Bangkok--28 Aug--ScottAsia Communications The pay gap between clerical staff and their managers in Thailand is the second largest in Asia, according to a report released today from global management consultancy, Hay Group. Vietnam has the largest gap with China in third place. In all three countries, the gross base salary of managers is over 10 times higher than their clerical staff in 2007. In more developed economies such as Australia, South Korea and New Zealand, the pay gaps follow the trends of mature economies of UK and US, hovering around the 3.1 mark. [See table 1 at end of this release. Hay Group's Reward Information Services Country Manager, Mr Boonlerd Viboonkiat said: "Thailand's high ranking is in part due to the fact that starting salaries for clerical jobs in Thailand are relatively low. At the other end, bigger salaries are being used to bring in senior managers, often from overseas, due to a skill shortage here." Thailand's predicament is not unique, said Hay Group's Singapore-based Mr Roland Ruiz, Managing Director, Reward Information Asia. "Our analysis shows that the powerful growth of emerging Asian markets is outstripping the global supply of senior managers. In Vietnam and China, there is a real lack of management talent. Pay is indicative of the premiums being paid to managers to attract and retain them. This trend is likely to continue as the Asian economy continues to enjoy positive growth." Further analysis of Hay Group data for the three-year period 2005-2007 shows that the gap is not narrowing in Asia, unlike the Pacific countries of Australia and New Zealand, which have been hovering around the 3.0 mark (See table 2 below). In India, China, Vietnam and Thailand, the pay gap has been steadily increasing over the past three years in tandem with economic gains. The pay gap in the Philippines has remained fairly constant in part due to the strong union movement. Developed Asian economies such as Hong Kong, Singapore, and South Korea have also remained consistent. However, the Hay Group expects Asia's pay gap to widen in the next five years as the global war for top level management talent intensifies. Mr Ruiz said: "There are social and business implications of this trend of ever-widening pay gaps in Vietnam, China, India and Thailand. Governments may choose to impose minimum wage schemes or reform their tax structures in the short term, or invest in more education and training in the longer-term so as to spread the economic gains. All these will have implications on companies doing business in these countries." He added: "The widening pay gap is also indicative of the wide divide in skills and capabilities between senior executives and clerical employees. Economic globalization will continue to put competitive pressures on companies and governments to come up with the right mix of talent and compensation policy across the entire workforce spectrum. While governments seek to continually strike the right balance between having a globally cost-competitive work force and socio-economic equity, companies will need to make strategic choices about which geographies, and which parts of their business, to best spend compensation dollars versus skills and capabilities. The question that both businesses and governments will need to ask is 'are we ready for the next tide change?'" Hay Group's Pay Gap Report in Asia—Pacific was compiled by comparing detailed cross-country pay information from Hay Group PayNet, at management (head of function/department) versus clerical levels. The study used Hay Group's globally consistent data, which means that meaningful comparisons can be made around the world.Ranking Country Pay Gap Multiple Table 1: Base salary gap between senior managers and clerical staff (2007) 1. Vietnam 11.7 2. Thailand 10.6 3. China 10.5 4. Indonesia 8.7 5. India 7.4 6. Taiwan 6.1 7. Malaysia 6.0 8. Philippines 5.7 9. Hong Kong 5.5 10. Singapore 4.9 11. Australia 3.2 12. New Zealand 3.1 13. South Korea 3.1Table 2: Three-year analysis of base salary gaps between senior managers and clerical staff 2007 2006 2005 Vietnam 11.7 11.6 6.8 Thailand 10.6 10.1 13.9 China 10.5 8.8 8.3 Indonesia 8.7 9.7 7.2 India 7.4 7.0 6.3 Taiwan 6.1 5.1 - Malaysia 6.0 5.9 5.0 Philippines 5.7 5.3 5.6 Hong Kong 5.5 4.9 4.9 Singapore 4.9 4.9 4.7 Australia 3.2 3.0 3.0 New Zealand 3.1 3.1 3.0 South Korea 3.1 3.0 -About Hay Group Hay Group is a global consulting firm that works with leaders to turn strategies into reality. We develop talent, organise people to be more effective, and motivate them to perform at their best. With 88 offices in 47 countries, we work with over 7,000 clients across the world. Our clients are from the public and private sector, across every major industry, and represent diverse business challenges. Our focus is on making change happen and helping organisations realise their potential. For more information about Hay Group, please visit www.haygroup.com/th.Research Methodology / About Hay Group PayNet Hay Group's Pay Gap Report, compiled using Hay Group PayNetฎ, one of the world's most comprehensive sources of compensation and benefits data, compares detailed pay, bonus, tax and cost-of-living information at all levels of employment, from unskilled work to senior management, in order to reveal disposable incomes for departmental heads (heads of function) in 46 countries throughout Asia, North America, South America, Europe and Australia. Cost of living is calculated based on "average" spending patterns within each country. For more information about Hay Group PayNet, please visit www.haypaynet.com Media queries Ken Scott ScottAsia Communications E-mail: [email protected] Mobile: 081 931 2753 Natthamon Natthanapong E-mail: [email protected]. Mobile: 089 668 1711 Michelle Low PR & Marketing Manager Hay Group Tel: +65 6323 1668 Email: [email protected] Click for photo release at www.thaipr.net