The market for management talent is now undoubtedly global. At Want to be a Big Biller?
read the Hay Group report
where they consistently see developments in one region having a flow-on effect to
others – whether it is the rise of the Indian rupee impacting on salaries in the
Middle East, where much management talent is sourced from the
subcontinent, or China’s white-hot economy pulling up-and-coming managers
away from the established markets of Western Europe......
Managers in Western European economies tend to have spending power
towards the middle to lower range. The UK registers towards the bottom of
the table, reflecting relatively high tax and cost of living coupled with a slower
rate of growth in the economy than developing economies.
Peter Christie from Hay Group UK said: “UK companies are generally quite
sophisticated in their analysis of pay market movements, but are likely to be
constrained by tightening budgets over the coming year and greater difficulty
in passing on higher wage costs through higher prices. As a result, pay
increases are more likely to be driven by what the company can afford, given
its business priorities and market position, than the amount it may need to
compete in the market.”
“This means companies will need to get smarter about how they allocate their
resources, as their budgets tighten. Best performing companies will carefully
target pay increases to key roles and high-performing individuals, and we also
expect to see a greater focus on bonuses and other short-term incentives.”
In line with other developed economies, the US is ranked firmly towards the
bottom of the table. However, says Iain Fitzpatrick of Hay Group USA, there
are other factors that need to be considered.
“A management role at this level in the US is likely to be significantly further
down the company hierarchy than a similar role in an emerging economy,” he
said. “Managers at this level in the US are likely to be the head of a division
or function, such as the head of marketing or HR. In a smaller economy, they
may well be at CFO or even CEO level.”
This means that managers working at this level in the US are more likely to be
mid-career rather than senior, and will have more prospects for career
advancement within their organization. However, there are many for whom
the lure of a tax-free salary in the UAE or a chance to gain valuable experience
in the fast-growth economy of China may be irresistible.
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