pratikkk

MP Guru
Employee Retention of KPMG : KPMG is one of the largest professional services firms in the world and one of the Big Four auditors, along with Deloitte, Ernst & Young (EY) and PwC. Its global headquarters is located in Amstelveen, Netherlands.[1]
KPMG employs 138,000 people[3] and has three lines of services: audit, tax, and advisory.


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KPMG's new vice chairman of HR, Bruce Pfau, has one major goal for his firm: "To be the partnership of choice with the fully engaged partner group necessary to being the employer of choice." How does he plan to make KPMG the employer of choice? "Have a better employment proposition that anyone else," he says.

The reasons people look for new jobs is an area of expertise for Pfau, who was national practice director for organization effectiveness at Watson Wyart Worldwide before joining KPMG in October. He also authored a number of books and papers on the topic, including the book, "The Human Capital Edge: 21 People Management Practices Your Company Must Implement (or Avoid) to Maximize Shareholder Value" ($29.95; McGraw Hill).

"People are always looking at [their jobs] in terms of, 'What do I gain versus what I put in?' There's not one thing that makes a firm an employer of choice. Financial rewards, opportunities to advance and learn, the work environment, and how easy (or hard) it is for them to do their jobs well are all factors," he explains.

Four factors play a key role when engaged and challenged workers are assessing whether to stay at their jobs or move on,

Employees are critical to the success of any business. It is important that you have the right people in the right role. It is also important that these employees, once recruited, remain motivated. One important motivational factor, as far as the employees are concerned, is the level and type of benefits they receive. In recent years there may have been limited, if any, increase in base pay.
Many employers have however taken the opportunity to introduce cost-effective and/or flexible benefits. Employers need to ensure that any package offered is competitive and that they anticipate the needs of their particular workforce. It is increasingly important, that where possible, employers give employees choices as to their total remuneration package and that it is capable of changing to reflect their lifestyle and circumstances as they continue to work in the business.

The recent economic climate has seen a decrease in the level of earnings and earnings multiples for many companies. Consequently, many share-based incentive/retention arrangements may no longer be fit for purpose because, for example:

LTIPs may not be paying out.
Performance conditions may no longer be realistic or achievable.
Option prices may be too high.
Share prices may be "underwater”.
Changes to the tax and NIC rates may have made them less efficient.

It is important, therefore, to review current arrangements in order to ensure they remain appropriate.

Typical issues Possible opportunities
How to ensure that any offer made to a potential recruit is competitive? It is important to benchmark any offer against your competitors both in terms of quantum and types of benefits which are offered.
How are businesses incentivising and retaining key employees without a significant increase in cash cost? Introducing fully flexible employee benefits can be an effective way to incentivise and retain staff (especially where the staff, are involved in the selection of the benefits). Where the benefits can be introduced through salary sacrifice it may be possible to achieve cost savings for both the employer and employee. There are also a number of mechanisms by which employers can replace cash subject to tax and NIC with cash that isn’t. In addition, by using share based reward structures management/key employees may be able to generate gains taxable as capital rather than income. This also allows for high payouts for high performers. Such planning not only incentivises but also ensures the business has a powerful retention tool.
The current share-based structures are no longer effective.
It may be possible to restructure current arrangements e.g. re-grant of share options or resetting "underwater” management incentives.
The overseas parent operates share based reward plans that are not tax efficient in the UK. It may be possible to restructure current arrangements or to introduce UK tax and NIC efficient arrangements, which mirror the overseas plan.


Employing 140,000 people in 149 countries, the giant company has its share of recruitment problems. Accounting, often viewed as the safety net of the economy, isn’t quite as attractive during booms, and nowadays employees tend to favour new experiences over a stable career with one employer. Experienced professionals can find a new job in any country.

Employers must offer real opportunities for personal growth

Mr. DiPiazza himself has spent 34 years with the same employer, while his children have already had six.

The CEO wishes to emphasise that the solution to the problem lies with the employer.
“We must be able to offer flexible and individually tailored solutions – something that leaves the employee room to grow. More than ever, companies must also have an attractive set of values and ethics, as well as a sense of responsibility to the community.

Five years ago, every fifth PricewaterhouseCoopers employee left the company each year. Today, that figure is down to one eighth, and Mr. DiPiazza wants to see it as low as one tenth. For a global corporation, the savings in human resource management would be gigantic. Perhaps even more importantly, the drain on knowledge and skills would lessen significantly.

“The race will be won by companies that can successfully commit employees to themselves.”

