Inclusion, Diversity and Equity
Addressing our pay gaps
Building a more diverse, inclusive and equitable business.
As a firm we’re committed to being transparent about our progress towards building a more inclusive, diverse and equitable business.
Pay gap reporting is a key part of this and we’re proud to have led the way. We first published our gender pay gap voluntarily in 2015 and since then have published our ethnicity pay gap (since 2017), sexual orientation pay gap, Black heritage pay gap and disability pay gap (each since Feb 2021). In September 2021, we became one of the first UK businesses to publish our socio-economic background pay gaps and to set a socio-economic background target.
Whilst being transparent about where we are is critical to driving change, we know pay gaps are just one part of the picture. What's important is what we do with that data. That's why we continually monitor our progress to understand what’s working and challenge ourselves on where we can go further to focus our efforts and increase representation and inclusivity in our firm.
As a firm, we’ve long been committed to creating an inclusive culture, where everyone has an equal chance to thrive. Harnessing our differences delivers better outcomes for our clients, our communities and our people. It’s fundamental to building a sustainable, growing business.
We renewed our commitment to this vision last year, with the launch of our new inclusion, diversity and equity long-term strategy and targets to 2030.
One year on, we’re making great progress against those targets. At the most senior levels of our firm, we’ve seen an increase in diverse representation, particularly around gender. Over half (55%) of our executive committee and 44% of our board are women, and three out of our four capabilities are led by women. At partner level, we have increased representation against every historically-underrepresented group. And nearly half of all our promotions across the business this year were female.
While it’s encouraging to see that this has translated in to a 2.6% point improvement in our median gender pay gap, we remain focussed on improving the rate of progress we’re making to reduce this further.
We’ve also reduced our pay gap between professional and lower socio-economic background colleagues in our first year of reporting. In 2021, we were the first organisation to establish a robust methodology to publish pay gaps and set targets in this area. Our focus on this important aspect of diversity and inclusion is working, with 20% of our graduates, apprentices and experienced hires coming from lower socio-economic backgrounds this year.
More broadly across the firm, the proportion of ethnic minority, Black heritage, and lesbian, gay and bisexual colleagues is also up. However, we have seen an increase in our pay gaps across these areas, as well as disability, following progress in 2021.
Our data – taken for the period between April 2021 and April 2022 – shows that while we have robust controls to ensure fairness in pay decisions within our grades, our pay gaps are driven by the strong diversity of colleagues in junior roles. This is outweighing the improvements we’re seeing at senior levels and impacts where the median sits. For instance, when establishing the median pay gap point for gender, the median female is a lower grade than the median male due to higher female representation in junior roles. This generates a pay gap, as we’re comparing employees at different pay grades.
Greater representation at any level is a positive change, but we need to ensure that this is replicated across all levels of our business.
Changing the grade mix will take time, but we have a strong pipeline of talent that we are committed to supporting. Several firmwide and capability-specific programmes are in place to identify people from historically-underrepresented groups and help support them to reach their full potential, such as our Black heritage Talent Programme. You can find out more about the action plans we have in place here.
There’s still a long way to go, but we know this work is already having impact. Recent research by The Bridge Group into progression at KPMG demonstrated that over a 5-year period, the majority of our historically-underrepresented groups progressed as quickly, if not more so, than their counterparts.
Combined with our workforce diversity statistics, the pay gap data is helping us build a picture of where our colleagues are facing barriers in our business and how we can unlock these. But this is just one of many indicators we use to monitor our progress.
We know that building an inclusive culture is just as important as having diverse representation. We’ve been upskilling our colleagues to be active allies, having rolled out enhanced firm-wide inclusion, diversity and equity training in 2022 and continue to build on the great success of our 15 employee networks.
And our continued focus in areas such as work allocation and promotions, alongside our robust controls, ensure that all pay and reward decisions, and opportunities, are based on fairness and consistency.
We’re absolutely committed to listening, learning and challenging ourselves on where we can go further.
Declaration
I confirm that KPMG UK Ltd’s pay gap data has been collected and presented within this report in accordance with the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.
Jon Holt, Chief Executive, KPMG in the UK
What is the data showing?
We are pleased to have seen an improvement in the gender pay gap this year, but remain focused on improving the rate of progress we’re making on reducing this gap. The main driver behind our gender pay gap is the higher representation of females compared to men in our lower grades, which impacts where the median falls. For instance, when establishing the median pay gap point for gender, the median female is a lower grade than the median male due to higher female representation in junior roles. This generates a higher median pay gap, as we’re comparing employees at different pay grades.
