Tag: community market


Birches Group keeps an eye on labor market trends that are making headlines across the globe, ensuring you are up to date on the latest developments.

On 14 June 2023, the Nigerian naira lost a staggering 25% of its value compared to the previous day, macroeconomic intelligence provider Focus Economics reported.

The sharp devaluation was caused by the Central Bank of Nigeria’s decision to allow the naira to fluctuate freely, letting market forces determine the exchange rate. The Central Bank also implemented several reforms, including scrapping the segmentation of its foreign exchange market. For six years, the local exchange rate was held artificially low and changed little.

A welcome, bold start

Following his inauguration on 29 May 2023, President Bola Tinubu hit the ground running with a string of sweeping changes. He noted Nigeria’s monetary policy needed “thorough house cleaning” to help the economy become more competitive. Within his first three weeks in office, Tinubu embarked on some of the most radical reforms in decades:

Petrol subsidy removal. By ending its longstanding petrol subsidy, the Nigerian government is projected to achieve fiscal savings of nearly 4 trillion naira (US$5.10 billion) in 2023. These savings are expected to reach over 11 trillion naira by the end of 2025.

Suspension of Central Bank governor. On 9 June 2023, Tinubu suspended Central Bank Governor Godwin Emefiele following divisive policies. During Emefiele’s term, a black market for foreign exchange thrived.

Reforms in the foreign exchange market. Foreign investors have flagged Nigeria’s foreign exchange restrictions as an obstacle to investing. The move towards a more unified and market-responsive exchange rate will foster a stable economic environment and prevent the dollarization of the economy.

According to Reuters, Tinubu inherited anemic economic growth, record debt, and shrinking oil output. However, he has promised to put the economy back on track and asked Nigerians to support painful decisions. The speed of his decisions took many by surprise.

Short-term pain vs. long-term stability

Every day Nigerians are feeling the brunt of the government’s economic shakeup. The Guardian reports that, while Tinubu’s policies please foreign investors, the devalued naira means ‘national sacrifice mode.’ People are feeling the strain as their new president pushes through the widely unpopular policies. Living costs have further increased.

The currency devaluation is already pushing prices amid a significantly higher foreign exchange rate, cites Africanews. This change will cause considerable short-term pain but will correct the economy, say economic analysts. Nevertheless, Nigeria continues to face rising inflation and increased poverty rates, pressuring the government to address concerns.

On a positive note, the recent changes are considered a welcome development. The floating exchange rate is expected to strengthen investor sentiment and bring in much-needed capital. Observers have described the transition as a “window of opportunity” that could have a transformative impact on millions of Nigerians.

The steps have fired up markets, sending stocks in Africa’s largest economy to their highest level in 15 years. For its August 2023 Nigeria economic outlook, professional services firm PwC reported that the positive investor sentiment drove up the market capitalization of the stock exchange by 9.3%. “Just the fact that you have seen quite a bit of movement in a relatively short space of time has gotten a lot of people in the market excited,” Goldman Sachs economist Andrew Matheny told Reuters.

In a statement, the World Bank said, “The recent removal of the petrol subsidy and the foreign exchange management reforms are critical steps to address long-standing macroeconomic imbalances and have the potential to establish a solid foundation for sustainable and inclusive growth.” “Deepening and sustaining these changes is imperative to enable Nigeria to break out of the cycle of macroeconomic instability, low investment, sluggish economic growth, escalating poverty, and fragility.”

The World Bank expects growth in Nigeria to increase: “While inflation will be higher in 2023, it will be lower in 2024 to 2025 if the right policy mix is sustained.” The creditworthiness and investment profile of the country is also expected to improve.

Bismark Rewane, Chief Executive Officer at Financial Derivatives Company, a Lagos economic think tank, told Reuters, “What we are seeing is the removal of distortions created by inefficient pricing of foreign exchange and in the next few weeks we should start seeing the naira finding its level.” Business Insider Africa says that market participants and stakeholders are closely watching the effects of these significant changes.

What our Market Monitor indicates

In early July 2023, Nigeria entered our list of potentially volatile labor markets at Level Four (of six levels). Level Four shows signs of a sudden, unexpected economic event, as well as a devaluation of the local currency by at least 50% in six months or less. According to the 15 August 2023 edition of our Market Monitor report, the naira dropped as much as 67% in the past six months.

Although this significant devaluation could classify Nigeria at a higher volatility level, our latest salary survey reports that most organizations still denominate salaries in the naira, keeping Nigeria at Level Four for the time being.

Organizations in Nigeria should remain vigilant and closely watch the ever-evolving economic landscape. Staying attuned to shifts in labor market trends, exchange rates, and government policies is imperative to make informed decisions. By being keenly aware of these factors, you can adapt strategies and ensure the sustainability of your business in Africa’s most populous nation.

How Birches Group can help

Get insights into what to consider when your organization develops special policies in response to volatility. Published in English, Spanish, and French every two weeks, our Market Monitor report examines the labor market conditions of over 150 countries for signs of potential volatility.

