Thursday, February 3rd, 2022

Over Paying

“There is no way I can justify my salary level but I am learning to live with it.” – Drew Carey

Many firms have acknowledged that they are willing to overpay when pursuing new, hard to find, talent. Where will it end? When will it end? Who knows?

I have two concerns. First, will new, unproven, maybe less skilled employees be making more than proven, long-time team members? How that plays out can cause severe headaches for management.

My other concern is, in response to the situation mentioned above, firm leaders will increase salaries for ALL team members. This could result in significant increases for less-than-stellar performing employees.

I still think that pay for performance applies. Not everyone needs to be treated the same. Top performers should make top wages and get extra perks.

In the CPA world, firm owners worry about what “the other” team members will think and how will they react. They will be complaining loudly.

Don’t ignore the complainers. Talk to them immediately and honestly. Explain to them that Jessica All-Star makes more and receives more because she is a top performer. Then, explain to them exactly how they can become a top performer and thus, make more money. Set goals and challenge them.

You have probably read where KPMG is allocating $160M in salary increases for their 35,000 employees. Their CEO said:

“This increase in salaries embodies our commitment to quickly recognize the value our people create for our clients and firm in times of change,” said Knopp in a statement. “Moreover, it reflects our appreciation for their resilience and consistent dedication to serving our clients and the capital markets with quality.”

Your team members have probably read about this, too.

  • "The more they applaud, the bigger our salary will be."
  • Anna Held

Leave a Reply