December 21, 2014

Say Bye Bye to That End of Year Raise

So you thought that you did great work and you are due to get a big pay raise? Well, think again. According to a report by the The Manufacturers Association of Israel, there is a good chance that your employer is about to cancel any potential pay raise. In an article in Globes: “46% of industrial companies have canceled employee pay hikes planned for 2009, and 40% of companies have canceled bonuses, according to a new survey by the Manufacturers Association of Israel of 50 companies. The firms surveyed ranged from small to large, and included all manufacturing sectors.”

This is just more evidence that the Israeli economic growth has come to a standstill, and the outlook is not all that hot. The good news is that companies are taking these cost cutting steps before things get really bad. What that means is that when things recover, and yes they will recover- this is not the end of the world, Israeli firms will be much more trim and agile and be ready to aggressively gain market share.

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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.

About Aaron Katsman

Aaron Katsman is the President of Lighthouse Capital, financial columnist for the Jerusalem Post and a renowned speaker on investing in Israel.

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