Subscribe to our biweekly Market Monitor today. Download the 1 and 15 July 2023 editions of our report, where we focus on how you can manage the situation in Nigeria.


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Birches Group examines labor market developments garnering significant attention, keeping you well-informed and abreast of the latest news.

The scenario many have long feared in Sudan is unfolding. In cities and towns across the northeast African country, including the capital Khartoum, intense fighting between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF) has entered its third month.

On 15 April 2023, armed clashes erupted in Khartoum between two main factions of the ruling military regime: the SAF aligned with de facto leader General Abdel Fattah al-Burhan, and the paramilitary RSF led by al-Burhan’s former deputy Mohamed Hamdan Dagalo. Heavy fighting had been concentrated in urban centers but has now spread throughout what was once Africa’s largest country.

A fierce power struggle

The hostilities between al-Burhan and Dagalo, Sudan’s most powerful generals, broke out after weeks of rising tensions. The delicate power arrangement between the former allies since the 2019 ouster of long-term President Omar al-Bashir had broken down. “Now, their battle for supremacy is tearing Sudan apart,” says the BBC.

The conflict has its roots in disagreements over a proposed transition to civilian rule. It comes less than five months after a framework agreement to relaunch the political process to move to a civilian government. The SAF and RSF showed little willingness to adhere to the agreement, disagreeing on power sharing, setting up a civilian government, and integrating the RSF into the military.

Formal talks brokered by the United States and Saudi Arabia in Jeddah remain suspended. And with a succession of failed ceasefires, observers are deeply concerned that the conflict may continue and the situation will deteriorate further.

Devastating consequences for civilians

An African proverb goes, “When the elephants fight, it is the grass that gets trampled.”

“The scale and speed of what is unfolding in Sudan is unprecedented,” says the United States Agency for International Development. According to reports from United Nations agencies, nearly 1.9 million people have been displaced since mid-April and have fled to safer locations inside and outside Sudan. But the most vulnerable remain stranded due to ongoing fighting, lack of financial means, or trying to keep their property, assets, and livelihoods.

Sudanese lack basic supplies like food, water, and medicine. The physical danger makes accessing essential goods, commodities, and services difficult.

After nine weeks of escalated violence, more than half of Sudan’s population needs humanitarian aid—a 57% increase from the number at the beginning of 2023. But humanitarian organizations have been severely restricted due to high insecurity and infrastructure damage. Aid workers and facilities have also been targeted and attacked, with incidents of looting and supply chain disruptions.

A shock to the Sudanese economy

Sudan’s deepening humanitarian crisis is set against multiple challenges, including economic struggles, natural disasters, and protracted refugee situations. Before the armed conflict began, 65% of the population lived below the poverty line. Decades of war, sanctions, and political instability have also added to the troubled nation’s economic hardships.

The economic fabric of Sudan has experienced a severe shock. Critical infrastructure has been destroyed, pushing health and financial systems to near collapse. Stores, markets, and banks have halted business, fearing attacks. As a result, food prices are rising, and essentials are out of reach for many. Transportation costs to leave conflict-affected areas have likewise increased exponentially.

A fight to the end

The Assessment Capacities Project (ACAPS) reports that fighting is likely to continue soon. Additionally, analysts fear that the conflict risks descending into a sustained civil war. Kholood Khair, a political analyst in Khartoum, told The Guardian, “People in Sudan want to see democracy but don’t believe that either of these actors is going to bring it. It may well be a fight to the end, and neither will come out unscathed.”

Action on Armed Violence adds that the fighting could further fragment the country and worsen political turbulence. Sudan is riddled with other armed groups and militias that could add to the violence, turning a two-sided conflict into a more complex and chaotic situation.

David Miliband, President and Chief Executive Officer of the International Rescue Committee, said, “The worst-case scenario—a complex and protracted conflict—would have catastrophic and destabilizing implications for the region.”

The power struggle in Sudan will have severe repercussions on the vast and strategic country’s transition to democracy, as well as far-reaching implications for regional stability.

How Birches Group can help

Severe social unrest or conflict causes people to be displaced, as we now see in Sudan. The outbreak of violence that has been happening over the last few months has forced thousands to move elsewhere in the country or cross over to neighboring countries for safety.

When faced with social uncertainty and unrest, organizations must apply a response different from how they would typically respond to economic volatility. Your organization must have a Special Measures Policy. This policy should include your triggers and immediate responses to cushion the effects of civil unrest on your staff as you assess the movement of the labor market.

We can help your organization develop a Special Measures Policy that aligns with your objectives and fits local conditions.

Stay informed with our June Market Monitor reports.

Birches Group also offers valuable resources like the Market Monitor report. Published in English, Spanish, and French every two weeks, each edition examines the labor market conditions of over 150 countries for signs of potential volatility.

