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Thursday, September 22, 2022

Directors of large companies often receive much bigger salary increases than ordinary workers. Employers' organizations say that in the global market this is necessary to attract the best management talent. What are your views?

 Directors of large companies often receive much bigger salary increases than ordinary workers. Employers' organizations say that in the global market this is necessary to attract the best management talent. What are your views?


In contemporary times, several businesses have started following the practice of greater hikes to those working at director level, than common personnel in the pretext that this arrangement is essential to lure high fliers at global level. In my opinion this prospective needs to be critically analyzed 


At the outset, the Rationale driving this policy  suggest that professionals engaging in directorial endeavors subject themselves to  the daunting task of not only managing the whole organization efficiently but also deriving tangible outcomes from their functions, whereas a worker employed at a lower level is only responsible for a limited scope of duties. This difference makes the former the deserving candidates for steeper pay raises 


Moreover it is hard to deny that individuals working at such levels are equipped with extensive seasoning about dealing with diverse situations, formulating and implementing appropriate policies to surmount challenges and capitalize on opportunities, something that can only be effectively handled by a highly experienced professional. On top of that, they also bring along an expansive network of their global connections that helps enrich the experience of the organization that allows them to explore new markets and also grow their business footprint. Therefore they must be remunerated accordingly.


Having said that, there is some skepticism about this approach even though it is not so well-founded, that this disparity might cause disgruntlement among those employed at lower levels since they too have to bear extreme stress, and are responsible for implementation of policies and strategies. This could precipitate into lower productivity and higher employee turnover. 


In hindsight, disputes aside, I vehemently opine that this method of engaging experienced seasoned professionals for assignments at director level is completely justified by virtue of their experience and contribution to the organization.


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