Staff at pension consultancy Hewitt Associates will this week be paid bonuses on average five times higher than last year, as the company reinstated a former compensation agreement after scores of employees resigned.

Consulting practice staff bonuses fell last year when Hewitt calculated them on firm-wide performance, which was poor, rather than on results of individual units. The bonus pool for consultants this year has been boosted by £45m (€66m). Yvan Legris, head of UK investment consulting, said: "The investment consulting business in the UK continues to grow strongly. "We had 14% revenue growth for the 12 months to the end of September. "We have a higher headcount than a year ago, despite the attrition we faced but given the strong demand for our services, the growth could have been higher. We're still trying to recruit in the market." Lower bonuses last year also led to departures from Hewitt's European offices. It has replaced head of investment consulting in France, Vincent Puche, with Nicolas du Penhoat from Robeco Asset Management this month. The U-turn on bonuses led to speculation that Hewitt's investment consulting team was planning a management buyout. Hewitt and the individuals thought to be at the heart of the venture denied the move.