Subscribe now to access the 1 and 15 June editions of the Market Monitor, where we focus on the conflict in Sudan and the strategies you can consider as you begin developing your Special Measures Policy.


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Birches Group monitors labor markets that are making headlines worldwide and wants to share news and updates on the conditions in these markets.

“Blood that is spilled unfairly will boil until the end of time,” goes an old Persian saying. For nine weeks, the streets of Iran have been shaken by protests calling for the overthrow of the religious theocracy that has ruled for over 40 years. Iran’s countrywide protests began on September 16, when 22-year-old Mahsa Amini died in police custody. Amini was detained in Tehran for allegedly not observing the country’s dress code for women and collapsed into a coma at a police station. A photo and video of Amini in the hospital were shared online and quickly went viral.

Iran has a long history of demonstrations and unrest. But the events since mid-September are different. They are led by women and young girls with no organizing force or leadership. They are spontaneous, persistent, widespread, and supported by people from different layers of society. Students and older Iranians, merchants and labor unions, and the middle and working classes have taken to university campuses and onto the streets of over 100 villages, towns, and cities across the country. Iranian expatriates have also rallied in support in Berlin, Washington DC, and Los Angeles.

And despite violent clashes with security forces, more than 14,000 arrests, and mobile and internet restrictions, dissent rages on with remarkable defiance.

The protests and the economy

The demonstrations across Iran now go far beyond Amini’s death and women’s rights. They have moved from demands for reform to demands for systemic changes, an expert told NBC News.

The protests have quickly swelled in response to the Islamic republic’s economic stagnation. The BBC says that, on average, Iranian families are “quite a lot poorer than they were 15 years ago.” Iran’s middle class has shrunk dramatically since 2018, with a third of its population falling into poverty. 23% of the youth population is unemployed, according to the Financial Times.

Additionally, Iran is facing a record inflation of 42.9%. Its currency, the Rial, has sunk to all-time lows. Since August, the Iran Rial has lost more than 20% of its value against the United States (US) dollar.

Businesses, shop owners, and bazaar traders in several cities closed their stores and went on strike, joining the protests in solidarity, Bloomberg and Iran Wire report. According to a primer from the United States Institute of Peace, factory workers in the energy and petrochemical industries also went on strike.

The Iran Chamber of Commerce warns that every hour of internet restrictions due to the protests costs US$1.5 million in damages to the Iranian economy. Research from the Tehran Computer Trade Union Organization states that 47% of internet businesses have lost more than 50% of their income. If the internet disruptions continue, 73% of businesses with less than 50 employees will lose over US$1,100 daily.

The government is considering a 20% pay raise for state workers. Still, the Rial’s sharp fall has eaten away at any benefit for workers, says London-based Iranian news website Iran International.

How we can help

Policies and procedures for keeping pay programs functioning in highly volatile markets such as Iran are critical. Organizations must develop a Special Measures Policy to determine the triggers and equivalent measures to support staff and ensure business continuity during political unrest. In addition, decide how your organization plans to implement the next steps for your staff. Employees need to know they can rely on their employer to help them during times of uncertainty.

We at Birches Group have extensive expertise in developing Special Measures Policies for organizations across different markets and sectors. Speak with our consultants today to find out how we can create one for you.


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Birches Group monitors labor markets that are making headlines worldwide and wants to share news and updates on the current conditions in these markets.

The White House released in August 2022 the US strategy toward Sub-Saharan Africa (SSA). Its renewed policy supports four main objectives, including advancing pandemic recovery and economic opportunity.

A priority and opportunity

SSA is of growing importance on the world stage. Comprising 49 countries, the region is a geopolitical priority and an emerging economic opportunity. SSA countries hold roughly 25% of United Nations General Assembly seats. Moreover, the region is integrating into the world’s largest free trade area.

The US Department of Commerce’s International Trade Administration describes SSA as presenting real opportunity, with indicators such as:

  • A combined market population of over 1.2 billion people (that is expected to double by 2050),
  • A gross domestic product of more than US$1.5 trillion, and
  • Home to some of the fastest-growing economies in the world.

The World Bank reports that economic activity in the area is set to expand by 3.6% in 2022, 3.9% in 2023, and 4.2% in 2024. Additionally, its young population makes SSA an attractive investment destination. Massive demographic shifts in this part of the world provide tremendous opportunities to create jobs, boost incomes, and reduce poverty, especially in a global environment of slowing growth.

China and its growing influence in the region

The world is well aware of Africa’s importance, encouraging countries to expand their political, economic, and security engagement with African states. In the past 20 years, new actors, such as China, have been shifting dynamics across SSA. And Chinese influence in the region is real and significant.

In 2001, China received less than 3% of the region’s exports, compared to nearly 19% for the US. In 2009, China overtook the US as SSA’s largest trading partner. Almost 20 years later, China has emerged as the region’s single greatest export partner, holding an 11% share of exports in 2019, while the US share dropped to 5%. China’s Belt and Road Initiative has invested in SSA through transportation, power, water supply, and other infrastructure projects. China has also provided loans, investments, and aid.

