Pay Clubs in the UK

Abstract

Pay clubs-a unique method for sharing compensation survey data-were developed among groups of UK employers. The Industrial Relations Services' Pay and Benefits Bulletin, from which this article is reprinted, defines pay clubs as "groups of employers operating in a common labor market who agree to exchange detailed remuneration information of interest to their organizations on a confidential basis. These groups have no formal constitution and behave organically, as members are free to form sub-groups or withdraw entirely as they see fit." Given a tight labor supply and the need to control costs, these clubs are an attractive alternative for UK employers to either conducting independent indepth salary research or paying management consultants. Membership in these clubs is tailored by criteria such as geographic location, particular industry or organization size so that members can have access to market data for actual positions they need to fill or for salaries they need to renegotiate.