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How it pays to 'go big`

The survey reveals discrepancies between salaries in large organisations and small to medium enterprises.
By David Glazier
Johannesburg, 03 May 2006

In this survey report we divided level of skill and seniority into three groups: executive, middle management and staff. In terms of company size, three groups were established: companies with less than 100 employees, companies with 101 to 1 000 employees, and organisations with over 1 000 on the payroll.

[CHART]Of the 3 512 permanently employed respondents, 12% are executive, strategic level mangers or business owners, while 34% are operational or mid-level managers.

Earnings gaps

This survey shows that bigger companies pay bigger salaries. Executive managers at companies with over 1000 employees on average earn twice as much as execs in mid-sized companies, and three times as much as those in companies with under 100 staff.

Executives in companies of over 1 000 employees earn R62 000 per month on average, taken from a sample of 40 respondents. The gap between these top earners and executive mangers in medium-sized companies is not big - on average, they receive R5 000 more each month.

[CHART]Understandably, the gap widens between the largest and the smallest companies (under 100 staff members) - while comprising the largest group of director-level respondents, respondents from small companies earn just above R42 000 monthly.

At middle management level, professionals in the 1 000+ companies (of which there were 450 respondents) on average earn a little over half of their seniors - R33 455.

[CHART]R29 000 was the average for those at the middle management level in companies of between 101 and 1 000 employees, and R24 413 in the small company range.

At staff-level, though, the gap closes: salaries in the 1 000+ corporations - at R19 370 per month - were only R3 000 per month more than those in mid-size companies, and R5 000 per month more than those in the smaller businesses.

Top of the pile

[CHART]At the executive level, chief operating officers reported the highest median of R51 500 per month. But the largest monthly package of R120 000 was reported by several MDs and group IT directors.

Enterprise architects and chief architects prove to be the best paid middle management level respondents in terms of the median statistic. However, the maximum monthly salary of over R70 000 at this level was reported by IT managers, project managers and business development managers.

At the lowest-end of the middle management scale are call centre technical managers.

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