Location and seniority have key impact on housing association pay
Housing Associations' location and size are the two most influential factors affecting staff pay, according to the sector's most comprehensive salary survey, writes Matthew Richards.

Junior housing managers in London earn 26% more than their counterparts in northern England. And, for senior staff, size of housing association has the most influence on their earnings.

The survey, by research firm Inbucon, found that clerical staff saw the smallest pay increase in 2001 at just 3.4 %, whereas chief executives' salaries rose 4.5%. Middle managers, such as accountants, had a 3.6 % pay rise during 2001. Senior and junior managers' and housing officers' pay rose 3.7% – the same increase as a grade D nurse in 2000/01.

The expanding programme of stock transfer is fuelling competition in the recruitment market as management teams for new housing associations are created.

This has placed pressure on housing associations to retain senior staff with pay packages that reflect the private sector. Anne Elliott, from consultant Hacas Chapman Hendy, was aware of "between 70 and 100 cases" of associations scouring the market for managers.

Housing associations are also adopting incentive schemes to attract employees from outside the public sector.

Some 40% of housing associations run bonus schemes in an effort to retain staff, and most link bonuses to performance.

Public sector union Unison has expressed alarm at the widening gap between management and junior staff salaries. In the council sector, it is planning industrial action over the level of pay rises.