Top exec incomes leap 50% while staff struggle with earnings squeeze
Executive pay at FTSE 100 companies surged 50% to £2.7 million, while average workers received pay rises of just 2.6%—half the inflation rate. The disparity has prompted calls for greater shareholder scrutiny and worker representation on pay committees.
Blog: How to take the pay issue off the table
Fair compensation is essential before recognition and rewards can be effective. To “take pay off the table,” organizations must compensate employees fairly based on contributions, have transparent salary conversations, and supplement base pay with meaningful recognition programs.
Pay awards to increase only marginally in 2012
Private sector pay awards are expected to increase by a median of 2.5% in 2012, marginally higher than 2011’s 2.3%, but still well below pre-recession levels and inflation forecasts. Company performance and financial capacity remain the primary drivers of wage settlements, with retail and construction sectors offering the lowest increases.
Employers forced to cut pay rises to fund pensions, warns head of NEST
Employers will need to cut pay rises from next year to fund automatic pension enrolment for workers, according to the head of NEST. The Government’s workplace pension scheme requires large employers to contribute 3% of salaries from October 2012, forcing businesses to redistribute wages to cover the extra costs.
Blog: Is regulation really to blame for hiring caution?
Regulation may not be the real barrier to small business hiring. Analysis of employment law claims shows discrimination issues—not unfair dismissal rules—drive concerns, while cash flow challenges from payment delays pose greater obstacles to recruitment.
Biggest drop in household income for 35 years will see child poverty leap, says study
A major study warns that a 7% drop in UK household incomes over three years, combined with welfare changes, will cause child poverty to surge by 23-24% by 2020, despite government plans for a new Universal Credit scheme designed to reduce poverty.
Blog: Agency worker regulations and how legitimately to avoid them
Learn how the Agency Workers Regulations affect temporary staffing and discover legitimate strategies employers can use to manage compliance costs, including hiring temporary workers directly to bypass agency fees while maintaining legal and ethical standards.
Pay rises on the cards in 2012 for a third of UK firms
About one third of UK employers plan to raise staff pay in 2012, according to research by Incomes Data Services. More than half will maintain current pay levels, while only 13% plan lower settlements. The rising cost of living and uncertain economic outlook will significantly influence pay decisions.
Case Study: Speedy Services has ‘Big Ideas’ for boosting staff engagement
Speedy Services launched a ‘Big Ideas’ initiative enabling 3,500 employees to submit process improvements and product suggestions, combined with a rewards program recognizing innovation. The scheme boosted staff engagement and productivity by valuing frontline worker expertise and implementing a tiered recognition system with cash prizes and annual awards.
Blog: It’s not just about the money
Employee retention during economic downturns depends on more than salary increases. While a recent survey shows workers increasingly prioritize pay and benefits, effective reward communication and promoting existing benefits can maintain staff loyalty and job satisfaction without requiring additional spending.
Vince Cable wages war on spiralling executive pay
Vince Cable proposes changes to company laws to control executive pay, which has risen fourfold since 1998 while share values lagged behind. Measures include giving shareholders binding votes on pay awards and placing employees on remuneration committees to promote transparency and prevent “rewards for failure”.
Agency Worker Regs lead to cut-price perm contracts, claim temps
Temporary workers at a Jaguar Land Rover supplier claim a recruitment agency is pressuring them into low-paid permanent contracts to avoid paying higher wages under new Agency Worker Regulations taking effect October 1st. The offered permanent positions would provide only minimal pay increases compared to the £200 weekly boost the regulations would guarantee.
PCS calls off Fujitsu strike, but Unite goes ahead
The Public and Commercial Services union called off its Fujitsu strike after reaching a pay agreement that includes an 11% raise for lowest-paid workers, but Unite members plan to continue their walk-outs over unresolved disputes regarding union recognition, benefits, and redundancy terms.
Age discrimination awards three times higher than average, warns expert
Age discrimination awards averaged £30,289 in 2010-11, nearly three times higher than other discrimination types, prompting experts to warn employers to review policies and training to avoid costly tribunal claims.
Does performance-related pay provide value for money?
Performance-related pay has failed to deliver better company results, according to research showing executive bonuses soared 700% since 2002 while share prices grew only 21%. Studies reveal performance pay schemes offer little motivation for average workers due to minimal award increases and provide limited value for money across organizations.
Goldman Sachs takes away bankers’ two-year old pay rise
Goldman Sachs is cutting salaries for hundreds of London bankers by phasing out pay increases granted in 2009, using a contractual clause as market conditions tighten. The move follows the bank’s 9% reduction in salary budgets and planned elimination of 1,000 jobs globally.
‘Take pay cut and unpaid leave or lose your job’, council workers warned
Rochdale Council is proposing pay cuts of 2.5% for workers and 5% for managers, reduced sick pay, and unpaid leave to save £5.5 million annually and avoid further job losses. The 7,000 council employees will vote on the changes this autumn.
Book Review: The Carrot Principle by Adrian Gostick & Chester Elton
The Carrot Principle by Adrian Gostick and Chester Elton explores how recognition accelerates organizational performance. Based on a 10-year study of 200,000 employees, the book provides empirical evidence that companies excelling in recognition achieve significantly higher returns on equity and stronger employee engagement and retention.
Bonuses and allowances compensate council bosses for pay cuts
Council chief executives received inflated bonuses and allowances to offset promised salary cuts, according to analysis of local authority accounts. Despite government calls for 10% pay reductions, senior leaders’ total compensation packages increased, with top earners exceeding £280,000 annually.
Pay awards to remain flat until end of year
Pay awards are expected to remain flat through the end of the year due to high unemployment, weak labor market conditions, and rising commodity costs. Analysis of 99 awards shows the median pay increase held steady at 2%, with employers citing affordability constraints despite most preferring RPI inflation measures.
