| E-PAY Senior e-business jobs pay more outside London e-commerce companies are having no truck with the convention of London-based roles paying more simply on the basis of location. In fact, top management in the sector earn an average of 14% more when based in the regions rather than London, according to a new survey by the Hay Group. The survey found that the sector's apparent disregard of the regional pay divide is most evident among chief executives, heads of e-commerce and directors of strategy, technology and marketing. Pay gap less wide among middle management grades But among middle management in e-businesses higher pay for working outside London is not as uniform as it is for their senior colleagues. Nevertheless, some middle management roles pay dramatically higher salaries in the regions. Heads of design and senior web administrators, for example, are paid 18% more outside London. In more junior roles, however, higher pay in London remains the norm. Why is pay in the regions outstripping London? As Mark Thompson, a consultant at the Hay Group explained: The fact that e-businesses are able to offer senior job opportunities outside London at or above London pay rates is, in part, a reflection of the relative independence of e-business of the constraints of physical location. However, he reckons that it is also due to the fact that the vast majority of those involved at a senior level in e-commerce have developed their careers in London. Regional e-commerce organisations are therefore having to offer significant financial incentives to convince e-people to pull up the roots they have put down in the capital. Sample findings of Hay Group survey
Source: e-People Report, Hay Group. A final word These divergent salary movements mean that working in the provinces is becoming an increasingly attractive option for senior e-people. But the opportunity to opt for both quality of life and a pay rise won't last forever. As more e-people move to the regions, London and regional pay rates are likely to re-align and ultimately return to the higher rates usually paid in London to reflect the higher cost of living in a capital city. — Mark Thompson, consultant, Hay Group. Want to know more? Survey sample: Hay Group surveyed 82 organisations in its April 2001 e-people interim report. The January 2001 Hay Compensation Report covers data from 480 organisations (418 industrial and service organisations, 60 financial organisations and two organisations which operate in both sectors). Availability: Contact Mark Thompson, consultant, Hay Group in London, tel: 020 7881 7541, email: mark_thompson@haygroup.com, or Justin Fahy, analyst, Hay Group, tel: 020 7881 7095, email: justin_fahy@haygroup.com. Hay Group is one of the world's leading management consultancies, with 74 offices in 33 countries. The company has international expertise in reward management, leadership development, organisational effectiveness and change management. It has been operating in the UK for over 30 years and employs 150 management consultants (and over 30 information analysts and consultants). To find out more about the Hay Group visit . . . Posted 6 August 2001 | ||||||||||