In an increasingly competitive job market with a growing focus on retaining good employees, major services vendor KPMG are looking into providing mortgage benefits in a bid to become a favoured place to work.
The Reasoning
House prices are simply out of reach for many of us, particularly those looking to buy alone and not with a partner. Despite reasonable salaries that are on the up and huge earning potential for the future, the discrepancy between the cost of a house and salaries is too great for mortgage companies to risk lending on – the figures simply do not add up.
Add in to this struggle, a desire from one of the world’s largest service providers to be an employer of choice and a big focus on employee well-being in the current climate and you have the perfect incentive to try a new employee benefit – mortgages.
The Deal
Due to rules about being competitive and preferential treatment, KPMG have had to remain extremely cautious about what they offer to employees with regard to mortgages. For this reason the “deal” is as follows:
– The mortgage lenders involved are Clydesdale Bank and Yorkshire Bank.
– Preferential mortgage rates are what’s on offer in addition to consideration of future earning potential.
– All employees with at least 12 months working at KPMG are eligible.
– In addition to preferential mortgage rates, workers get free worldwide travel insurance, contact with a personal bank manager, current accounts and ISA’s.
KPMG are not involved in the negotiation of rates and once their employee becomes a customer they have nothing to do with the arrangement, however it is a sort of recommendation – KPMG are vouching for their employees.
There was considerable red tape to go through too, as KPMG cannot be seen to be endorsing the bank. Additionally, they had to consider people who left the company. But the initiative has fought forward and is in place.
The Conclusion
Reported interest and feedback has been very positive. However one minor snag could be that employees need to move banks. KPMG won’t release precise uptake figures either.
In our opinion, from a recruitment point of view we find this initiative very engaging. The proportion of home owners is falling and many cannot get on to the property ladder without financial help in the form of a deposit from parents and family.
With the benefits race well and truly on, adding mortgage aid into the mix certainly wins our vote for employers. Nice one KPMG!
Castle Hill House