The recently released eight annual edition of Hays Salary Guide for Asia in 2015 shows increased hiring intention among companies, despite talent shortage. This 2015 Salary Guide by Hays highlights benefits for HRs and employers alike. Companies are now offering higher benefits to secure preferred candidates and performance-related bonuses are on the rise for top performers.
Despite Asia’s tight talent market, passionate job seekers are taking advantage of the secure roles that lead to career progression, increased stability and ultimately salary hike. The hiring trend shows that employers are increasingly hiring candidates in temporary and contractual roles, and recruitment is at its peak of youth in Asia.
83 percent of the employers in Asia continue to offer benefits to their staff, with health coverage being the most popular benefit offered. Interestingly, China leads its Asian neighbours when it comes to the extent of its salary increases; however in terms of benefits it is far more restrained.
The 2015 Hays Asia Salary Guide gathers views from employers across different sectors on recruitment trends, business outlook for the year and salary policy. Of the 2,361 organizations surveyed, representing 4,017,026 employees who participated in this research project, only 43 percent of employers across Asia increased salaries in their last review by three to six per cent. In the year ahead, only 41 percent of employers will increase staff salaries by 3 to 6 percent in the next review.
Country Specific Salary Trends for HR Professionals in 2015
“The HR market in Malaysia will continue to grow and for organizations to remain competitive they must strive to expedite their recruitment process to ensure they secure top HR talent.”
During the last one year, a quarter of employees have downsized their HR department, while 39 percent reported no changes to the HR department within organisation, 35 percent are in the process of transformation and looking forward to create more opportunities for HR professionals.
“With project-driven requirements fuelling demand, the 2015-16 year will have a strong focus on contract roles and temporary assignments, particularly for skilled candidates who can facilitate cultural change and efficiency programs,” the report said.
“As a result, competition for permanent roles is intense and HR professionals navigating the employment market will need to be informed and realistic about permanent salary levels as well as open to contract roles. In the last 12 months many candidates in permanent positions, and looking for their next career move, found it difficult to secure a new role with a salary equal to, or higher than, their current salary.”
This year 51 per cent of employers across Asia will award bonuses to more than 50 per cent of their staff. In most cases, these bonuses are related to employee performance (80 per cent) and employer performance (73 per cent), which shows that the employers are using performance-related bonuses to reward their top talent. Just 11 per cent of employers said bonuses are guaranteed.
“We have also seen an influx of highly skilled senior HR professionals entering the market over the last year as a result of large-scale redundancies across the government, resources and mining and construction sectors,” the report stated.
Despite the focus on localizing the workforce in many countries, 65 per cent of employers will consider employing or sponsoring a qualified overseas or expatriate candidate in skill-short areas. This is indicative of Asia’s severe talent mismatch. These trends indicate that employers in Asia should continue to innovate to attract talent in a tight labour market.