Conditions in the big-four firms are undeniably challenging right now. A mix of reputational and other issues – the KPMG lawsuit over alleged negligence and heavy fines for misconduct related to the collapse of Carillion, news of smaller bonuses and potential wage freezes at PwC, or EY being banned from the auditing of public interest companies in Germany – have combined to take some of the shine away from the corporate titans.
But don’t be fooled into thinking that this will make it any easier to attract the typically excellent and well-trained staff away from big-four firms, accounting recruitment specialists tell us.
“The bigger a business is, the more likely it is to court publicity about things that go wrong,” says Tom Wood, Head of Professional Services at recruitment agency Morgan McKinley. “People who work there are aware of that, so it doesn’t matter as much to them.”
While some staff will be motivated to move to smaller firms, understanding their motivations is key – as is preparation. Leaders of smaller firms must go in with eyes wide open about the likely investment in training required when a talented accountant moves from the unique culture of a big-four firm to a smaller accountancy practice.
“The big-four firms offer a lot of options, particularly for those who are at the newly qualified level. Those people can be difficult for small businesses to attract. But where they might have more success is with someone who is two or three years post-qualified and who has made a decision to stay in practice,” Wood says.
Gavin Barclay, a Senior Recruitment Manager specialising in qualified finance recruitment at accounting and finance recruitment agency Reed, agrees.
“Yes, in larger business, there is more of a chance that incidents happen but the big four and their people still have a good reputation,” Barclay says. “People in the big four who join as graduates receive excellent training and experience a lot of really good exposure. Big-four firms hire individuals who are not just academically strong, but who bring a certain level of personality or character to the role. So they’re good across the board.”
Why, then, would staff decide to leave? Put the question another way – how can smaller firms recruit staff out of this seeming utopia?
Motivation for moving from the big four to a smaller firm
There are varied reasons an individual working within a big-four firm might be motivated to seek employment within a smaller team.
“Some want to move away from doing audit-focused and client-focused work to be more involved in the day-to-day financial and business accounting,” Barclay says. “It’s not that they haven’t enjoyed what they’ve done, but they simply want a change.”
Others don’t want to follow the traditional career path laid out before them in a big-four firm – becoming a director or partner – and instead value the potentially broader experience they might gain in a smaller firm. Or they may want to start their own business – a small firm could be the perfect training ground.
“Part of it comes from what the person is doing as a job in the big-four firm,” Wood says.
“If they are sitting there, auditing Barclays or HSBC all day, it’s difficult to transfer that into a small business. But if they’re working in mid markets, and they have a mixture of listed and privately owned companies, moving into a small firm is a lot more seamless.”
Then, of course, there is the simple fact that working for a smaller business will potentially lead to a better work/life balance.
No matter the motivation, Wood says, it’s smart for smaller businesses wanting to attract big-four talent to openly promote the fact that working in the mid to smaller end of town is a very different experience.
“Be open about the fact that this isn’t the big four,” Wood says. “Be honest about the better work/life balance and the broader role. And promote the fact that they’ll have a significant impact on the business they’re working in and in the client businesses, too.
“When you’re working with a large conglomerate, it can sometimes be difficult to feel that you’re making a big difference. But in a smaller business, you can.”
How to prepare for a big-four hire
Be very clear about your firm’s unique offering as an employer, Barclay says.
“Individuals coming from the big four are typically quite driven in their career, so you need to be clear about what you can offer them,” he says. “Their biggest driver is likely to be career progression, so how can you help with that?”
“Salary is important, and so is flexibility. Do you offer hybrid working? Can you customise the level of flexibility to their needs? [This is] something bigger businesses potentially can’t offer. And how can you ensure they’re successful in their role?”
That final point, about supporting your new hire to be successful, is important to get right – particularly as providing all the tools and ongoing training needed for success isn’t what small businesses are famous for.
“They will have a very strong technical background, but usually in a niche area,” Wood says. “They will need ongoing training, so there is an important element of patience and investment in that. Success isn’t going to come overnight. The initial bedding-in period might take a couple of months, and ongoing training will be expected after that.”
But get it right, Wood and Barclay agree, and you’ll have a new member of the team who is highly disciplined, hard working and very good at working closely with clients.
“They’ll likely be technically very good and highly disciplined, and they will also have a certain way about them,” Wood says. “A partner or owner of an SME will feel confident that the new hire will be able to go out to meet with a client, and make the relationship even stronger than it already is.”