- Joined
- 23 Mar 2011
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- 2,604
If you're trying to save serious money on internal payroll in an organisation that's the shape of NR, it has to come out of lower pay bands.The low hanging fruit is NR management which has been top heavy in well paid individuals, not just the CEO and associated directors, with 425 employees have a base salary over 100k and thats before performance related pay. Another 861 have a salary between 80-100k.
All from NR staff salary breakdown 2020/21
From that spreadsheet:
89% of NR staff are on salaries between £20k and £60k, representing 83% of the wages bill.
0.4% of NR staff are on salaries over £120k, representing somewhere around 1%-2% of the wages bill.
To save 1% of your payroll bill you can either lose more than half of your senior management. Or about 1% headcount from the bottom pay bands, often achievable without any redundancies by just slightly reducing recruitment. If you want to save any more than that 1% then it isn't feasible to take it just out of top pay bands.
Middle management is often a better place to look for cuts than senior leadership. (In practice you do both at the same time.)
And in most organisations, losing e.g. a third of middle management represents a decent saving.
NR look reasonably lean here already from that spreadsheet but I'd be surprised if the type of thing from the RMT press release was going on and management weren't also about to be hit by some kind of restructuring, even a modest one.