Big 4 Salaries – Every Day A Surprise
$43k out of school in 2005. When I left [Big 4 firm] counsulting practice last summer, I went from making $50kto $65+ as an internal auditor with [big name multinational]. I negotiated [decent signing bonus] and [small] relocation from [big name multinational]. If I had stayed at [Big 4 firm], I expected no more than a [middling] raise and [paltry] bonus. The [Big4]ers I keep in touch with express frustration that incoming associates are making more than they are after a year or two at the firm….
My response to this person included this comment:
…You were underpaid at your prior firm for consulting and could probably get more than what you are getting at [big multinational]. But do well and get the experience and a Manager title, and you will do great in a couple of years. And never tell a prospective employer or headhunter what you’re currently making. Tell them what you want for the job they want you to do, based on the market. A recruiter who insists on knowing your current salary before presenting your resume is being unscrupulous. An employer who insists is being cheap. In particular, contingent recruiters are like real estate agents. They are always working for the seller, the party paying them to close the deal, not the buyer. In the job market, recruiters are paid by the employers, the sellers, not the candidates, the buyers. And so their loyalty lies always with the employer.
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We basically all came to the conclusion that at least at [our Big 4 firm] and at least now HR/recruiting is screwing everyone over. Apparently there have been all kinds of rumors about new hires (entry salary) being paid as much as staff after their first raise or even seniors. Though I can’t verify it, it’s possible that with my signing bonus and my I-passed-my-CPA-exam-within-the-1st-year bonus I’m making as much as the person with three years experience. I felt a little bit like the jerk in the room who stole their raise money, but I keep telling myself it’s HR, not me.
This person has written to me before. He is a very sharp, articulate person who entered with a Masters in Accounting. Interestingly, he blames the HR functionaries, not the partners, the owners of the firm!
Dear Francine, [Thanks for ] your post about the starting salaries. Really gave me a chance to heave a big sigh of relief.
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Dear Ms. McKenna, Doing my work as a new staff I can see how much of the audit falls in the hands of people with 3-5 years experience who are 24, 25, 26 years old. It scares me and makes me afraid for the financial markets. I guess in some ways being so young makes us more independent than the partners, but that’s the only benefit I can think of – and I think it’s a stretch at that!
Have I ever told you how much I LOVE reading your blog, Francine??? IT IS AWESOME!!!
“I know [the benefits] vary from office to office depending on client restrictions[????????????],”
Maybe they mean that the insurance providers vary based on independance issues? If the NYC office of a Big-4 is auditing Aetna, I don’t imagine they are able to offer Aetna insurance. That seems like it would be a pretty ugly conflict.
Francine, thank you very much for keeping this blog. I will be starting at EY soon and I have learned more about the industry through this blog than through any other means.