KPMG replaces 401(k) match with a single, automatic firm-funded contribution

By Suzanne O'Halloran 

Accounting giant KPMG is aiming to stay one step ahead of the drum-tight job market by rewarding current employees and hopefully luring new ones with enhanced benefits including a modern-day 401(k) plan.

In what is believed to be the first, the firm will replace the traditional match with an automatic funded contribution that is equal to as much as 8% of an employee’s salary.

"You used to have to put a matching contribution into your own 401(k), and you can still contribute to your own 401(k) as you are permitted by law, but you no longer have to put a matching contribution. Instead we’re going to make an automatic contribution on your behalf that you will be able to enjoy in the future," KPMG CEO Paul Knopp told FOX Business. "We’re giving our employees more flexibility, more security for their financial future and a lot more ability to spend time with their families" for key life events.

Other benefits recently upgraded include cutting employee health care premiums by 10% in 2022, while keeping benefits the same, and three weeks of additional paid caregiver leave, separate from paid time off, to name a few. 

KPMG, like many other companies, is finding it challenging to hire workers with job openings at near-record levels. 

On Friday, the U.S. economy reported it added 531,000 workers last month, up from 194,000 in September. While hiring is improving, there are still a near-record 10.4 million job openings. 

"We are really trying to hire right now. We are hiring in record numbers" Knopp added, citing digital businesses, including cyber, audit and tax. 

The firm, which has 35,000 U.S. employees, is aiming to hire 2,500 experienced professionals, 1,300 full-time campus hires and 1,200 interns domestically. 

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Source: FOXBusiness

https://www.foxbusiness.com/markets/401k-match-kpmg-taxes-benefits-jobs-hire-workers