The US reframes its Sub-Saharan Africa partnership

The US is responding to growing foreign activity and influence in SSA and is engaging a region undergoing significant transformation. “It would be a strategic mistake for the US to abandon its engagement with SSA altogether—especially as US adversaries and competitors are relentlessly increasing their investment in the region…” said Daniel Runde, Director of the Project on Prosperity and Development, and Sundar Ramanujam, Research Associate of the Project on Prosperity and Development at the Center for Strategic & International Studies (CSIS).

Biden’s policy differs from those of previous administrations because it focuses on overhauling its relationship with SSA from donor-recipient to genuine partnership. “Biden’s team extols Africa’s strengths and is proposing US-Africa partnerships on a range of issues,” said Mark Bellamy, Senior Advisor of the Africa Program at CSIS.

Further, Devex reports that the strategy has generally been well-received and is seen as sending a strong message about US engagement in the region. “It’s a strategy that reflects the region’s complexity—its diversity, its power, and its influence—and one that focuses on what we will do with African nations and peoples, not for African nations and peoples,” said US Secretary of State Antony Blinken as he announced the strategy.

It’s also an effort to make regional engagement authentic and not just a battleground to compete with China and Russia. “Too often, African nations have been treated as instruments of other nations’ progress rather than the authors of their own,” added Blinken in his announcement.

Why this matters to employers

With the intent of the US to reestablish ties and reinvest in SSA, employers with a presence in the region can anticipate a significant shift in the labor market in years to come. Monitoring the labor market as early as possible is critical for your organization to seize economic opportunities and remain competitive. Keeping an eye on market shifts enables your organization to plan and make informed decisions about hiring, pay management, employee benefits, and more.

How we can help

We at Birches Group survey leading employers in over 150 countries with a consistent methodology designed for dynamic, emerging markets across SSA. We survey labor markets of varying sizes, focusing on employers that set trends. Get updated and relevant data on every country in SSA. Speak with our consultants today to understand our data and how you can use it for your organization.

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The labor market is constantly changing and evolving. It changes to reflect demands and pressures from different sectors, industries, and locations. New jobs emerge, old ones disappear, and wages fluctuate—sometimes due to external forces and local or regional economic factors. Organizations must stay on top of trends and monitor the labor market to remain competitive. Those that don’t keep up risk being left behind and failing to meet the needs of their people.  

One way for organizations to stay ahead is to monitor the labor market. Doing so helps human resources (HR) teams understand how their organization is affected by market movement. Reviewing and interpreting labor market data allows HR teams to address critical questions such as: 

  • How can we determine how much the market pays for similar roles? 
  • How can we competitively position ourselves against our target peers? 
  • How can we become an employer of choice in the local labor market? 

Keeping an eye on the labor market enables organizations to make informed decisions about hiring, pay management, employee benefits, retention strategies, and more.  

This blog post will explore why organizations should track the labor market and how to do so effectively. When the organization knows what is coming, it can plan and ensure it is well-positioned when the opportunity to grow strikes. 

Establishing market composition and position 

Using labor market data can help organizations clearly and consistently establish their competitive strategy, notably their: 

  • Target composition, or which group of employers are similar and more relevant to the organization. Consider organizations from the same sector, employers you lose your staff to, and organizations you often hire staff from.  
  • Target position, or how competitive an organization wants to be. Identify the ideal percentile (e.g., 50th, 75th) of the labor market the organization wishes to attract.  

Determining its target composition and position enables an organization to understand where it stands against key employers in the market. It also guides the organization on what it needs to do to lag, match, or stay ahead of relevant comparators. Organizations must consider their compensation policies and budget to establish their target composition and position. 

Setting benefits 

Labor market data also gives up-to-date insights into benefits widely provided in each country. In addition to salaries, benefits come in the form of cash (allowances and bonuses), in-kind benefits (company bus, gift baskets, company products, etc.), and non-salary benefits (retirement plans, healthcare coverage, family benefits, and leave provisions). 

As the organization reviews compensation and benefits surveys, it can easily identify mandatory, cultural, and market practice benefits, as well as benefits that address local hardships. And while salaries often attract key talent to an organization, benefits make up a significant part of the compensation package in developing markets. By providing the proper compensation and benefits, the organization can remain competitive and retain talent.  

Identifying HR gaps and making the necessary adjustments 

Identifying the gaps in HR practices is another way organizations can benefit from monitoring labor market information. Some of the few questions that organizations will want to address are: 

  • Do our hiring rates remain competitive? 
  • Are we able to retain the talent we need? 
  • Are our employee benefits competitive in the market? 

When the organization encounters talent management issues—such as challenges in attracting the right talent or holding on to staff—it may be time to make adjustments to the compensation package. 

