Partners at KPMG, one of the largest accounting firms in the world, have reportedly voted on a £300 million ($406 million) investment for a ‘once-in-a-generation’ transformation of the firm’s business after paying over £100 million ($ 135 million) in bonuses to more than 14,700 of its staff, citing a resilient performance last year.
Meanwhile, KPMG UK partners were handed an average of £688,000 ($931,221) each, scooping their biggest payday since 2014.
The firm is also planning on expanding its employee headcount, which may increase the proportion of staff working outside the city of London. However, it stated that it would still encourage workers to return to offices at least twice a week.
The payout comes at a time when there is fierce competition in the professional services industry for white-collar talent.
KPMG also said that it is planning on reinvesting funds, obtained by selling its restructuring and pensions businesses, into digitalizing the business and elevating its capabilities in various high-growth services, such as in ESG advisory.
Jonathan Holt, CEO at KPMG UK, stated that that firm is planning on reinvesting after having had a resilient performance while facing a challenging backdrop of the coronavirus pandemic, with revenues soaring 10%, to £2.35 billion ($3.18 billion) and profits up 51%, to £426 million ($577 million).
Holt explained that the firm plans to use a major share of the £300 investment in expanding the company’s headcount via recruitment of colleagues as well as partners, which will be done over the next three years.
While the firm will encourage workers to return to the office, either to the client site or KPMG site, Holt added that it will be taking a flexible approach as it progresses forwards. With remote working enabling staff to work from anywhere, KPMG is able to increase the percentage of people working outside London.
Holt added that the firm will continue addressing the legacy issues surrounding it, and it also intends on working with the government to make any needed changes with other market players.