Incentives are still “in”

Two in three Canadian CA firms (65%) give their employees bonuses or other incentives, according to a practice benchmarking survey conducted by the CICA and provincial institutes/ordre last fall.

The responses of almost 800 primarily small and medium CA practices also indicate the criteria for granting bonuses have changed since the last such study in 2007. Individual staff rating continues to be a factor in determining bonuses for seven in 10 respondents. Attaining chargeable hours’ revenue target, profitability and performance of the firm are factors considered by more than 40% of firms. Obtaining new clients was mentioned by one-third of respondents, down from nearly half in 2007. Obtaining new projects from existing clients was mentioned by 7% of firms, down from 15% in 2007.

The results are from a broader three-part Managing a Public Practice (MAPP) CA practice benchmark survey conducted biannually with the partners of CA firms across Canada, which provides invaluable information for managing a CA practice. The fall 2009 MAPP survey (Part 1) focused on firm billing rates, compensation and benefits. Part 2 will be launched this summer and will benchmark firm revenues, expenses, billing practices, productivity, etc., while Part 3 will focus on computerization. Owners of CA practices who want access to the results must participate in the survey. There is no cost to participate and the detailed results are not sold or made available to those who do not participate.

Paul Long is CICA’s manager of marketing and marketing research