IPC Cost Of Living Expenses Report October 2019 FREE DOWNLOAD!!!

Cost Of Living Expenses
  • The income for executive levels surpasses their estimated basic living costs by $12,675 per month. With that amount left after basic living costs, they remain in the best position of their households.
  • The NEC employee does not meet a basic standard of living. The gap between the NEC employee’s income and expenditure means they will have to make some very tough choices about which basic costs of living are most essential in any month. The negative difference between income and expenditure is a clear indication that this employee is struggling.
  • Reconfigure NEC Pay Structures. Let us change from minimum wage to “Going Rate.”

EXPLORE THE UPDATED COST OF LIVING REPORT AVAILABLE HERE AT https://www.thehumancapitalhub.com/cost-of-living-in-zimbabwe

It is a fact that in most sectors salaries and wages have not been adjusted to reflect the upward trend in inflation. The challenge for many organisation right now is on what basis should salaries be adjusted? When adjusted how do we make them affordable and sustainable? It is noble to hear people talk about salary adjustment and how people should be cushioned against the rising cost of living. However, organisations need to exercise extreme caution as there is need to balance salary adjustments with business viability.

The best way to sustain higher wages is to pay people based on productivity gains or improvements. In the current circumstances, likely, most of the reported growth in revenue and profit by companies could largely be a result of price movement and not volumes. The danger of making permanent salary adjustments based on a price-driven growth is that it could turn out to be unsustainable in the long term. It is not possible to keep adjusting your prices upwards for your clients to cover wages which in the case of Zimbabwe are largely fixed and guaranteed whether the company performs or not.

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