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Pay gaps make firms less efficient, think tank claims

Organisations with unequal pay have more industrial disputes, more sickness and a higher staff turnover, a new report suggests.

The High Pay Centre, a think tank which campaigns against high pay, found that companies with a narrower gap between the highest and lowest paid functioned more effectively.

The body questioned over 2000 workplaces to compile the findings.

Luke Hildyard, Head of Research, told BBC Radio 5 live's Morning Reports: "People just become demoralised... as a result of the big pay gaps between themselves and the people at the top of the company."

  • 20 Jan 2014
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