Homefinance News

Despite COVID-19 hit, KPMG to give few promotions for FY20; no increments except for promoted employees

Despite COVID-19 hit, KPMG to give few promotions for FY20; no increments except for promoted employees

Despite COVID-19 hit, KPMG to give few promotions for FY20; no increments except for promoted employees
Profile image

By Kritika Saxena  Jul 2, 2020 4:24:22 PM IST (Updated)

Tax, audit and consultancy major KPMG has completed its appraisal process and will be giving promotions to select employees.

Tax, audit and consultancy major KPMG has completed its appraisal process and will be giving promotions to select employees. In a letter to employees, the company said it will promote select employees and give out bonus awards (moderated for the year) but increments will not be given this year barring to those employees that are promoted.

Recommended Articles

View All

"We will move ahead with staff promotions. These will be effective April 1, 2020, in line with our normal promotion cycle. The increments associated with the promotions will start with effect from October 1, 2020. In view of the economic situation and resultant business case, there will be fewer promotions than we would have normally liked. There will be no regular increments other than those associated with promotions," said the letter.
Promotions at the senior level, however, have been deferred to next year. The e-mail though clarified that senior level promotions to partner or executive director role will be deferred to the next fiscal year. A few senior level employees in similar roles had earlier taken voluntary salary cuts of up to 25 percent.
"The poor economic outlook has forced us to take several steps to conserve cash and reduce costs. This has meant many difficult decisions and sacrifices are required. While the partner group will see reduce income payouts, we have sought to minimise the impact on our employees, protecting their roles and remuneration. However, some adverse impact on the quantum of employee bonuses and salary increments have become unavoidable," said the company in its letter.
While the company will be giving out bonuses, they will be moderated due to the current economic environment. Bonuses will be given on a deferred payment schedule which can be advanced based on business performance and cash flows.
When contacted, a KPMG spokesperson confirmed the move, "KPMG today announced the decision on promotions and bonus payouts to its staff. KPMG has decided to continue with its normal promotion cycle for its staff though the number of promotions and resultant increments have been moderated, keeping in view the current business environment. KPMG will pay bonus for the year ended on March 31, 2020 to its employees."
"In a message to all the staff and partners, Arun M Kumar, chairman and CEO, KPMG said that the business performance was strong in the first quarter and a shade better than what was expected at the beginning of the lock down. However, in view of the continued uncertainty in the trajectory of economic recovery and anticipated impacts on demand, the partner promotions were being deferred. He said the firm leadership had reached these conclusions balancing the need to continue to invest in our people and fiscal prudence," spokesperson said.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!