REWARD MANAGEMENT
Responding to local pay pressures
When responding to local labour market pressures employers have been pretty reluctant to devolve decision-making and to vary pay according to each locality, says new research by Incomes Data Services.
The big worry is that paybills will spiral out of control as a result of "leapfrogging" wage claims from unions, poaching of staff and as each branch claims to be a special case. "A single pay and conditions structure is also much easier to administer, enables the easy transfer of staff between branches and minimises the risk of equal pay claims," concludes IDS.
Regional pay debate
Talk of the need for greater regional pay variations has again emerged as public sector organisations in the South East have struggled to fill jobs in the face of a tight labour market and escalating housing costs. The panacea, we are told, is to vary public sector pay by location according to statistics on regional variations in earnings.
But, as IDS explains, much of the argument for decentralisation is based on the mistaken assumption that in the private sector national bargaining and pay structures have been replaced by local pay flexibility. The reality, says IDS, is very different.
"Pay levels in large multi-branch private sector companies are still largely based on national structures with additional allowances for high cost-of-living or tight labour market areas such as London and the South East."
Want to know more?
Title: "Getting the balance right between national and local", IDS Report 872, January 2003.
Availability: For subscription details, contact IDS in London, tel: 020 7324 2599.
Incomes Data Services is a leading UK information and research service on employment issues, providing a range of publications for employers, unions, government departments and other agencies. For more information visit www.incomesdata.co.uk.
Posted 24 January 2003