The job market can be challenging for tax partners transitioning out of an accounting firm into another accounting, law or other professional services firm. ASA deals with transition issues involving partners daily. Each partner has specific circumstances that affect success.
Some key factors may impact a successful change:
- Analyzing the compensation you receive leading up to retirement vs. years to retirement trade-off – the further from retirement you leave, the more likely to earn a comparable salary. In some cases it may be at a reduced level, but considerably more than a retiring partner, and likely more years to continue working elsewhere.
- Other firms may not offer a partner role if a candidate is past 55.
- Younger partners are less likely to need portable business if moving to another accounting firm.
- 15% of retiring partners find a job, but with the right strategy, partners can beat those odds.
- Firms hiring partners at or near retirement are frequently paying a low base and a percentage of revenue generation, i.e. not willing to take to take on the risk of a high base.
- Portable business – employment contracts aside, the fewer services a client is receiving outside of your own, the better chance your firm will allow you to bring the business. Being intentional about developing business with middle market clients utilizing your services alone – vs. a large, legacy MNE, will increase your chances considerably.
- All components of a retirement package should not be at risk according to the law. I recommend seeing a Labor & Employment attorney to understand where areas of sensitivity may be.
