Salary Gap: How Much Money Senior Managers Make

The salary gap between entry-level employees and senior managers has been widening for six straight years reflecting increasing pay disparity. According to a report by global management consultancy Hay Group, senior managers in India are paid nearly 12 times more than entry-level employees. In simple terms, a senior manager (heads of departments or equivalent) would be earning nearly Rs 1.2 lakh per month in an organisation where the starting salary (for clerical, supervisor or graduate entry jobs) is Rs 10,000 per month. In 2008, senior managers earned 7.7 times more than entry-level staff; the gap is now at 11.7 times, the report said. The huge disparity in salaries within an organisation is not a local phenomenon. 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, Hay Group found. "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," said Amer Haleem of Hay Group. Pay disparity between entry-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 report found. 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," Hay Group consultant Ben Frost said. "They should also invest in their training and development programmes to upskill their workforces to meet the future demands of their businesses."

Salary Gap: How Much Money Senior Managers Make

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