If the organization is looking for data scientists—but hasn’t found suitable candidates—it may be time to rethink the starting salaries to ensure they are comparable to other organizations hiring for a similar job. Or perhaps the organization starts to lose staff after some time. It may need to reassess policies on pay movement, benefits packages, or career advancement to entice staff to stay longer.  

Understanding the impact of the data

Organizations need to go beyond the labor market data. They must understand how changing HR policies and practices in reaction to emerging trends, shifts, and volatility affects staff. So, the question that needs to be addressed is: Do the organization’s policies and initiatives reflect labor market changes and demands? 

A recent example would be the shift from working at a traditional office to working remotely or in a hybrid format. After years of being accustomed to working from home (in response to the COVID-19 pandemic), employees now expect flexible work arrangements—so much that they are willing to leave the organization if it does not offer the option. 

Another example is managing dispersed teams. With many employees now preferring to relocate to places that are sometimes far from the office, how will adjustments to compensation and benefits affect staff based in different areas? Should organizations still base salaries on city rates or adjust them based on where the staff chooses to relocate?

Thus, organizations need to use labor market data and its implications to help inform their policies. Other key questions that organizations need to answer when looking at labor market data include: 

  • Is our compensation program reaching the talent we need? 
  • How can we maintain our relevance in the labor market? 
  • Are there opportunities for improvement? 
  • Will changing our policies and practices help or hurt us? 
  • What are the implications of these changes on staff? 

Managing compensation even through uncertainty 

Now more than ever, organizations need to closely monitor the market. With inflation rising in countries across the globe, employees need to know that their employer has a plan to help them get through turbulent times.  

Organizations can best manage economic turmoil by monitoring the labor market coupled with a special measures policy. When volatility happens, chances are employees are going to ask HR how the organization will help their families manage their day-to-day expenses. When market conditions warrant adjustments to compensation, this is easily defensible when you have the market data to support it.   

When unpredictable events such as economic volatility, natural calamities, armed conflict, and periods of unrest affect the regular dynamics of the labor market, organizations must keep participating and monitoring labor market movement. By doing so, the organization can determine proper triggers, based on data, that would justify changes to compensation and benefits, as well as the frequency to which adjustments are made.  

Bottom line: Know where you stand 

The labor market continues to shift. It may be difficult for organizations to keep up as the market relies on changes from other sectors of the economy and events from around the world. As such, it is critical to keep track of the ever-changing landscape. This ensures that organizations adapt and adjust policies and measures to meet new demands, positioning themselves for success.  

To do this, organizations need up-to-date data about the labor market to know what conditions are like in their area. Tracking the labor market through salary surveys can offer helpful insight into emerging trends that could impact the organization. Monitoring will help employers understand current conditions to make informed decisions about jobs, the market, and skills and performance. In the end, keeping one’s eyes on the labor market helps organizations stay competitive.  

Does your organization need labor market data, especially on developing markets? We at Birches Group offer the most comprehensive salary survey coverage, with data on over 150 countries. We survey markets of varying sizes and focus on leading employers that set trends. Get in touch with our consultants to get started. 


Carla is a part-time copywriter in our marketing team in Manila. Before shifting to freelance writing in 2020, she worked as a marketing and communications specialist at the offices of EY and Grant Thornton. She has written about HR and career development for Kalibrr. 

Follow us on our LinkedIn for more content on pay management and HR solutions.


Birches Group monitors labor markets that are making headlines worldwide, and wants to share news and updates on the current conditions in these markets. 

Defaulting on debt

In November 2020, Zambia became the first African nation to default on its Eurobonds during the COVID-19 pandemic, bringing the country’s debt distress into headlines around the world. The debt crisis resulted from “years of economic mismanagement,” the International Monetary Fund said. Drought in 2019 and COVID-19 in 2020 worsened Zambia’s economic challenges.  

A precarious macroeconomic situation 

But the Zambian economy was witnessing “a weak macroeconomic condition” even before the COVID-19 outbreak, the United Nations Conference on Trade and Development said. Growth was sharply declining. Zambia was facing severe challenges such as high inflation, unsustainable debt levels, low international reserves, and tight liquidity conditions, according to the economic outlook of the African Development Bank (AfDB). 

Over the past five years, Zambia’s economic growth slightly accelerated in 2017 and 2018, slowed in 2019, declined to a negative in 2020, and resumed in 2021, as reported by the 2022 Index of Economic Freedom. In 2018, Zambia’s Gross Domestic Product (GDP) was estimated at US$ 26.31 billion, with an annual growth rate of 4 percent. But an “expansionary fiscal policy mainly financed by external and local borrowing” caused Zambia’s debt to hit 91.6% of its GDP in 2019 and 104% in 2020.  

Inflation nearly doubled, and the Zambian kwacha quickly depreciated by 64%. When COVID-19 hit Zambia being in this situation, the country’s precarious macroeconomic position took a turn for the worse. The Zambian economy fell into a deep recession, the AfDB said. More inflation, currency depreciation, and a significant debt burden forced Zambia to default on its debt obligation and seek more relief from lenders. 

