January 4, 2019
CIPD highlights gap between ‘fat cat’ top earners and the rest of the workforce
Just three days into the New Year, today (Friday 4 January), the UK’s top bosses will have made more than a typical full-time worker will earn in the entire year, according to calculations from independent think tank the High Pay Centre and the CIPD. The average (median) full-time worker in the UK earns a gross annual salary of £29,574, while the average FTSE 100 CEO, on an average (median) pay packet of £3.9 million, only needs to work until 1pm on Friday 4 January 2019 to earn the same amount. The £3.9 million figure was calculated by the CIPD and the High Pay Centre in their 2018 analysis of top pay and it marks an 11% increase on the £3.5 million figure reported in their 2017 analysis. The pay increase means that FTSE 100 CEOs, working an average 12-hour day, will only need to work for 29 hours in 2019 to earn the average worker’s annual salary, two hours fewer than in 2018.
A new survey into happiness at work suggests it is viewed differently according to age. Baby boomers: aspire to have job security and think careers are defined by employers. Gen X: aspire to have a work-life balance and although are loyal to a profession will not necessarily stick with the same employer. Millennials or Gen Y aspire to have freedom and flexibility and are digital entrepreneurs while Gen Z aspire to have security and stability. The report by Instant Offices’ considered what is important to each age group, and how employers approach the age gap. It found that eight in 10 millennials look for a manager to act as a mentor or coach; Baby boomers want a boss to be ethical, fair and consistent, while 61 percent of Generation X, and 55 percent of millennials, think team consensus is important. 
The ongoing uncertainty around Brexit has had little impact on both workers’ desire for job stability, and businesses’ assessments of their economic prospects according to Gartner’s latest Global Talent Monitor report. In fact, the UK reported the highest business confidence rating of all European countries surveyed at 60, and above the global average of 57. For employers this has the knock effect that the number of UK employees looking to stay in their current job has fallen sharply over the past 12 months, as 23 percent of employees indicated a low intent to stay with their current employer, a 13per cent increase from the same period last year and 10 percent higher than the current global average (13 percent). While fewer UK workers are committed to staying with their current employers, the number of workers who reported a higher willingness to go above and beyond at work remained flat.
Fifty percent of UK employees feel their employers don’t understand them or their potential – higher than the European average of 46 percent according to a study of over 2,000 workers across the UK, France, Germany, Italy and the Netherlands from ADP. The research found that 40 percent of UK workers are unhappy with the quality of leadership, with only France reporting slightly higher figures, where 52 percent saying they feel misunderstood by their employer. This was followed closely by Italy (48 percent) and Germany (46 percent), while the Netherlands reported the most positive results with only a third stating such feelings (35 percent). However, UK and European employees are more likely to feel their direct reports understand them better, with 61 percent reporting that their managers know and support them, and want to see them succeed. This shows that those working more closely together enjoy better relationships, which in turn is likely to lead to better quality of work and greater productivity. The lesson for businesses is that close relations between all staff, regardless of seniority, matter.
