Deloitte PwC What are the pros and cons of compensation philosophy at both firms? What's better?
Pwc: have clear cohorts with fixed base comp + performance based bonuses acting as factor of difference between low performer and high performer
Deloitte: no clear ranges, base comp for same level have huge variances. Consistent high performers would earn a lot more in base than low performers + Performance based bonuses as % of base comp
Chief
PwC by a mile.
You’ve mischaracterized Deloitte.
1. Your year-end review is two/three people. PwC has a larger panel. If you’re junior staff, you don’t even get the two/rheee person panel. You get a 15 second review of a PPT slide - so good luck if you have any extenuating circumstance.
2. The “consistent base increase” is irrelevant in an industry where people change every 2 years. While you’re getting a 7% base increase instead of 3%, Deloitte is hiring people at 20% above what you made.
3. We have 2x a year promotions now. I expect Deloitte to follow this, though.
If you go to Deloitte, you’ll be underpaid in 2 years. If you go to PWC, you’ll stay in line after years 2-3 but be underpaid the first year.
The only other thing Deloitte has that the other firms don’t is incredibly good content to reference. But the people who made that stuff are long gone. So good luck getting them to mentor you.
Especially this year, those good content are leaving or just left.
I have a great mentor for reference and both of us just left D
The notion that top performers are paid way more than low performers at Deloitte is the funniest thing I’ve ever read on this app
Deloitte’s YE performance system is one of the primary reasons I left.
Have a family member at PwC who was able to show my their rating systems, explain to me each part, and also show my how the cohort pay worked and all I could show them from my feed back was that I was “Exceptional in People and Client work”..
Would’ve joined PwC in a heartbeat over Deloitte just off of that
PwC is currently paying Deloitte low performers more than Deloitte. Deloitte is paying PwC high performers more than PwC.
That is the philosophy.
Cohort works for me.
Clear path for promotion.
Honest feedback with tier and bonuses.
Love the transparency.
Everyone gets paid the same. (No ceilings whatsoever).
D3- it can seem that way, but your tier ratings is what set ppl apart. T1-T5.
Ppl in T1 can have LARGE bonuses compared to the tiny bonuses that ppl who coast receive if any.
Lots of PwC cheerleading on here these days, S& and others are posting uninformed opinions.
There is a very simple difference between the two, philosophically. The cohort system at P rewards everyone the same, the result being a tenure based system that has more steps to P, for example Director being a step and a destination.
D rewards performance both in terms of base and bonus within a broader band (c, sc etc).
D folks joining P jump way ahead of the home grown people, the cohort system forces them into a higher group because that’s the only way to pay them enough to move. This has created something of a toxic culture where outsiders do better than home grown talent. For example recent average and limited experience SMs from D go to P as a director (then discover this is in no way equivalent to MD at D). Directors go to PW on a 3 year path to full P, with the title immediate;y (although many don’t make it, they are let go after the 3 year ‘probation’).
There are positives to both systems. P is easier to understand and treats average performers better. D’s system is harder to understand and navigate, and requires a lot more effort at year end. Both systems leave groups of folks unhappy, at D it’s the average performers, at P it’s the home grown folks who see outsiders leapfrogging them (and PwC makes far fewer partners than D, so this is a real constraint on the ability to create wealth long term).
Short version, D is better for folks who are high performers and can bear ambiguity and in the long term high performers have a higher net worth at D. P is better for folks who want and need structure and don’t mind higher performers being treated the same as the average folks.
Chief
To be clear, I’ve never been on a panel. I wasn’t a PMD. I’ve presented to them.
If you’re still arguing that all Analysts, Consultants and SCs are presented to a live panel, then things have changed since a couple years ago.
Regarding the powder keg…. Umm, if you say so lol.