Question

Christopher Petermann, a partner at PKF O’Connor Davies LLP, has found a valuable source of talent for the accounting and advisory services company: partners of the largest accounting firms who typically are expected to retire by their early 60s. “We don’t have mandatory retirement, and the older people we’re hiring are vibrant, with expertise in areas that can help us grow—plus they’re helping train younger employees,” says Petermann, codirector of the New York-based company’s foundation practice.

At a time of low unemployment, it’s tough for many companies to find and keep the best talent. Competition is especially steep for accountants and consultants with financial and information technology know-how, as increased financial regulations, tax law changes, and the growth of Big Data and global trade spur demand for specialists. Restless veterans of big accounting firms such as KPMG LLP and Deloitte LLP provide a solution for small and mid-size business service companies—among them PKF, Marcum, and WithumSmith+Brown.

Mandatory retirement policies were put in place decades ago when life expectancies were shorter and as a way to make room for younger employees to become partners. Today many accountants and other professionals aren’t ready to stop working at 60, at least not entirely. Many want part-time or flexible schedules and are willing to take a salary cut.

“These older partners that large firms are ushering out the door are a talent gift to smaller companies,” says Ruth Finkelstein, executive director of the Brookdale Center for Healthy Aging at Hunter College, who’s studied older workers. “They don’t need to be trained. They have experience and contacts that can bring in new business and important knowledge to pass to younger employees.” That includes experience in international business and governance, expertise that small and midsize client companies need and can get from the seniors at lower rates than if they hired big accounting firms.

It’s an employment model that companies in many industries could use and benefit from, says Peter Gudmundsson, founder of Dallas-based Hire Maturity LLC, which produces career fairs and runs a job board for what he calls “mature talent.” “If you’ve done tax or audit for decades—or marketing or finance or any business specialty—you have professional networks that are hugely valuable to employers and a willingness to help people coming up the ranks because you’re no longer competing for promotions,” he says.

Lawrence Baye felt at loose ends when he had to retire in 2015 from a 34-year career at Grant Thornton LLP, where he was a principal. So he was receptive when two years ago a recruiter connected him with PKF, which wanted his expertise in governance, risk, and compliance matters, as well as IT and business operations. “I don’t have hobbies and was bored at home—and they welcome veterans here,” says Baye, who’s working as a consultant at the firm three days a week.

PKF’s almost 800 employees range in age from 22 to 82, and many, regardless of how old they are, have flexible schedules aimed at helping them balance work and families. Those at traditional retirement age, such as Baye, can work part-time as consultants.

“I don’t want to be promoted, so I’m not clogging the path for younger employees” says Baye, who likes working in smaller teams and informally mentoring younger colleagues. “I tell them what I’m doing and why and to try to envision the end result they want on an assignment, but I also want them to critique me and do their own original work,” he says.

The advice that veterans can offer is especially important to MarcumBP, a Marcum LLP unit that works primarily with clients that do business in or with China. The unit has about 90 employees in the country and about 25 in New York. It employs retirees from big companies, each with extensive knowledge about a particular industry such as health care. The veteran hires are training MarcumBP’s Chinese staff, who are mostly in their 20s and 30s and, in many cases, studying to become U.S. certified public accountants.

“We’re a small company that’s working in an emerging market and can’t afford to make a mistake,” says Drew Bernstein, MarcumBP’s comanaging partner. “The retiring partners we get from big firms are at the top of their game, with expertise that’s very hard to obtain—and they’re fantastic mentors.”

Instead of recruiting from outside, other talent-hungry companies encourage veterans to keep working. New York-based WithumSmith+Brown PC, an accounting and consulting company with about 800 employees ranging in age from their early 20s to 91, requires veterans to step down as partners when they turn 65. But it invites them to become emeritus partners and to keep working as long as they’re productive.

“There’s a benefit to having five generations in the workplace, because everyone brings something to the table,” says Joan Kampo, director of human resources. “It’s not about age. It’s about keeping talent in this tight labor market. You can have a 22-year-old who’s wise beyond his years and someone in his 70s who’s motivated and willing to embrace changes.”

Questions for Discussion

1. What competitive advantages do these motivated veteran accountants bring to their new employers? Cite several examples.

2. List three specific outcomes received by organizational members who have moved to these smaller accounting firms from senior positions in larger organizations.

3. At which level of Maslow’s hierarchy of needs would you place these veteran accountants? Explain your reasoning.

Answer 1

answer-

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The competitive advantages these motivated veteran accountants bring to their new employers are that they act as mentor to young employees in small companies. these accountants share their experince and knowledge to them and improve their work.

These motivated Veterans also work at low salary like in the case, one veteran accountant was ready to work for low salary because he has no hobbie and bore at home.These veteran accountants also provide benefit in the form of network they had in their time of work.

In this case, Peter Gudmundsson says, “If you’ve done tax or audit for decades—or marketing or finance or any business specialty—you have professional networks that are hugely valuable to employers and a willingness to help people coming up the ranks because you’re no longer competing for promotions,”.

This shows how small companies can get so many benefits in the form of knowledge, experience,network and mentorship.

The three outcomes received by organizational members who have moved to these smaller accounting firms from senior positions in larger organizations are-

Flexible work schedule where these organizational members able to make a balance of their work and personal life which is very important for employees now a days.

second, They have no intention to get promotion as they do not want to clog the ways of new young employees for growth so they were satisfied with their current position in small companies.

Third no mandatroy retirement in small companies, Organizational members are allowed to decide at what age they want to get retire.

I would put these veterans at self esteem need because these veterans were retired so they do not have any status, recognition but at esteem stage they get the freedom to work as they like in small company. They get respect from younger employees and its management because of their experience and knowledge. This stage motivate them to show their strength and self respect in company.

*hope this will help you. pls give this a upvote i would appreciate. thankx