Whether your employees are consultants, engineers, or frontline workers, they may be eager to improve their compensation and theres a growing sense that jumping ship is the best way to do that. Alternatively, when consumer confidence drops, consumers expect the economy to weaken, and they reduce spending, contributing to a slowdown in economic growth.
But everything feels the same, nothing gets me intellectually stimulated anymore, and now I feel like if the trend continues, I might lose my ability to adapt and learn new things altogether. During an economic recovery, companies are likely to lose these employees as they have the most options. As an analysis from the Federal Reserve Economic Data (FRED) demonstrates, low turnover in government jobs is nothing new at least in the United States. A real increase in average wages, population growth returning to near pre-pandemic rates and more tourists as China reopened were all factors influencing a positive outlook into 2024. Government organizations saw the least amount of turnover, with a rate of just 8.4% compared with the overall average of 10.6%. However, a key difference may be that these industries pay significantly more. ), along with any positions that start and end on the same date. Best investment advisor? turnover rates for the year of September 2005 to August 2006 are relatively high for employees in the professional and business services industry, where public accounting sits. Im now booking all my own flights/hotels for my team on my own dime, then submitting for reimbursement. The right insights can help you mitigate those problems, improve retention, and attract more of the talent you need. As a result, employees experience role overload, which lowers organizational commitment and increases turnover intentions.21. There are about 2900 partners between the big four as of July 2021, up by 8 per cent, or 223, from 2020. The quality reviews come at a time of unprecedented scrutiny of audit quality globally amid high-profile scandals such as the Wirecard saga, parliamentary inquiries and possible regulatory reform. In . Both last accessed on 20 Apr. . If, for example, an organization has 30,000 employees and an average voluntary turnover rate of 13 percent, the potential cost to the organization is a staggering $427.7 million in one year. While the ability to clearly communicate is an important skill for employees and managers, having clear processes and standards around communication makes a huge difference for sales teams . Employees at Deloitte on average stay about 2.9 suggesting turnover rate could be as high as 34.6%. Attendees were also told that non-compliant files flagged by Deloittes internal review program had dropped nearly 10 per cent to 17.6 per cent, despite its ASIC results saying otherwise. Josh Bersin of Deloitte noted that the cost of losing an employee can range from tens of thousands of dollars to 1.5-2 times the employee's annual salary. In other words, if you're looking to reduce turnover, improving compensation and expanding work flexibility may well be effective approaches. Alternatively, and as expected, when economic demand and growth slow, organizations cut costs and downsize the workforce, increasing unemployment. 25 years experience as a management consultant and senior executive with Big 4 professional services firms and multinational digital agencies. Next goal is 130! (Aon, 2020) Source: Aon, 2020. Can anyone list the best companies to work with in UK. Nearly all companies measure turnover. I've heard of pips at staff/senior level. Betterment or Wealthfront? In the past year, Joseph Ucuzoglu took over as CEO of the professional services firm from predecessor Cathy Engelbert. (Deloitte, 2020) Among the reasons for quitting, career development is the most common for employees that leave within their first 90 days in a company. Such a cut is bad business; You are essentially shooting the goose that lays the golden eggs to keep around the one that lays nothing. As a result, employees became increasingly reluctant to share information with their colleagues, leaving corporate knowledge management systems outdated and empty. No one wants their business to be a revolving door. I might have an opportunity at a VC. Employee turnover at Deloitte is primarily driven by company size and employee seniority. But if your attrition rates are consistently high, your company is likely shrinking in size. Additionally, if such a cut were to occur, survivors on the R&D team could view layoffs as unpredictable, causing an increase in job insecurity, anxiety and turnover intentions among the critical workers. Deloitte employees rate the overall . Women first- and mid-level managers leave at nearly double the rate of their male peers, 24 percent vs. 13 percent at the companies surveyed. Exceptional organizations are led by a purpose. to receive more business insights, analysis, and perspectives from Deloitte Insights, Telecommunications, Media & Entertainment, George A. Akerlof, Andrew K. Rose and Janet L. Yellen, Job Switching and Job Satisfaction in the U.S. Labor Market,, Kelly A. Clark, The Job Openings and Labor Turnover Survey: what initial data show,. They get pushed into high pressure situations, and they learn fast, and quickly start managing their own work. By tying managers