Hello from the Sue Rees Associates team this month. Coming up, would you publish pay ratios and risk repercussions – and are you happy for social media to be used in your workplace?
Should you publish pay ratios?
Forcing companies to publish the pay ratio between chief executives and their workers is unlikely to reduce pay inequality and may actually lead to firms being criticised by the public. This is according to a new study by ICSA: The Governance Institute – in collaboration with recruitment specialist The Core Partnership.
– 55 per cent of company secretaries polled feel that the obligation to report on pay will not reduce inequality
– Only 13 per cent said they feel it will help
– 32 per cent said they were undecided
– 61 per cent said they thought the information would be used to unfairly criticise companies
– 22 per cent said that they thought it wouldn’t
– 17 per cent said that they didn’t know
Some respondents said they were concerned the ratio would cause more companies to outsource low-paid or low-skilled roles to reduce perceived inequality. “A comparison between CEO and average worker pay is meaningless without a good understanding of the demography of a company,” said Simon Osborne, chief executive at ICSA.
We would be interested to know what you think – would you be prepared to publish pay ratios? Email your answers to firstname.lastname@example.org
Is social media acceptable in the workplace?
For many of us it can be frustrating to see colleagues or employees using social media on their phones or computers at work. Working hours are supposed to be spent working – there’s little time for socialising online unless it’s part of the job – and there are associated security issues too. It’s important for any organisation to create policies and boundaries around the use of social media in the workplace. For example:
- Outline what is/isn’t acceptable to use or post on social media sites during working hours on hardware owned by the company
- Limit the personnel that are allowed access to corporate social networking applications – who actually needs it during working hours?
- Keep your IT software updated regularly – social media offers a ‘way in’ for some threats and viruses
- Staff need to be educated on the types of attacks that could be avoided if they limit/stop spending time on social media
Thanks for reading. We’ll be back in touch next month.