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Japa: Rising dropout creates room for Nigerians at Big Four auditing firms in the West

In a notable shift in career aspirations, the pursuit of becoming a partner at the prestigious Big Four auditing firms is losing its allure among accountants, as revealed by recruiter Christine Foggiato. This transformation in career goals is primarily due to the combination of long working hours and comparatively lower salaries, which have made commercial accounting and finance roles increasingly appealing.

Ms. Foggiato, a specialist in accounting and auditing talent acquisition, explains, “It’s hard to find people who have the career goal of becoming a Big Four partner now. The newer generation coming through also just don’t see the appeal of working that hard to become a partner.” Young professionals entering the field are now aiming for a few years of experience at a Big Four firm to subsequently secure roles offering improved work-life balance and higher pay in commercial accounting and finance.

While there remains strong interest in joining the Big Four firms, the majority of candidates are now inclined towards short to medium-term commitments, rather than a lifelong career path. The Big Four’s brand on their resume can be advantageous for those aspiring to transition into commercial accounting in the future.

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To provide some context, audit graduates at the big four start with an average salary of about $65,000, eventually earning over $110,000 when they reach the manager level, typically after a minimum of four years. These relatively lower pay rates, combined with demanding work conditions, have been long-standing issues contributing to the shortage of auditors in Australia.

In contrast, equity partners at the big four firms enjoy significantly higher incomes, ranging from $700,000 at KPMG to $810,000 at Deloitte, and exceeding $900,000 at EY and PwC. However, for those who opt to transition from the big four to commercial roles, reaching such income levels is less straightforward, unless they attain highly sought-after executive positions within their new companies.

Complicating the accounting and auditing dropout challenge is the reluctance of Big Four firms to offer the same substantial pay increases and sign-on bonuses that were available during the peak of the COVID-19 pandemic and the post-pandemic years.

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As Ms. Foggiato observes, “Firms don’t like to use cash” to attract and retain talent.

It’s worth noting that the issue of dropout and the shift in career preferences isn’t limited to junior and mid-level accountants and auditors. The big four firms are also facing challenges when it comes to attracting and retaining tax experts, particularly at the managerial and senior managerial levels. James Dowdeswell, co-owner of KeyMoves, a recruitment agency, notes that there’s a growing demand for tax professionals from the big four firms. However, they are hesitant to offer exorbitant salaries to entice candidates, concerned about how such compensation would compare to existing team members.

In light of these changes, a unique opportunity arises for Nigerians looking to travel abroad and seek employment at the prestigious Big Four auditing firms in Western countries. The shifting dynamics in the industry create room for international talent, as the focus on reaching partner status wanes, and the desire for better work-life balance and higher pay takes center stage among aspiring professionals. This paradigm shift may open doors for Nigerians to explore and contribute to the global auditing and accounting landscape.

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