Most NZers Salaries Up - If They Still Have A Job

See following release issued for Grant Thornton New Zealand
News Release
February 25, 2009

Salaries Up For Most In New Zealand – If They Still Have A Job

The good news is that the majority of New Zealand’s privately owned businesses plan to increase salaries in line with inflation this year – the bad news is that one third of these companies confirm they expect a cut in staff employed.

The figures are contained in the latest survey results from the Grant Thornton International Business Report.

Accounting and business advisory firm Grant Thornton says the only bright light in the survey is that 57% plan to increase salaries in line with inflation and a further 13% actually expect to increase salaries above inflation. A further 24% will either offer no rise, or actually reduce pay, while the remainder say the situation is too difficult to predict.

“The New Zealand figures for salaries fairly closely reflect the average around the world across all the nations surveyed,” said Grant Thornton New Zealand spokesman Peter Sherwin.

“But the expectations among businesses in Australia are higher, with 65% saying they will increase salaries in line with inflation and 24% looking at increasing them ahead of inflation.

“The most bullish on increasing pay above inflation include the Philippines, Poland, Botswana and South Africa, and Brazil.”

The counterpoint for New Zealand employees is that their employment prospects are not as good as their pay outlook.

“Unfortunately, the IBR results confirm what two other surveys have just indicated – that 33% of businesses expect to have a decrease in staff numbers,” said Mr Sherwin.

“At the same time, a majority (52%) expect to have the same amount of staff, and 14% actually predict an increase.

“At a time like this, we have to remind ourselves of the best side of everything and that includes the fact that a majority of staffing levels are expected to remain the same and the pay of the majority should go up in line with inflation.”

ENDS

The Grant Thornton International Business Report is an annual survey of the views of senior executives in privately held businesses all over the world. Launched in 1992 in nine European countries the report now surveys over 7,200 PHBs in 36 economies providing territory, regional and global trend data on the economic and commercial issues affecting a sector often described as the 'engine' of the world's economy. The research is conducted by Experian Business Strategies Ltd. Grant Thornton International donates US$5 to UNICEF for every completed IBR questionnaire, a donation of over US$39,000 in 2008.

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