Be strategic when awarding raises and promotions

Be strategic when awarding raises and promotions

Now that the economy is recovering from the Great Recession and demand for CPA services is rising, firms have ramped up their hiring. But demand for experienced accountants, especially seniors and managers, outstrips supply. In a “seller’s market” like this one, staffers who are unhappy with their jobs may be tempted to seek work elsewhere. Awarding the “right raises” and promotions is the first step in getting them to stay with your firm.

Nevertheless, with some vision and fortitude on management’s part, the current environment offers a unique opportunity to develop a more sustainable and effective workforce. Having a solid review and reward process is one way to do so.

Here’s some advice for a successful review period:

Gathering feedback

Lay the groundwork for reviews and compensations long before midyear (or whenever your firm typically gives out raises). Your evaluation processes should occur throughout the year and include goal-setting, evaluation, monitoring, and opportunities for gathering feedback. Pair less-experienced employees with senior ones who can coach them and assess their performance. Then, when the post-busy-season review period arrives, you will have structures in place that will allow you to collect rich and useful feedback. Read more on the Journal of Accountancy