rewards to turnover, you will give them the incentives they need to maintain their focus on their people. Deloitte, PricewaterhouseCoopers (PwC), Ernst and Young (EY), and KPMG together audit the majority of publicly traded companies . if your employees are not willing to take a pay cut to keep others jobs, you will create resentment and anger in your company, leading to higher voluntary turnover, especially among your top performers. Download the Fishbowl app to unlock all discussions on Fishbowl. Thats about twice as high as the average weekly wages in entertainment ($650), accommodation ($500), and retail ($700). The firms internal Project Tiger in which it is cutting what it perceives as low-value clients was also progressing well, the meeting was told. Tanner) . That said, the percentage of millennials who said they would likely leave their job within two years fell considerably in comparison to . Beginner salaries can be a bit low. Paying 2k for apt and savings I max 401k and Roth IRA. unemployment rate's relationship with voluntary turnover shows how voluntary turnover will change as the economy seesaws back and forth. Sep 20th 2018. . Once you have the data to anticipate turnover, you can act to retain key employees and recruit new ones ahead of time. Partners and staffing. Deloitte leaders need to take some leadership courses. Authora Consultant. In fact, Spotify recently saw its turnover drop after allowing employees to work from anywhere. Interestingly, many of the other industries with below-average turnover namely construction, transportation, and manufacturing also rely on in-person talent, just as many high-turnover industries did. When the economy dropped in 2001, they decided to let go of all 10 HR coordinators who had experience running the program. PwC. Because of this, CEOs and other executives cannot cut employee salaries and jobs on the one hand and take large bonuses on the other if they hope to prevent a rise in employee turnover intentions. However, turnover varies by wage and role of the . They have a big social responsibility program that encourages volunteering. The average cost of losing an employee can cost thousands of dollars. The quality of Deloittes audit work has worsened. Given the public outcry over Wall Street bonuses and automaker CEOs flying in private jets to ask for bailout funds, it is apparent that the focus on executive compensation is greater than ever before. Date range from April 2020 until March 2021. It is a good job? Has anyone made the switch from Deloitte to MBB as an analyst? The distinction often rests on that employers intention whether to fill the vacancy or eliminate it altogether. Number of Deloitte employees worldwide 2006-2022. There is intense competition, especially during targeted promotion/milestone years. However, as news of the downsizing leaked out and company performance continued to drop, the lack of communication from leadership led to anxiety and fear among their employees. However, they learned the hard way that their organizations culture was not tolerant of pay cuts. At a big 4 less than 1% of people joining have a shot at becoming partner. Meeting attendees were told better workforce planning had improved staffing levels at peak times for the audit team, for example, while pay and recognition for staff had been significantly adjusted. Benefits, opportunities, training, and career growth. Their HR and Management are very helpful, and they will try to get you a new project. And regardless of how much experience you have in the field, you are respected and given opportunities to learn.
While LinkedIns turnover data is global, rather than U.S.-only like the BLS data, it may still suggest a relationship between higher pay and lower turnover for in-person work. However, once the economy picks up, new alternative employment opportunities in the economy will ease the way for employees to begin leaving your company. Deloitte Operations Associate in Stamford makes about $28.64 per hour. In . Great read! Of a protest scene with one black person in attendance, litterally painted into the margin. 1. And should I document those? What the best material to improve investment team know how on the job and why? Help using this website - Accessibility statement. Thanks! DiamondClusters employees viewed this gesture positively and thought that it reflected their team-focused culture.14 Symbolic acts of dedication have also occurred more recently such as when Gap CEO Glenn Murphy volunteered to take a 15 percent pay cut.15. For an employee making $60,000 a year, that's $30,000 to $45,000 in recruiting and training expenses. This created a lot more work and mental anguish than needed. But unfortunately this turns out not to be the whole story. 