Bosses' pay goes up while staff skills decline

Here are two startling sets of facts:

• Happy days are here again for UK Board directors: bonuses for board directors at the largest UK companies rose by an average of 22.5 per cent in the past six months, from an average figure of £456,000 to £559,000. So reports Stefan Stern in the Financial Times.

• Meanwhile a survey of 100 of UK’s largest firms: 70% inadequate staff skills, 40% employee skills risk being obsolete, 55% L&D failing to deliver necessary training, 46% doubt L&D can deliver, less than 18% agree that L&D aligned with business. So reports Donald Clark.

Does anyone notice a possible disconnect?

Stefan Stern quotes Jonathan Trevor, of Judge Business School in Cambridge and continues:

“So-called performance pay is not really about performance… It is about trying to attract and retain people of (alleged) talent. There is no evidence that vast pay packages improve performance at all. And these same directors say that they spend more than 80 per cent of their time working on the pay deals enjoyed by the top 20 executives. Other employees are dealt with in the time that remains. ‘A sense of community is hard to sustain in organisations where large pay gaps exist,’ Mr Trevor concludes.”

And so the economic rot of traditional management spreads.

To learn more about the alternative—radical management—go here:

http://www.stevedenning.com/Books/radical-management.aspx

Comments

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