When you hear that 100 key figures have come out in support of a ‘high pay’ commission, it does make you stop and reconsider your view, re-evaluate your thoughts and do I want to change my gut reaction? ……….. No. Why do we need a high pay commission? Is it shutting the door after the horse has bolted? Probably. Is it going to stop the same thing happening again? Probably not! Is it going to decrease our ability to attract top talent from around the world? Yes. Will it lead to our top talent leaving in search of their fortune? Absolutely.
By restricting pay settlements, imposing excessive taxes on top earners and smothering an employers ability to attract and retain top talent, a high pay commission has the ability to destroy exactly that which it is trying to build – a strong economy.
There are very good arguments for controlling remuneration. Linking pay and bonuses to both long term and short term performance is essential. Defining good performance and distinguishing exceptional performance plays a vital role in incentivising and rewarding top performers, but equally employers must not be scared to say, “you weren’t good enough this year, there is no bonus, no pay rise etc.”
We do not need a ‘high pay’ commission. We do need employers to look at what they pay, how they pay and when they pay. It must be appropriate, motivational, performance and time bound.