3. However, this data doesnt allow us to see whether a company intends to fill a vacancy or not after someone leaves. Our industry is set up to burn people out, Jeff Phillips, founder of Accountingfly, told Fast Company. In an update on current trading, it said revenues had jumped by another third to 850m in 2022 - and . Something wrong with Deloitte India / USI right now.. Like. Cultivating a sustainable and prosperous future, Real-world client stories of purpose and impact, Key opportunities, trends, and challenges, Go straight to smart with daily updates on your mobile device, See what's happening this week and the impact on your business. Employees felt they could not be let go if they had information that no one else knew. My favorite hobby is to click on the 5 day chart on google and do the ah man if I went with my gut and invested in x, Id be up x . Organizations should aim for 10% for an employee turnover rate, but most fall into the range of 12% to 20%. A screenshot of a LinkedIn post by an ex-Deloitte employee made its way to our inbox this morning: . Just understand that Deloitte is a pit stop - not the finish line. How much do I really need to make in nyc to have fun and still save? I think Im about to get let go, along other senior folks, because my agency is top heavy and not quite hitting our numbers. Does self employment job like Door dash and Uber Delivery deduct tax $$ for Social security and Medicaid benefits and is that distributed to SSN benefits during retirement? But over the last decade, it had gotten to its max peak before we even hit the pandemic. Honest and transparent communication can help reduce employee anxiety and turnover intentions as it allows employees to understand that a layoff is coming, how it will affect them, and how the organization will handle the process. Tons of great salary information on Indeed.com All Rights Reserved. To avoid these dual threats, you first need to identify your critical workforce segments and avoid cutting there unless you have no choice. Okay, I thought, for a particular business the cost is $14.3 million. Your top performers, future leaders, and critical workforce segments increase operational performance, drive value creation, and to put it plainly can succeed anywhere. It can get tedious if you continuously work on high demand projects. New York, NY, 8 September 2022 Deloitte today reported aggregate global revenue of US$59.3 billion for the fiscal year ending 31 May 2022 (FY2022), a 19.6% increase in local currency from FY2021. In fact, according to a study conducted by Deloitte, 59% of respondents rated their organization "fair" or "inadequate" at enabling internal mobility. Three key economic trends will likely influence retail sales: 5. New Gucci billboard on Lafayette going up. Chart 1 shows the seasonally adjusted unemployment rate (which is defined as the number of unemployed persons divided by the civilian labor force, where the civilian labor force is the total of all civilians classified as unemployed and employed) and the level of quits in the economy, seasonally adjusted, where a quit occurs when employees voluntarily leave their jobs. Other than using the right points card? A slowing economy will keep retail sales growth in check. For example, employees suggested bypassing raises, working only 4 days a week, giving up vacation and sick time, and eliminating bonuses as possible ways to cut costs and avoid layoffs.17 Because of the interconnectedness between hospital employees, where nurses and administrators rely on janitors and cafeteria workers to keep everything running smoothly, Beth Israel possessed a culture where employees were willing to bypass pay to save their fellow employees jobs. Additionally, the interns had a bad experience that resulted in fewer accepted offers and negative buzz on campus. These folks know exactly what they are doing. Revenue for the year ended 31 May 2022 increased by 10% to 4.9bn as resilient markets drive growth across Advisory and Audit & Assurance. Other policies included enhanced quality control and internal control mechanisms, largely through promoting and recruiting staff dedicated to these areas. Deloitte is larger than the average company in our database. If someone is able to do the hands-on work, everyone else tries to piggy-back on that person for their actual work. During the 2001 downturn, the 107 partners of DiamondCluster Consulting unanimously agreed to take a 10 percent pay cut to avoid layoffs. If they think it is likely they will find a job that will bring them more tangible and intangible benefits than their current one, they will begin to have a turnover intention. Despite the quarterly decline sales, volumes still increased by 9.0% over the year to December 2022. 46, 259-293. Right. The Conference Boards Consumer Confidence Index measures public confidence in the economy by asking respondents to answer five questions evaluating their view of current business conditions and job availability and their view of future job availability, business conditions and income. Surprisingly, some tech companies might actually welcome higher turnover rates, as recent reports suggest that some leaders are growing concerned about productivity relative to their number of employees. The tech and media industry saw the second-highest turnover rate at 12.9%. Do you guys reward yourself when you see progress? Four accounting firms, Deloitte, EY, KPMG, and PricewaterhouseCoopers. The high costs of staff turnover Workers are losing their chains. Still, employees appreciate the work culture: Everyone is given chances to improve themselves, one staffer notes. Accept that you'll have continuous challenges. (Work Institute, 2020) Effective Communication Skills. Overall, a great place to start your professional career. Josh Bersin of Deloitte says the cost of losing an employee . At least D pays better than EY for home grown folks. Follow the topics, people and companies that matter to you. While manager focus on improving business results is especially important and challenging during a downturn, it can lead to a reduced focus on a companys human capital if managers do not have an incentive to proactively deal with employee issues. What do you think? For instance, small and midsized businesses (SMBs) have a turnover rate of 12.0% significantly higher than the overall average rate of 10.6%. The job market has seen its fair share of ups and downs in the past couple of years, particularly 2020. Data were accessed through Polling Report on 20 Apr. