2016 National Management Salary Survey analysed data from 105,000 managers and professionals from 425 organisations. It revealed that 23% of managers who are said to be "developing" or "underperforming" in their roles still received a bonus, amounting, on average, to 12% of their pay. In the case of senior managers, the proportion receiving a bonus increased to 43%. XpertHR content director Mark Crail said: "Employers have reined in a lot of poorly focused executive perks since this survey began back in the early 1970s... But the bonus is as significant a part of many managers’ incomes as it ever was. Employers have come a long way in aligning pay and performance, but, as our research shows, there is still some distance to go to get it right." On average, bonuses comprise 38% of CEOs’ and directors’ total pay – equivalent to £55,969. But across the wider management population, they represent just 17% of pay packages, despite an increase in the average size of bonuses for this group from £8,836 to £11,413. The data also suggested that managers below senior ranks are feeling the effects of employer belt-tightening. They experienced the lowest rate of basic pay increases since 2011, at just 2.6%. Overall, the average salary across all managers now stands at £34,479. As well as issues addressing performance, 91% of those surveyed reported that they were facing challenges to recruit managers. This has increased from 89% in 2015 and 79% in 2014. Key concerns are:Despite falling short of performance expectations, nearly a quarter of managers are still taking home extra pay on top of their salaries, according to research published today by XpertHR and the Chartered Management Institute (CMI). The
- recruiting for specific skills - 87%, up from 75% in 2015;
- reward packages in general being too low to attract candidates - 36%, increased from 20%; and
- the high cost of recruitment - 32%, up from 23%.