It's that time of year again when money is on everyone's mind. Before you stuff those ang paos ahead of Chinese New Year, here's a look at how the market is expected to grow and where your industry stands in comparison to the rest of the region.
Pay raise for staff
In 2022, organisations in the Asia Pacific are planning a 5.08% average pay raise for executive, managerial, and professional employees, as well as support staff.
According to the newest Willis Towers Watson's (WTW) Salary Budget Planning Survey Report, companies granted employees an average pay raise of 4.62% in 2021. Between October and November 2021, WTW conducted a survey of 5,728 firms in the Asia Pacific.
High tech (5.39%) emerged as the industry with the largest predicted income growth in the Asia Pacific, followed by pharmaceutical and health sciences (5.12%) and consumer products and retail (5.05%).
Meanwhile, salaries are predicted to increase slightly in Malaysia (4.7%), Singapore (3.8%), and Hong Kong (3.8%).
According to WTW, 30% of companies said they increased their budgets from previous predictions due to the tight labour market, while 23% expected higher financial outcomes and 19% mentioned cost management concerns such as rising supply costs and inflation.
Furthermore, labour shortage in some industries is pushing up demand for skilled workers, while a push for growth in other sectors is sparking a talent war as employers strive to recruit and retain workers who have more options than in previous years.
Total attrition rates have risen dramatically in numerous markets, including Australia, Hong Kong, Singapore, South Korea, and Thailand, with most now reaching pre-pandemic levels.
With Asia Pacific's consumer price index predicted to exceed 3% or even higher in some areas, Edward Hsu, business leader, incentives data and software, Asia Pacific, WTW, stated that employers will most likely take living costs into account for wage hikes.
He said that with a dynamic pandemic situation, an uncertain talent market, and shifting compensation conditions, employers will need to keep a close eye on market trends and developments, as well as examine and alter their business operations accordingly.
Increased salary alone will not be enough to help them overcome their attraction and retention issues. Employers must continue to be innovative and comprehensive in their Total Rewards strategy in order to win the talent race. Hsu stated that creating a forward-looking rewards program that is designed for future success to support the organisation is also necessary.
Source: Willis Tower Watson