Salaries for all managers in the public sector rose by 5.5 per cent in 2005, against a national average of 4.3 per cent. Combined earnings, including bonuses, rose by 5.6 per cent, again above the national average. The survey, carried out for the Chartered Management Institute and Remuneration Economics reveals that the average total earnings for managers in the public sector are 43,578 pounds, putting the sector sixth in the UK ‘earnings league table’.
Over 70 per cent of executives in the public sector received a bonus in the year to January 2005 , which is slightly above the national average. But in spite of the high number of people given bonus payments, 45.4 per cent of organisations reported retention problems. This is the worst reported figure for 15 years. Asked why their employees leave, nearly 62 per cent blamed competition from other organisations and 45.4 per cent admitted they offered little in the way of career progression or training. Other reasons for job changes include salaries, 43 per cent and job security 40 per cent.
Additional benefits enjoyed by managers in the private sector include private medical care and in more than half the cases employees are not asked to pay the excess in the event of a claim.
The survey also reveals the changing pension scene across the private sector. Although 98.9 per cent of companies provide a personal pension scheme, those offering final salary schemes has dropped significantly from 76.9 to 32.7 per cent in five years.