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Manager-junior staff salary gap widens   

Gulf Daily News - 11 July, 2012

Managers in the GCC are paid an average of seven times the salary of junior employees, according to consultancy firm Hay Group.

This an increase from three years ago when the average was five times.

A sustained demand for quality mid-level talent and a shortage of employees at this level are the reasons behind the wider gap, according to the consultancy.

"In the GCC, the gap has widened by an average of 25 per cent over the last three years because organisations have focused their pay spend on middle management and above rather than junior roles," said Hay Group Middle East director Vijay Gandhi.

"Oman, Kuwait and Bahrain are the countries where the gap has widened the most. In Qatar, it has grown the least," he said.

"In the last three years, middle management roles have received pay increases of 5.2pc more than junior roles which has widened the differential," Mr said.

"A difference in pay is to be expected as long as there is demand for talent and potential career growth for individuals," he added.

"The pay ratios of all GCC countries sit between those of Western and emerging markets," he said.

"In the UK and the US, a manager can expect a salary close to four times that of their employees compared to seven times in the GCC. In India and Egypt, the multiple is nearer 10.

"Another reason behind pay differentials between the Western economies and emerging markets is cost of living.

"Middle managers tend to get paid according to international rates, while junior staff are paid in line with the local cost of living," he said.

"In higher cost of living countries, we would see the pay differential being narrower," he added.

The Hay Group report said the latest data, which is from more than 500,000 employees in the GCC, is evidence that there are visible increases in reward for promotion which is good news for those on the career ladder.

"The data shows that organisations are willing to pay relatively more for scarce talent at the professional and middle management levels in the GCC," Mr Gandhi said. "They are also prepared to promote and reward those who seize the opportunities to progress," he added.
 
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