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  • The Generational Pay Gap: What Is It and What Can We Do About It?

    Posted In: UK Economy, General

    Posted Date: 21/06/2018 12:03:42

With the Trade Union Centre (TUC) recently publishing a warning around the widening pay-gap between under and over-30s (having risen from 14.5% in 1998 to 21.9% in 2017), the report demonstrated that workers under 30 are increasingly more likely to be in jobs which are low-paid, low-skilled and lacking in progression opportunities.

TUC also highlighted some of the challenges which young people face today in the workplace; this includes low pay, lack of job security and lack of progression. A polling of young workers also showed that 41% have held off buying or moving home, a real demonstration of the impact financial concerns can have on young workers.

So why is it that the pay gap has grown so rapidly?

TUC argue that itís down to a concentration of young workers in jobs which donít provide the skills needed to progress, as well young people in industries which largely rely on zero hour contracts, agency work and temporary work.

The report also found that a third of employers admitted to not offering any training to their staff which becomes another obstacle to progression for the under 30ís. TUCís findings highlight the cyclical nature young workers face; being stuck in low paying jobs and unable to progress into a better paying, higher skilled role due to the lack of training and support.

So how do we close the generational pay gap?

Ultimately, the pay gap demonstrates that often young people are lacking in opportunities to develop skills or progress into better paid jobs, despite the fact that this generation of young workers is the most qualified ever. Through development and investment from employers it is possible to break young workers out of the cycle.

Oliver Hartley, Head of Learning and Development at RSG, explains why RSG believe in investing in young talent:

ďWe have hired graduates (and non-graduates) for many years. Investing in these individuals just makes business sense. Investing in young people in the form of training, support and development opportunities increases employee engagement, increases the skill level of our workforce, reduces employee turnover and as a result gives us a sustainable competitive advantage.

ďOur business is set up to create the opportunity for individuals to be able to actively impact how much money they earn and are supported to meet these goals, be they financial or vocational. Any organisation that wants to help close the generational pay gap needs to ensure that operationally and culturally their business is set up to provide and encourage this.Ē

For more reasons why we love hiring graduates click here. If youíre a graduate looking for a role visit our careers site for our latest opportunities.



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