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Posted by Chris Stevenson

The growing pay gap between high and low earners will get wider unless companies change their attitudes towards wages in the near future, an expert has suggested.

According to Fintan O'Toole, chairman of the Croydon Chamber of Commerce, the primary reason this discrepancy is so large is because of the mindset of many managers when it comes to salaries.

Mr O'Toole explained that the "drivers behind pay are different" at the higher and lower scales of a business, as at the latter bosses feel under pressure to cut the costs attached to their services or goods, meaning labour expenditure is often reduced.

However, at the former, managers "convince themselves that they need to pay more to attract top talent", which then leads to the gap expanding further.

Recently, research by the Incomes Data Services found that directors of FTSE 100 companies have seen their total earnings grow by 49 per cent in recent times. 

01/12/2011 14:05