Business / Economy
Zimbabwe's pay gap above 4,000%
14 May 2015 at 21:26hrs | Views
The wage gap between Zimbabwe's highest and the lowest paid employees is slightly above 4 000%, a survey has shown.
According to a survey conducted by one of Zimbabwe's leading employment consultant firms, Industrial Psychology Consultants (IPC), company directors make at least 40 times more than their general hands.
"However, a more informative comparison is that of the top 10% and bottom 10% earners," said IPC adding that top 10% earners receive an average cost of employment of $7 336 per month, whereas the bottom 10% receive an average of $597.
"Put simply the top 10% earners receive roughly 12 times more than what the bottom 10% receive."
"The average total cost of employment per month for all levels of employment is $2 294 with employees at the lowest employment levels earning an average total cost of employment of $497 per month.
Analysing the findings, IPC said without a doubt, there should be differences in salaries across different employment levels.
"However, one issue which may be regarded as unquestionably important is whether or not these salary levels are sustainable," IPC said, adding that pay structures must be guided by productivity.
IPC warned that organisations are still struggling to contain operational costs.
"As a result, more retrenchments are likely going to occur in 2015."
Zimbabwean companies are currently saddled by high operational costs with wages and salaries topping the list. The high costs of operations have resulted in locally produced products failing to compete on price with imported products.
The wage gap has however been a contentious issue amid calls for executives to cut back on their employment benefits.
Government has since tightened retrenchment regulations which now include submission by companies of the salary structure of executives and management as well as allowances paid in cash or otherwise.
It is argued that some firms are engaged in unjustified retrenchments which mostly affect low-grade workers while top executives are left out.
According to a survey conducted by one of Zimbabwe's leading employment consultant firms, Industrial Psychology Consultants (IPC), company directors make at least 40 times more than their general hands.
"However, a more informative comparison is that of the top 10% and bottom 10% earners," said IPC adding that top 10% earners receive an average cost of employment of $7 336 per month, whereas the bottom 10% receive an average of $597.
"Put simply the top 10% earners receive roughly 12 times more than what the bottom 10% receive."
"The average total cost of employment per month for all levels of employment is $2 294 with employees at the lowest employment levels earning an average total cost of employment of $497 per month.
Analysing the findings, IPC said without a doubt, there should be differences in salaries across different employment levels.
IPC warned that organisations are still struggling to contain operational costs.
"As a result, more retrenchments are likely going to occur in 2015."
Zimbabwean companies are currently saddled by high operational costs with wages and salaries topping the list. The high costs of operations have resulted in locally produced products failing to compete on price with imported products.
The wage gap has however been a contentious issue amid calls for executives to cut back on their employment benefits.
Government has since tightened retrenchment regulations which now include submission by companies of the salary structure of executives and management as well as allowances paid in cash or otherwise.
It is argued that some firms are engaged in unjustified retrenchments which mostly affect low-grade workers while top executives are left out.
Source - www.fin24.com
