A local human resources consulting firm, Industrial Psychology Consultants, set out to find the trends around USD salaries in Zimbabwe.
According to an article by the company’s founder Memory Nguwi, IPC surveyed HR professionals in 60 companies in July. The key finding according to Nguwi is that the majority of the companies, by far, are paying a certain percentage of the salary in US dollars.
Nguwi says that based on previous surveys they have done, paying salaries (or a portion of salaries) in USD is on the increase.
We summarise here some of the findings shared by Nguwi:
- There is no question that some organisations started paying their employees’ salaries denominated in US dollars some time ago. This is mostly a reaction to the rate of inflation and the recent falling value of the Zimbabwe dollar.
- NGO, mining, transport and logistics sectors pay salaries largely in US dollars.
- A large percentage of top management is paid largely in US dollars.
- Many organisations are receiving US dollars local sales enabling them to pay staff in US dollars.
- When companies start paying in USD, less people leave the company for greener pastures.
- Employees of companies that are not paying any USD are facing challenges paying rentals and school fees, which are mostly in US dollars.
- Employers with some US dollar revenue continue to raise the share of salaries paid in US dollars to protect employees from the rising cost of living and the depreciation of the Zimbabwe dollar.
- Firms that rely heavily on exports pay their employees in US dollars.
- Without USD revenue, its difficult to sustain USD salaries and therefore companies are encouraged to rather peg salaries in US dollars but pay using the local currency at the prevailing rate.
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