KPMG has discontinued overtime pay for its junior auditors in the UK in a move towards reducing busy season working hours and managing costs, reported the Financial Times.
Previously, junior auditors at KPMG were eligible for additional pay under the “recharges” scheme, which applied when their workload exceeded 50 hours.
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During busy times, many could surpass 70 hours a week while handling multiple client accounts.
The discontinuation of this system has reportedly unsettled some employees who had come to depend on the extra compensation.
One junior auditor said: “Everyone’s upset with it. A lot of the cohort don’t really see how anybody’s meant to be incentivised to stay long term, nor do we foresee where the future partners are going to come from.”
The firm has adjusted its audit process, with sources indicating that close to 70% of audit work for major listed clients is now scheduled to be completed before the onset of the traditional peak period.
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By GlobalDataThis compares with around 45% two years ago and is intended to limit the need for “busy season” overtime.
Graduate starting salaries for KPMG auditors in London were set at £32,500 last year, an amount notably below that of leading legal trainees in the city.
The recharge payments often added between £1,000 and £2,000 annually to junior auditors’ earnings, the news publication noted.
Meanwhile, partner remuneration at KPMG’s UK division has continued to grow, reaching an average of £816,000 last year after a 9% increase.
Some other leading firms in the sector have reported even higher partner earnings, the report said.
According to a source familiar with the policy changes, the company believes current staffing levels are sufficient to prevent junior auditors from working excessive hours during peak periods.
The firm has not commented publicly on the changes to its overtime policy.
