Accounting for Overtime

From the beginning of time in Accounting, Overtime has been a requirement.

This weekend, KPMG advertised in major newspapers across Canada to inform their current and ex employees that they are offering them additional compensation for their Overtime. They are not doing this out of the goodness of their heart, but as a response to a class action suit launched by one of their former employees in 2007. (I'm curious as to how long it will take the other Big 4 in Canada to make the same offer.)

KPMG is being reactive rather than proactive, and I’m sure this will be a topic for discussion when it comes time to recruit staff, whether out of university or experienced staff, not only for KPMG, but all accounting firms, especially the Big 4.

Accounting firms have always had a reputation for requiring Overtime. Prospective Accounting graduates wanting to work at an accounting firm have always been aware of this requirement. So what’s changed?

It seems that Generation Y is not so interested in working too hard. And who could blame them? They don’t need to. Especially in Accounting, accountants with a few years of experience are in demand, and if they don’t like the conditions of their employer, they can find greener pastures elsewhere.

Accounting is a time sensitive business. Deadlines are always around the corner, and for work to get done in accounting, both at firms and at companies, overtime will be required. How companies manage the overtime they require their staff to work is how they will be rated by their employees, both current and prospective.

As I mentioned in a previous blog, Progressive companies are compensating their staff for the overtime worked, either in cash or in time off. For Generation Y employees, giving them flexibility will be helpful in keeping them motivated and retained.