Action we’re taking to close the gap
We have a number of initiatives dedicated to attracting and progressing women across the firm. This is a long-term strategy and will take time, but we have a strong pipeline of talent that we are committed to supporting. Positively, we are starting to see the impact of our work. Our representation of women in leadership roles is increasing, and our progression analysis shows a closing of a historical progression gap for women. From our analysis, we see a drop in the diversity of our talent pipeline at Senior Manager level and above. Our targeted initiatives - such as GROW - are specifically designed to support the development of women at Manager and Senior Manager levels. You can find out more about the action we’re taking here.
The gender pay gap is the measure of the difference in average pay between all men and all women across an organisation, regardless of their role, level, length of service or location and any other differentiating factors. Although not required by statute, these figures relate to all KPMG staff and partners. For the purpose of our reporting, ‘partners’ refers only to equity partners. Associate partners and salaried partners are included in our employee population. The April 2022 dataset contains a total employee and contractor population of 15,509 with a Male/Female Split of 8,305/7,474. Our pay gap data reflects colleague pay at 5 April 2022, taking into account an in-year pay increase. The increase was paid in May 2022 but backdated to April 2022, therefore isn’t included in our regulatory data. Bonus pay is based on bonuses paid up to the period 5 april 2022.
In May 2022, KPMG awarded an in-year pay increase to employees that was backdated to 1 April 2022. This could not be included in our statutory data as it wasn’t technically in place on 5 April. However, it does represent what our colleagues were paid from 1 April onwards, which is why we’ve also published this information alongside the data that’s required by statute.
In May 2022, KPMG awarded an in-year pay increase to employees that was backdated to 1 April 2022. This could not be included in our statutory data as it wasn’t technically in place on 5 April. However, it does represent what our colleagues were paid from 1 April onwards, which is why we’ve also published this information alongside the data that’s required by statute.
This is the difference in the average pay between females and males, excluding equity partners. Our pay gap data reflects colleague pay at 5 April 2022, taking into account an in-year pay increase. The increase was paid in May 2022 but backdated to April 2022, therefore isn’t included in our regulatory data.
This is the difference in average bonus paid between males and females who received a bonus, excluding equity partners.
The quartiles set out the gender distribution across KPMG in four equally-sized quartiles.
Launched in 2015, the award-winning IT’s Her Future programme is dedicated to tackling gender diversity within Technology at KPMG.
“Women make up 48% of the UK workforce but only 17% of the technology workforce. This is exactly why programmes like IT’s Her Future are so important, not only for organisations like KPMG, but our clients and wider society too.” says Laura Verlander, Development Lead for ITs Her Future.
Where we are now
Laura adds, “We have come a long way since the inception of IT’s Her Future, but we still have a number of internal challenges and external influences we want to overcome to become pioneers of change for women in our industry.”
What’s next?
Building on the success of the programme to date, the focus now turns to increasing its reach. Some of the new initiatives include supporting Director and Partners to make the transition to business leader through executive-level learning with the University of Cambridge, an Ally to Advocate programme for senior male and female Directors and Partners, as well as an Empower the next generation programme aimed at junior levels in tech. KPMG are also working with female coding bootcamp, Black Codher to provide more focussed support for Black Heritage women.
“By increasing inclusion within technology, we can build equitable technologies of the future which will benefit us all” adds Laura.
What is the data showing?
We are disappointed to have seen an increase in our Ethnicity pay gaps this year. This has been driven by a significant shift in our Ethnic minority population - between April 2021 and April 2022, we’ve seen a 12% increase, with a larger proportion of that being in junior roles. While representation at lower grades is particularly strong, our continued focus in this area and dedicated Black Lives Action Plan has meant that we’ve seen improved representation at every level of our firm, including at Partner level. We have surpassed our ambition to double Black heritage Partners by 2022 and are making good progress against the 2030 targets we set last year, but recognise we still have a long way to go to achieve proportionate representation at all levels of our business.
Action we’re taking to close the gap
We have a number of initiatives dedicated to attracting and progressing ethnic minorities across the firm, including our allyship programme. Our Cross Company Allyship Programme, which launched in September 2021, opens up opportunities for KPMG and client mentors and mentees of Black and/or Minority Ethnic heritage to gain experiences and access networks from outside of their own organisations. The programme aims to attract, retain and progress black and minority ethnic staff, both at KPMG and with our clients. The programme has over 600 people involved across 21 clients, and has been expanded to the Netherlands. You can find out more about the action we’re taking here.
