August 11, 2015
Regional differentiations as job pay gap accelerates worldwide 0
Since 2008 the pay gap between lower level employees and senior managers has widened in every region across the world, a global survey has found. 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 as twice as many countries as it is falling (42 to 21). The latest research from global management consultancy Hay Group reveals however that Europe has the smallest gap, with an average increase in the pay gap of only 2.2 percent since 2008. This has been fuelled in part by the use of communal pay cuts to avoid redundancies, whereas US firms prefer to cut jobs and urge remaining senior managers to expand their job roles. The research underlines how a large job pay gap can lead to discontent and disengagement among the workforce.