To coincide with the publication of the High Pay Centre’s study into the gap between the median pay of top executives and that of the average UK worker, the ACCA (the Association of Chartered Certified Accountants) has issued three New Year’s resolutions for employers. The resolutions aim to help business leaders "move UK corporate culture on to a more transparent and sustainable footing."
The three resolutions issued by the ACCA are as follows:
1. Link pay to long-term company performance
Directors have a duty to ensure the sustainable stewardship of the companies they manage – long-term company performance should be the yardstick against which they are remunerated.
2. Align pay at the top and the bottom
Where sustainable targets have been met, companies should also consider how those at the lower end of the pay scale can be rewarded for their contribution. Solutions might include limiting executive pay to a specific multiple of average pay across the organisation and introducing wider incentives and benefits to reward effective performance at all levels.
3. Publish clear company policy on pay and performance as part of a wider commitment to transparent corporate culture
How companies communicate their remuneration policy is arguably as important as the actual remuneration levels and companies should ensure that their disclosures around pay are easily understandable. Government should also be emphasising the importance of transparency and accountability within the current reporting frameworks.
Paying employees strategically
At Beavis Morgan, we work with entrepreneurs and SMEs, ensuring that the right processes are in place to achieve business success, helping them navigate the challenges and make the right decisions both now and for the future.
Our experts are available to assist business leaders better align reward with business strategy to drive productivity and reward key behaviours.
We work with you to understand your requirements, establish the right reward and performance strategies suited to your medium and long term goals, and put in place a legitimate structure which best meets those requirements within the framework of your business.
We also offer outsourced payroll services, whereby our specialist team provides a speedy and cost effective payroll solution for your business.
Contact Steve Govey in the first instance for further information and to discuss your individual circumstances and the options available to you.