High Pay Centre analysis shows hidden cost of big pay differentials within organisations
Workplaces with big pay gaps between the highest and lowest wage earners suffer more industrial disputes, more sickness and higher staff turnover than employers with more equitable pay differentials, a landmark report reveals today.
A High Pay Centre report today shows, on average:
- Bosses earning 10 times more than the lowest-paid staff in their organisation experience industrial action at least once a year. Those with lower pay differentials do not.
- Workplaces where top earners get 8 times the pay of junior staff report at least one case a year of work-related illness. Workplaces with pay differentials of 5 or less do not report any.
- Organisations with average pay ratios of 7:1 experience higher staff turnover.