Arthur Andersen has taken on the investment banks with plans to increase its remuneration for non-partners. Consulting and accounting firms have often struggled to keep pace with the pay packages offered at the banks. All but partners have been excluded from sharing the profits of labour.
But this is no longer true. Arthur Andersen has raised the stakes in the battle for talent, and since the start of September, the firm's 5,500 accountancy and professional services staff have been eligible for performance-related bonuses potentially worth more than 30% of their salary. This could increase the pay of senior managers from 130,000 (€215,800) to more than 169,000.
The scheme marks a departure from Andersen's traditional pay structure. The firm has traditionally operated an overtime system under which the majority of staff saw salaries boosted for working more than 37 and a half hours a week. Head of HR Judith Hardy says: 'We're trying to discourage presenteeism and create an environment in which people are paid for adding value. People are no longer paid just for spending time at work. It's all about outputs and what you can deliver.' The scheme will apply across the firm, but will not encompass the partners, who will continue to be paid according to overall profitability. Recipients of the bonuses will be rewarded according to individual performance.