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Review of workplace culture makes more than two dozen recommendations for change in the wake of tragic death last year.
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Bullying, racism, sexual harassment and overwork ‘endemic’ at EY
28 July 2023
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11 minute read
Bullying, sexual harassment, racism and overwork emerge as key issues in a report on workplace culture at EY in the wake of the death of an employee last August.
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The review said despite efforts by EY to “advance a safe, inclusive and respectful culture” a range of harmful behaviours and the “critical issue” of long working hours meant more than 40 per cent of EY staff were considering quitting.
Many of the problems – especially long hours and bullying – “have their origin in the firm’s business model” the review finds, which staff believe drives “a focus on profit and delivery over people”.
The review, by Elizabeth Broderick & Co, conducted interviews with hundreds of staff and analysed the results of a survey completed by 4,171, representing more than a third of EY Oceania’s workforce.
It was one of three reviews commissioned following the death of Aishwarya Venkatachalam, a young auditor, at the firm’s Sydney office which brought to a head problems at EY focused on a demanding workplace culture.
The Broderick review found 31 per cent of staff were routinely working 51 or more hours a week (at least one week in every four) and 11 per cent were working 61 or more hours.
“A substantial proportion of EY Oceania people report experiencing a range of negative impacts associated with their long working hours and experiences of overwork,” the review said, with nearly half saying it had affected their health.
“More than two in five people are considering quitting their role as a result” with the figure rising to half among managers and assistant directors.
One in seven staff had been the subject of bullying in the past five years, with women more likely to have experienced it than men, and a similar number of women had been sexually harassed.
Those of Indian, Chinese or Maori origin were most likely to have experienced racism in the past five years, with 8 per cent of staff reporting the problem.
Crucially, the review found a low level of trust in resolution mechanisms at EY, with just one-third reporting bullying, only one in six reporting sexual harassment, and just one in 20 reporting racism.
The review makes 27 recommendations including that “EY Oceania lead the development of an industry-wide code of practice for the Big Four” that “sets a shared aspiration of healthy and safe workplaces” and reduces long working hours and overwork.
It also recommended that the leadership team commits to “a safe and inclusive workplace, including addressing sexual harassment, bullying, racism and other forms of discrimination”.
EY Oceania CEO David Larocca said the firm was determined to change.
“There are findings in the report that are distressing and completely unacceptable,” he said. “Bullying, sexual harassment and racism have no place at EY Oceania and I apologise to anyone who has suffered as a result.”
“The purpose of this independent review was to enable us to listen and learn so that we can action the feedback. We are determined to ensure EY Oceania is a more respectful and inclusive workplace, where everyone feels empowered to speak up.”
“While the report shows many people have had a positive experience working at EY Oceania, it also shows that this is not everyone’s experience and that we have fallen short of the standard that everyone who works at EY has a right to expect. The impact of long working hours is also significant and taking a heavy toll on the wellbeing of many of our people.”
“EY Oceania accepts all of the recommendations made in the report and commits to their implementation.”
The report found a majority of staff (69 per cent and above) had confidence in the ability of EY to change with respect to sexual harassment, racism and bullying, although fewer than one-third believed it could change the culture of long hours and overwork.
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