The ethnicity pay gap is the measure of the difference in average pay between colleagues that have declared themselves as ethnic minority vs white, regardless of their role, level, length of service or location and any other differentiating factors. Although not required by statute, these figures relate to all KPMG staff and partners. For the purpose of our reporting, ‘partners’ refers only to equity partners. Associate partners and salaried partners are included in our employee population. Our ethnicity data is based on those individuals who have chosen to declare their ethnicity, which is 83% of the total in-scope population. Our pay gap data reflects colleague pay at 5 April 2022, taking into account an in-year pay increase. The increase was paid in May 2022 but backdated to April 2022. Bonus pay is based on bonuses paid up to the period 5 april 2022.
In May 2022, KPMG awarded an in-year pay increase to employees that was backdated to 1 April 2022. This could not be included in our statutory data as it wasn’t technically in place on 5 April. However, it does represent what our colleagues were paid from 1 April onwards, which is why we’ve also published this information alongside the data that’s required by statute.
This is the difference in average pay between Ethnic minority and White colleagues, excluding equity partners. Our pay gap data reflects colleague pay at 5 April 2022, taking into account an in-year pay increase. The increase was paid in May 2022 but backdated to April 2022, therefore isn’t included in our regulatory data.
This is the difference in average bonus paid between White and ethnic minority colleagues who received a bonus, excluding equity partners.
In May 2022, KPMG awarded an in-year pay increase to employees that was backdated to 1 April 2022. This could not be included in our statutory data as it wasn’t technically in place on 5 April. However, it does represent what our colleagues were paid from 1 April onwards, which is why we’ve also published this information alongside the data that’s required by statute.
The quartiles set out the Ethnic minority distribution across KPMG in four equally-sized quartiles.
“I have thoroughly enjoyed being part of the Cross Company Allyship Programme and the opportunity to have a mentor outside of the firm. I’m grateful to have built a trusted and open relationship with my mentor to navigate some difficult discussions on heritage, cultural differences and microaggressions in the workplace. It’s been valuable to get the advice and guidance of my mentor to support my growth in the workplace. Over the course of the year, we had the opportunity to engage in monthly sessions and discuss these topics in depth. Thanks to KPMG for setting up this brilliant initiative and to my mentor who is now a lifelong friend.”
Shriya Madlani, KPMG participant in the Cross Company Allyship Programme
“I am so grateful that I was selected to be a mentor for this fantastic initiative from KPMG. I have had some fantastic virtual and face time face meetings with my mentee over the last 12 months and have loved every one of them. I have developed my own Cultural Intelligence significantly through my mentee’s openness and honesty which I will always be extremely grateful for. Best of all, I got to meet an amazing person who I now consider to be a friend!”
Nick White, CCEP participant in the Cross Company Allyship Programme
What is the data showing?
Our latest sexual orientation pay gap for April 2021 to April 2022 shows an increase, year on year. This increase has largely been driven by an uplift in our overall lesbian, gay and bisexual (LGB) population, driven by more LGB colleagues joining the firm and greater declaration in this area. At April 2022, there had been an 11% increase. This change in population, particularly the increase in the number of new joiners in junior grades, has resulted in a widening of the pay gap.
Action we’re taking to close the gap
We have several initiatives dedicated to supporting LGBT+ talent in our firm. For example, we are implementing a new promotion readiness programme targeted at all our historically under-represented groups. This programme will sit alongside our wider suite of learning opportunities available to all colleagues. The programme will focus on our Manager population who are considered ready for promotion to Senior Manager in the next 6-12 months. This will comprise of two modules, firstly helping our colleagues develop a progression mindset and secondly preparing for a promotion interview. attracting emerging talent into our firm, with programmes such as AuthentiCity - our annual recruitment event for LGB students – encouraging greater representation within our Apprenticeship and Graduate programmes. You can find out more about the action we’re taking here.
We report our sexual orientation pay gap on a voluntary basis. The sexual orientation pay gap is the difference in average pay between those who have declared themselves heterosexual and those who have declared themselves as Lesbian, Gay & Bisexual, regardless of their role, level, length of service or location and any other differentiating factors. For the purpose of our reporting, ‘partners’ refers only to equity partners. Associate partners and salaried partners are included in our employee population. This equates to 83% of the total in-scope population. Our pay gap data reflects colleague pay at April 2022, taking into account an in-year pay increase. The increase was paid in May 2022 but backdated to April 2022.
