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Archives for: September 2010

24/09/10

Are 9,000+ civil servants really worth what they’re paid?

Permalink 02:22:31 pm, by Don Email , 253 words, 4372 views   English (UK)
Categories: BLT Recruitment Blog

David Cameron informs us that public spending needs to be drastically curbed so what will be his reaction to the latest BBC Panorama and Bureau of Investigative Journalism research that shows that over 9,000 civil servants are earning more than the £142,500 that he himself earns.

Out of the 38,000 public sector employees who earn more than £100,000 per year, 1,000 of them earn in excess of £200,000. These figures are far above previous estimates and must surely give cause for concern. Over the past 10 years, pay for the top 5% of public sector earners has increased by 51%.

Some people have been quick to criticise but Tony Thornell, the head of public sector at Right Management, says these high salaries are necessary if the public sector wants to recruit and retain key talent.

He points out that as these professionals will more than likely come from the private sector, they need to be compensated in a manner that mirrors the way that sector operates. Other people may argue that the delivery of top quality public services should command high wages, especially at a time when the job will require implementation of deep cuts.

However, Iain Overton, editor at the Bureau of Investigative Journalism, said the database - collated between February and September asked a very pertinent question.

"There is a challenge ahead for government - how can you justify the top salaries of the people running the system while making swingeing cuts that are most likely to affect the lowest paid in the public sector?"

We’d love to hear your answers...

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16/09/10

Executive directors go without pay rise for 2nd year running

Permalink 12:25:34 pm, by Caroline Email , 234 words, 1849 views   English (UK)
Categories: BLT Recruitment Blog

A recent report from Deloitte’s suggests that a lot of CEOs are going to be without a salary increase for the second consecutive year.

More than 67% of executives at FTSE 350 companies had their salary frozen last year and it is widely expected that at least 50% will not receive an increase in 2010. Those executives who do receive an increase are likely to find it is set at around 3%, a much lower level than in previous years.

The report also shows that directors in FTSE 100 companies can look forward to a larger bonus in 2010 than they received last year whilst directors in FTSE 250 companies will see their bonus decrease.

Although executive directors may be struggling to get pay rises, junior employees in the City are now enjoying significant pay rises. Senior staff in investment banks have seen their basic salaries increase by between 20% and 50% over the past year, although much of that increase has been part of the shift away from the old culture of high bonuses.

A lot of people will probably agree that salary freezes should start at the top. After all, how can you expect employees to accept a salary freeze if the executives are enjoying increases?

But how do people feel about staff in investment banks once again receiving huge salary increases when all too recently investment bankers were being blamed as one of the biggest contributors to the financial crisis?

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Mass resignations expected this week!

Permalink 12:22:05 pm, by Caroline Email , 282 words, 2419 views   English (UK)
Categories: BLT Recruitment Blog

If you’ve been thinking of handing in your notice this week, you’re not alone! According to research by Resource on Demand, more than a third of all resignations for the year will take place this week.

Annual statistics published by the research company show that 37% of resignations happen in the third week of September and a further 24% occur during the first week of February.

Why should over 50% of all resignations take place so soon after two key holiday seasons? Lee Durrant, the MD of Resource on Demand, puts it down to the fact that time away from work helps people consider their options and evaluate their careers.

Should employers be worried? Possibly. A different survey, this time from Psychtests.com, found that as many as one in four people would quit their job without securing a new post.

The assessment company polled 7,000 people and the results also showed that more than half (57%) would change careers late in life, while 61% prefer working in a job environment where their work is constantly changing.

Although the recession is over, the country’s economic future is still very uncertain. For some employers, the natural wastage caused by mass scale resignations may actually be welcome news as it will relieve the pressure to make unwelcome redundancies. But what about the prospects for companies that are already struggling to survive with the bare minimum number of staff? What could those employers do to encourage the existing staff to stay?

If you’ve become one of the 37% this week, what prompted your resignation decision and could your current employer have done anything to make you reverse your decision?

As always we’d love to hear your views...

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BLT Recruitment Blog | Consulting, Tax, CSS

Beament Leslie Thomas are leading UK specialist recruiters in the areas of Management Consultancy, Direct & Indirect Tax, and Company Secretaries.

Our blogs are an opportunity to engage with you about Management Consultancy, Taxation, Company Secretarial Services and Recruitment as a whole. Perhaps you're an employer wanting to understand what makes us different, or a candidate wanting the low down from people who genuinely understand the market. Choose a category below and get involved - a BLT Hamper to the most deserving contributor every month...

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