Although many firms are doing a good job with transitioning long-time partners into retirement, a large number of firms are still dealing with top heaviness. These firms have continually brought people into the partner ranks because they are good technicians or because the older partners did not want to lose a manager who had many close relationships with a significant number of clients.
Firms also have a history of promoting people to manager just because they don’t want to lose them. What eventually happens is that the firm becomes top heavy. There are way too many partners and managers and too few staff.
Then a common scenario evolves where partners are doing manager work, managers are doing staff work and staff are looking for work.
Because the firm is top heavy, younger accountants, with great potential, get discouraged and leave the firm. Headhunters are calling them regularly and it is very easy to get a great deal at another firm in your market.
Read my full article on how to begin the journey in prioritizing and tackling the top heaviness inside your firm.