volatile, but rising, markets.

Photo by Patrick Weissenberger on Unsplash

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As far back as 2013 Forbes published an article headlined “Why Accounting and Finance Pros Are So Difficult to Hire.” The only thing that’s changed since is that accountants will be even more difficult to hire in 2020.

“That’s more of a statement than a prediction,” says Accounting Today, recommending a few strategies for recruiting professionals in this highly competitive market.

Before we detail these — you’ve likely heard some of these before — we suggest calling us here at Green Key Resources.

The Accounting Today suggestions are excellent long term approaches. But when you need a top flight candidate yesterday, we’re ready with a pipeline of excellent professionals who will exceed your expectations in every way. No matter where in the country you are, call us at 212.683.1988.

For the long term, here’s what to do.

Provide opportunities for growth — This means more than just basic training. Candidates are looking for roles that offer fresh challenges, a chance to demonstrate their leadership skills and to move up in the organization. Offer project contract work to reach professionals and build your talent pool

You culture should provide a personal touch — Beyond the basic benefits, a supportive culture provides schedule flexibility, tailored growth opportunities, advancement and the engagement of senior members of the firm in nurturing talent.

Be flexible in your requirements — Instead of insisting on a certain number of years of experience, consider the whole candidate package. “Some candidates may not check all of the boxes but can really excel in a position,” observes the Accounting Today article. Would you pass up a candidate with excellent software and technology skills just because they only have four years of experience?

Leverage external support — Don’t depend on job boards or even LinkedIn to bring in the talent you want. Work your networks and always ask for referrals. Reach out to the silver medalists who almost got the job last time; their skills and experience have only increased. And develop a relationship with a staffing firm like us that has a specialty in accounting.

Photo by Scott Graham on Unsplash

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