In his most recent blog, Andrew Menhennet – Principal Consultant at Yellow Hat Reward – examines the key undertakings made in the manifestos, and draws some conclusions about the developments we can we expect to see in these areas over the term of the next government, ahead of this most unpredictable of elections:
- Low pay: Labour and Conservative manifesto commitments on the National Minimum Wage mean that the rate is likely to increase by between 4-4.5% per annum over the life of the next Parliament, a significant step up from its current level of increase of about 3% pa annum. Meanwhile if either Labour or the LibDems, or both, end up in power after the election, we can expect to see a greater level of commitment to the Living Wage, with both parties opting for a mix of disclosure and government purchasing power to drive this through.
- Executive pay: if either Labour or the LibDems are in government, it seems likely that employee consultation about executive pay will become a reality in some form. Similarly we can expect to see further regulatory development for executive pay if either of these parties is in a position to exert influence in the next government. A Conservative-only government on the other hand is likely to presage a more stable phase in executive pay.
- The gender pay gap: Publishing information in some form about the gender pay gap looks set to be the first new pay challenge that medium-sized and larger employers will face under the next government, whatever its composition. Companies that don’t already monitor pay levels by gender will be well advised to put in place plans to do so as soon as practical.
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