A comprehensive 142-page report investigating the workplace conditions at EY, a major professional services firm in Australia, has revealed numerous concerning issues within the organization.

Led by former sex discrimination commissioner Elizabeth Broderick, the report sheds light on problems that have implications not only for EY but also for the wider professional services sector and the broader white-collar workforce.

The report found that 11% of EY personnel regularly worked more than 61 hours a week, leading to health problems and prompting 40% of staff, particularly senior ranks, to consider quitting. Additionally, the study exposed instances of bullying experienced by 15% of staff over the past five years, sexual harassment affecting 10%, and racism affecting 8% of employees.

Of significant concern was the discovery that those who formally reported misconduct faced retaliation, resulting in a lack of trust in reporting mechanisms. The investigation was triggered by the tragic suicide of a 27-year-old Indian-Australian auditor at EY’s Sydney office, which sparked conversations about work hours, the company’s culture, and mental health issues in the entire professional services industry.

The report contradicted previous statements from EY’s leaders about working conditions, where the firm claimed not to overwork its employees. To address the issues uncovered, Elizabeth Broderick proposed 27 recommendations, including better project scoping, resourcing, and costing to reduce overwork, increased accountability for staff retention, and revised performance metrics focusing on diversity and inclusion.

EY’s CEO, David Larocca, acknowledged the problems and pledged to create a more respectful and inclusive workplace, committing to implementing all of Broderick’s recommendations. However, the report highlighted skepticism among EY’s staff regarding the company’s willingness to make meaningful changes to cut working hours.

Apart from overwork, the report exposed a normalization of bullying within the organization, with instances occurring even among senior staff. The issue of sexual harassment was prevalent, with a perception that reporting such behavior was discouraged, especially when the perpetrators held leadership positions. Furthermore, employees from diverse ethnic and religious backgrounds were more likely to experience racism at EY.

Overall, the report serves as a wake-up call for EY and the broader professional services industry to address critical workplace issues and foster a more inclusive, respectful, and supportive environment for their employees. Crisis support is available for those in need, and the company’s commitment to implementing the recommendations offers hope for positive change.