EY on track to recruit about 220,000 staff with Big Four rivals on own hiring sprees

EY expects to sift through more than three million resumes this year. PHOTO: AFP

LONDON – EY is on track to hire around 220,000 people in the 12 months to July 2023, having achieved its highest growth in nearly two decades in the previous period. This is before a potential break-up of its auditing and consulting divisions takes effect, which could further ramp up a recruitment drive that reached about 160,000 in the 2022 financial year.

As part of the push, the firm expects to sift through more than three million resumes this year, EY global vice-chair for talent Trent Henry said in an interview. The company is using automation to help its recruitment professionals and to match candidates to job postings, he said.

Its Big Four rivals, as the top accounting firms are known, are on hiring sprees of their own. PwC welcomed 148,000 new joiners in the 2022 financial year and is on target to hire a net additional 100,000 professionals by 2026, the company said in October. Deloitte and KPMG are also adding to their workforce. Together, the four companies already boast more than one million employees.

The growth underlines the continuing boom in demand for professional services, even as job cuts hit other industries.

Wall Street firms have been culling investment bankers. Tech companies chopped almost 10,000 jobs last month, with Amazon.com saying the cuts will continue next year.

“While there is a cooling-off in the job market overall, accountancy has stood up pretty well,” said Mr Simon Wingate, managing director at job search website Reed UK. “If you look at traditional comparators like banking or legal, accountancy is by far and away the biggest in terms of job postings on our website.”

Accountancy job postings in Britain in October rose to around 21,000, according to data from Reed. Legal and banking each saw less than a third of that. The sector is on track to overhaul tech to becoming the platform’s top employer.

In the United States, postings are still around their July peak, and are holding up better than other finance roles, separate research from job site Indeed showed.

Growth, diversification

Growth and diversification help to partly explain why the appetite for talent at accounting firms is resistant to market turmoil. Over the last decade, the Big Four have started adding new services as they broaden their offerings. Deloitte’s British consulting arm recently announced that it is recruiting 3,500 new people over the next five years, including for roles like app designer or machine learning engineer.

Another part of the answer is a post-Covid-19 staff exodus. Even though the pandemic had a limited impact on the Big Four, the top accountancies froze bonuses, promotions or pay rises at the time, according to Mr Chris Sale, managing director at Prism, a management consultancy recruiter. That left “an awful lot of very cheesed-off people in the Big Four”, many of whom became part of the wave of leavers between mid-2021 and 2022, he added.

Ludicrously large’

The recruitment numbers are “ludicrously large”, Mr Sale said. “What they don’t tell you is that the reason they are hiring 200,000 people is they’ve probably lost 50,000.”

The Big Four have also pushed up salaries and accelerated promotions to fight attrition, he said.

PwC increased most salaries in Britain by at least 7 per cent this summer in response to the cost-of-living crisis and the fight for talent. Meanwhile, EY has already promoted 42,000 since July, Mr Henry said. This number could reach 60,000 by next summer, up from 56,000 in its 2022 financial year and 49,000 in 2021.

The hiring comes with some 13,000 partners at EY set to begin voting on a possible break-up. If the break-up goes ahead, the firm plans to accelerate recruitment as it will need more staff in areas such as technology, according to Mr Andy Baldwin, EY global managing partner for client service.

“A demerger creates jobs, it does not reduce jobs,” he said. BLOOMBERG

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