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29 June, 2006 - 17:52 By Staff Reporter

East of England execs: Highly paid but underwhelmed

Despite enjoying one of the largest increases in earnings in the country, resignation rates among East of England executives rank among the highest in the UK, a survey has revealed.

Despite enjoying one of the largest increases in earnings in the country, resignation rates among East of England executives rank among the highest in the UK, a survey has revealed.

The 2006 National Management Salary Survey, which is published by the Chartered Management Institute highlights company pay structures and lack of job satisfaction as key disenchanting factors for the region's high-flyers.

The survey of 22,480 employees reveals a labour turnover rate of 11.2 per cent in the East of England, compared to 9.4 per cent for the North East and 4.6 per cent in Scotland.

Resignations by top bosses stands at 4.2 per cent, compared to 4.1 per cent in the Midlands and 1.9 per cent in the North West.

This desire to change jobs comes despite employers in the region offering an average increase in earnings of 6 per cent - the highest annual increase in the region since 2003. The findings reveal that the average total earnings for managers in East Anglia are £46,598, putting them third in this year’s earnings league table. Managers in the North West, on £41,329, are bottom of the list.

Over the last year 79 per cent of organisations have given bonus payments to their staff, compared to 70 per cent in the previous year.

This wide-scale distribution represents a return to the heights of 2001, the last time more than three-quarters of UK employers made bonus payments to all executives. The average managers’ bonus is now worth 10.9 per cent of their salary, compared to 10.4 per cent the previous year. Directors’ bonuses are worth 38.9 per cent of their salary (38.6 per cent in last year’s survey).

However, despite the increase in earnings, the UK's employers are finding that financial rewards, alone, are no longer enough. More than half the organisations (55.1 per cent) reported retention problems in the 2006 survey (up from 45.4 per cent, last year) and 6 in 10 admitted difficulty recruiting.

Key findings include:

 

- talent turnover: 55 per cent of organisations admit they have staff retention problems, a figure that has doubled in the space of 3 years. They blame restructuring programmes (20 per cent), office location (15 per cent) and competition from other organisations (57 per cent) for their difficulties.

 

- career not cash: the average earnings increase is 6 per cent in East Anglia (the highest rise since 2002) but executives are increasingly likely to demand changes if they are not happy with their current role. Last year 4.9 per cent of the UK's 4.6 million managers demanded job transfers, up from 1.4 per cent in the 2005 survey and 37 per cent left their employer because of a 'lack of career opportunities'.

 

- bonus boost: nearly 80 per cent of organisations gave out bonuses in the year to January 2006. The value of bonuses for UK managers is also up, worth 10.9 per cent of their salary, compared to 10.4 per cent last year.

 

- adverse environments: 20 per cent said restructuring or job insecurity caused uncertainty. 15 per cent suggested staff were unhappy with office location or relocation plans and 9 per cent focused on the lack of facilities available at work

 

In an attempt to redress the trend in resignations, the 2006 Survey shows that organisations are offering a range of benefits to staff. These now include private medical cover (72 per cent), childcare vouchers (67 per cent) and life assurance (63 per cent). Almost all offer some form of pension provision (99 per cent), but the number offering contributory final salary schemes has dropped from 34 to 28 per cent.

 

 

 

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