Most employers in Hong Kong (57 per cent) plan to provide only modest salary increases of three to six per cent in their next review period, while 19 per cent plan increases of up to three per cent, according to recruiting experts Hays.
The 2016 Hays Asia Salary Guide found that, 11 per cent of Hong Kong employers plan to increase salary by six to 10 per cent and only six per cent by more than 10 per cent. A further seven per cent of employers do not plan to award any increases this year.
Compared to actual increases awarded during last year’s reviews, there has been a little change. Of those taking part in the survey, 57 percent increased salaries by three to six per cent; 16 per cent by up to three per cent, 11 per cent by six to 10 per cent and eight per cent by more than 10 per cent. A further eight per cent of employers did not provide any salary increases last year.
China is the most generous employer surveyed for this year’s annual guide, with the majority 50% of employers awarding salary increase between six and 10 per cent. Japan is the least generous in terms of salary increases with most, 63% of employers, awarding up to three per cent.
Benefits
Across all countries, 84 per cent of employers provide staff benefits in addition to salary and bonuses. Health/medical is the most commonly offered benefit (78 per cent of employers) followed by life assurance (offered by 42 per cent of employers), a car/car allowance and a pension (both offered by 33 per cent of the employers).
“We expect most employers to tread carefully on salary this year to help navigate business and economic conditions, so bonuses and benefits are additional ways they can reward staff without inflating salary budgets,” says Christine Wright, Managing Director of Hays in Asia.
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“In saying that, nearly all employers are expecting to feel an impact from skill shortages this year, which could put upward pressure on salaries in some areas. About a third of employers told us they don’t have the right talent needed to meet current business objectives.”
Bonuses
Looking across all five countries namely – China, Hong Kong, Japan, Malaysia and Singapore in the coming year, 63 per cent of employers intend awarding staff bonuses, however only 10 per cent confirmed that their organisation guarantees bonuses.
When asked to nominate the one or more factors influencing bonuses, 95 per cent of employers cited company performance, 92 per cent nominated individual performance and 37 per cent said team performance.
In terms of the value of bonuses, 33 per cent of employers intend awarding up to 10 per cent of staff salary as a bonus, 44 per cent plan to award 11 to 50 per cent of salary as a bonus, and 13 per cent from 51 to 99 per cent of salary as a bonus. A further, 10 percent plan to award 100 percent of staffers, salary as a bonus.
Also read: Top 75 Companies in Hong Kong Revealed: Randstad Award 2016
Image credit: hongkongbusiness.hk
