Please ensure Javascript is enabled for purposes of website accessibility
January 27, 2023

Compensation Watch ’21: So Many People Are Bailing That KPMG UK Had to Change Its Bonus Structure

Attrition is the word on everyone’s lips these days, and you can bet that the ongoing Big 4 exodus is keeping plenty of partners up at night. Given the aforementioned stress-related insomnia, surely firm leaders are spending their extra awake hours coming up with creative, generous ways to hold on to the staff they have and signal to unhappy grunts at other firms that they are taking extraordinary steps to pay their people what they’re worth, revenue be damned. Right? RIGHT??

If you chortled heartily at the suggestion that firms will start paying people more in order to keep them, congratulations, you win a prize. Not an actual prize. Just the prestige that comes with winning a prize.

A tipster informs us that in a recent firmwide call, KPMG UK announced its solution to large numbers of people leaving. Spoiler: it doesn’t involve bags of money. More like keeping the bags of money hostage until loyalty has been sufficiently proven. At least it’s still the carrot; they haven’t yet gotten desperate enough to deploy the stick.

Recently we’ve had UK wide calls about comp in UK audit as issues with attrition are starting to cause big issues, due to unsustainably high numbers leaving post qualification.

The solution has been to remove all annual performance related bonuses for junior staff, and replace them with payments a few years after qualifying – subject to 2 year clawbacks.

As part of the initiative they’ve also released pay for all the different grades and office bandings! (Attached)

And here are the slides provided by our lovely tipster, who obviously ignored the directive from KPMG UK to stop talking to the media. Thanks, friend!

For your convenience and to facilitate easy searching for KPMG UK salaries, I’ve put everything into a table.

KPMG UK Audit pay:

Our tipster adds that they are “very interested to hear/see what other UK firms are doing about high levels of attrition” as are we so if anyone else out there is in possession of new salary data and would like to share with the class, give us a shout. Hell, give us a shout if you just want to complain, whatever.

Photo by Anthony from Pexels

Latest Accounting Jobs--Apply Now:

Have something to add to this story? Give us a shout by email, Twitter, or text/call the tipline at 202-505-8885. As always, all tips are anonymous.

1 Comment

  1. Joined KPMG 8 years ago in audit, have left now.
    The salary for Band 1 during my time was as follows:
    E1 – £27,500
    E2 – £29,500
    E3 – £36,500
    D1 – £47,500

Comments are closed.

Related articles

closeup of racetrack finish line

If This Person Can Pass the CPA Exam, So Can You

I was cleaning out pics on my phone and was reminded of something I saw on Reddit a few weeks back: a screenshot of someone’s many, many, MANY CPA exam attempts over twelve years. Most people would have given up around the tenth attempt but this person persisted. And persisted. And persisted. So if you […]

scissors

EY Germany Gives 40 Partners and 380 Staff the Boot to Boost Profitability After That Whole Wirecard Thing

EY has been tightening the purse strings over the past several months ahead of the big Project Everest split, the vote on which remains delayed and should happen before the end of this quarter. The firm did not hand out mid-year bonuses in December and sources say that travel, training, and even hiring are on […]