11 best practices for partner compensation

bonus: seven systems to allocate income … and who uses them.

by marc rosenberg
how to bring in new partners

it would take a book much longer than this post to properly explain the finer points of partner compensation, especially how each of the major compensation systems works. oh, did i forget? we wrote such a book, “cpa firm partner compensation: the art and science.”

more: fifteen steps to new partner buy-in | what buying in actually means | how partner and staff actions impact profits | nuts and bolts of mentoring staff | nine ways to measure staff performance on the path to partner | sixteen duties of a partner | five people to keep out of partnership
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best practices and key concepts

as is the case with all of my lists, no one firm incorporates all of these practices in its partner compensation policy. but i have observed all of the practices below in one or more of the best firms i’ve worked with over 20 years.

  1. performance-based. there should be a strong link between pay and performance. when it comes to cpa firm performance and profitability: as the partners go, so goes the firm. the partners have a much greater impact on the firm’s success than professional staff and other personnel. if they perform at a high level, the firm will do the same. if partner performance lags, then the firm will suffer. therefore, the firm needs to motivate the partners to produce at high levels and reward them accordingly. compensation isn’t the best way to motivate anyone’s performance, but it is effective.

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accounting jobs up 4% for year

payroll services up over 7 percent.

by beth bellor
卡塔尔世界杯常规比赛时间 research

employment in the accounting profession continues to climb, according to the most recent federal jobs data. new highs were set in

  • employment overall and for staff, cpa firm staff, payroll, payroll staff, bookkeeping and women
  • earnings overall and for staff, and for payroll staff

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total nonfarm payroll employment rose by 339,000 in may, with the unemployment rate ticking up by 0.3 percentage point to 3.7 percent. the professional and business services sector added 64,000 jobs, similar to april.
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nine standards for partner compensation

number 9 created by gaps between many small green plastic 9'splus six questions to ask about your plan.

by august j. aquila
what makes a great partnership

ever wonder what the most appropriate partner compensation system is for your firm and how to assess partner performance?

more: 12 points of a good compensation plan | rate managing partners in six areas | five ways to keep your edge as a leader | managing partner: the toughest job in the world | why partners need written goals | eight criteria for partnership | how you can get partners to change
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a firm’s compensation system is a reflection of its culture and external competitive factors. when was the last time you gave your partner compensation system a checkup?
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12 points of a good compensation plan

green checks being made on checklisthow to reward partners.

by august j. aquila
what makes a great partnership

during the last 13 years i have focused a large part of my practice on helping firms develop compensation plans. a critical element in keeping partners engaged is having a compensation system that rewards them for doing the right things. here’s what i found to be some of the best practices.

more: rate managing partners in six areas | eight ways managing partners make a real difference | five reasons that leaders fail | eleven things partners must do | seven keys to becoming an equity partner | how to achieve partner unity | the seven building blocks of a great partnership
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  1. every compensation plan should be constructed to help the firm enhance its ability to service clients, achieve its strategic goals and attract, reward and retain the right people. if a firm’s plan does not accomplish these objectives, it needs to be restructured.

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16 steps to creating a partnership path

bonuses: 12 questions to ask staff about the future. advancing from staff to senior to manager.

by marc rosenberg
how to bring in new partners

“i think nothing is more important than what a firm does to create partners. i mean from day 1 of someone’s career. or maybe when a person is identified as a star. it’s critical what the firm does to nurture that person so that they become a partner someday.” – harry steindler, partner, michaelsilver (chicago)

more: nine ways to measure staff performance on the path to partner | three types of skills you need to become a partner | seventeen basic expectations of partners | nine ways to woo a prospective partner
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here is what the best firms do to create a path to partnership. these practices are not ranked strictly, but items at the top of the list are more common and effective than those toward the bottom. however, all the items are important.
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how do you value your most important asset?

yes, your employees.

by steven e. sacks
the new fundamentals

skills, abilities and experience are the elements recruiters use to assess candidates who come before them. but what is interesting is despite a skill set playing  a dominant role in the value that an employee brings to the organization, it may not be recognized as such. this is not a new concept. i came across research conducted in 1918 by harvard university, the carnegie foundation and stanford research center.

more steve sacks: how to build a winning proposal | six ways to fix your firm agreement | the great resignation or a reshuffling? | listen to learn | build the framework to a solution with five answers | try for success, not a win
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the study discovered that almost 95% of job success comes from having well-developed soft skills (better referred to as life skills ) and people skills, while  only 5% of job success comes from technical skills and knowledge — hard skills.

