New Zealand (2)

Title of the survey

Annual Enterprise Survey (AES)

Organization responsible

Statistics New Zealand

Periodicity of the survey

Annual.

Objectives of the survey

To provide annual statistics of income and expenditure by broad industry group, accounting aggregates needed for National Accounts, and quarterly and annual Gross Domestic Product estimates.

Main labour topics covered by the survey

Financial statistics, among which, compensation of employees.

Reference period

The year ending on 31 March or the nearest balance date.

Coverage of the survey

Geographical

The whole country.

Industrial

All branches of economic activity except agriculture (but agricultural services are included), owning and leasing of real estate and non-market government services, holder-investment and superannuation industries.

Establishments

Establishments which must compulsorily register for Goods and Services Tax (GST).

Persons

Not relevant (employment data are estimated on the basis of information available in the Business Directory).

Occupations

Not relevant.

Concepts and definitions

Employment

Not relevant.

Compensation of employees

This is defined as the total cost incurred in the employment of staff. It includes all wages and salaries paid to all employees during the accounting year, as well as non-wage benefits, such as employers' contributions (e.g. for superannuation, severance, accident compensation levies), redundancy payments, value of free supplies and sales commission paid to own employees. Excluded are capitalized wages and salaries. Monetary compensation of employees has always been surveyed as part of company expenses, but not necessarily separately identified.

Hours of work

Not relevant.

International recommendations

The definition of compensation of employees conforms to the United Nations System of National Account (SNA).

Classifications

Components of labour cost / compensation of employees

The following main components can be separately identified: Also collected are fringe benefit taxes (e.g. taxes on benefits like vehicles for private use, medical insurance, low interest loans); from which the value of fringe benefits can be derived.

Industrial

Data are classified according to the New Zealand Standard Industrial Classification (NZSIC), which can be linked to the International Standard Industrial Classification of all economic activities (ISIC), Rev.2, 1968. It will soon be replaced by the Australia and New Zealand Standard Industrial Classification (ANZSIC), 1993.

Occupational

Not relevant.

Others

By sector.

Sample size and design

Statistical unit

The sampling unit is the enterprise, defined as a single business entity operating in New Zealand either as a legally constituted body such as a company, partnership, trust, local or central government trading organization, incorporated society, or self-employed individual. The reporting unit is the accounting unit of the enterprise.

Survey universe / sample frame

This consists of the Business Directory which covers some 200,000 enterprises (as at February 1994), representing some 1.25 million persons engaged. The frame is continuously updated on the basis of the Annual Business Directory Update (in February of each year), and by information received from surveys such as the Quarterly Employment Survey, the Quarterly Manufacturing Survey, the Retail Trade Survey, the Wholesale Trade Survey and the Annual Enterprise Survey.

Sample design

The survey is based on a stratified random sample design. Stratification is by industry groupings, formed using the NZSIC. The number of industries may vary from year to year based on users' needs. Up to three sub-strata are formed within each industry group, on the basis of the number of persons employed by each enterprise. Within each stratum, a systematic random sample is taken. Full coverage is extended to all multiple-accounting unit private sector enterprises, and to the central and local government sectors. Some industries are also included with certainty, due to the small number of persons engaged or the specialized nature of the enterprises. In the sample part, the sampling fraction varies with the industry group. The sample is renewed each year.

Field work

Data collection

By mailed questionnaires which are sent at the end of the financial year.

Survey questionnaire

This contains over 50 questions on income, expenditure, the value of stocks, income tax and dividends, fixed assets, capital work, etc. Compensation of employees is surveyed as part of the enterprise expenditure.

Substitution of sampling units

There is no substitution of sampling units in case of total non-response (due to refusal, establishments which have closed down or moved with an unknown address, etc.). Data are imputed on the basis of the previous year returns or are based on similar units in the same industry.

Data processing and editing

Data are checked first manually, then processed by computer. They are edited through machine edit programmes. Non-respondents are contacted by telephone and, if necessary, by mail, or enumerator's visit. Range and consistency checks are made, with regard to employment and payments based on full-time equivalents (FTE).

Types of estimates

Average compensation of employees per employee and per year. The number of FTE is obtained from the Business Directory.

Construction of indices

None.

Weighting of sample results

In the sample part of the survey, AES data in the sampled enterprises are multiplied by the inverse of their probability of selection. The results are added to those of the enterprises included with certainty.

Adjustments

Non-response

No adjustments are made for non-response.

Other bias

No adjustments are made for any other bias.

Use of benchmark data

Not relevant.

Use of other surveys

Not relevant.

Indicators of reliability of the estimates

Coverage of the sampling frame

Not quantified in terms of percentages. However, those businesses or organizations that are not covered by the Business Directory employ a small number of staff and contribute little to the economy. The proportion not covered would be very low.

Sampling error / sampling variance

About 5 per cent.

Non-response rate

Approximately 20 per cent of the sampled enterprises.

Non-sampling errors

Inaccurate data supplied or inaccurate editing may be the source of bias in the survey results. However, the enterprise's financial accounts are consulted to check the time validity of the survey results.

Conformity with other sources

Data are compared to sub-annual or annual surveys and other sources, where appropriate.

Estimates for non-survey years

Not relevant.

Available series

Tables are published for each of the industries covered, with general statistics on total sales, stocks, total operating expenditure, etc. presented for different periods to allow comparisons.

History of the survey

The Annual Enterprise Survey started in 1986 a reference period of 12 months beginning 1 October. In 1989, the reference period was changed to the 12 months beginning 1 April. A census of all enterprises was performed in 1987. The survey questionnaire and sample selection were redesigned in 1990. Redundancy costs have been separately enumerated since 1992. More industries are surveyed and more detailed costs have been enumerated over the years.

Documentation

Statistics New Zealand: Annual Enterprise Survey (annual, Wellington). The results are released about 18 months after the reference period of the survey. idem: Hot-Off-The-Press (Information Bulletin) (ibid.). Unpublished data can also be made available upon request, at the industry levels, according to various selection criteria, and on paper or floppy disk, subject to confidentiality criteria.

Confidentiality / Reliability criteria

The data are used for statistical purposes only. Any release of information will only be in accordance with the Statistics Act 1975. Cells are deemed to be confidential if (i) less than three Group Top enterprises contribute towards it, or (ii) two or less Group Top enterprises contribute to 80 percent or more of its value.

Other information

Data supplied to the ILO for publication

Statistics of average compensation of employees per employee and per year in manufacturing are published in Tables 22A and 22B of the Yearbook of Labour Statistics.