BDO has reported turnover of €78.8m for 2022-2023, up 14.5% year-on-year and--says managing partner --“in line with the growth of other players in the market.”
“Our speciality is BSO--business services outsourcing--for accounting, payroll or central administration,” said the managing partner, specifying that this activity represents around 51% of the firm’s revenues (versus 27% for audit, 14% for tax and 8% for advisory).
BDO will use its market niches to go for double-digit growth again in 2023-2024. “For example, we’re the market leader in payroll, mainly for the banking sector, with some 350,000 payslips drawn up for our clients every year,” says Croisé. “Just about all the big banks, which sometimes have more than a thousand payslips, outsource this to us. Our teams have developed a payroll calculation technology that we use both internally and for the benefit of our customers. The calculator on our website is very popular. We can calculate for non-profit organisations with one employee, right up to companies with hundreds of employees.”
Since the first day of his first mandate, the managing partner has been hard at work realising the digital transformation and helping it shake up the ecosystem. Whether it’s payroll, tax, AML/KYC or even artificial intelligence, his teams are working on new tools for both the firm and its clients, while updating existing ones to keep pace with new laws and regulations. “Artificial intelligence will offer enormous opportunities, but we need to put in place a framework to ensure that it is not used indiscriminately,” he says. “Reputation is built over time but lost very quickly. You have to invest in these skills and in quality; otherwise the slightest incident can ruin everything.”
Daniel Croisé will complete his second three-year term at the end of September. Photo: Maison Moderne/Archives
The firm employs some 639 people, up 13% from the year before (20% going back two years). Of those, some 25 work in technology. Says Croisé: “We’re looking to grow--between the big players and the fiduciaries--and to invest in both technology and human resources. In advisory, we will always need people. Like everyone else, we have difficulties and open positions, and we struggle more with finding very specific profiles.”
Down in Marrakech
BDO has opened an office in Marrakech, Morocco, where around 30 people work mainly on accounting and tax compliance. “In agreement with BDO Morocco, our team works directly under the authority of BDO Luxembourg,” the managing partner explains. “It is a subsidiary integrated into our team under my responsibility and that of three partners. They don’t do any mechanical work, but work like our other employees. This means we can go straight to the universities to find the talent we need. Their remuneration is very competitive by local standards and we have brought other elements into line with Luxembourg standards, such as working hours and the number of days off. This could be a way forward.”
What about the issue of customer data protection? “We’ve had to put processes in place. In some areas it’s more difficult, in others it’s fine. Some of our managers and some of our 39 partners go over there to train them, usually over a two-week period. It’s quite a significant investment, but our employees--who were a little reluctant at first--are now more willing to go. They have to train them in the same way as here, or else they will have the same difficulties. And going to Morocco during the winter is not so bad.”
1,000 applications a month
“We receive around 1,000 applications a month, which has doubled over the last few months. Only about 20% of them actually relate to positions that are open,” says Croisé, who proceeds to describe the company’s efforts to attract talent: “We have satellite offices--Bettembourg, Dudelange, Wemperhardt--where we offer opportunities… though attendance there is not huge. Here [in the Cloche d’Or], we have places for everyone!”
“We’ve worked on our pay scales,” he continues. “We’ve increased meal vouchers to €15 while continuing to offer canteen meals at very competitive prices. Employees can work remotely two days a week, there are sports courses, and we’re investing in training, whether it’s in digital skills, soft skills or ethics, because the work environment invites it.”
“When we decided to leave the Gare to come here, not everyone necessarily saw the point. Today, with the prospect of the tram in addition to the development of the district, nobody disputes it anymore.”
ESG, AI, cybersecurity
Will Croisé still be at the head of the company after the summer, since his term of office ends in September? The managing partner brushes the question aside--it’s not the time to talk about it yet--but the ambition remains. “We have a long-term vision,” he says. “Our strategy is to be a specialist in certain areas and a generalist in others, so that we can offer our customers a comprehensive range of solutions. Every year, we want to be more ambitious and more visible, but for the long term. That’s why we invest in our people and in technology. It’s also what sets us apart from others, including in the partnership, and what enables us to attract partners from other firms. The atmosphere is more like a family.”
“For 2023-2024, we are still aiming for double-digit growth. We’re trying to do more in the advisory area, in ESG--a subject that affects all our business lines--and in cybersecurity consulting. And we’ll see what comes out of our task force on artificial intelligence.”
This article in Paperjam. It has been translated and edited for Delano.