PwC Australia brings forward pay rises, extends bonuses with eye on staff retention

PwC will expand the amount of staff eligible for bonuses and bring forward pay rises in a bid to recruit and retain skilled employees.

PwC Australia chief executive officer Tom Seymour. Picture: Jen Dainer

PwC Australia will overhaul its compensation and bonus structure to boost staff pay faster and double the amount of employees that can expect to receive bonuses in a bid to attract and retain talent in a tightening labour market.

The big four audit and advisory firm will also drastically reduce and simplify its thousands of different remuneration brands, invest $15m in a new learning and education program for its employees and increase the flexibility of staff work schedules.

Dubbed the “Total Reward” strategy, PwC Australia chief executive Tom Seymour told staff on Thursday the program was developed in response to staff feedback and discussion with employee representative group, the PwC People council.

“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,” he 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.”

“We’re proud that we have been able to reward our people as a result of their continued efforts and respond to their desire for more transparency and clarity on how their performance, pay and bonuses are linked.”

Under the new strategy PwC will broaden its bonus eligibility criteria to cover 80 per cent of employees, up from 40 per cent in prior years, by capturing non-client facing staff who do not fit in the typical bonus for meeting KPI structure.

Pay rises will also be brought forward.

In an example provided by PwC, a staff member at the firm on $75,000 under the old system would receive a 3 per cent a year pay rise for three years before receiving a promotion and a 14 per cent pay boost to $94,00.

Under the new system, the associate would receive a 5 per cent pay per year lift before the promotion, upon which they will receive an 8 per cent pay boost to $94,000.

PwC employees will also be granted enhanced scope for taking time off for mental and physical health and the option to swap out public holidays for other days off during the year.

They will also have the option to claim a $500 per year “balanced lifestyle benefit” that can be used on things like cooking classes, a weekend away, streaming subscriptions or books.

Mr Seymour also told staff that its new education and learning program, the “PwC Academy,” would provide employees with access to credential training from a recognised provider that could contribute towards an MBA-equivalent qualification.

“Our multimillion-dollar investment in a world-class learning and education program will enable our people and our firm to continue to innovate, deliver and drive growth,” he said.

PwC People Council Member and Director in Financial Advisory Irene Yeung said the PwC Academy would be a welcome change as staff training options had depleted in recent years.

“Our discussion with the Executive Board members wasn’t all sunshine and lollipops,” she said.

“We’ve had fantastic courses and leadership programs in the past and for one reason or another, they were discontinued.

“So, we challenged the EB to consider how the PwC Academy will be sustainable and continue to meet staff expectations.”