outlook 2023: compensation gets creative

accounting will be an attractive career choice again.

by carl george
the rosenberg map survey: national study of cpa firm statistics

there has and will continue to be a significant number of private equity transactions. as with any major shift of ownership in the past, there will be some fallout – partners, staff, niches, clients, etc.

more: outlook 2023: the office is over | 2023 outlook: private equity comes for accounting firms
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that is natural as what we will witness is the creation of new firms and opportunities for those who choose to depart. just look at the new firms that have started in the last five years – that is one way the profession stays young, fresh and entrepreneurial – new players practicing in different ways.

firms will solidify their personnel issues with new and creative compensation packages recognizing the permanence in workforce shifts. the profession will become more attractive, and it will regain its former prominence as an attractive career choice. it will take time and it will not be easy. but if we change like i believe many will and get incredibly creative, then those firms will get on top of it.

firms are more than ever realizing the importance of people as the #1 pillar in the planning process. for many firms, clients are second in importance to firm success, for the first time. for many firms, people and clients were in a virtual tie for importance in the past. now, it is clear that people are first and everything else follows that pillar.

actions and initiatives revolve around whether the right people are part of the team. if not, then critical actions are delayed, clients are not accepted, and progress toward the vision slows. maybe, there is positive in this “inadvertent rightsizing.” firms are changing their staffing models, client delivery models, billing practices and compensation strategies to compete for people, market share and sustainability. long overdue for many. this past 12 months brought a lot of clarity to public accounting – for those who are adjusting to these permanent model changes, they will thrive. for those who do not adjust to the model changes, the future sustainability is suspect and perhaps at risk.