Ironing out the salary gap

Salaries
for the same job title and job content can vary by as much as 60 per cent
across the UK, according to research by MCG Consulting Group.

While
individual performance differences and progression through salary scales can
account for up to 40 per cent of the differential, the authors of the report
contend that salaries and pay generally can deviate by as much as 20 per cent
from what is a fair and competitive level for any particular job.

The
report, called Salaries Review 2001 – Audit Concerns, suggests that for those
organisations with 500 employees, and a pay structure that is on average 10 per
cent above the norm, there are savings of up to £1m a year to be made.

For
those organisations that pay under the average, similar savings can be attained
by attracting qualified and able staff, increasing staff motivation and
reducing employee turnover.

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www.hraudit.net

By
Mike Broad