Big four consulting firm PwC has told UK staff to expect a ‘small’ pay rise and bonus this year as it deals with challenging market conditions.
Last year, it granted at least 70% of its UK workforce a 7% increase in wages, and 50% an increase of 9% or more, which at the time was almost in line with inflation.
It also increased starting salaries in a bid to attract and retain talent in a tight labour market, with graduates in audit roles receiving a 10% uplift.
But this year Ian Elliott, chief people officer, has emailed staff to inform them that these “exceptional” pay rises would not be repeated this year.
PwC will not increase its budget available for bonuses either this year. Because headcount has increased, this means average individual bonuses will go down, rather than up.
In his memo, Elliott said: “While there are many parts of our business experiencing strong growth and we are continuing to invest for the future, the market has been challenging.”
“As a result, whilst we’ll still be investing in salary uplifts this year, these won’t be at the same level as last year’s exceptional record-level adjustment to salaries.”
According to a report in the Financial Times, some junior auditors have also been told they would not be getting any uplift in pay, although some will receive a below-inflation rise of between 3% and 6%.
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A PwC spokesperson told the FT: “Following record pay increases last year, we have again invested in salary uplifts across our business. Our decisions are informed by the firm’s performance, external market conditions and the investments we make in response to client demand.”
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