Change driven by the new G7 countries

The drift in corporate cultures highlights larger changes. Mr. DiPiazza points out that the entire world economy has changed radically during the past ten years. This has been largely due to the so-called new G7 countries (China, India, Brazil, Russia, Indonesia, Mexico and Turkey), whose economies have been growing rapidly.

“In the past, companies stayed within their geographical boundaries. They might have had foreign factories, but only due to cost issues. Now the markets are more unified than ever, and truly global.”

“Even the U.S. economy will continue to grow, but only because of the global economy. The rest of the world is growing faster. Finnish companies must not limit themselves to Europe, or even worse, Finland.”

The CEO would not choose to regulate international business, but would rely instead on the free market.

”Your Minister of Finance [Jyrki Katainen] asked for my opinion. I told him you should move slowly, without pressuring the markets too much. The markets will regulate themselves.”

In the current climate we are seeing reward budgets capped or reduced, so efficiency from benefits spend is vital.
In spite of the conditions, employers still need ways to attract, motivate and retain key employees.
The value of benefits provided can be lost in communication and may not be fully appreciated by employees.
Benefits will be offered to a diverse employee population and need to be flexible enough to suit all needs.
Benefits provision is becoming more influenced by the needs to meet objectives on CSR and environmental targets.

Bringing you Peace of Mind

In the current economic climate there is a strong focus on cost control which is balanced against the pressure to recruit and retain key staff remains.
Financial savings from more effective benefits provision can be key to balancing financial restraints with the need to compete for the best staff in the global marketplace.
Our financial modelling tools and experience can help to identify opportunities to manage costs or enhance benefits, often with an almost immediate return on investment.
Our Benefits Consulting Team have an impressive CV, having worked with numerous businesses over the years to review and transform their Benefits Policies.
Our team has a great deal of experience with benefits planning and have implemented and advised on many full Flexible Benefits schemes, Car Schemes, Salary sacrifice ideas and even the provision of software (from arranging a single portal for flexible benefits to helping administer tax efficient schemes and assisting with end of year compliance regulations).
 
Last edited by a moderator:
Hey, pratik i think you are possessed with employee retention so, i have got it exact meaning. just take a look.

Employee retention refers to the ability of an organization to retain its employees. Employee retention can be represented by a simple statistic (for example, a retention rate of 80% usually indicates that an organization kept 80% of its employees in a given period).
 
KPMG is one of the largest professional services firms in the world and one of the Big Four auditors, along with Deloitte, Ernst & Young (EY) and PwC. Its global headquarters is located in Amstelveen, Netherlands.[1]
KPMG employs 138,000 people[3] and has three lines of services: audit, tax, and advisory.


Related Articles
United Rentals management changes, strategic alternatives.
PEOPLE
Abacus Appoints Director of Investor Relations
KPMG's new vice chairman of HR, Bruce Pfau, has one major goal for his firm: "To be the partnership of choice with the fully engaged partner group necessary to being the employer of choice." How does he plan to make KPMG the employer of choice? "Have a better employment proposition that anyone else," he says.

The reasons people look for new jobs is an area of expertise for Pfau, who was national practice director for organization effectiveness at Watson Wyart Worldwide before joining KPMG in October. He also authored a number of books and papers on the topic, including the book, "The Human Capital Edge: 21 People Management Practices Your Company Must Implement (or Avoid) to Maximize Shareholder Value" ($29.95; McGraw Hill).

"People are always looking at [their jobs] in terms of, 'What do I gain versus what I put in?' There's not one thing that makes a firm an employer of choice. Financial rewards, opportunities to advance and learn, the work environment, and how easy (or hard) it is for them to do their jobs well are all factors," he explains.

Four factors play a key role when engaged and challenged workers are assessing whether to stay at their jobs or move on,

Employees are critical to the success of any business. It is important that you have the right people in the right role. It is also important that these employees, once recruited, remain motivated. One important motivational factor, as far as the employees are concerned, is the level and type of benefits they receive. In recent years there may have been limited, if any, increase in base pay.
Many employers have however taken the opportunity to introduce cost-effective and/or flexible benefits. Employers need to ensure that any package offered is competitive and that they anticipate the needs of their particular workforce. It is increasingly important, that where possible, employers give employees choices as to their total remuneration package and that it is capable of changing to reflect their lifestyle and circumstances as they continue to work in the business.

The recent economic climate has seen a decrease in the level of earnings and earnings multiples for many companies. Consequently, many share-based incentive/retention arrangements may no longer be fit for purpose because, for example:

LTIPs may not be paying out.
Performance conditions may no longer be realistic or achievable.
Option prices may be too high.
Share prices may be "underwater”.
Changes to the tax and NIC rates may have made them less efficient.