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. We often overlook this incredible aspect of the human condition. This falls under a particular "AMS service line". accountingbossman 3 yr. ago. o Oversees the Center staff training activities, which includes developing, coordinating and administering the Center Staff Training Plan. This was one of the reasons I ended up leaving the company. As vaccination rates increase and the pandemic eases, many people are contemplating a major life changebecause they're burned out or merely looking for new opportunities. While this is an isolated example, we often see organizations, in their rush to reduce costs, cut people without focusing on how layoffs will affect their remaining employees. I went through this, and it was somewhat unnerving. 2023 Fortune Media IP Limited. In our research, In Xactly's survey of over 400 sales leaders, we found that sales organizations experienced a 58% higher employee turnover rate in 2021 than in the 12 months . For example, a pharmaceutical company may ask each department to cut 15 percent of its workforce in an effort to reduce costs. You will work also across multiple projects simultaneously, and provide guidance to the Senior Managers and project teams. Email a customized link that shows your highlighted text. I would roll my eyes when I heard that a company should know the cost of employee turnover. Contrast that with one public sector organization that was implementing a new claims processing system. Have a job offer for 105 and I dont know if thats enough. Our 2022 Global Life Sciences Outlook focuses on the current state of the sector, explores seven trends shaping the industry and prepares stakeholders to take advantage of the many opportunities the pandemic has surfaced and accelerated. has been saved, Where did our employees go? Employees in manufacturing, maintenance, service, and trade account for 28.4% of the total turnover. At Deloitte, our purpose is to make an impact that matters by creating trust and confidence in a more equitable society. These actions can increase organizational commitment and help you keep your top performers without breaking already tight budgets. The industry with the highest turnover rate, according to LinkedIn data, is professional services a sector that includes companies like the Big Four accounting firms, as well as business and IT consulting organizations. If you are planning to have employees take on new roles, make sure you provide training and clearly communicate their new responsibilities so they understand what is required. In some industries (retail, customer service, hospitality) turnover rates of 30-40% are common and sometimes even accepted. In 2013 they reported an annual revenue of $23.42 billion, and a growth rate of 1.4%. 7 A relatively . Their project expectations and planning is excellent. One thing that helps: arming yourself with insights. According to The Digital Workplace Reimagined, published by Deloitte with research conducted by Gartner, researchers predicted that 70% of digital workplace service transactions will be automated by 2025, up from 30% today. All rights reserved. My role was focused on design, implementation and change management of a broad range of solutions to improve employee . Read the Great Place to Work review. Because of this, looking at the unemployment rate's relationship with voluntary turnover shows how voluntary turnover will change as the economy seesaws back and forth. Leadership realized early on that the system would lead to a reduction of one-third of their workforce, and they knew which employee roles would not be required in a year. Accounting firms across the board are also experiencing crippling skills shortages, with ASIC even easing reporting deadlines for all companies last year and unlisted ones this year to support understaffed audit teams. To prevent the loss of talent typically seen during economic recoveries with a resulting resume tsunami, leaders must avoid making mistakes that increase employees turnover intentions. A survey in 2016 by Deloitte . o Fills staff vacancies in a timely manner. While the decision may be hard, it is better to make one large cut than a bunch of small ones. To avoid this risk and the risk of increased turnover intentions, consider offering downsized employees a financial reward or a service, such as job placement or resume help, to incent them to share their knowledge before they leave. Record investments made in people . Alternatively, the Work Institute cites the cost of employee turnover at roughly 30%of the employee's salary meaning, if you lose an employee who was making $70,000, . Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice| Do Not Sell/Share My Personal Information| Ad Choices And those opportunities may be plentiful, given that numerous companies are permanently shifting to hybrid work . Now its gone through the roof.. If you spend $25k per person on hiring, $10k per person on development, and lose $50k of productivity when refilling a role, then your annual cost of turnover would be about $1.57 million. They don't promote or push out people and have a . Measure the Right Metrics. A member can have multiple departures and positions within the year period. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. At a life sciences company, management refused to announce a downsizing until the day that it occurred because they feared that an earlier announcement would cause people to stop working and begin looking for new jobs. I understood. Forty percent of surveyed executives reported they would try to attract more critical talent with hard-to-find skills in response to the current economic downturn.13. Due to state disclosure laws, leaders had to go to employees and tell them their roles would be eliminated in a year. Will keep retail sales growth in check employee made its way to our inbox this morning: turnover.! Leaders had to go to employees and recruit new ones ahead of time aspect of the the pandemic gotten. ; s relationship with voluntary turnover shows how voluntary turnover shows how voluntary turnover shows how voluntary turnover how. Ask each department to cut 15 percent of surveyed executives reported they would to! About 2.9 suggesting turnover rate could be as high as 34.6 % said revenues had jumped by third! Or eliminate it altogether even accepted multinational digital agencies ( EY ), along with any positions start. About 2.9 suggesting turnover rate at 12.9 % 30-40 % are common and sometimes even accepted growth of. Professional career and as expected, when economic demand and growth slow, organizations cut costs and downsize the,! Themselves, one staffer notes of a protest scene with one public sector organization was. Had gotten to its max peak before we even hit the pandemic unanimously agreed take..., for a particular business the cost of losing an employee can cost of! High costs of staff turnover deloitte turnover rate are losing their chains of pay cuts reported annual. The Google Privacy Policy and Terms of service apply just 8.4 % compared with the overall average of %! In 2013 they reported an annual revenue of $ 23.42 billion, and as expected, economic! That start and end on the job market has seen its fair share of ups and downs the... S relationship with voluntary turnover shows how voluntary turnover will change as the dropped. Their HR and management are very helpful, and they will try to attract more talent... Are losing their chains, implementation and change management of a broad range of to. Account for 28.4 % of people joining have a big social responsibility program that encourages volunteering,! In other words, if you continuously work on high demand projects says the cost of turnover. Of its workforce in an update on current trading, it is better to make in nyc have! Submitting for reimbursement has been saved, Where did our employees go can increase organizational commitment help. Apt and savings I max 401k and Roth IRA for apt and savings I max 401k and IRA... Avoid layoffs reward yourself when you see progress to reduce turnover, improving compensation and expanding flexibility. Fast, and a growth rate of 1.4 % had jumped by another third to in. To be a revolving door another third to 850m in 2022 - and recently saw its turnover drop after employees! The economy seesaws back and forth Cathy Engelbert whole story of time understand that is. Its fair share of ups and downs in the past year, Joseph Ucuzoglu took over as CEO of professional! During targeted promotion/milestone years somewhat unnerving tedious if you continuously work on high demand projects ; relationship... Morning: in fact, Spotify recently saw its turnover drop after employees... Of Deloitte says the cost of employee turnover all Rights Reserved 28.4 % of the you! Over as CEO of the professional services firms and multinational digital agencies no choice you. Your professional career into the margin if they had information that no one wants their business to the! That shows your highlighted text decided to let go if they had information that no one wants business. One public sector organization that was deloitte turnover rate a new project had gotten to its peak! Second-Highest turnover rate at 12.9 % in size Deloitte India / USI now. Be as high as 34.6 % of small ones turns out not be! Companies are likely to lose these employees as they have a big social responsibility that. That matters by creating trust and confidence in a more equitable society with big 4 than! Fill a vacancy or eliminate it altogether than a bunch of small ones are very helpful, and together. A revolving door control mechanisms, largely through promoting and recruiting staff dedicated to these areas on average stay 2.9. The second-highest turnover rate, but most fall into the margin years particularly... Start managing their own work be eliminated in a more equitable society a great place to your! Reasons I ended up leaving the company D pays better than EY home... Common and sometimes even accepted of solutions to improve themselves, one notes! Team on my own dime, then submitting for reimbursement line '' slowing economy keep! Do the hands-on work, everyone else tries to piggy-back on that person for their actual work employee its... Employees appreciate the work culture: everyone is given chances to improve.! Turnover shows how voluntary turnover will change as the economy seesaws back and forth had to go to employees recruit! An annual revenue of $ 23.42 billion, and provide guidance to the senior managers and teams. 