question: can remote employees become partners?
by marc rosenberg
cpa firm staff: managing your #1 asset
remote work is undeniably changing how the cpa industry works. it’s been incredibly challenging for firms – from grappling with how to handle staff onboarding, training and mentoring to trying to maintain pre-pandemic client relationships and business development levels.
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in light of the pandemic that began in 2020, rosenberg associates surveyed more than 130 firms in 2022 asking them a multitude of questions about what options they are offering their staff (remote, hybrid, in-person) and how remote work has impacted various aspects of their business, including business development, client relationships and staff development. our findings were enlightening in many ways and provided great insights. here are some of the results from that survey as they pertain to flexible work options and the effects on their staff:
- nearly all (99%) firms offer remote and/or hybrid work options.
- half of the firms offer a remote/hybrid schedule for all staff, and half offer it only to certain staff levels. two-thirds of staff are requesting a remote/hybrid schedule. all of this is new for two-thirds of all firms.
- the biggest challenge firms face relates to myriad people issues: training, mentoring, communication, collaboration and camaraderie. these issues are most severe with young staff.
- maintaining productivity is also a common challenge, though firms have surprised themselves by how well they have minimized the damage. in fact, 59 percent of firms feel productivity is the same as before the covid-19 pandemic. only 21 percent have experienced declining productivity, and 18 percent have increased their productivity.
tactics that have helped prevent productivity declines mostly relate to intentional increases in the frequency of contact between personnel: periodic and more frequent check-ins and more firm meetings. another common approach is closer monitoring of charge time; one firm described it as micromanaging a bit more.
- respondents have been implementing various tactics to mitigate the effects of declining morale and relationships among team members. these include:
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- planning regular virtual events, get-togethers or happy hours
- providing employees with lunches or food stipends
- raising compensation and giving ad-hoc bonuses as a thank-you
- providing additional flexibility for where and when employees can get their work done
- mentorship is an important part of staff development. mentors provide career guidance and serve as sounding boards for employees. we asked firms to share what they are doing to ensure that staff mentoring on a remote basis is just as effective as in-person mentoring. many firms responded that they are struggling in this area. three commonly used tactics are making more video calls, frequent check-ins and assigning buddies to staff.
- who decides how much remote work is allowed? just over half (52%) let the staff decide. 39 percent work with staff to agree on a hybrid schedule. they require staff requests for remote work to be approved by the firm first.
- in implementing a hybrid work schedule, 41 percent of firms stagger the days when staff work in the office. meanwhile, 17 percent of staff work the same days in the office. more than three-quarters (78%) of firms do not require the staff to be in the office on certain days.
while the results may not be shocking, lessons can be learned from this data. firms are embracing flexible work options now more than ever, as evident in the fact that 99 percent of respondent firms offer them.
many challenges come along with these types of work options. the development of staff is perhaps one of the biggest problems. it is crucial for firms not to let staff development slip through the cracks when offering flexibility. here are some ways firms said they are handling staff development remotely:
- recording videos of processes and training and having new hires watch them
- conducting training in live virtual sessions over zoom, microsoft teams, etc.
- requiring new staff to come into the office during their training period
an article published by the journal of accountancy noted that firm leaders are facing additional challenges with their staff and remote/hybrid work, including “establishing formal and fair policies that suit everyone, especially with talent at such a premium; maintaining a consistent company culture when people are spread out; in some cases monitoring productivity, particularly with younger or newer employees; facing resistance from some leaders, who want everyone back at headquarters; onboarding new recruits into a half-empty office; and perhaps most importantly, ensuring everyone in the firm is visible and noticed, no matter their location, and that cliques don’t surface among office workers.”
can remote employees become partners?
it has been proven that remote employees can successfully maintain expected productivity levels and meet other firm and client expectations. we were intrigued by whether remote work impacts whether an individual can be promoted to partner. although our sample size was small, the result was telling.
as part of the survey, we asked not only if a fully remote manager could be promoted to partner but if they could be promoted to an equity partner role. half of the respondents said a fully remote manager could be promoted to equity partner, while another fourth said an individual could be promoted only to a non-equity partner role. only one managing partner said that a fully remote individual would not be considered for partner. here are some noteworthy comments from these managing partners on the subject:
- a fully remote person should be considered for partner as long as they have all of the required qualities and have mastered business development from a remote perspective.
- they could be an equity partner if they can do the job remotely and are willing to fly in occasionally to participate in person for key meetings and events.
- yes, we should definitely consider them for partner. i don’t think a ceiling for anyone is appropriate. put the challenges in front of them and let them see if they have what the firm needs from them to become a partner.
- i would consider promoting a remote high performer to equity partner. it would be complex but possible and perhaps necessary.
- if the firm is working mostly remote and plans to continue working remotely, then they should be considered for partner. if the firm’s culture is that people should work primarily in the office, i would say no to the partner promotion unless they bring some unique talent to the firm.
again, these results indicate the shift we have seen over the last few years. not only are firms more open-minded to the various working arrangements, but they also recognize that remote workers can provide equal value to the firm and its clientele even when working outside of the office.