Alliantgroup considers retention bonuses to stop people fleeing (UPDATE)

[Update at the bottom of article originally posted on May 31.]

Much like at the largest accounting firms in the United States, the big resignation has hit Alliantgroup hard over the past two years as employees left Jadav’s home for greener pastures, more money. and a less toxic work environment. And now that the Houston-based national tax consultancy is under investigation by federal authorities, other current Alliantgroup employees are planning their escape.

On May 24, the day Alliantgroup employees returned to work in Houston after being given a day off on May 23 and a half day off on May 20 following a raid by federal authorities on company offices that morning, a current employee told us:

Despite returning to work today, we are all looking for employment elsewhere.

Sensing a possible mass exodus because of what happened at the company over a week ago, a source told us on May 28 that Alliantgroup had already begun the process of offering retention bonuses. to employees to encourage them to stay a little longer:

They are starting to offer some employees retention bonuses with stay requirements longer than 12 months. Contracts are being drafted and will be distributed next week.

Companies offering employee retention bonuses were not unheard of during the Great Resignation, at least in public accounting. Last February, Deloitte’s tax practice offered seniors and managers a one-time lump sum payment of $20,000 if they agreed to stay with the Big 4 firm for the next two years. Those who took the money received their retention bonus in April. A similar one-time bonus was offered last October to second-year students through senior executives at Deloitte & Touche, Deloitte’s audit firm. Bonus amounts varied by tier (either $20,000 or $35,000) and were paid on January 7. Audit Deloitte employees who accepted the lump sum payment must now stay until the end of May 2023. In both cases (tax and audit), if Deloitte employees who benefited from the retention bonus leave the company before the end of May 2023. When the terms of the agreement expire, they must repay the full premium to the company.

The biggest difference between the Deloitte and Alliantgroup situations is that Deloitte is not under investigation by the federal government. We’ll update this article once we know how many retention bonuses Alliantgroup offers to employees.

[UPDATE] Apparently, Alliantgroup has been offering retention payments to employees for at least the last year, according to a current employee. This person told us that retention bonuses are normally $10,000 and if the recipient takes them, they have to stay for 12 months. If the employee leaves Alliantgroup before the end of the contract, he must repay the entire premium. Our source tells us that the company “has definitely awarded retention bonuses over $10,000,” but the employee doesn’t know of any under $10,000 and hasn’t heard of any retention bonuses being offered. that were shorter or longer than a 12- month term. Retention bonuses “are primarily used as a tool to determine if someone has immediate plans to leave,” the employee said.

The retention agreement contract has a nondisclosure agreement-type clause, according to our source, and only very senior company executives can offer retention bonuses to employees. The employee told us he had not heard of anyone getting or being offered a retention bonus since the Alliantgroup offices were raided on May 20.

Related Articles:

IRS pays unwelcome visit to Alliantgroup
Former and current Alliantgroup employees speak out about an ‘evil, toxic and emotionally damaging company’

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