Top eearners are damaging the UKs ability to weather current economic conditions
Top eearners are damaging the UK’s ability to weather current economic conditions by undermining the motivation of employees
Leading employee engagement expert, Alan Crozier and author of The Engagement Manifesto says that top earners are damaging the UK’s ability to weather current economic conditions by undermining the motivation of employees. He says, “Engagement is the driver of performance and it is being sacrificed perhaps unconsciously by a few at the top.
“The High Pay Commission report today showing the rapidly growing disparity between top executives and average wages argues that high pay is creating & lsquo;inequalities last seen in the Victorian era’.
Crozier says, “In today’s knowledge-based economy, businesses need employees’ cooperation, inspiration and ability to build relationships, but there’s precious little motivation in knowing that directors' pay has risen almost 50% in a year – unrelated to performance - when pay increases are pegged at 3% and inflation is rising.
“The old chestnut that you need to pay top whack to retain top talent ignores the fact that top talent needs talent around them to deliver results. .
“It beggars belief that directors are so oblivious to the consequences of allowing such disparity. Total returns to shareholders haven’t risen at the same rate as executive pay and if those funds are available for reward surely they could be distributed more equitably. Of course senior executives should be well rewarded, in line with their contribution and the internal relativities of their business.”
.“The CEO and his executive directors make promises to shareholders and customers that rely on employees to deliver, but when staff feel they are being used they become cynical. Trust is a fragile commodity and once lost, morale plummets at the very time we need it to remain high. And it’s the talented employees who are first out the door because they are marketable”.*
Alan Crozier has recently joined the UK Government’s Task Force on Employee Engagement’s Guru Group, set up by the Department for Business Innovation & Skills (BIS). He is the author of the recently published book, The Engagement Manifesto. He is also a founder of The Ghost Partnership.
*According to the CIPD (Chartered Institute for Personnel & Development) recent survey, 22% are currently looking for a new employer. “That represents a significant potential attrition cost in terms of recruitment costs, induction and training, plus lost knowledge and business relationships” says Crozier.