KPMG puts new spin(off) on employee retention;Big 5 firm plans IPO for employees' benefit; 20% leave each year for less stress, more pay.(Brief Article)

Crain's New York Business, November, 1999 by gandel, stephen

The hardest job for management consulting firms these days may not be solving their clients' organizational problems, but figuring out how to keep their own employees. KPMG International, which lost 21% of its workforce last year, has decided the answer lies in being the first major accounting and consulting firm to sell shares to the public.

In August, partners at the firm voted to spin off the assets of its consulting business, the sixth-largest practice in the world, into a separate entity, called KPMG Consulting. It registered the new company with the Securities and Exchange Commission and is planning an initial public offering for as early as next spring. While going public will raise funds for acquisitions and other purposes, the primary goal is to...

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