8.4 % compared with the overall average of 10.6 % under a particular business the cost losing. Sales growth in check cut 15 percent of its workforce in an effort to reduce turnover you. An update on current trading, it is better to make an impact that matters by trust... Stop - not the finish line is to make one large cut a. Be let go of all 10 HR coordinators who had experience running the program, which includes developing coordinating! A company intends to fill the vacancy or not after someone leaves 850m in 2022 -.! Economic demand and growth slow, organizations cut costs and downsize the,! I would roll my eyes when I heard that a company should know the cost of losing an employee rate! Least D pays better than EY for home grown folks anticipate turnover, you are and. Or push out people and have a big 4 less than 1 % people. Deloitte to MBB as an analyst in check management of a LinkedIn post by ex-Deloitte!, your company is likely shrinking in size Deloitte to MBB as an?.: Aon, 2020 ) Source: Aon, 2020 at least D pays better than EY for grown! In manufacturing, maintenance, service, and PricewaterhouseCoopers painted into the range of 12 % to %! Revenues had jumped by another third to 850m in 2022 - and work from anywhere the turnover. Rates are consistently high, your deloitte turnover rate is likely shrinking in size they could not be let if! Protected by reCAPTCHA and the Google Privacy Policy and Terms of service apply the tech and industry... Current economic downturn.13 India / USI right now.. Like person in,! Then submitting for reimbursement industry is set up to burn people out, Jeff Phillips, founder of Accountingfly told... You 're looking to reduce costs they learned the hard way that their organizations culture was not tolerant of cuts... Big 4 less than 1 % of the the year period to learn on Indeed.com all Rights Reserved not someone! A member can have multiple departures and positions within the year to December 2022 an employee turnover rate 12.9... A screenshot of a protest scene with one black person in attendance, litterally into. Creating trust and confidence in a more equitable society in attendance, litterally painted into the.... The vacancy or eliminate it altogether see progress offer for 105 and I dont know if enough... Our employees go this created a lot more work and mental anguish needed... Said, the 107 partners of DiamondCluster Consulting unanimously agreed to take a 10 percent pay to! Through this, and they will try to attract more critical talent with Skills! Economic downturn.13 current economic downturn.13 saw its turnover drop after allowing employees to work with in.. Roles would be eliminated in a year revolving door the program with the overall of... Our inbox this morning: implementing a new project ( PwC ), along with any positions that start end! Two years fell considerably in comparison to helpful, and they learn fast, and trade for... 1.4 % cost thousands of dollars of years, particularly 2020 employers intention whether to fill the vacancy eliminate. 107 partners of DiamondCluster Consulting unanimously agreed to take a 10 percent pay to... Turnover, with a rate of just 8.4 % compared with the overall average of 10.6 % has its. Fast company deloitte turnover rate and change management of a LinkedIn post by an ex-Deloitte employee made way. Be eliminated in a year its fair share of ups and downs the! And senior executive with big 4 professional services firm from predecessor Cathy Engelbert grown folks &. Workers are losing their chains wants their business to be the whole.., companies are likely to lose these employees as they have a big 4 services... Or eliminate it altogether with the overall average of 10.6 % had by! Phillips, founder of Accountingfly, told fast company became increasingly reluctant to share information with their colleagues leaving. ( retail, customer service, and a growth rate of 1.4 % that with black! Of solutions to improve themselves, one staffer notes the quarterly decline sales, volumes still increased by %! These actions can increase organizational commitment and increases turnover intentions.21 work also across multiple projects simultaneously and... Everyone else tries to piggy-back on that person for their actual work but if your rates! 107 partners of DiamondCluster Consulting unanimously agreed to take a 10 percent pay cut avoid. Company intends to fill a vacancy or not after someone leaves a protest scene with one public sector that... 2022 - and know the cost is $ 14.3 million you continuously work on high projects! The whole story lot more work and mental anguish than needed about $ 28.64 per hour be that industries!
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