how many firms could do it today?
mcgladrey traces its root back to 1926 when ira mcgladrey established i.b. mcgladrey & co, in cedar rapids, iowa. three years later the country plunged into the great depression, but ira mcgladrey remained true to his employees and didn’t lay off a single one.
“it’s yet another reminder that there is more than doom-and-gloom out there if you care to look for it,” says roger philipp, cpa at the roger cpa review. “there is hope that just as ira mcgladrey did during the great depression, the industry can overcome whatever financial uncertainty awaits us.”
more at roger’s blog.
18 responses to “how rsm mcgladrey survived the great depression”
rsm partner
mcgladrey is not a respective firm! see how they treat their employees!
http://goingconcern.com/2010/06/layoff-watch-10-rsm-mcgladreymcgladrey-pullen-makes-nationwide-cuts/
mikes
key people in tax and audit at the nyc unit are leaving for greener pastures by year-end as has been the case since rsm acquired the tax and business services unit from american express in 2005. clients will follow. rsm must be proactive, not reactive, in rebuilding its business.
tuckerlick
plus they have to contend with tom petters, bernard madoff, sentinal, their owner h & r block etc…
sharol
rsm is horrible after merge
paul a. hense
i have questioned my judgment for almost forty years over the decision to go on my own instead of a large firm. i have had an interesting , satisfying and challenging career but never made the big bucks. i am still working at sixty six but it appears that i made the right decision.
sharol
the company layoff abou 15 people from tax practice last friday and more cuts coming soon….
jasino
there were layoffs on friday april 17 in the ny office.
tanisha
you will see more layoffs coming by very very soon.
tim
rsm mcgladrey does not have to lay anyone off. the hourly rates of the employees of that firm provide more than 40% to 80% profit margin over after salary and benefits. even the consulting groups when they are not performing well provide 40% margin after salary and beni’s are paid. isn’t that enough? apparently not.
in these hard times, wouldn’t you think that if that firm thought the way ira did, they would take less margin until the economy improved. less margin would still pay the bills, keep the lights on and keep people employed. but if the greedy management takes less margin, they don’t get their bonuses and high incomes, so they cut. this approach wasn’t what ira had in mind. also, the scope of the services accounting firms provide now has nothing to do with it, greed and profit grabbing is what it is all about. also, the work/life program they brag about is all talk. all show and no go. sounds good for the press, but in practice…they don’t do it. those that try it are pressured into leaving because their timesheets, revenue and profit margin doesntlook good.
i have to say that during my many years with that firm as a partner, i am ashamed to admit i was ever part of it. many of the responses from some here sound like marketing types from mcgladrey, trying to spin even the worst treatment of people into something positive.
you won’t see any of these comments or even a mention of this on the internet as it won’t be found. mcgladrey marketing people will flood the internet with listings that bury anything bad or that might indicate they are doing something other than holding people’s hands and singing kumbaya.
stay away from this firm.
sharol
does somebody know how much they want to cut from tax department. by the way, i totally agree with adrienne.
adrienne
the reason we posted in the article on roger’s blog (i cannot speak for rick’s motivations in sharing the article here on 卡塔尔世界杯常规比赛时间) was because the news (and industry as a whole) is plagued by depressing revelations of layoffs, cutbacks, and anxiety everywhere you turn. sure, the situation isn’t pretty but there are “feel good” stories worth reading.
does that mean that mcgladrey is in perfect shape and not laying anyone off right now? of course not, and we never meant to imply as much. you guys work in the same industry we do, you know how bad it is, you don’t need us or rick or anyone else to tell you because you see it.
but you also don’t need to be overwhelmed by negativity.
we thought this story might be a reminder of the accounting industry’s ability to overcome adversity. that was our goal.
mark
“you as a person don’t matter, you are a revenue amount” can’t agree more with that statement- that’s exacly what they did yesterday when they laid off 8% of auditors and some admin people – they didn’t even want to wait for april 16 and from what we know that’s when they will get rid off tax folks.. use and abuse people and then out- that’s their philosophy
matt
layoffs have to be the most painful thing for anyone to endure. the reality of the day is that there is not a single large accounting firm that has not let people go. in the days of ira mcgladrey, accounting firms were pretty much concerned with one thing – accounting. books, records, taxes and audits needed doing, depression or not. firms these days have a lot more going on in terms of their practice areas and are therefore exposed to the market in ways that ira mcgladrey could not have imagined.
i don’t think any firm takes layoffs lightly, including mcgladrey. i have to say from an insider’s perspective that the firm is superior in the market when it comes to taking care of its employees. i work with many professionals who come from the big four and other mid-tier firms and they are surprised and sometimes shocked to learn that when they work here that they can have a life. the work life balance (which is difficult to maintain in this industry) is a lot more attainable here. despite the firm’s size these days, it still puts people first and i like that in a work environment.
grace
“their tactics will include trying to drive you out before they actually lay you off. that way their statistics look good and the management accomplishes what they wanted without any bad statistics.”
that is exactly what happened to me. i felt overworked and under valued as a staff auditor at m&p, and i quit the firm. my last day was exactly 2 days before they laid off 3 people…two of whom where good people. i have no clue what they are thinking. do not work there if you are considering it! it’s all about time sheets and “net margin”. you as a person don’t matter, you are a revenue amount.
tim
rsm mcgladrey has already laid off hundreds across the country. they have eliminated dozens of consulting groups because h&r block (who actually owns the firm) doesn’t want to be in the consulting business. the amazing thing is, you never hear about it. the internet is filled with marketing hype about mcgladrey but never any bad news. they bury it in a sea of propaganda and spin. all show and no substance.
in the great depression, ira said no to layoff because it was the right thing to do. loyalty and sticking together was something you knew was right and his actions showed it. believe me, the current management (who are h&r block employees) of mcgladrey are focused on one thing. protecting their incomes. period.
mike mouse
come on…get in the current game here guys, that was then. that was at a time when that firm was a partnership and the partners actually looked out for each other and the people who were part of the firm. those days are gone for ever. the days of ira mcgladrey are gone. that company is a publicly held organization. the current management of that company will do anything to protect their incomes and bonuses. layoffs are a the least of the employees worries there. their tactics will include trying to drive you out before they actually lay you off. that way their statistics look good and the management accomplishes what they wanted without any bad statistics. this environment breeds people who have loyalty only to themselves. not a way to run a company and a damn site different than ol’ ira had in mind.
“you are only as good as your last time sheet at that firm.” any employees who read this should take that statement litterally.
tanisha
how about now? is any layoff coming soon?
adrienne
awww glad you picked this one up, rick! it was too good for us to pass up. we need all the good news we can get.