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Employers, Including Large Firms, Hand out Midyear Raises in Response to Inflation

By:
Ruth Singleton
Published Date:
Jul 5, 2022

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In an effort to retain workers during this time of high inflation, many large employers, including accounting firms, are offering midyear raises, the Wall Street Journal reported. PwC, which raised salaries by 5 percent in January, announced that it will provide additional raises this month to reflect its performance in its fiscal year, which just ended.  

The Journal interviewed PwC Chairman Tim Ryan, who said that the firm no longer reviews salary data once a year. Instead, it regularly looks at a number of data points, including salary expectations of new employees, using that information to react quickly and make compensation changes if needed. “Our people will get another round of good raises and we will stay competitive,” he said. 

According to the Big 4 Accounting Firms website, all of the Big Four firms have offered midyear raises and/or retention bonuses. In addition to PwC, Deloitte has offered retention bonuses and raises of varying rates. KPMG has handed out raises of $3,000 to $7,000. And EY has offered retention bonuses so far. The website is published by a group of CPAs with several years of experience working within and with one or more of the Big 4 firms. 

In addition, Accounting Today reported that Janover LLC gave out interim raises last November, on top of the annual raises it provided on July 1. Accounting Today quoted Mark Goodman, managing partner of Janover, who said, “First take care of your current staff. Make sure you keep them happy. Make sure you pay them right. Do the things you need to do. Of course, you’re always going to lose people, but keep your recruitment to a minimum. The less you lose, the less you recruit.”

The Journal quoted Rebecca Toman, vice president of the survey business unit at executive compensation consulting firm Pearl Meyer. She said that for years, many companies kept pay increases around 3 percent annually, but executives have recently felt pressure to change pay largely in an attempt to retain workers. “A labor shortage plus inflation makes up that perfect storm where we’re seeing larger than historical annual base salary increases and companies thinking about doing something more,” she said. 

The Journal also reported on raises offered by other large businesses. In June, T. Rowe announced it would give about 85 percent of its employees a 4 percent raise effective July 1. In June, Exxon Mobil Corp. gave U.S. employees a one-time payment equivalent to 3 percent of their salaries. And Microsoft has said it plans to nearly double its global budget for merit-based raises. 

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