In May 2022, KPMG awarded an in-year pay increase to employees that was backdated to 1 April 2022. This could not be included in our statutory data as it wasn’t technically in place on 5 April. However, it does represent what our colleagues were paid from 1 April onwards, which is why we’ve also published this information alongside the data that’s required by statute.
What is the data showing?
We are disappointed to have seen an increase in our Black heritage pay gap this year, following positive movements in 2021. This is due to a significant change in the Black heritage colleague population, which increased by 25% over the 12 months from April 2021 to April 2022. In the same period, the non-Black heritage colleague population has only increased by 2.4%. This material change in the Black heritage colleague population particularly in junior grades, is the main cause in the year-on-year change in the pay gap. While representation is particularly strong at junior levels, we have seen improvements at every level of our business. And we’ve surpassed our commitment to double Black heritage Partners by 2022, a target that was set as part of our Black Lives Action Plan.
Action we’re taking to close the gap
In 2020, we launched our Black Lives Action Plan focused on five areas, which aimed to amplify the voices and experiences of Black Heritage colleagues in our workplace and drive real change. We committed to doing more to engage and retain our Black colleagues and ensure they join and progress through our organisation equitably. As part of our Black Lives Action Plan, we launched our Black Lives Allyship Programme. Since its launch in July 2020, over 1,200 people have taken part and our third cohort launched in January 2023. Through this programme we have supported 41%* of the Black heritage colleagues who have taken part to gain a promotion. You can find out more about the action we’re taking here.
*This data is for participants in Cohort 1 of the programme.
We report our Black heritage pay gap on a voluntary basis. The Black heritage pay gap is the difference between colleagues that have declared as being of Black heritage vs non Black heritage colleagues, regardless of their role, level, length of service or location and any other differentiating factors. For the purpose of our reporting, ‘partners’ refers only to equity partners. Associate partners and salaried partners are included in our employee population. This equates to 81% of the total in-scope population. Our pay gap data reflects colleague pay at April 2022, taking into account an in-year pay increase. The increase was paid in May 2022 but backdated to April 2022.
In May 2022, KPMG awarded an in-year pay increase to employees that was backdated to 1 April 2022. This could not be included in our statutory data as it wasn’t technically in place on 5 April. However, it does represent what our colleagues were paid from 1 April onwards, which is why we’ve also published this information alongside the data that’s required by statute.
Tyeisha arrived in the UK at the age of 10 along with her five siblings when her parents fled from political upheavals in the Congo. Her parents found work as cleaners as they established family life in east London. “My Dad was never home – he was always working!” Tyeisha reflects.
With no pattern to follow, Tyeisha wasn’t sure of the path ahead. She got her A levels at the local state school but didn’t apply for university. She began a hairdressing qualification but didn’t follow through with it. She went back to college, got a business administration qualification and found an office manager role. Then she saw a position advertised at KPMG.
“I never expected to get the job and I was so proud when I did! It’s been a rollercoaster since then,” Tyeisha says. She had various roles within KPMG before going on maternity leave. It was when she came back to the firm in 2019 that things really seemed to take off.”
“I belong to the Afro-Caribbean Network and through that I got a mentor,” Tyeisha says. “She has made a huge difference, helping me think about my career path. It’s made me feel more empowered. I’ve been promoted three times in the last three years and am now a manager. I can see other people around me who look like me or share a similar background in really senior positions and it gives me hope and belief for the future.”
Tyeisha believes there are opportunities for anyone who is prepared to work hard at the firm. “I think there have always been a huge number of opportunities. What’s changed is the way the firm communicates about them and opens them up, so that individuals like myself can see a future within the firm. No matter where we started.”
What is the data showing?
Despite making progress last year, it’s disappointing that our latest disability pay gap for April 2021 to April 2022 shows an increase, year-on-year. This has been driven by an 11% increase in the population declaring they have a disability or long-term condition.
Action we’re taking to close the gap
We have a number of initiatives dedicated to attracting and supporting disabled colleagues in our firm, including our student recruitment programme, Thrive. For example, in September 2022, we introduced a new flagship student recruitment event - Thrive - focussed on disability. Thrive was designed to connect with students with disabilities and long-term health conditions and create an authentic space to discuss how we support people to bring their full self to work. During the event, students were introduced to our WorkAbility network and Neurodiversity Community, and were encouraged to share their stories and learn more about career paths and life at KPMG. You can find out more about the action we’re taking here.
