Industries with large gaps between pay and productivity tend to be those where workers have higher rates of college education. (Photo: iStock)

As worker compensation remains flat, the so-called pay-productivity gap is shooting higher. According to a new report from the Society for Human Resources Management the largest increases in productivity without any corresponding increase in pay were mostly tech-related industries. Those industries also experienced the largest amounts of growth over the past few decades. Industries which have experienced relatively little growth during the same time period experienced smaller pay-productivity gaps, with both productivity and pay remaining flat or increasing at similar rates.

“The gap between worker compensation and productivity now as wide as it ever has been, with little indication that the trend will reverse course,” the report's authors write.

The report also looked at the correlation between college degrees and pay gap, and unsurprisingly found that industries with large gaps between pay and productivity have workers with higher rates of college education.

Click to enlarge. (Source: SHRM)

The researchers also looked at which jobs were most likely to be replaced by technology in the coming years and whether there was any correlation to pay-productivity gap.

“Industries like computer equipment manufacturers contain large amounts of high-skill workers who are less susceptible to replacement by technology,” the authors note. “On the flip side, industries like telemarketing where employees are generally paid quite poorly relative to their productivity, might soon be replaced by automation and artificial intelligence.”

There are ways for employers and HR managers to address these situations when looking internally to their programs and systems. For example, employers should:

• Address attraction and retention of talent – Develop employee benefits programs that are well-attuned to workers' needs and to create a positive and inclusive workplace culture where employees feel supported.
• Enhance corporate reputation - An organization can build greater loyalty with their employees and further ensure that they retain their talent by increasing wages. In addition to tangible effects on acquiring and retaining talent, organizations may find that acting to combat wage and productivity gaps can have an important effect on their relationship with consumers. As organizations look to strengthen their brands and their relationships, Corporate Social Responsibility Offices or CSR Champions have become more common.

Read more: 

• What employees really think about their compensation
• The growing complexity of compensation strategies
• Equity compensation plays big role in employee net worth