Big four services giant KPMG has today announced salary increases of at least £2,000 to 15,800 UK employees in what it describes as an ‘additional £51.7m investment in our people’.
The firm’s employees will each receive a flat pay rise of either £2,000 or £4,000, dependent on the individual’s role in KPMG. Partners are not eligible for the increase.
The salary increase will be pro-rated for those working part time and will be backdated to 1 April 2022.
The increases are in addition to the firm’s annual pay review, which takes place at the beginning of its financial year in October.
In an update to partners today (6 May), KPMG chief executive Jon Holt announced the firm was on course to deliver double digit revenue growth this year and, based on current trading performance, expected to match last year’s bonus pot of £100m for employees, with the potential for overall reward to be higher still if the firm’s performance exceeded expectations.
Home and hybrid working
Holt said: “Despite the volatile geopolitical and economic environment we’re operating in, our business is performing strongly. We have ambitious plans to grow further and attracting and retaining top talent is at the heart of our strategy. By investing in our people we will ensure we have the best experts in the market to advise our clients.
“This is just one element in the extensive package we offer to our people, from professional training and career development to support to work flexibly and wellbeing support. We are investing in this further and I am looking forward to announcing more details at our all-colleague event in the summer.”
Under a new leadership team, KPMG has put in place a three-year growth strategy, underpinned by a £300m fund to invest in new talent, services and “insight to support clients”. Last year it said it increased revenues by 10%.
The decision to increase pay comes as the law and professional services firms continue to face stiff competition for talent as the economy struggles to rebound from the Covid pandemic, the soaring cost of living, the impact of Brexit on the UK labour market and the demands from clients trying to adjust their businesses to current trading conditions.
Yesterday, PwC announced an extension to its summer Friday afternoons off policy – a move that attracted the wrath of Alan Sugar, no less – while other firms such as Deloitte and EY have put in place increasingly flexible work policies. Deloitte is reducing its London office space by about a third and has shut offices in several cities elsewhere in the UK. Other accountancy firms, such as BDO, have adopted similar policies.