Magazine article New Zealand Management

Intouch : Credit Crisis Hits Back Pockets

Magazine article New Zealand Management

Intouch : Credit Crisis Hits Back Pockets

Article excerpt

Private sector salary increases will be significantly lower this year than last, according to a website poll conducted by private sector remuneration consultants Higbee SchEnffler.

After five years of annual salary increases typically in the range of 4.2 to 5.5 percent, employees in more than half of the 36 companies which participated in the poll can look forward to salary increases of less than three percent in 2009 with only three companies budgeting to offer more than four percent.

While this looks like bad news for workers, Higbee SchEnffler director Helene Higbee says employees are generally realistic about the economy. C[pounds sterling]The results confirm our recent experience of the market, although even we were surprised at the extent of the swing. We know of several companies with wage freezes, whose employees have been very accepting of the practice. Given the choice between keeping a job and receiving an increase, most people prefer the former.C[yen]

Employees who do lose their jobs face a tough market, particularly in the hard-hit finance sector. In many companies, wage freezes are accompanied by recruitment freezes, and one-third of employees made redundant are likely to receive no redundancy payments at all. …

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