Deloitte staff want a royal commission to investigate their toxic workplace, a “pyramid” business model, and a land and expand approach to government clients, a Senate committee heard on Friday.
Greens Senator Barbara Pocock aired the allegations about Deloitte’s aggressive business model, a “mates club” at the top of the firm and underqualified junior staff being spread thinly across government technology projects.
The firm’s chief executive Adam Powick rejected suggestions of systemic issues or a lack of accountability and defended Deloitte’s willingness to hear criticism from staff.
He said complex public sector IT projects can be prone to delay and confirmed several “challenges” are being worked through currently, but was not aware of unqualified staff being spread thinly across government tech work.
The allegations come ahead of a Senate inquiry’s final report next month that critics want to recommend tough new regulations for the controversial sector.
Senator Pocock said more than a dozen current or former Deloitte staff, including senior directors and partners, had contacted her with the complaints that some were “terrified” to raise internally.
“These are the people who were saying to me they want to see a royal commission and a proper full investigation because they want to tell their stories,” Senator Pocock said at a Canberra hearing for the Senate inquiry into the consulting sector.”
The Greens senator, who was speaking under parliamentary privilege, said the staff reported a Deloitte consulting “pyramid” model that relies on its junior staff being overworked while “greedy” partners in charge of projects are paid up to $3 million a year.
The junior staff are also pressured to share confidential information to aid Deloitte’s other projects and bids, according to Senator Pocock.
“If they didn’t do this, they said to me their career was held back. Some of those who have contacted me have left the business over those concerns and some have described being bullied or pushed as they exited the firm,” she said.
Deloitte chief executive Adam Powick said the firm’s partners are “on the frontline” helping their team and clients and a commercial imperative is not allowed to override integrity.
“We do not compromise on integrity. We won’t compromise on our value, we won’t compromise on quality. And if people breach one of those, that’s the number one ‘don’t go past go’. That is the base of any sort of evaluation that we provide our people,” Mr Powick said.
Deloitte took on notice the metrics it used for performance assessment.
Mr Powick also faced allegations that his firm relies on revolving doors and a “land and expand” approach to government clients that included misusing confidential government information for its own commercial benefit.
Senator Pocock also aired allegations about the quality of Deloitte’s technology work for governments, saying other contractors consider the firm’s work “poor quality” that often needs to be redone, contributing to significant delays.
“During those delays Deloitte [is] receiving around $8 million a month for the periods of that delay,” she said.
Mr Powick said public sector tech projects are “complex” and Deloitte is currently working through multiple “challenges” currently with clients but it was not unusual for the type of work.
Senator Pocock said she had been told junior Deloitte staff without the required skillsets are being placed on the projects and being spread too thinly.
“That’s not our experience,” Mr Powick said. “And certainly, we have rigorous and focused quality processes and quality assurance processes.”
Mr Powick also dismissed claims a “mates club” Deloitte board was protecting him and that he had little accountability.
“[The criticisms] bear no relationship whatsoever with the experience I have,” Mr Pocock said. “I feel incredibly accountable to the board of Deloitte.”
Critics of the large consulting firms are demanding their auditing and consulting function be separated and for new regulatory oversight and mandatory governance structures.
The current Senate inquiry will deliver its final report with recommendations for reform next month.