We report our disability pay gap on a voluntary basis. The disability pay gap is the difference in average pay between employees who have declared themselves as having a disability and those who have declared that they do not have a disability, regardless of their role, level, length of service or location and any other differentiating factors. For the purpose of our reporting, ‘partners’ refers only to equity partners. Associate partners and salaried partners are included in our employee population. This equates to 83% of the total in-scope population. Our pay gap data reflects colleague pay at April 2022, taking into account an in-year pay increase. The increase was paid in May 2022 but backdated to April 2022.
In May 2022, KPMG awarded an in-year pay increase to employees that was backdated to 1 April 2022. This could not be included in our statutory data as it wasn’t technically in place on 5 April. However, it does represent what our colleagues were paid from 1 April onwards, which is why we’ve also published this information alongside the data that’s required by statute.
What is the data showing?
We are pleased to have seen an improvement across the majority of our socio-economic background pay gaps in our first year of reporting. In the areas that have increased, this has been due to a material change in the population. For instance, 49% of those identifying as Professional and 51% identifying as Intermediate are in the two most junior grades. And when comparing intermediate vs lower socio-economic background, both populations have increased by over 10%, changing the demographics of the groups.
Action we’re taking to close the gap
We have a number of initiatives dedicated to attracting and supporting colleagues from diverse backgrounds to our firm, including our Employability Award and Social Mobility Talent Insight Programme. You can find out more about the action we’re taking here.
We report our socio-economic background pay gap on a voluntary basis. The socio-economic background pay gap is the difference in average pay between those who have declared themselves as having parents in a professional, intermediate or routine/manual occupation, regardless of their role, level, length of service or location and any other differentiating factors. For the purpose of our reporting, ‘partners’ refers only to equity partners. Associate partners and salaried partners are included in our employee population. This equates to 74% of the in-scope population. Our pay gap data reflects colleague pay at April 2022, taking into account an in-year pay increase. The increase was paid in May 2022 but backdated to April 2022.
In May 2022, KPMG awarded an in-year pay increase to employees that was backdated to 1 April 2022. This could not be included in our statutory data as it wasn’t technically in place on 5 April. However, it does represent what our colleagues were paid from 1 April onwards, which is why we’ve also published this information alongside the data that’s required by statute.
Harris was born and bred in Birmingham, after his parents emigrated to the UK from Pakistan in 1968. His father was a factory worker while his mother looked after the home. His parents throughout his childhood put in the hours to save to give the best opportunities they could for their son.
It paid off, with Harris getting his A levels at the local college and becoming the first person amongst his extended family to go to university – reading Computer Science and Business Management at Aston University. He graduated with a 1st class honours and from there, he got onto the graduate scheme at a financial data company. At the beginning of 2022, he joined KPMG.
“I used to drive past the KPMG building in Birmingham and the brand has always seemed prestigious,” Harris reflects. “It was a great day when I joined the firm.”
Since then, things have moved fast. Harris saw an email about the firm’s Next Generation Leader scheme, applied and was given a place. He’s already been promoted to manager and leads a small team providing digital agility design services to clients. He has a mentor too – one of KPMG’s senior partners, David Rowlands.
“It’s been fantastic,” Harris says. “I’m so lucky to have David as a mentor – he’s really helped shape my thinking. Mentors are so important for people from backgrounds like mine because you don’t have anyone in your family who’s been there before and can give you guidance.”
He adds: “As a Pakistani and practising Muslim, I’ve faced no barriers and I’ve found KPMG very inclusive. I was taken back by the quality of the prayer room in Canary Wharf. It really said a lot about how serious the firm is about ‘showing up as yourself.”
The mean gender pay gap is calculated by adding up all of the pay of KPMG employees and dividing it by the number of employees.
The median gender pay gap is calculated by lining up all of KPMG’s employees’ pay and finding the mid-point for both men and women. The difference between those two mid-points is the median gender pay gap.
We have an aggregate gender pay gap, but this is not the same as paying a man and a woman differently for doing identical work. Equal pay is a legal requirement in the UK. We have robust processes and monitoring in place to ensure that our people are treated and paid fairly, meeting both our legal and moral obligations.
For example, our gender pay gap is being driven by higher representation of women compared to men in our lower grades, which impacts where the median falls. We’re therefore comparing employees at different pay grades.