June 12, 2018
Pay rates for senior management reflect longer working hours argues CMI
Business Secretary Greg Clark proposed new laws in Parliament yesterday (June 11th) that new large firms will have to justify their chief executives’ salaries and reveal the gap to their average UK worker. It means that for the first time, UK listed companies with more than 250 UK employees will have to disclose and explain this difference – known as ‘pay ratios’ – every year. However, according to data published today by the Chartered Management Institute (CMI) and XpertHR, basic salaries for senior managers have fallen in real terms, with inflation overtaking pay increases for the first time in five years. At a time when government are shining a light on executive pay, and linking it via a ratio to workforce pay, separate CMI research has found managers worked an extra 44 days a year last year over and above their contracted hours – up from 40 days extra in 2015. The same research found 59 percent of managers are ‘always on’, frequently checking their emails outside of work and one in 10 had been forced to take sick leave because of stress.
More than a quarter of managers (27 percent) in British companies would likely accept a salary cut to work for a company that has a clear purpose beyond profit a new report claims. A third (32 percent) would actually consider leaving their job if a greater purpose was unclear, while more than half (53 percent) would if their company’s values and purpose didn’t align with their own. The YouGov survey, commissioned by Danone UK, highlights the importance of having a defined company purpose that marries commercial success with social progress. The findings support a new report by not-for-profit think tank Tomorrow’s Company and Danone UK, that explores the importance of having a purpose beyond profit in helping companies to prosper in the face of workplace challenges created by an uncertain world. 
Employers’ efforts in the US to improve staff health and wellbeing are falling short of employees’ expectations, claims a new report. Nearly two-thirds of employees (65 percent) in a report from Willis Towers Watson agree that managing their health is a top priority, but while the majority of employers (56 percent) believe their wellbeing programmes have encouraged employees to live a healthier lifestyle, only 32 percent of employees agree. Eighty-seven percent of employers who participated in the 22nd annual Best Practices in Health Care Employer Survey say increasing employee engagement in health and well-being is a top priority and the research warns that employees in poor health are twice as likely to be disengaged at work and take almost three times as many days off as employees who are in very good health. Employers can improve health behaviour through designing the workplace environment to make it easier for employees to stay fit, eat well, breathe fresh air and address stress adds the report.
