Even a small amount of growth across New Zealand’s SMEs would have a significant impact on our economic performance. By recent measures, the sector contributes 42% of total economic output.

Yet only 47% of CEOs of private sector companies with fewer than 30 employees received some form of performance pay compared to 67% of larger companies.

Ignoring incentive pay is missing an opportunity to take the business to the next level.

With the recent drop in the CPI employers could be excused for breathing a sigh of relief as relatively low inflation often signals a softening in demand for pay increases. However, with the CPI forecast to jump to 5% later in the year this could be just the catalyst for a sudden swell in demand for pay increases.