Promotions Have Become Rare - At Accenture, You May Still Get One, But Not Until June 2025 and Promotions Might Not Really Be Paradise Gained

Recently, among 68 million knowledge workers, only 1.3% percent received a promotion, the lowest number in five years. Personal anonymous networks Glassdoor, Reddit and Fishbowl chronicle the disappointment and frustration. 

One reason is the uncertainy. It is difficult to figure out where the economy is going. That difficulty is enhanced during a general election year. 

This is also the era of cost-efficiency. Bumping up an employee to manager or team leader means paying out added compensation. 

Meanwhile high interest rates have been making the cost of business more expensive. 

Overall, after the pandemic shift of power to the worker, the employer has regained much of that in white collar sectors.

Pandemic over-hiring has created a glut of talent in organizations. The focus is on reduction of a lot of that, not motivating hanging around through promotions. 

However, in the distressed consulting business, there is a notice that there will be promotions. The wrinkle on that is that they will be delayed. As we know from the delayed job offerings during The Great Recession lots can happen during the hiatus, including eliminating that job. Those who assumed they had a job didn't.

Bloomberg reports:

"Accenture Plc is planning to push back the bulk of its staff promotions by six months in the latest sign of a prolonged slump that’s hurt the wider consultancy industry."

Accenture indicates during that period the organization has more time to get its head around client/prospect demand/need. Right now there is a surge of requests for consulting assistance in automation and AI-related projects. 

Also, in general, a promotion might not really be entrance to a Promised Land. The example of that which is receiving so much attention is the introduction of non-equity partnerships in law firms. Most recently Paul Weiss and Wilmer Cutler have established that tier. Kirkland & Ellis, the most successful law firm in the world, has been operating with that model for a relatively long time.

The objective is retention of seasoned lawyers without having to make them equity partners. 

A number of lawsuits filed recently, including "Garland v. Duane Morris," are taking on that supposed innovation of giving the title of "partner," but without the benefit of being a shareholder in the firm. Instead the NEPs received fixed compensation. 

The action in law firms is primarily about Profit Per Equity Partners. The expose "Servants of the Damned" by David Enrich presented that current reality. 

Bloomberg Law reports that Megan Garland alleges "the firm intentionally misclassified her and other attorneys to reduce business and tax expenses." An interesting uniqueness is that Garland remains working at Duane Morris.

Another issue is that there is no added employment security with the NEP status. Since they are not owners they can be fired at-will. 

Some contend they could be earning more as senior associates instead of NEPs. 

In addition, come on, "everyone" knows they are not "real" partners. 

During the post-war boom in the 20th century promotions were a concrete sign of success - and belonging. As I tutor in coaching, maybe just being hired and holding onto your job are legitimate signals that you are doing okay in this brutal labor market for knowledge workers. 

In business and life you usually have only one shot at whatever. Up the odds of success with Jane Genova. I am an intuitive coach, tarot reader and content-creator. Complimentary consultation (please text/phone 203-468-8579 or email janegenova374@gmail.com)