Can a 100% Remote Person Become a Partner?
Marc Rosenberg, CPA
Kristen Rampe, CPA / Aug 30, 2022
Working remotely triggers “outside-the-box” thinking
Can you name a more vivid example of a situation needing “outside-the-box” thinking during the last three years than dealing with the avalanche of remote workers? Remote working in the CPA profession was in use for decades before the pandemic, but relatively infrequently, with the vast majority of remote workers residing in the city where their firm was located. Very few worked remote full time.
But Covid has been a game-changer. Now, years after the onset of this dreadful pandemic, a sizable majority of employees work remotely on a full-time basis. At other firms, people work a hybrid schedule—some days in the office and some days remotely. Indeed, 89 percent of firms don’t require staff to be in the office on certain days (this from an upcoming survey we conducted on the remote work practices of 134 CPA firms). Finally, the number of firms hiring remote staff located throughout the country has dramatically increased.
Survey of CPA firm managing partners
Recently, we conducted a small survey of 12 MPs and asked them:
- If a firm has a high-performing, fully remote manager, should this person be considered for promotion to partner?
- If yes, equity partner or non-equity partner?
The sample size is small, so it may not be statistically significant. Nonetheless, the results are telling. All MPs were highly credible, effective MPs of great firms that we have had the pleasure of working with.
Responses
- Yes, and can be promoted to equity partner – 6 people
- Yes, and can be promoted to non-equity partner – 3
- Will not be considered for partner – 1
- It depends (detailed below) – 2
Our book How to Bring in New Partners is written for firms fortunate enough to have staff with the right stuff to be a partner. This book addresses all of these areas and more, including: ►how do firms develop staff into partners and when are they ready ► should we have non-equity partners ► what is the process for bringing in a new partner ► how do new partners get compensated ► what should the buy-in amount be.
Noteworthy individual comments
Below are some excellent comments that accompanied responses, providing a great deal of depth to the analysis. A number of respondents noted that whether working in the office or remotely, a partner needs a high degree of skill and experience. The specific criteria our panel suggested were: (a) bring in some business; (b) provide consistently excellent (not merely adequate) client service; and (c) develop, train and mentor staff.
Here’s a sample of what we heard:
- A fully remote person should be considered for partner as long as they have all of the other required qualities and have mastered business development from a remote perspective.
- They could be an equity partner if they can do the job remotely and are willing to come into the office occasionally to participate in person for key meetings and events.
- Yes, you should definitely consider them for partner. I don’t think a ceiling for anyone is appropriate. Put the challenges in front of them, and let them see if they have what the firm needs from them to become a partner.
- I would definitely consider promoting a remote high performer to equity partner. It would be complex but possible and perhaps necessary.
- If the firm is working mostly remote and plans to continue working remotely, then they should be considered for partner. If the firm’s culture is that people should work primarily in the office, I would say no to the partner promotion unless they have some unique talent that they bring to the firm.
- Part of being a high performing manager or partner is being able to mentor and develop good relationships with clients and staff. I am far from convinced a fully remote individual, no matter how capable they are, can properly develop relationships remotely to the necessary level. A hybrid remote scenario might have a chance.
- An equity partner needs to be on the ground, so to speak, teaching, training, spreading the culture—and, of course, developing business.
What is your firm doing? Are you considering, implementing or throwing out the idea of fully remote partners at your firm? We’d love to read your comments below.
6 Comments
How to Bring in New Partners: A Guide for Firms and Future Partners
As partners approach retirement age, they naturally focus on who can take their place and eventually write their retirement checks. Prospective new partners often have a lot of questions about what becoming a partner entails. Many firms either aren't sure how to bring in new partners or have outdated approaches for doing so.
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It really depends on the criteria for equity partners. I think that the first criteria need be to make a difference for the clients we serve and be appreciated for it.
Appreciation can be measured in realization rates and clients referred. No business originated means insufficiently appreciated by the people one knows and works with.
Simple, isn’t it!
I had my own firm for 10 years. At 60, I’m quite fine being a Director at a firm now and have no desire to be a partner again. I’m roughly 85% remote – I live in a Detroit suburb and work for a Cleveland firm. I go to Cleveland generally every two to three months for a full week.
I take issue with the response you got about someone being fully remote not being able to develop people. Ask the three interns I had working on PRF audits this summer. I was with them for their first week, then worked remotely with them for the next three months. They were doing work we’d never done before. All three blossomed in this scenario.
(Ok, I recognize I’m patting myself on the back.)
Your comment is interesting. You feel you developed them remotely, however you spent a week WITH them. My feeling is that is likely where you laid the groundwork and developed the relationship with them to allow the remote collaboration to be successful.
Astute remark!
I would add that most (but not all) firms that consider someone “100% remote” it means there’s no daily or weekly requirement to come into the office. However many do have some at least annual (if not semi-annual or quarterly) requirements to be in person at specific team/firm meetings or events. Often upfront in-person training is part of that deal too. And I agree that this lays an important foundation for remote work to “work,” especially in the case of interns and new college graduates.
I think when this person said “with fully remote, managers aren’t able to develop people,” the person really meant it’s much more difficult to develop people remotely, especially younger people. And that as a result, managers may be less successful mentoring people remotely than if they were meeting with them in-person. You are indeed deserving of a pat on the back for (a) doing such a good job mentoring and (b) being able to parlay your initial week with them into a remoted work relationship. Thanks for your great comment.