A new dawn for Zambia 

In August 2021, Zambia’s trajectory significantly shifted with the election of a new government led by longtime opposition leader Hakainde Hichilema. As Zambia’s seventh president, Hichilema inherited a nation with unsustainable debt larger than previously known and had to deal with the impact of its debt default.  

According to Deloitte, debt restructuring, talks with the International Monetary Fund (IMF), and a more stable exchange rate, among other measures, would be “fundamental to Zambia achieving macroeconomic stability.” Hichilema outlined an ambitious agenda to address structural weaknesses through macroeconomic reforms guided by an IMF program. 

Engaging the IMF 

“Zambia is in debt distress and needs a deep and comprehensive debt treatment to place public debt on a sustainable path,” the IMF said. The government began to actively seek a comprehensive debt restructuring. Specifically, it initiated a creditor engagement strategy to secure immediate debt service relief and better terms, the AfDB said. 

On December 6, 2021, the government of Zambia announced it had reached a staff-level agreement on a US$1.4-billion extended credit facility with the IMF from 2022 to 2025. On September 6, 2022, the IMF’s Executive Board approved a 38-month credit facility amounting to US$1.3 billion to “restore economic stability and foster higher, more resilient, and more inclusive growth.” 

These recent events marked a significant milestone and set the path for negotiations with Zambia’s lenders to restructure the country’s external debt.  

Focusing on economic recovery 

The country’s economic outlook has markedly improved, given renewed optimism and increased investor confidence post-elections. Additionally, the newly elected government has made several important policy announcements, including an enhanced focus on rebuilding the economy and creating an enabling business environment to foster growth. 

Zambia’s growth in the coming years is to be likely driven by “a clear path to debt sustainability, leveraging the country’s mining potential, increased private sector participation, focus on job creation, and good governance,” said Deloitte & Touche (Zambia) Managing Partner Humphrey Mulenga in Doing Business in Zambia. Economic activity will gradually pick up, with the World Bank estimating growth at an average of 3.8% from 2022 to 2025. While the market sentiment has markedly improved, the Zambian economy remains fragile, the IMF said in a September 2022 report. 

How we can help 

We at Birches Group survey leaders in over 150 countries with a consistent methodology designed for dynamic, emerging markets such as Zambia. We survey labor markets of varying sizes, focusing on employers that set market trends. Our survey data empowers organizations to monitor and benchmark positions in local markets and create salary structures tailored to each country’s requirements while conforming to global standards. 

Speak with our consultants today to access up-to-date labor market data and understand how to use it for your organization. 

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Birches Group has been keeping track of the volatile economic conditions in Zimbabwe and wants to share updates on the current labor market conditions there.  

Waning trust in local currency 

Al Jazeera reports that Zimbabwean authorities are struggling to pull the Southeast African nation from the grip of a severe economic crisis characterized by a rapidly devaluing local currency. Trust in the Zimbabwean dollar (Zimdollar) has been low after people saw their savings depleted by hyperinflation in 2008. Our July 2022 salary survey of the Zimbabwe labor market notes that the economy had dollarized between 2009 and 2019. 

Although the Zimdollar was reintroduced in February 2019, it continues to be sidelined in favor of the United States dollar (USD). Businesses and individuals see the USD as more acceptable overseas and better at holding long-term value. Because the Zimdollar became untradeable outside the country, employers were required to start paying salaries in USD.  

Local media outlets such as NewsDay have confirmed that demand for USD salaries has increased across economic sectors. In an opinion piece for New Zimbabwe, African affairs expert Teresa Nogueira Pinto writes, “There are now increasing fears that the country will experience another hyperinflation crisis as in 2008.”  

An exceptional situation 

Our Market Monitor categorizes labor market conditions according to six levels of volatility. Since mid-July, Zimbabwe has been classified as Level Five, indicating a prevailing practice to denominate salaries in USD or Euros. In our most recent salary surveys of the country, we have further noted that employer participants across sectors (including the NGO sector) now denominate and pay salaries in USD. This includes cash and in-kind benefits. 

However, our latest surveys indicate little to no market movement since February. We have not observed any activity in our multi-sector salary survey. But as of July 2022, we have seen minimal movement in our NGO salary survey: pay rates for support-level staff increased by 1.9% and at the professional or managerial level by 0.2%. Nevertheless, inflation has continued to soar in the triple digits since May. The Reserve Bank of Zimbabwe, the country’s central bank, reported an annual inflation rate of 256.9% in July from 191.6% in June. 

Next steps for employers 

It is vital to have policies and procedures to keep pay programs functioning and maintain business continuity in countries like Zimbabwe, where the labor market is unstable. A Special Measures Policy should be established to determine the triggers for updating salaries and benefits. In addition, organizations must decide how they plan to implement the next steps for their staff. Employees need to know that they can rely on their employer to assist them during times of crisis.

