Recently, Ernst & Young (EY) dismissed dozens of employees in the U.S. for attending multiple online training courses simultaneously, a move that EY described as “appropriate disciplinary action” for an ethics violation. This decision highlights a significant issue for all professional services firms: the policies governing employee behavior, especially around ethics and multitasking in mandatory training.
For those of us in business valuation, where reputation and integrity are paramount, this incident serves as a thought-provoking reminder to reassess our own firm policies. With multitasking ingrained in modern work culture, it’s essential for firm leaders, particularly partners, to evaluate whether our policies are up-to-date and clearly communicated, not only to maintain high ethical standards but also to avoid potential lawsuits and reputation risks.
The Incident and Its Implications
According to the Financial Times, EY’s decision to terminate the employees sparked an internal debate on ethics and multitasking limits. Employees who were dismissed argued they had received no explicit warning against attending multiple courses simultaneously and that EY’s internal marketing for the event encouraged them to join as many sessions as possible.
Furthermore, some employees felt the firings were severe, suggesting alternative actions such as rating reductions, bonus deductions, or delayed promotions. The underlying issue here – the expectations around training and multitasking – is a universal one for professional services firms.
Key Takeaways for Valuation Firms
For valuation firms, particularly those with employees managing multiple client demands and training requirements, this situation underscores the importance of setting clear, enforceable guidelines. Multitasking is a common expectation, yet training programs often demand full attention to be truly effective. Balancing these competing priorities requires explicit communication and practical policies that employees can follow without risking their careers.
Here are some considerations for firm leaders looking to prevent similar issues:
- Define Clear Training and Conduct Expectations
Ensure that training policies are comprehensive and transparent, specifying expectations for attendance, participation, and multitasking. While multitasking may be a norm in day-to-day client work, training sessions often require full engagement. By clearly stating these requirements, employees will understand when it’s acceptable to multitask and when full focus is expected.
- Regularly Review and Update Policies
Policies should evolve with work culture and technological advances. EY’s post-incident updates to training guidance is an example of how firms can adapt after an issue arises, but proactive reviews of internal policies can help prevent confusion and disciplinary actions. Consider conducting periodic reviews to confirm that your policies reflect current work practices and legal standards.
- Foster Open Communication Around Policy Changes
Employees should never feel blindsided by policy enforcement. Regularly communicate policies in multiple ways, whether via direct email, training sessions, or company-wide meetings. This open communication is especially crucial when implementing new guidelines, such as the recent updates EY made to its training attendance policies.
- Provide Structured Consequences for Policy Violations
Discipline policies should include a range of responses to violations, from warnings and performance evaluations to termination for more severe breaches. Employees and managers should understand what to expect in terms of consequences, helping to prevent situations where employees feel that disciplinary actions are overly harsh or disproportionate.
- Encourage an Ethical Culture by Example
Valuation partners and firm leaders must model the behavior they expect from their teams. As one EY employee pointed out, there can be a disconnect between what’s preached and what’s practiced, especially when senior staff juggle multiple tasks. Building a transparent culture where leaders adhere to the same standards as everyone else reinforces ethical practices at all levels.
Final Thoughts
The EY incident is a clear call to action for valuation firms and professional service organizations. Maintaining a strong reputation and ensuring compliance with ethical standards is critical, but equally important is creating a fair and transparent environment where employees are fully aware of what’s expected of them. By proactively setting, reviewing, and communicating firm policies, valuation firms can protect their reputation, mitigate legal risks, and foster a positive, ethical workplace culture.
As partners and leaders, take this opportunity to evaluate your firm’s policies and consider whether they align with your firm’s values and the demands of today’s dynamic work environment.
