I recently read an article by Carol Goar in the Toronto Star about the Wagemark label. This was introduced in Toronto July 17th of this year by founding director Peter McLeod. On July 24, 2013 it was mentioned on a New Zealand post.
The concept of it is “to create a common standard for wage-responsible businesses”. To display the Wagemark insignia a company must pay its chief executive no more than eight times the amount its lowest paid worker earns. The article also went on to say that currently the chief executives of Canada’s top 100 corporations, make 235 times the average worker’s pay. Wagemark certified organizations commit to capping top compensation at eight times the wage of their lowest paid decile (definition of decile – I had to look it up) of employees.
Here are a few of the Key Facts as listed on their media release;
- Wagemark is a first-of-its kind certification system that rewards wage-responsible businesses and organizations
- In 1977 famed business theorist Peter Drucker wrote in the pages of the Wall Street Journal, that “the most radical but also the most necessary innovation would be a published corporate policy that fixes the maximum compensation of all corporate executives as a multiple of the lowest paid regular full-time employee.”
- Organizations adopt Wagemark certification to publicly demonstrate their commitment to paying competitive, responsible and sustainable wages. Wagemark certification boosts morale and improves organizational transparency concerning compensation practices.
On its website there are currently 21 companies authorized to use the Wagemark label listed on its Global Registry. Two are in Denmark with the balance in Canada. At this time there are 6 Not-For-Profit organizations listed. What I would like to see is more Charitable and Not-For-Profit organizations eligible and listed on the website. In the last few years we have seen numerous examples of these types of organizations that have paid outrageous salaries and bonuses to their top people. You can go to the CRA website to see how much is paid in compensation to full and part-time employees but that will only give you the number of employees in each category and the total amount paid.
I know the Not-for-Profit and Charitable organizations I’m affiliated with, either through the accounting services I provide or volunteering, fall easily within the requirements to display the Wagemark label. These organizations also spend large amounts of time and resources fundraising. I think any positive marketing, like the Wagemark label, helps us make informed decisions on where our donated time and money is best utilized.
If you know of any organizations that could benefit from the Wagemark label, please forward this information to them. I’m hoping it will make a difference to the local charities I support.
I’d love your feedback. Please leave a link back to your own blog too if you have one, via the commentluv feature here on the site.
Until next time,