Introduction
Industrial Psychology Consultants (IPC) carried out a survey on payment of salaries in forex. The aim of the survey was to understand the prevalence of payment of salaries in hard currency and how companies are financing these practices.
The economy has experienced significant changes since July 2018. The introduction of the Transitional Stabilisation Program by the Minister of Finance and Economic Development followed by the monetary policy by the Reserve Bank has brought in new challenges for businesses. Whilst the policy interventions aimed to stabilise the economy and encourage growth, the economy appears non-responsive and as a matter of fact continued to deteriorate. Of particular concern is the exchange rate of both the formal and informal market that continues to devalue the new RTGS currency. This is causing inflation.
Employers are making adjustments to salaries to cushion their employees against the loss in value. However, many organisations have not yet made any permanent changes. The findings presented in this report should therefore not be seen as definitive and permanent. The economy is still volatile and unpredictable, therefore any decision pertaining to remuneration must be done after having done a proper assessment of the decisions impact on your ability to pay and sustainability.
Summary
In this survey we investigated the prevalence of payment of salaries in forex by different organisations in Zimbabwe. Most participants were from the financial sector (19%) followed by mining sector (10%) and Non-Governmental Organisations (10%).
Only 37% organisations are paying their employees in forex and most of them are from Non-Government Organisations (27%) and Mining Sector (20%).
The general trend emerging is that organisation that export their products or receive international donor funds/ grants are paying their employees either partly or fully in forex.
Methodology
A questionnaire with 10 questions was emailed to human resources professionals (Human Resources Officer to as high as Human Resources Director) from various organisations on our mailing list. A total of 83 executives from different organisations and economic sectors participated in this survey.
Questionnaires were completed online and responses were downloaded, cleaned, coded and analysed in SPSS and Excel. We have detailed below the more specific demographic information and the results.
Participants Profile
Distribution of participants by economic sector is shown in the graph below:


Financial services (19%), mining sector (10%) and Non-Governmental Organisations (10%) are by far the largest industries in this survey.
The staff complement for organisations that participated in this survey is shown in the graph below:
Most organisations have a staff complement of between 100 and 499.
From this survey, only the educational sector has a staff complement of 5000 and above. This could have been a respondent from the government.
Organisations’ average annual revenue last year is shown in the graph below:


Most organisations made an average revenue of US$1,000,001 – US$10,000,000 per annum in 2018.
Those in the education and engineering sector earn annual revenue of above US$50 million.
The export status of organisations is shown in the graph below:


69% of organisations in the survey said they are not an exporter, 24% said they export some of their products and 7% said they export everything.
50% of organisations in the manufacturing sector said they are not an exporter and 50% said they export some of their products/services.
The Forex earning status from local trading is shown in the graph below:
Most organisations (46%) said they earn less than 25% in USD from local trading.
Companies in the transport and logistics sector that participated in this survey said they 100% of their revenue in RTGS$.
The revenue earnings from exports for organisations that participated in this survey are shown in the graph below:


57% of the participants in this survey said they earn less than 25% in USD from exports and only 21% said they earn 100% revenue from exports.
Results
59% of organisations that participated in this survey said they do not pay any of their employees in forex, 37% said they pay in forex, 2% they said still under consideration and 1% said they pegged salaries in USD but on the payday, they pay at the interbank rate.
Outlined below is the prevalence of salary payments in USD by economic sector.
Only some of the organisations in the energy and oil sector said we pegged salaries in USD but on payday we pay at the interbank rate.
The table below reports the mean percentages that employees are paid in forex for the different job levels:
Most employees that are payed in forex are from Non-Governmental Organisations (27%) followed by those from the Mining (20%) sector.
The graph below shows how often organisations are planning to review salaries. This is regardless of where they are paying in USD or RTGS.
42% of participants in this survey said they review salaries quarterly, 29% said yearly, 17% said half-yearly and 12% said they review monthly.
All organisations in the engineering sector that participated in this survey said they review their salaries monthly.
Most organisations that reviewed their salaries this year said the major consideration is inflation (74%) followed by those that said company performance (39%) with the exchange rate (19%) being the least.
Conclusion
Only 37% of organisations that participated in this survey are paying their employees in forex and most of them are from Non-Government Organisations (27%) and Mining Sector (20%). The general trend emerging is that organisation that export their products or receive international donor funds/ grants are paying their employees either partly or fully in forex.
