Big Four promotions hinge less on performance and more on office politics, researchers say

"A study found Big Four promotions are shaped more by internal politics than auditors' performance. Researchers from three universities say managers' reputations influence promotions as much as evaluations. Even strong performers can be overruled unless influential managers defend them in committees."

"A new study suggests the Big Four's supposedly meritocratic promotion systems may rely far less on performance than on internal politics - and, crucially, on whether your manager is willing to put their own reputation on the line for you. Within the Big Four professional services firms - Deloitte, PwC, KPMG, and EY- auditors are evaluated throughout the year after each client assignment. Supervisors generally award A-to-D grades on technical competence, teamwork, leadership, and client relationships, creating a paper trail that appears - at least formally - to determine who gets promoted in the firms' "up-or-out" system."

"However, researchers from KEDGE Business School, ISG, and the University of Cambridge gained rare access to two promotion committees inside a Big Four audit firm's Paris office, observing 6.5 hours of deliberations and conducting 61 interviews with 49 auditors and managers between 2015 and 2021. What they found upends the idea that high performers naturally rise to the top. According to the paper, promotion committees function far less as objective reviews of auditors' work and far more as "political arenas" where managers lobby, trade favors, and defend their protégés."

Researchers observed promotion committees and interviewed auditors and managers, finding that promotion decisions are often political rather than merit-based. Managers lobby, trade favors, and defend protégés, and committees frequently reassess and overturn formal performance ratings. Auditors receive A-to-D grades after assignments, but those evaluations can be downgraded or reversed during committee debates. The manager's willingness to put personal reputation on the line strongly affects outcomes, allowing strong performers to be blocked if unsupported and enabling promotions when influential managers intervene. The study undermines the notion of a purely meritocratic "up-or-out" promotion system within major audit firms.

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