\”I think great organisations are ones in which everyone puts their shoulder to the wheel,\” Hutton continues. \”If I\’m right, and that happens more in fair organisations, then they will become the more high performing organisations.\”
OK, this is with reference to his pay review thing.
More equitable pay awards will lead to more shoulders to wheels and thus better performing organisations.
Could be, how would we actually test this?
The better performing organisations will be the ones with higher profits, that\’s how we keep score.
So, are the companies that make those big fat profits the ones with more equitable pay distributions?
Erm, no, doesn\’t seem so, does it? In fact, rather the opposite.
Which is where that noted economist, Will Hutton, is ignoring his own discipline of economics. For if it were true that more equitable companies outperformed less such then the market would currently be dominated by more equitably based companies. And the very fact that Hutton is wittering on about the inequity of pay distribution is the very evidence that disproves his contention that more equitable pay leads to outperformance.