Companies need to earn foreign currency for them to be able to pay salaries in forex. The call by some trade unions and employee representatives for employers to pay in forex will simply be impossible to meet if the employers do not earn foreign currency.
Employees need must be weary of their ability to pay, as well the sustainability of paying salaries in forex. We advise that if an employer wishes to pay salaries in forex but however realises that they cannot commit to regular monthly payment; paying discretionary once-off forex payments would be more feasible. However, before making any such payment, the employer must clearly communicate to employees that is a discretionary once-only payment – so as to manage expectations.
Regardless of the calls by Government for business to desist from the basing their prices against the United States Dollar, businesses seem to be increasing denominating or linking their budgets and prices to the USD. The implication is that the economy is increasingly re-dollarizing. We are anticipating that this trend will increase as businesses seek to safeguard themselves against the erosion of value through inflation. If this trend continues as we are anticipating, we are also likely to see more employers starting to pay either in hard currency or the RTGS equivalent. What is not yet clear is if employers will maintain the face value of previously denominated USD salaries of if they will make changes to these salaries.
About the Authors
Memory Nguwi (Registered Psychologist) is the Managing Consultant of Industrial Psychology Consultants (IPC). You may contact him by email at mnguwi@ipcconsultants.com
Collin Bhiza is the Manager – HR Consulting at Industrial Psychology Consultants (IPC). You may contact him by email at collin@ipcconsultants.com
Taurai Masunda is a Consultant at Industrial Psychology Consultants (IPC). You may contact him by email at taurai@ipcconsultants.com
If you would like to discuss this report, please contact one of the authors.
110 Responses
ceftin 250mg price – robaxin 500mg for sale cheap cialis tablets
purchase ampicillin generic – ampicillin price buy cialis 5mg pills
ampicillin brand – buy cipro 500mg online cialis india
amoxicillin for sale – amoxil 500mg cost buy levitra 10mg sale
amoxil 1000mg brand – amoxicillin 500mg cheap order levitra 20mg online
ivermectin 3mg tablet – ivermectin 3 mg pills for humans order vardenafil 10mg pill
ivermectin 1% – ivermectin ireland levitra order
purchase doxycycline generic – buy generic doxycycline 200mg oral tadalafil 20mg
oral doxycycline 100mg – cialis 10mg usa cialis tadalafil 10mg
buy cialis 10mg generic – provigil 200mg pill provigil oral
cialis overnight shipping – canada pharmacy order provigil 100mg for sale
order prednisone 10mg without prescription – prednisone pill isotretinoin 40mg brand
buy prednisone 20mg pills – cheap erectile dysfunction pills accutane without prescription
amoxicillin cheap – viagra 150mg generic buy viagra 100mg
order amoxil 500mg pill – genuine viagra sildenafil 100mg tablet
prednisolone 5mg uk – purchase prednisolone generic viagra sildenafil 200mg
order prednisolone 10mg – viagra tablet sildenafil for sale
order lasix 40mg generic – order lasix 40mg generic ivermectin 6mg pills
order furosemide 100mg sale – order doxycycline 200mg for sale stromectol human
buy hydroxychloroquine 200mg sale – chloroquine order order baricitinib 4mg without prescription
plaquenil 400mg drug – buy plaquenil 200mg cheap baricitinib
metformin 500mg drug – atorvastatin pills buy amlodipine 10mg without prescription
order glucophage for sale – glucophage sale amlodipine medication
order generic lisinopril 5mg – buy lisinopril pills buy tenormin 100mg pills
vardenafil over the counter – levitra pills buy clomiphene without prescription
buy levitra without prescription – clomid 50mg ca purchase clomid pills
albuterol for sale – albuterol oral purchase dapoxetine sale
purchase albuterol generic – where can i buy a research paper dapoxetine over the counter
order synthroid 75mcg generic – hydroxychloroquine price order generic hydroxychloroquine
synthroid 75mcg price – triamcinolone online order hydroxychloroquine ca
cialis 20mg pill – order cialis 10mg generic sildenafil us
deltasone 5mg pill – buy accutane 5mg cheap amoxil generic
What’s up to all, how is all, I think every one is getting more from this website, and your views
are good designed for new viewers. donate for ukraine