How we can help 

We at Birches Group have extensive expertise in developing Special Measures Policies for organizations across different markets and sectors. Contact us today to find out how we can create one for you. 

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When companies need to set or review salaries, they normally use local market data as their external reference. But what do you do when there is no local market data available? This is common in smaller countries where there are not as many established employers and little to no survey providers are present. As HR consultants, we have received many inquiries on this matter and have seen companies resort to using salary data from nearby countries in the region as their proxy.

While it is understandable that in this case, companies would think that salary data closest to them in terms of proximity could be a valid alternative because perhaps countries within the same region would share similar characteristics, this is certainly not the case. We conduct salary surveys in over 150 countries, three times a year and would argue that while the country next door would have many similar jobs as your own, salary rates and pay packages are considerably different.

In Birches Group, we believe that local staff salaries should always be based on local market data. Here’s why:

The cost of labor in every country varies significantly, even if they all belong to the same region. Local conditions and availability of talent are what drive salary movement in any country. Talent that could be widely available in one market, may be very limited in another. So, when smaller markets reference their salaries against larger markets, especially if they are regional locations where wages are usually three to four times higher, those salaries would be overstated if put into the local context.

Using the example above, this is a chart that illustrates the equivalent pay range for a BG-10, a Seasoned Professional, in each of the Southeast Asian labor markets. If you are an employer in Laos and lack salary data for a BG-10 level, it would not be advisable to reference the equivalent salary range in Thailand just because you share a border with them. Similarly, if you were to apply Thailand pay ranges locally in Myanmar, not only are you significantly overpaying, but this would also be challenging to defend and maintain moving forward.

Market practice on compensation and benefits is different for every country. For some markets, certain allowances or benefits are mandated by local law, while other markets do not share the same requirement. In other countries, employers provide benefits to address local hardships, such as a company shuttle provided to staff to address the lack of public transport. But if you look at other countries in the same region, this may not be the case. Also, some countries have benefits that are cultural in nature making it unique to their market, while others could have something else. If you reference pay practices from other countries, you risk ignoring the unique conditions of your own market. See this example below:

The chart above illustrates total compensation pay packages for a BG-10 Seasoned Professional in ten countries in east and southern Africa. If you look closely, each component of total compensation varies for every country. Using the example above on pay practices, if you are an employer in Tanzania for example, the pay mix at the BG-10 level is comprised of not only cash benefits on top of base salary but in-kind benefits as well. But choosing to use salary data from Kenya because they are close and they are a regional hub, the pay mix toward total compensation is not the same. If you apply this in the local Tanzanian context, you are missing market practices on in-kind benefits compared to other employers in the local market.

So What Should You Do?

If your organization is in a small market in need of salary survey data, we recommend working with a survey provider whose methodology is designed for developing markets. Survey providers are equipped to launch local salary surveys that can bring employers the market data they need to inform their pay management policies accordingly.

Birches Group’s Community Market Compensation and Benefits Surveys are designed with developing markets in mind. And because developing markets are dynamic, our surveys cover all elements toward total compensation to give our clients the full context of the local labor market. Contact us to access the market data you need or to learn more about our subscription options.


Want to know if your existing compensation practices have the elements of a good compensation program or if there are areas that could use some improvement? Take our quick Compensation Program Assessment Quiz


Bianca manages our Marketing Team in Manila. She crafts messaging around Community™ concepts and develops promotional campaigns answering why Community™ should be each organization’s preferred solution, focusing on its simplicity and integrated approach. She has held various roles within Birches Group since 2009, starting as a Compensation Analyst and worked her way to Compensation Team Lead, and Training Program Services Manager. In addition to her current role in marketing and communications, she represents Birches Group in international HR conferences with private sector audiences.

Follow us on our LinkedIn for more content on pay management and HR solutions.


In Birches Group, we apply a total compensation approach when analyzing salary survey data.  While we understand that many employers are primarily interested about how their base salaries compare against other comparators, we should not forget that benefits also play an important role in many markets, particularly in developing countries.

For many years, Birches Group has been conducting salary surveys in over 150 countries around the world. Our experience working with high growth markets has shown us that when employers center their decisions on base salary alone, they are essentially discounting the value benefits have in that market and its possible impact on staff recruitment and retention.

If you are working with developing market data, here are three reasons why total compensation is the best approach:

  • Pay Packages Can be Varied – Every organization has its own pay policy. This policy then guides how organizations design their pay packages. Depending on how competitive they want their salaries to be, the types of benefits they can include, and their target peer group, you can imagine how varied pay packages can be in just one single country. In some markets, benefits could be government mandated, some could be cultural, and others could address local market conditions. If all these benefits are provided by majority of your target comparators, then it would not be enough to compete on base salaries alone.
  • Market Practice – As mentioned, some benefits are considered statutory, while others are cultural in nature. It is the responsibility of the employer to know what the local market practice is and tailor their pay policy around this. Not only do you have to abide by what the law states, but also some benefits are given for historical reasons. Concentrating on just cash could make you fall short in the point of view of your staff.
  • Being Competitive – Not all organizations compete the same way. Some companies like to have competitive base salaries but not provide many benefits, while others may not have competitive base salaries but offer very attractive benefits. The only way HR can properly determine competitiveness is through a total compensation view. We believe that it is important for employers to have a “healthy” mix of base salary, cash, and in-kind benefits at every level, where pay packages are competitively aligned to your market but still following internal policy.

