BANGKOK, Nov. 8 --Xinhua-PRNewswire/PRNewswire
The average overall salary increase budget in the Thailand
Ranged from 5.7% to 6.6% in 2004. While many
Respondents predicted a further raise next year,
3% continue to project pay freezes
Due in large to a region-wide economic upswing, employers are reporting a
more positive outlook for salary increases in 2004, and projections for 2005
indicate this trend will continue. While increases are still marginal, they do
mark an improvement from 2003 with few pay freezes expected, according to the
Annual Asia Pacific Salary Increase Survey conducted by Hewitt Associates
(NYSE: HEW), a global human resources services firm.
Hewitt surveyed more than 1,000 foreign, locally-owned, and joint-venture
companies, in Australia, China, Hong Kong, India, Japan, Korea, Malaysia, the
Philippines, Singapore, Taiwan, and Thailand. The study measures actual and
projected salary increases, and compensation practices for five specific job
categories, namely senior/top management, manager,
professional/technical/supervisory, clerical/support, and manual workers.
India demonstrated the highest average salary increase again in 2004,
followed by China, the Philippines, and Korea. Employees in the Indian
information technology industry were awarded the highest average salary
increases at 14.5%.
Not surprisingly, employees in China continued to enjoy average salary
increases ranging from 6.4% to 8.4% in 2004. Hot on China's heels came the
Philippines, which boasted 7.4% to 7.7% increases; and Korea with 6.4% to 6.8%
increases.
While Hong Kong's economy has picked up, this has yet to translate into pay
with salary increases ranging from 1.3% to 2%. Singapore, on the other hand,
which also experiences a more vibrant economy, had average salary increases of
3.2% to 3.7%. Salaries also rose in Australia, Japan, Malaysia, Taiwan, and
Thailand.
"The economic upswing is clearly reflected in the overall increases
experienced by countries in Asia," said Mick Bennett, Hewitt's Managing
Director for Asia Pacific. "Considering the global attention drawn by India,
the Philippines and China, it is not surprising to see highest salary increases
in these countries."
A Stronger Outlook for 2005
The outlook for increases in 2005 looks even stronger with employers saying
they are more confident about the direction of the economy than they were this
time last year. Survey respondents in all countries projected greater salary
increases for 2005, albeit minimal.
More notably, however, there has been a stark reduction in the number of
companies projecting pay freezes for 2005. Of survey participants in Australia,
China, India, Malaysia and Singapore, none anticipate a salary freeze in the
year to come. Only 3% of respondents in the Philippines, Taiwan, and Thailand
expect a salary freeze; and only 1% in Korea. Only 6% of employers in Hong Kong
anticipate a salary freeze in 2005, which is a considerable drop from last
year, in which 31% of participating companies recorded a salary freeze.
Variable Pay
Variable pay, as a percentage of total compensation, is still seen by
employers as an important means of attracting and engaging senior management.
By and large, those in senior/top management still receive the highest portion
of variable pay and it is expected that the ratio of variable pay to fixed pay
will increase from 2004 to 2005 almost across the board.
Stock options remain one of the region's most favored long-term incentives;
however, an exceptionally high number of companies in Asia still offered
employees fixed bonuses in 2004. The Philippines led the way with 65% of survey
respondents offering fixed bonuses. Taiwan recorded 64% of respondents offering
fixed bonuses, and Hong Kong and Singapore both recorded 57%.
High Attrition
High attrition rates continue to be an issue in Asia. The average overall
turnover rate among respondents in most markets rose from approximately 10% in
2003 to just over 12% in 2004. The greatest turnover was reported among
employers in India, where the average overall turnover rate was as high as
15.4%.
"Higher levels of attrition in Asia have resulted in increased pressure on
organizations to retain key talent. Today, HR practitioners are taking more
focused initiatives by developing cohesive and meaningful HR retention
programs," said Nishchae Suri, Hewitt's Asia Pacific Business Head for Talent
and Organization Analytics Consulting.
Other markets with high turnover rates include Australia (15.1%), China
(12.6%), and Hong Kong (12.1%). At 12.4%, Malaysia still has a high average
attrition rate, however has demonstrated a serious improvement on last year's
figure, which peaked at 17%.
To obtain a copy of the market reports, please email
[email protected]
About Hewitt Associates
With more than 60 years of experience, Hewitt Associates (NYSE: HEW) is the
world's foremost provider of human resources outsourcing and consulting
services. The firm consults with more than 2,300 companies and administers
human resources, payroll and retirement programs on behalf of more than 300
companies to millions of employees and retirees worldwide. Located in 35
countries, Hewitt employs approximately 19,000 associates. For more
information, please visit: http://www.hewittasia.com / http://www.hewitt.com
Asia Pacific Salary Increase Survey 2004-2005 - Market Highlights
Thailand
* Information was collected from 121 organizations. Participants include
55 service organizations, 65 manufacturing organizations and one
multi-industry organization.
* Three percent of participating companies reported a salary freeze for
2004, and this figure is not expected to change in 2005.
* The average overall salary increase budget ranges from 5.7% to 6.6%
for the five employee groups surveyed for 2004, and from 5.9% to 6.8%
for 2005.
* Senior/top management continue to have the highest percentage of
variable pay in their total cash compensation.
* Half of the participating companies position their salary by
comparing total cash with the market, while only 31% benchmark
base salary with the market.
* It is expected that the ratio of variable pay to fixed pay will
increase from 2004 to 2005.
* More than half (57%) of participating companies offered fixed
bonuses to their employees in 2004.
* Stock options are the most popular form of long-term incentive
among participating companies.
* The average turnover rate for participating companies is 10.6%.
Contact:
John De Veyra, +66-2-636-0575, [email protected]
Munish Malik +852-2877-8600, [email protected]
SOURCE Hewitt Associates
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