Apparently, in real terms, UK managers' salaries are amongst the lowest in the world, according to a report quoted in this week’s Management Today.
Even without this week’s announcement of an increase in National Insurance contributions, in a new study of global management salaries undertaken by the Hay Management Consultancy Group the UK has just been ranked 43rd of 56 countries once the higher cost of living has been factored in.
According to the Hay report, Britain ranks behind China, Mexico, Hungary, Slovakia and even Kenya in the disposable income stakes. At the top end of the scale, the oil-rich Gulf states dominate: managers in Qatar are the world’s best paid, followed by those in Kuwait, United Arab Emirates, Saudi Arabia and Oman.
If you’re planning an escape to somewhere in Europe that gives you more bang for your buck (or Pow! for your pound!) the place to head for is Romania (ranked 8th), followed by Turkey (9th). Ireland (16th), Greece (17th) and Portugal (20th)
Hay point out that most of the big developed economies are to be found in the lower half of the disposable income league; not just because of higher living costs, but also because they enjoy a greater supply of qualified managers. Hay explain the low ranking of Britain as “an indication of strength in depth: if you’re a rare commodity, you get paid a lot more.”
For those planning to beat the rush of the bankers who are threatening to leave the country as a result of their bonuses being capped, Aer Lingus offer one way flights from Gatwick to Bucharest starting at £49.99. But unless you’re attracted by a chaotic jumble of traffic-choked streets, ugly concrete apartment blocks and grandiose but unfinished Communist developments, you might want to splash out on a return ticket.
Management Today: Want a pay rise? Move to Romania or Kenya
- How do the findings of this report support or clash with those of the UBS Prices and Earnings Survey quoted in the earlier HR Case Studies article, "How long do you have to work to afford an iPod nano?"
Surely if you moved to Europe you would be looking for more ecstasy for your euro (doesn’t quite work does it but hey, it’s Friday afternoon)!
ReplyDeleteI do understand what Hay are saying and it goes back to that old saying which is not very pc but I think it’s apt here: In the land of the blind the one-eyed man is king.
In our world of global enterprise it is obvious that there will always be times when certain roles will not be available in a local market place. So if you have a valid passport and an understanding partner (or no partner at all) you can up sticks and rake in the cash overseas.
And all I can say is – good luck to you. Just remember your friends when you come back!!!
EBTG