03/06/2015

'Underperforming' Managers Receive Rewards - CMI

Managers who are rated as "poor performers" are still being rewarded by their employers.

Research published by the Chartered Management Institute (CMI) and XpertHR shows that rewarding poor performance is widespread within organisations.

Data was taken from 72,206 employees in 317 UK businesses.

Nearly a third (30%) of managers ranked as 'underperforming' were handed a bonus in 2014.

45% of senior managers and directors whose performance was rated as 'not meeting expectations' received a financial bonus.

It is understood the average bonus paid to underperforming senior managers was £8,873.

The survey also revealed managers' salaries are on the rise.

Pay increased by 3% compared to 2.7% last year. The average salary across executive levels is currently £38,328.

The regular bonus pay-out for all managers was £8,836, with £44,687 for directors.

Ann Francke, Chief Executive of CMI, said: "Too many managers are reaping the rich rewards of their positions despite being poor performers.

"This unacceptable discrepancy between pay and performance is even more widespread among the ranks of senior managers."

Content Director at XperthHR, Mark Crail, said a "culture of rewarding past glories" is the biggest reason for low performers receiving bonuses.

He added: "The biggest and most significant indicator of whether someone will get a bonus this year is whether or not they got one last year.

"The longer that goes on, the more people come to rely on the money and the harder it is to stop paying it."

(LM)

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