How people are rewarded – Have we lost the moral consensus?
13 November 2014
Disparities in remuneration continue to widen and provide easy targets for headline writers and politicians looking for a sound bite. However, despite the optimistic economic indicators and improving general business confidence, there is still a problem with growth working through to earnings and the now accepted decoupling of the two. Whilst large groups of workers have had minimal or indeed no pay rises over the last two or three years, there has been little indication of restraint or control in other sectors and the link between pay and performance often remains opaque.
With the help of Paul Nowak, Assitant General Secretary of the TUC and Deborah Hargreaves, Founding Director of The High Pay Centre, we addressed these issues in a discussion which engaged and informed.
Topics debated included:
- what is the reality about the way in which people are rewarded and is it something which affects overall business performance and shareholder value?
- is there an equitable ratio to which we should aspire between the highest, median and lowest pay packets within an organisation and would disclosure help?
- is the link between pay and performance meaningful; was it ever?
- how effective are the trade unions in negotiating pay?
- the distorting influence of globalisation on executive pay and the economic pull of migration on low pay
- what does moral consensus mean and is it important?