4. Quicker pay rises, bonuses for Pw C staff - Financial Review, 7 23 2021 PDF

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4. Quicker pay rises, bonuses for Pw C staff - Financial Review, 7 23 2021
4. Quicker pay rises, bonuses for Pw C staff - Financial Review, 7 23 2021...

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18/08/2021

Quicker pay rises, bonuses for PwC staff - Financial Review, 7/23/2021

Quicker pay rises, bonuses for PwC staff Edmund Tadros Professional services editor

PwC will increase the pay of its 8000-strong staff at a faster rate between formal promotions and double to 80 per cent the proportion who can earn bonuses, under new benefits designed to retain and attract employees. The firm will also cut the number of remuneration bands from thousands to hundreds, which will then be applied consistently across the organisation. A key aim of the new system – which will also include the creation of a PwC training academy – will be to provide staff with more transparency about how pay and bonuses are determined across the firm. ‘‘To attract and keep the best talent in the market you’ve got to ensure that your reward strategy is the best in the industry and responds to what your people value and what motivates them,’’ PwC chief executive Tom Seymour said. ‘‘We’ve launched our new strategy in response to the feedback our people gave us in our recent ‘Total Reward’ and employee engagement surveys. Fixed and variable pay was ranked as their most valued reward, followed by the opportunity for career progression and professional development.’’ Details of the plan will be finalised by November. The Total Reward changes will mean higher annual pay increases between promotions. The current system provides a substantial pay increase upon promotion, which can take years, but much smaller increases between promotions. In a theoretical example provided by the firm, a PwC professional could expect their pay to increase by 5 per cent a year over three years before an 8 per cent bump when they were promoted to a new rank in the fourth year. Previously, they would have received 3 per cent pay increases for three years before a larger 14 per cent increase when they were promoted. Either way, the pay would have increased by 25 per cent, from the theoretical $75,000 to $94,000, over the four years. The revamped system will also include a $15 million investment in a new learning academy for staff. The academy will offer courses on a range of topics, including leadership development; business strategy; environmental, social and governance standards; digital skills; cultural awareness; and technical skills. PwC also plans to team up with an education provider to offer staff an MBA-equivalent qualification. Firms have been steadily increasing the pay and improving the working conditions and other benefits to retain and recruit staff amid a shortage of experienced accountants and consultants in the Australian market. https://todayspaper.smedia.com.au/afr/PrintArticle.aspx?doc=AFR%2F2021%2F07%2F23&entity=ar00903&mode=text

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18/08/2021

Quicker pay rises, bonuses for PwC staff - Financial Review, 7/23/2021

The shortage has been due in part to an unexpected rebound in client demand and the loss of an increasing number of overseas staff due to travel restrictions. PwC’s minimum pay for consultants falls in the middle, or upper-middle, of most ranks, according to The Australian Financial Review’s consulting salary guide. The guide also shows Accenture consistently pays the highest minimum salary, while KPMG consistently pays the lowest. PwC’s decision to increase the size of annual pay bumps came about because staff indicated they did not like waiting until they were promoted into a new rank to get substantial salary increases. PwC will also broaden its bonus eligibility criteria to ensure that 80 per cent of staff receive the incentive, and create a ‘‘bonus simulator’’ that will calculate the potential value of the reward.

https://todayspaper.smedia.com.au/afr/PrintArticle.aspx?doc=AFR%2F2021%2F07%2F23&entity=ar00903&mode=text

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