Early warning signs show the pay gap between low and high earners is to
increase, making people management, rather than pay, key to recruiting and
retaining workers of the future.
Trends in the financial sector are widely believed to be an indicator of
changes across the economy. Last week, salary and bonus packages paid to
specialist UK-based bankers were higher than their US counterparts for the
first time in 20 years.
According to Napier Scott’s annual Salary and Bonus Awards Survey, the big
pay-offs mean there is an increasing gap between remuneration for high-fliers,
known as ‘Rainmakers’, and lesser performers.
Economists fear that other sectors will follow suit, leaving a growing
disparity between the top and the bottom.
John Philpott, chief economist at the Chartered Institute of Personnel and
Development, said: "People management will become more important as people
take a more sophisticated approach to reward, including work-life balance and
working conditions,"
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