prednisone 20mg pills – buy xenical generic buy amoxicillin pills
order diltiazem generic – azithromycin 500mg drug order neurontin 800mg without prescription
diltiazem 180mg uk – order zithromax 250mg generic purchase neurontin sale
lasix 100mg cost – order furosemide generic doxycycline drug
buy lasix 100mg online – lasix without prescription order doxycycline 100mg generic
buy generic cenforce 100mg – order stromectol 6mg pills order domperidone pill
cenforce 100mg over the counter – motilium 10mg usa cheap motilium 10mg
viagra pills 25mg – cialis 10mg generic buy cialis 40mg online cheap
cheap viagra sale – viagra 25mg for sale cialis 20mg ca
buy modafinil online cheap – modafinil 200mg brand budesonide ca
modafinil without prescription – buy ed pills gb purchase rhinocort online
1assassins
buy isotretinoin without prescription – tetracycline 250mg pill buy generic tetracycline 250mg
accutane over the counter – order tetracycline pill tetracycline order online
metformin 1000 mg tablets cost where can you buy metformin
tadalafil 10mg coupon tadalafil 2.5 mg tablets india
https://buynolvadex.store/# natural alternatives to tamoxifen
lipitor 4 mg п»їlipitor price comparison
cyclobenzaprine 15mg over the counter – flexeril 15mg sale inderal 10mg over the counter
buy cyclobenzaprine 15mg pill – toradol canada propranolol canada
https://buytadalafil.men/# buy tadalafil 5mg online
tamoxifen hot flashes tamoxifen and weight loss
buy plavix 150mg sale – buy generic methotrexate order metoclopramide
lipitor 10 mg tablet lipitor 40 mg price australia
clopidogrel 75mg usa – cheap coumadin 2mg metoclopramide 10mg usa
https://buynolvadex.store/# tamoxifen cancer
tadalafil soft where can i get tadalafil
furosemide 100 mg lasix 40 mg
https://buylipitor.store/# buy lipitor 40 mg
https://buytadalafil.men/# tadalafil online australia
cipro ciprofloxacin cipro ciprofloxacin
cozaar uk – cost cozaar promethazine pills
https://cipro.best/# cipro ciprofloxacin
https://diflucan.icu/# diflucan online pharmacy
cozaar 50mg pills – buy losartan 50mg pill promethazine ca
generic ed drugs best pill for ed
https://erectionpills.best/# medicine for impotence
cipro for sale purchase cipro
ed medication online best medication for ed
neurontin 900 mg generic neurontin 600 mg
levofloxacin generic – dutasteride us tadalafil us
levaquin ca – tadalafil tablets order cialis 40mg online cheap
cost of diflucan tablet diflucan candida
generic ed drugs top ed drugs
buy cialis 5mg sale – oral celecoxib 200mg buy flomax 0.2mg sale
https://diflucan.icu/# buy diflucan
https://withoutprescription.store/# amoxicillin without a doctor’s prescription
tadalafil us – mobic online buy flomax online
ciprofloxacin ciprofloxacin generic price
ed treatments pills for erection
neurontin 100mg tablet 32 neurontin
https://diflucan.icu/# how much is a diflucan pill
wonderful post, very informative. I ponder why the opposite specialists of this sector don’t understand this. You must continue your writing. I am sure, you have a great readers’ base already!
п»їcipro generic buy ciprofloxacin
2september
neurontin coupon neurontin tablets 100mg
https://withoutprescription.store/# non prescription ed pills
how to write a dissertation proposal https://professionaldissertationwriting.org/
buy zofran generic – cost valacyclovir 500mg valtrex 1000mg oral
help writing https://professionaldissertationwriting.com/
what is a dissertation paper https://helpwithdissertationwritinglondon.com/
dissertation statistics help https://dissertationwritingcenter.com/
premium dissertation writing service https://dissertationhelpexpert.com/
over the counter erectile dysfunction pills ed medication
dissertation help service https://accountingdissertationhelp.com/
https://diflucan.icu/# 3 diflucan pills
custom dissertation writing help https://examplesofdissertation.com/
marketing acknowledgement https://writing-a-dissertation.net/
buy ondansetron 8mg pills – order ondansetron 8mg generic buy valtrex 1000mg without prescription
how long is a dissertation paper https://bestdissertationwritingservice.net/
dissertation write up https://businessdissertationhelp.com/
cheapest ed pills best medication for ed
dissertation help uk https://writingadissertationproposal.com/
https://diflucan.icu/# where to buy diflucan pills
buy cheap prescription drugs online prescription drugs without doctor approval
how to write a dissertation https://dissertationhelpspecialist.com/
do my dissertation https://dissertationhelperhub.com/