End of the bonus bonanza?
This year’s National Management Salary Survey, published annually together with XpertHR, reveals that the days of extortionate bonus payments to top management may be over.
The findings show that directors’ bonuses are down 23% on last year, contrary to what might be expected from headlines about run-away pay. The number of directors receiving bonuses is on a downward trend too. However, bonuses remain a valuable part of annual pay for those lucky enough to receive them. The average bonus of a manager is worth 14.5% of their salary; a director’s bonus 34.5%, which equates to 7.5 and 18 weeks’ extra pay respectively.
The data, taken from 68,599 executives in 279 UK organisations, shows that pay including bonuses rose for all executives by just 2.5% on average, which is less than the previous three years. Managers’ basic salaries have increased by 2.7% this year – the smallest increase since 2011.
Further to the findings on pay, the survey also shows that labour turnover among managers for the last 12 months is at a record low: it stands at just 4.8% compared to 20% two years ago. Now that the economy is recovering, managers may be holding tight to current roles as a result of ‘jobtimism’ – hoping they will reap the benefits of staying on. With managers sitting tight, a majority of businesses report having problems finding the right staff, with 77% of employers experiencing recruitment problems.
To find out more about this year’s pay trends and to download the free infographic, go to www.managers.org.uk/salary2014.
Making Management Better
There are currently three million managers working in the UK today, with this figure set to climb to 3.6 million by 2020. So how do we best meet the growing demands from employers for more business-ready graduates? Our latest research, 21st Century Leaders: Building practice into the curriculum to boost employability, offers key insights into how employers, business schools and professional bodies can work together to produce the ‘”business ready” managers and leaders of the future.
Find out more on www.managers.org.uk/21CLeaders and join the conversation at #21CLeaders!