It is important, therefore, to review current arrangements in order to ensure they remain appropriate.

Typical issues Possible opportunities
How to ensure that any offer made to a potential recruit is competitive? It is important to benchmark any offer against your competitors both in terms of quantum and types of benefits which are offered.
How are businesses incentivising and retaining key employees without a significant increase in cash cost? Introducing fully flexible employee benefits can be an effective way to incentivise and retain staff (especially where the staff, are involved in the selection of the benefits). Where the benefits can be introduced through salary sacrifice it may be possible to achieve cost savings for both the employer and employee. There are also a number of mechanisms by which employers can replace cash subject to tax and NIC with cash that isn’t. In addition, by using share based reward structures management/key employees may be able to generate gains taxable as capital rather than income. This also allows for high payouts for high performers. Such planning not only incentivises but also ensures the business has a powerful retention tool.
The current share-based structures are no longer effective.
It may be possible to restructure current arrangements e.g. re-grant of share options or resetting "underwater” management incentives.
The overseas parent operates share based reward plans that are not tax efficient in the UK. It may be possible to restructure current arrangements or to introduce UK tax and NIC efficient arrangements, which mirror the overseas plan.


Employing 140,000 people in 149 countries, the giant company has its share of recruitment problems. Accounting, often viewed as the safety net of the economy, isn’t quite as attractive during booms, and nowadays employees tend to favour new experiences over a stable career with one employer. Experienced professionals can find a new job in any country.

Employers must offer real opportunities for personal growth

Mr. DiPiazza himself has spent 34 years with the same employer, while his children have already had six.

The CEO wishes to emphasise that the solution to the problem lies with the employer.
“We must be able to offer flexible and individually tailored solutions – something that leaves the employee room to grow. More than ever, companies must also have an attractive set of values and ethics, as well as a sense of responsibility to the community.

Five years ago, every fifth PricewaterhouseCoopers employee left the company each year. Today, that figure is down to one eighth, and Mr. DiPiazza wants to see it as low as one tenth. For a global corporation, the savings in human resource management would be gigantic. Perhaps even more importantly, the drain on knowledge and skills would lessen significantly.

“The race will be won by companies that can successfully commit employees to themselves.”

Change driven by the new G7 countries

The drift in corporate cultures highlights larger changes. Mr. DiPiazza points out that the entire world economy has changed radically during the past ten years. This has been largely due to the so-called new G7 countries (China, India, Brazil, Russia, Indonesia, Mexico and Turkey), whose economies have been growing rapidly.

“In the past, companies stayed within their geographical boundaries. They might have had foreign factories, but only due to cost issues. Now the markets are more unified than ever, and truly global.”

“Even the U.S. economy will continue to grow, but only because of the global economy. The rest of the world is growing faster. Finnish companies must not limit themselves to Europe, or even worse, Finland.”

The CEO would not choose to regulate international business, but would rely instead on the free market.

”Your Minister of Finance [Jyrki Katainen] asked for my opinion. I told him you should move slowly, without pressuring the markets too much. The markets will regulate themselves.”

In the current climate we are seeing reward budgets capped or reduced, so efficiency from benefits spend is vital.
In spite of the conditions, employers still need ways to attract, motivate and retain key employees.
The value of benefits provided can be lost in communication and may not be fully appreciated by employees.
Benefits will be offered to a diverse employee population and need to be flexible enough to suit all needs.
Benefits provision is becoming more influenced by the needs to meet objectives on CSR and environmental targets.

Bringing you Peace of Mind

In the current economic climate there is a strong focus on cost control which is balanced against the pressure to recruit and retain key staff remains.
Financial savings from more effective benefits provision can be key to balancing financial restraints with the need to compete for the best staff in the global marketplace.
Our financial modelling tools and experience can help to identify opportunities to manage costs or enhance benefits, often with an almost immediate return on investment.
Our Benefits Consulting Team have an impressive CV, having worked with numerous businesses over the years to review and transform their Benefits Policies.
Our team has a great deal of experience with benefits planning and have implemented and advised on many full Flexible Benefits schemes, Car Schemes, Salary sacrifice ideas and even the provision of software (from arranging a single portal for flexible benefits to helping administer tax efficient schemes and assisting with end of year compliance regulations).

Its a very nice to know about the KPMG. I am very thankful to you pratikk for sharing such a nice information about KPMG. I also have got some information on KPMG and i would like to share with you, so i am uploading here, please check it.
 

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