Big Four accounting firms raising starting pay again

Big Four accounting firms raising starting pay again
To stem brain drain, they are upping new grads' pay by as much as 20%, after earlier 10% hike
By Lee Su Shyan, Assistant Money Editor
THE tight job market has forced the Big Four accounting firms to raise the salaries of starting graduates for the second time in just six months.

They have cranked up pay for new arrivals by nearly 20 per cent - after a 10 per cent hike in January - in the hope of stemming a brain drain to higher-paying jobs in banks and other sectors, including the public service.

First-year graduates will now get about $2,400 a month and those with top-notch degrees will draw $2,600. This time last year, newbie auditors got only $2,000, a pay level that had not changed for many years.

The firms, which are also recruiting in greater numbers than ever, are responding to market changes, said Mr Jerry Teo, the human resources chief at Deloitte Singapore, one of the Big Four accounting firms along with Ernst & Young (E&Y), KPMG and PricewaterhouseCoopers (PwC).

KPMG said: 'The current round of salary-cost inflation, particularly in the financial services sector, is a key reason for the pay increases.'

The firms also want to reduce the initial pay gap with other sectors, said PwC.


The Government, for example, has recently adjusted starting salaries for accounting graduates, who now start with as much as $2,910, up from $2,640 previously.

And Minister of State for Finance and Transport Lim Hwee Hua urged the Big Four in November 'to start reviewing their hiring policies', including those that see first-class honours graduates getting the same pay as people with a general degree.

KPMG has responded by paying their top recruits as much as $2,600, while other graduates will start at $2,400.

Banks are also fighting their corner, with new graduates in line for a starting pay of for as much as $3,700, said Ms Florence Ng, the managing director of recruitment firm Michael Page International (Singapore).

OCBC Bank said its new graduates get to work in various functions, from relationship management to sales and service, and they can develop knowledge in areas including operations, treasury and investment banking.

Even as money is a key factor for people entering the workforce, the Big Four firms will still continue to attract accounting and finance graduates, added Ms Ng, citing their good training and development programmes.

'This is especially so for those keen to gain certified public accountant qualification, as these firms tend to be more supportive of professional development programmes,' she added.

The Big Four are sweetening the deal in other ways too. E&Y managing partner Ong Yew Huat cites the firm's recent move to new offices at Raffles Quay as a way of showing its staff that 'they deserve an effective and comfortable working environment'.

KPMG focuses on ensuring there are enough employees so that overtime work during peak audit periods is kept at reasonable levels.

Also, staff who have been with the firm for more than two years are entitled to membership at a gym or The Legends Fort Canning country club.

With the economy booming, and in an attempt to retain staff, all the Big Four firms said they are paying out bigger year-end bonuses for their financial year ended June 30 than in the same period last year.

However, even with the extra cash and gym membership perks, some industry watchers believe the Big Four are waging a losing battle amid an economy that is driving up pay in a competitive job market.

That is behind moves by the Big Four to hire more people to counter the attrition rates.

E&Y, Deloitte and PwC all plan to hire 200 graduates or more this round. KPMG hired 300 in the earlier round and plans to take in at least 240 this season.