The following article highlights the importance of belonging to Trade Union. The article shows the pay gap between senior managers and lower level employees across mainland Europe and the UK. One of the most significant paragraphs in article states “While the difference between the pay gap increase in the UK and Europe is attention grabbing, it is not altogether surprising. Mainland Europe has a strong tradition of trade unions which have helped maintain pay equality despite a shifting business landscape and economic fluctuations.
We ask our members to encourage their colleagues, friends and family to become members of the Workers of England Union as we are a traditional Trade Union. We have not side-lined our members in pursuit of any political agenda, we just want to fight hard to make sure you are treated fairly within your workplace.
If you are concerned that your pay isn’t correct or that you are not earning the living wage please contact our office on 01206 766899. Please be assured that the Workers of England Union will continue to campaign for equality of pay.
The article by Consultant-news.com
Pay gap between senior managers and lower-level workers increases more quickly in the UK than Europe
Pay disparity between lower level employees and senior managers has increased in every region worldwide since the start of the global recession – Hay Group survey.
- The UK has seen the pay gap widen by 5.3%
- The average senior manager salary in the UK is 3.3 times that of a lower level worker
- In contrast Europe has experienced the smallest increase at 2.2%
- North America ranks highly, with an increase in pay gap of 7.2%
Latest research from global management consultancy Hay Group reveals that since 2008 the pay gap between lower level employees and senior managers has widened in every region across the world, with the UK witnessing increases above the European average.
The pay gap between lower level workers (comprising skilled manual, clerical, supervisor or graduate entry jobs) and senior managers (heads of departments or equivalent) is now on the rise in twice as many countries as it is falling (42 to 21).
Adam Burden consultant at Hay Group, comments: “Globally, the job level pay gap increase has accelerated since the recession. However it is not purely a post-recession issue. This is a complex trend that has been building for the past 30 years, through economic boom as well as bust. We’re seeing it impact different geographies in different ways, as the influence of local attitudes to employment and pay is felt in each region.”
Regional Variations: Pay gap increase in UK surges ahead of European average
While Europe has seen the smallest change globally, with an average increase in the pay gap of only 2.2 % since 2008, the UK gap has widened by 5.3% – over double the European average. This has taken the average senior manager salary to 3.3 times that of a lower level worker.
Europe is also the region where the greatest number of countries have experienced a decrease in pay gap, with Switzerland, France and Poland recording decreases of 3.3%, 5.6%, and 12.8% respectively.
Adam Burden, comments on this discrepancy: “While the difference between the pay gap increase in the UK and Europe is attention grabbing, it is not altogether surprising. Mainland Europe has a strong tradition of trade unions which have helped maintain pay equality despite a shifting business landscape and economic fluctuations.
Regional variations: North America remains high in the pay inequality rankings
In comparison to Europe, North America has experienced a 7.2% increase in senior manager pay compared to lower level employees. The United States alone has seen a 10.6% increase.
Adam Burden explains: “Despite an average global increase in the job level pay gap, Europe and America have diverged in part due to local employment practices. In response to the recession, many companies in Europe, including the UK, introduced pay freezes.
“In comparison, U.S. companies more frequently cut jobs and asked the remaining senior managers to expand their scope of work during the recession. Many of those who remained employed received a pay increase as compensation for their expanded role, leading in part to the widening job level pay gap.”
Trends driving the pay gap globally
Adam Burden continues: “Frequently discussed but often misinterpreted, the size of the pay gap can depend upon a number of factors, not least the shape of the company and the types of workers it employs. For example retailers will have a larger proportion of lower level worker than professional services.”
Global megatrends, that are shaping the world of business today, are also having an impact. The pay gap has accelerated as globalisation opens up workforces. In emerging markets, lower level employees typically earn less than those in mature markets. Whereas it is an increasingly international job market for senior level employees. Companies therefore have to offer senior salaries close to mature market levels.
Digitisation has also led to some jobs being simplified and lower level jobs are increasingly automated and off-shored. This reduces the number of jobs available and increases competition for those left, keeping pay down.
In contrast, pay is going up for senior managers where skills such as emotional intelligence, creative thinking and advanced judgement are in high demand and short supply. In addition, senior managers are increasingly being asked to take on more responsibilities and more complex work.
Adam Burden continues: “The potential for a large job pay gap to cause discontent among the workforce is huge. Organisations need to be transparent with employees and communicate why reward policies are in place.
“They should also invest in their training and development programmes to upskill their workforces to meet the future demands of their businesses. Done properly, these solutions present an opportunity for organisations to navigate the pay gap and improve employee engagement.”