Birches Group surveys are designed with developing markets in mind. Our survey reflects employer practice for a wide variety of allowances and benefits, both cash and in-kind, demonstrating nuances commonly found in these markets. And because developing markets are dynamic, every country is updated on an ongoing basis three times a year, in April, July, and October. Contact us to access the survey data that you need.


Want to know if your existing compensation practices have the elements of a good compensation program or if there are areas that could use some improvement? Take our quick Compensation Program Assessment Quiz


Bianca manages our Marketing Team in Manila. She crafts messaging around Community™ concepts and develops promotional campaigns answering why Community™ should be each organization’s preferred solution, focusing on its simplicity and integrated approach. She has held various roles within Birches Group since 2009, starting as a Compensation Analyst and worked her way to Compensation Team Lead, and Training Program Services Manager. In addition to her current role in marketing and communications, she represents Birches Group in international HR conferences with private sector audiences.

Follow us on our LinkedIn for more content on pay management and HR solutions.


Salary surveys are an important HR tool. They are necessary for organizations to properly manage and maintain compensation every year. However, survey approaches can differ greatly from one provider to the next, particularly in the information they collect, their approach to job matching, and their treatment and presentation of employer data.

When deciding which survey data to use, it is essential for HR practitioners to familiarize themselves with the kind of information that each survey provides, the methodology behind the analysis, and the limitations that come with every approach. Here are some things to keep in mind to help organizations steer clear of typical salary survey missteps:

  • Limits When Working with Job Data – in our article, “Measuring Market Position”, we explained that too much emphasis has been placed on certain occupations just because they are considered ‘hot jobs.’ But occupational variance is not as significant as you think, especially when looking at salary surveys, because when you update your salary scale, you essentially update your grade levels – and grade levels are generic, not based on occupations. When looking at survey data, job data can be a useful additional reference if you want to look deeper into the market data. But it is important to note that job data is not what impacts your salary scale, but grade level data.
  • Limits When Working with Incumbent Data – we have mentioned in a few of our past articles how incredibly misleading incumbent data can be when used as a survey data reference. Many employers believe that if a salary survey reports actual incumbent salaries, the market data is somehow perceived as more ‘accurate’. In Birches Group, we believe that salary range data, not incumbent data, provides a more stable and realistic view of the labor market. Incumbent salaries are person-based, highly dependent on the qualities of the individual sitting in that position. When working with incumbent salaries, it is common to find outliers that significantly skew the overall market data because their individual salaries are influenced by other factors separate from the job. But when salary ranges become the reference, this provides a more accurate picture of market movement and serves as bookends that prevent outliers in the analysis.
  • Limitations When Working with Just Base Salary – some employers, when looking at survey data, tend to rest their analysis just on base salary information. The problem with this approach is that in majority of labor markets around the world, base salary is only one component of an employee’s actual compensation. To be considered as an employer of choice, you will need to look at the full package, and that includes benefits – cash and in-kind – as well as market practices on non-salary benefits such as pension, medical, etc. In some markets, benefits have a big impact when it comes to recruitment and retention. In other countries, some benefits are mandatory, some cultural, while others address local hardships.

Birches Group’s conducts compensation and benefits surveys in over 150 countries around the world. Our multi-sector approach is designed for high growth, developing markets where leading employers determine local market trends and practices. We capture data from a total compensation perspective because in many of these markets, base salary is only part of the picture. Additionally, because developing markets are volatile, our surveys make use of salary range data to provide our participants a more accurate movement of the market that is linked to the purpose of the job, not the incumbent. Lastly, our surveys are updated three times a year, every April, July, and October which guarantees our clients fresh data every time. Contact us to learn more about our Community™ Compensation and Benefits Survey in your country.


Want to know if your existing compensation practices have the elements of a good compensation program or if there are areas that could use some improvement? Take our quick Compensation Program Assessment Quiz


Bianca manages our Marketing Team in Manila. She crafts messaging around Community™ concepts and develops promotional campaigns answering why Community™ should be each organization’s preferred solution, focusing on its simplicity and integrated approach. She has held various roles within Birches Group since 2009, starting as a Compensation Analyst and worked her way to Compensation Team Lead, and Training Program Services Manager. In addition to her current role in marketing and communications, she represents Birches Group in international HR conferences with private sector audiences.

Follow us on our LinkedIn for more content on pay management and HR solutions.