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cpa firm wages surge 9%

in payroll, employment is up, but earnings are down.

by beth bellor
卡塔尔世界杯常规比赛时间 research

want an easy way to make employees happy? give them more money – and that’s just what’s happening in the latest jobs report.

more: accounting staffs grow 4%; pay rates surge 8% | headcounts grow 5%; pay rates surge at 7% pace | cpa staff wages hit new high and keep climbing | firms battle staff shortages with pay hikes | tax & accounting firms beef up wages and headcounts | employee counts, earnings rise
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

except for payroll services, all tax and accounting sectors are seeing higher earnings year over year. overall pay was up 6.7 percent, with cpa firm staff pay close behind at 6.6 percent. cpa firms beat the national 7.7 percent inflation rate, increasing hourly earnings by a heady 9.2 percent.
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top trends ’23: look who’s making money now

partners’ percentages surge substantially.

by 卡塔尔世界杯常规比赛时间 research
the rosenberg map study

financially, it’s been a good year for accountants – especially at the partner level.

more: outlook 2023: compensation gets creative | what new leaders want in ownership | getting partners to accept a new pricing philosophy | survey results: partners rejoice on surging fee growth | headcounts grow 5%; pay rates surge at 7% pace | fourteen rules for lateral partner hires

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revenues are up. the income per partner (ipp) is up. profitability is up. firms that qualify as “elite” are more elite than ever. and, yes, size matters.

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accounting staffs grow 4%; pay rates surge 8%

weaker signs in tax and payroll.

by 卡塔尔世界杯常规比赛时间 research

it’s not a bad time to be an accountant.

the accounting sector is charting stable, predictable expansion in an uncertain economic environment, with some signs of weakness in tax prep and at payroll agencies, according to a new 卡塔尔世界杯常规比赛时间 study.

more: headcounts grow 5%; pay rates surge at 7% pace | cpa staff wages hit new high and keep climbing | firms battle staff shortages with pay hikes | tax & accounting firms beef up wages and headcounts | employee counts, earnings rise
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

we report here on the accounting profession as a whole as well as:

  • cpa firms
  • tax preparation services
  • payroll services
  • bookkeeping
  • women

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headcounts grow 5%; pay rates surge at 7% pace

the only down spots? tax prep and payroll.

by beth bellor
卡塔尔世界杯常规比赛时间 research

we like to see a month or two of increases when we’re talking about jobs, but how about six or seven? that’s the rosy picture seen across several sectors in accounting, according to the latest available data.

more: cpa staff wages hit new high and keep climbing | firms battle staff shortages with pay hikes | tax & accounting firms beef up wages and headcounts | employee counts, earnings rise
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

oh, you’re an employee looking at potential earnings? they just hit new highs at cpa firms and for staff overall.

we report here on the accounting profession as a whole as well as:

  • cpa firms
  • tax preparation services
  • payroll services
  • bookkeeping
  • women

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cpa staff wages hit new high and keep climbing

tax prep hiring surges.

line chart
earnings for staff in cpa firms: up 5.8 percent for the year

 

by beth bellor
卡塔尔世界杯常规比赛时间 research

earnings remain a bright spot in the accounting profession. we track other figures as well, of course, but when recruiting and staffing, this is the number your candidates are eyeing.

more: firms battle staff shortages with pay hikes | tax & accounting firms beef up wages and headcounts | employee counts, earnings rise
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.

the minimum hike year over year is 4.4 percent. according to the latest data available, these are average hourly earnings:

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