Expert: Improve employee motivation by revealing pay of top earners

Date: 21/01/2011

Leadership and motivation can be improved if wage packets of top earners are more transparent, an expert has advised.

Katharine Turner, vice presidents of the Chartered Institute of Personnel and Development (CIPD), has warned against using pay ratios as this can harm employee motivation.

She also advised firms deciding on pay levels to consider "is this a fair outcome?" and if the process used to determine pay is one to have confidence in.

"Rationally speaking, pay disclosure is a good thing," Ms Turner said.

"But I also think the information should be treated with great responsibility and it's a pity that often the newspaper headlines are not particularly analytical."

She added that pay was "misunderstood".

Last summer communities secretary Ed Pickles recommended cutting the pay of council chief executives who earn over by at least five per cent.

This was followed by a CIPD forecast of 120,000 public sector jobs losses this year.

Posted by Jo Morgan ADNFCR-2060-ID-800357453-ADNFCR