TMCnet News
Work Big pay gaps 'contribute to strikes and sickness'(Guardian (UK) Via Acquire Media NewsEdge) Workplaces with big differences between the pay of staff are hit by more industrial disputes and sickness rates, according to a study. Research by the High Pay Centre thinktank also found that firms with huge gaps between the highest- and lowest-paid employees had a higher staff turnover. A survey of almost 2,000 workplaces found that those where bosses were paid 10 times more than the lowest-earning staff were involved in industrial disputes at least once a year, more than those with lower pay differentials. High Pay Centre director Deborah Hargreaves said: "High executive pay is not only frequently unmerited, but has a huge hidden impact on the rest of the organisation and society as a whole. "Whether it's through staff turnover, sickness, low morale or industrial action, big pay gaps undermine employees' loyalty to the company and their managers. Employers suffer lost productivity, have to pay more sick pay and legal and recruitment costs as staff left feeling the financial and emotional strain are driven further into the ground." The report added that executive pay had jumped by 450% over the past 12 years, compared with 16% for workers on average levels of pay. PA (c) 2014 Guardian Newspapers Limited. |