{"id":1000897185,"date":"2024-09-20T13:00:45","date_gmt":"2024-09-20T17:00:45","guid":{"rendered":"https:\/\/www.goingconcern.com\/?p=1000897185"},"modified":"2024-09-25T15:50:14","modified_gmt":"2024-09-25T19:50:14","slug":"qotd-now-we-dont-have-to-pay-people-out-when-they-leave-which-is-just-good-business","status":"publish","type":"post","link":"https:\/\/www.goingconcern.com\/qotd-now-we-dont-have-to-pay-people-out-when-they-leave-which-is-just-good-business\/","title":{"rendered":"QOTD: “Now We Don’t Have to Pay People Out When They Leave Which Is Just Good Business”"},"content":{"rendered":"\n

Today’s quote of the day comes from a post on r\/KPMG: Things feel worse than ever<\/a><\/p>\n\n\n\n

OP says:<\/p>\n\n\n\n

\n

I\u2019ve been working here a year in an office in New York and we had a call yesterday that went terribly. I believe the call was supposed to just be a tech training but it devolved into discussion over why this year was the way it was.<\/p>\n\n\n\n

The biggest offender was a partner who explained the new PTO change as \u201cnow we don\u2019t have to pay people out when they leave which is just good business let\u2019s be real\u201d like\u2026 ummmm WHAT?! He basically just admitted they made the policy to screw us over.<\/strong><\/p>\n<\/blockquote>\n\n\n\n

After months of rumors, KPMG announced firmwide unlimited PTO earlier this month<\/a>. It was only a matter of time before some bullshit started coming out.<\/p>\n\n\n\n

We all know “unlimited” PTO is a) a scam and b) a good way to avoid having several tens of millions of dollars a year<\/strong> hanging over your head as was stated in the email sent among EY leadership leaked in late 2020 when they made the switch to unlimited PTO<\/a>. Text from the EY email quoted directly (emphasis ours):<\/p>\n\n\n\n

\n

A few key takeaways from the slide deck that support the reason for the change include: <\/p>\n\n\n\n

    \n
  • Provides cost savings of about $36M per year (2019 cost) associated with paying unused vacation at termination.<\/strong><\/li>\n\n\n\n
  • Freezes the current vacation lability for the growing number of states with an accruat cap vs. a “use it or lose it approach, which significantly increases cost of paying unused vacation at termination. CA, CO, IL, MA, LA and i have accrual cap 1.5x annual allotment (25% of our people) <\/li>\n\n\n\n
  • Aligns with One EY, moving personnel to a single vacation policy and away from variances necessitated by varying state laws around treatment of accrued vacation <\/li>\n\n\n\n
  • Better aligns with culture of trust, flexibility and wellbeing <\/li>\n\n\n\n
  • Eliminates entitlement mentality and need for carryover of unused time or sense of “loss” by our people <\/strong><\/li>\n\n\n\n
  • Positions EY as a “first mover among the big 4, providing a competitive advantage and serving as a differentiator on campus <\/li>\n<\/ul>\n\n\n\n

    For your reference, attached are the communication plan and a comprehensive list of questions and answers. Some of the key points above may not be shared with our people (e.g. $36M savings), but as business leaders you to know that this is a significant reason for the change.<\/p>\n<\/blockquote>\n\n\n

    \n
    \"text
    EY’s switch to unlimited PTO in 2020 flopped when this email leaked<\/figcaption><\/figure><\/div>\n\n\n

    Make sure the grunts don’t hear about the cost savings of $36 million that we listed as the first reason for the change! No sir. People know<\/em> that’s a big reason why a firm would make this switch, you just don’t expect a partner to say that part out loud.<\/p>\n\n\n\n

    It’s just good business let’s be real!<\/p>\n","protected":false},"excerpt":{"rendered":"

    Today’s quote of the day comes from a post on r\/KPMG: Things feel worse than […]<\/p>\n","protected":false},"author":11,"featured_media":1000897152,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,22,31,1171,5796,33315],"tags":[11463,9591,10624,1172,1785,13054],"class_list":["post-1000897185","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-big-4","category-career-center","category-kpmg","category-quote-day","category-serious-questions","category-tldr","tag-fuck-you-pay-me","tag-leaving-public-accounting","tag-liabilities","tag-quote-day","tag-scams","tag-unlimited-pto"],"yoast_head":"\nQOTD: "Now We Don't Have to Pay People Out When They Leave Which Is Just Good Business" - Going Concern<\/title>\n<meta name=\"description\" content=\"Supposedly that's what a partner in NYC told the grunts on a team 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