Its that time of the year when money is on all our minds. Before you start stuffing those ang pao's ahead of Chinese New Year, we wanted to give you a look at how the market is projected to grow and where you stand in comparison to the rest of the region.
Overall, companies in Asia Pacific are budgeting an average increase of 5.08% for executives, management and professional employees, and support staff in 2022. Companies gave employees an average pay increase of 4.62% last year, according to the latest Salary Budget Planning Survey Report by Willis Towers Watson (WTW). The survey of 5,728 companies in Asia Pacific was conducted between October and November 2021.
On the industry front, high tech emerged as the industry with the highest projected salary increase in Asia Pacific (5.39) followed by pharmaceutical and health sciences (5.12) and consumer products and retail (5.05).
Meanwhile, those in Malaysia (4.7%), Singapore (3.8%) and Hong Kong (3.8%) are expected to increase salaries slightly as well.
According to WTW, 30% of employers cited the tight labour market for increasing their budgets from prior projections, while 23% cited anticipated stronger financial results and 19% on concerns related to cost management such as inflation and rising cost supplies.
Additionally, a manpower shortage in some sectors is driving up demand for skilled workers, and a push for growth in others is igniting a war for talent as companies compete to attract and retain employees who have more choices than in recent years. The total attrition rates in several markets such as Australia, Hong Kong, Singapore, South Korea, and Thailand have jumped significantly, with most now exceeding pre-pandemic levels.
Edward Hsu, business leader, rewards data and software, Asia Pacific, WTW, said with Asia Pacific's consumer price index expected to hit 3% or even more in some markets, employers will most likely take living costs into account for salary increases.”
“With an evolving pandemic situation, unstable talent market and changing pay conditions, employers will need to monitor market trends and changes, and proactively review and adjust their company practices accordingly. Bigger pay rises alone will not be enough to help address their attraction and retention challenges. Winning the talent race will require employers to continue to be creative and comprehensive with their Total Rewards strategy. It is also important to design a forward-looking rewards programme that is built for future success to support the business," Hsu explained.
Photo courtesy: 123RF
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