COVID EFFECT: TOP FINANCE BRANDS CUT EMPLOYEE COSTS, DEFER APPRAISALS AND PROMOTIONS – DETAILS

In the wake of the COVID-19 crisis, four advisory sector have altered their increments and promotion cycles. This has caused a significant blow to revenues for the consulting sector. Deloitte, EY, KPMG, and PwC have deferred employee appraisals, promotions, as well as cutting partner pay.

According to a CNBC TV report, Deloitte will be continuing to provide performance bonus to its employees from September, but the payment will be made in instalments. Senior Manages and those above them will be paid over a period of six months, beginning from September.

“The decisions are based on our current visibility of cash flows because no one is really certain about how long this uncertainty will last. We hope to live by whatever we have recently committed,” stated the firm. The firm added that employee appraisals will continue, performance bonuses will be given and increments for partners will be capped. A performance based staff cut will also be held shortly.

KPMG has deferred promotions and increments for the year 2021. “Like every other business, we are watching the situation closely. Our aim is to emerge stronger from the uncertain business environment and our decisions continue to reflect the needs of our business.”

“While we expect our partners to make bigger sacrifices, we are committed to ensure that our rewards are competitive for all our people. We will evaluate and decide on the best possible options around the timing of increments, promotions and bonuses,” said the spokesperson to CNBC TV. Its partners have taken pay cuts up to 20% as well.

Both PwC’s and EY’s partners in India have taken a pay cut up to 25% and 20% respectively along with increments being doddered for the next financial year. “We will continue with all our efforts to keep our employees safe and engaged in this difficult period. We are very proud of our people for their understanding and support,” said Shyamal Mukherjee, Chairman PwC.