Partner Article

UK managers have amongst the lowest spending power in the world

The UK is ranked 43rd amongst 56 countries worldwide in a new study of global management spending power by management consultancy Hay Group.

Managers from Britain rank behind the likes of China, Mexico, Hungry, Slovakia and even Kenya in the international ‘real pay’ stakes due to high taxes and a high cost of living.

Managers from oil-rich Gulf States top the management real pay table, with those from India and Bulgaria languishing at the bottom.

Mark Thompson, Associate Director, Reward Consulting at Hay Group UK comments: “Contrary to recent headlines about managers receiving generous salaries in recessionary times, UK managers are amongst the world’s lowest paid in real terms. UK firms must look carefully at how they manage their pay bill if they are to retain management talent.”

The UK looks likely to slip further down the management spending power table in 2010 as the fallout from the recession continues to take its toll. The UK is forecasted to be the only major economy where managers will suffer a fall in disposable income.

Mark Thompson comments: “Looking ahead to 2010, tax rises announced in the PBR could further reduce disposable income for managers. The UK is the only major economy where pay is expected to fall in real terms, due to tax increases, economic uncertainty and increases to VAT.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .