Drinking the Kool-Aid in Public Accounting
You may have heard the phrase “drinking the Kool-Aid” somewhere on the internet, but what does it actually mean for accountants? Today, we are going to dive into the meaning of this phrase and what it means in the context of public accounting.
Where Does the Phrase Originate?
If you are younger, you may be surprised to learn that the origins of this phrase date back to the Jonestown Massacre. Back in 1978, a cult leader, Jim Jones, had convinced a his cult members to commit mass suicide by drinking a cyanide-laced sugary drink akin to what most Americans know as Kool-Aid. As they spent time in the cult, the members lost their sense of self identity and grew a blind obedience for something bigger than themselves, in this case, a cult. While most modern day organizations will not resemble a cult, the phrase has served as a reminder that groupthink can be incredibly dangerous (even deadly, for some).
How Does It Relate To Public Accounting?
In the last decade or two, public accounting firms have been increasingly focused on developing their “corporate culture,” which is typically defined as the values and behaviors that shape a company’s employees and how management interacts with them. At the surface levels, the written and implied values and behaviors that make a company’s corporate culture are a core component of operating effectively, especially in an industry with the potential for large amounts of pay and overtime hours. All the decisions and policies around things like remote work, dress code, promotions, hiring, outsourcing, and staff development are a reflection of a public accounting firm’s corporate culture. Management of these firms puts a great effort into developing a culture that supports the continued success of the firm as a whole.
In the public accounting firm environment, you have to “go along to get along” to a certain degree in every firm. Participating in happy hours, charity events, training, and other firm-sponsored activities as well as working the long hours to get the client work done are all examples of ways you participate in the carefully crafted corporate culture of a public accounting firm. By participating, you are contributing to the environment that drives the firm’s success. Most of the time, these are net positive experiences that support morale and career progression for young accountants and they help establish a sense of community among coworkers. By encouraging these behaviors through rewards like promotion and a feeling of belonging, firms establish a group mentality among employees that is directed mainly by management.
This group mentality tends to support a “firm first” mentality where employees are encouraged to sacrifice in the name of the firm’s success so that everyone can be rewarded in the long run. Firms support this mentality by repeatedly communicating positive messaging about the firm being a “great place to work” or the “best opportunity available for its employees.” Any communication that could imply the opposite isn’t met positively by the group, even if it is true. Those who digest and repeat all the positive messaging while rejecting or ignoring the negative aspects of the job are said to be “drinking the Kool-Aid.”
Why is This a Problem?
While supporting a group mentality helps in some aspects, there are some significant drawbacks when “drinking the Kool-Aid” goes too far, including:
Employees sacrificing their own well-being for the sake of a Company that will give them a nominal raise for all their extra efforts.
Human resources and management perpetuating the narrative that everyone is part of a “big happy family” while laying off staff the second the economy looks bleak.
Overworking staff to the point of tears on a regular basis by allowing an incredibly stressful work environment and enabling toxic managers to get the job done by any means necessary
In short, firms design their internal branding and messaging to constantly promote positive messaging. When that messaging is combined with a strong need to conform with the group for the benefit of the firm, an environment is created where employees are manipulated into overlooking the obvious drawbacks of their working environment. Firms have found that maintaining this positive messaging (and keeping employees thinking everything is okay) is more important than addressing the core problems that the firms are facing.
Don’t get me wrong, working in public accounting can be a great opportunity to jumpstart your career in the early years, even if it does require you to sacrifice time to put in more hours on the job. However, it's important to be realistic about your circumstances and not delude yourself too much with the constant barrage of positive messaging coming from human resources and marketing. Everyone has their limit with respect to “drinking the Kool-Aid,” and it’s important that you understand the point where leaning into the positive messaging is no longer conducive to your career goals.