Bangkok--8 Apr--Spark Communication
- Employee turnover washighest in 2012 and 2013
- Talent retentionranks as number one HR challenge
Thailand, March 312014– The overall salary increase in Thailandin 2013 was 5.4% and is projected to increase to 6% in 2014(as shown in Figure 1: 2013 – 2015 Salary Increase by Employee Level), according to theThailand 2014 Q1 Flash SurveyHR Trends and Challenging IssuesforGeneral Industry by Towers Watson (NYSE, NASDAQ: TW), a leading global professional services company.
For entry level salaries in 2013 across all industries, the findings showed the highest paid are graduates from the Engineering and Research & Developmentsectors at THB 18,000 per month.
The survey also found that the employee turnover rate was highest in 2012 (12.5%) and 2013 (12.8%) compared to the last four years.The industries which experienced the most employee turnover in 2013wereInsurance, Financial Services, and Electronics at 20%, 18%, and 17.3% respectively.The employee turnover rate was at an average of 9.35% from 2008 to 2011.
In addition, the survey revealed that Engineering and Sales are the roles where organisations are facing the most attraction and retention-related issues. In fact, talent retention wasrankedthe number one HR challenge in 2013 and 2014 consecutively (refer to Table 1: HR Challenges in 2013 and 2014). The voluntary turnover rate in 2012 and 2013 was the highest in the last four years.
Pichpajee Saichuae, Managing Director of Towers Watson Thailand said, “High quality talent is limited. This has put a real challenge on companies’ talent management programme affecting their competitiveness.”
Companies were also asked about their strategies to handle uncontrollable external factors such as political situations or natural disasters. The first three responses were review market strategy (45%), review safety and working solutions policy (44%) and offer remote working (42%), while only 7% chose to lay off their staff.
“Companies certainly consider the external environment more carefully than they have donein the past, and strategic planning has become critical to ensuring companies have plans in place so that their employees continue to be productive during any event,” said Pichpajee.
The Thailand 2014 Q1 Flash Survey also revealed companies’ key talent strategies to prepare for the upcoming AEC integration in 2015. Unsurprisingly, the first-ranked response accounting for 65% was to provide internal training on language(s) whereas 58% emphasized on the leadership development. “As AEC will bring more foreign employees, it is critical for top management todevelop their capabilities to manage and lead an international workforce,” concludedPichpajee.
About the Survey
Towers Watson Thailand’s 2014 Q1Flash Survey, HR Trends and Challenging Issues for General Industry was completed between January and March 2014 by a total of 93 companies across a range of industries from automotive, financial services, insurance, manufacturing, electronics, high-technology and chemical. The survey results generally reflect the findings from the annual 2013 Total Rewards Survey (TRS),which was conducted from July to October 2013, but provided more recent data.
The Total Rewards Survey provides insights on the current compensation and benefit related trends in Thailand. In 2013, more than170companies participated in the survey. The survey is aimed at helping organisations make informed decisions about total reward programs for its employees. The results can help companies in validating their salary competitiveness in the market, support their recruitment initiatives and also ensure that correct salary adjustments are made for critical roles.
About Towers Watson
Towers Watson (NYSE, NASDAQ: TW) is a leading global professional services company that helps organisations improve performance through effective people, risk and financial management. The company offers solutions in the areas of benefits, talent management, rewards, and risk and capital management. Towers Watson has 14,000 associates around the world and is located on the web at towerswatson.com.