Reflecting a increasing pay disparity in India during last six years, senior managers have been paid 11.7 times more than their lower level workers, according to a Hay Group study.
According to global management consultancy, Hay Group, since 2008 the pay gap between lower level employees and senior managers in India has widened from a figure of 7.7 in 2008 to 11.7 in 2014.
Globally, the pay gap between lower level workers (comprising skilled manual, clerical, supervisor or graduate entry jobs) and senior managers (heads of departments or equivalent) is also now on the rise. Whereas within the BRIC nations, the gap has grown substantially in India and China, but there is only a marginal increase in Brazil and the gap has decreased in Russia.
"The pay gap growth can also be linked to an intense talent war and increased competition for the few selected jobs available.
This keeps the pay limited to a certain bracket," Hay Group India Country Manager, Productised Services Amer Haleem said. Pay disparity between lower level employees and senior managers increased in every region worldwide, since the start of the global recession. However it is not purely a post-recession issue.
This is a trend that has been building for the past 30 years, through economic boom.
The study also elaborated that managers with skills such as emotional intelligence, creative thinking and advanced judgement are in high demand and short supply.
They are increasingly being asked to take on more responsibilities and more complex work.
"Organisations need to be transparent with employees and communicate why reward policies are in place. They should also invest in their training and development programmes to upskill their workforces to meet the future demands of their businesses," Hay Group consultant Ben Frost suggested.
