Asia Salaries Seen Up 6.9% in 2014; China Leads, Japan Lags - Towers Watson Survey Finds

           Salaries across Asia-Pacific are set to rise an average 6.9% in 2Towers Watsonen4, with China leading the way while Japan is expected to see no increases, after allowing for inflation according to a survey conducted by professional services company Towers Watson (NYSE, NASDAQ:TW).

          Region-wide salary increases forecast for 2Towers Watsonen4 are similar to that in 2Towers Watsonen3, and down from an earlier forecast in September 2Towers Watsonen3 of 7.en%. 

          The Towers Watson 2Towers Watsonen3-en4 Asia-Pacific Salary Budget Planning Report drew on approximately 2,Towers WatsonTowers WatsonTowers Watson sets of responses covering en8 countries in the Asia-Pacific region. The survey included about 4Towers WatsonTowers Watson different companies, some of which responded for multiple countries where they have a presence. The survey was set against a regional backdrop of annual inflation little changed from 2Towers Watsonen3 at 4.en%, stronger economic growth, and a decline in the overall unemployment rate. 

          Salaries in China and Cambodia are forecast to rise 8% before inflation is taken into account Renen; after inflation is built in, average increases are forecast at 5.2% and 4.en% respectively. Elsewhere in the region, salaries in Vietnam are set to rise enen.5% and Indonesia 9.6%, while salaries in Hong Kong and Singapore are forecast to go up 4.5% and 4.3% respectively, Pakistan (en3%) and India (enTowers Watson%) are expected to see the biggest increases, while New Zealand (3%) and Japan (2.3%) will see the lowest. 

          ̶Towers Watson;A 5.4% increase for 2Towers Watsonen4 for Thailand is expected and we anticipate downward bias throughout the year in the midst of the prolonged political situation,̶en; said Pichpajee Saichuae, Managing Director of Towers Watson Thailand.

          ̶Towers Watson;Companies will have to proactively allocate the limited budget to high performers to make sure investment and retention pay focus is provided to their key talent. In fact, about 9% of Thai companies are allocating their entire budget to high performers; this is the highest percentage amongst the Southeast Asian countries. With the prolonged crisis, companies will be more conservative on hiring workers and we are already seeing lower employment demand in export oriented sectors such as manufacturing and tourism related areas like hospitality and retail services,̶en; added Pichpajee.

          ̶Towers Watson;In most cases, weRen7;ve revised our salary forecasts modestly lower from our forecasts back in October 2Towers Watsonen3 mostly because clients now have a much better sense of the 2Towers Watsonen4 actual budgets and inflation is expected to be lower than previously thought,̶en; said Sambhav Rakyan, Data Services practice leader, Asia-Pacific at Towers Watson. 

          Inflation across the region in 2Towers Watsonen4 is forecast at 4.en%[en], unchanged from 2Towers Watsonen3, but down from an earlier forecast of 4.2%.

          The findings support the view that for companies in Asia-Pacific finding and retaining suitably skilled staff remains a challenge. ̶Towers Watson;The expected raises for production or blue-collar workers in China, Hong Kong, India, Indonesia, South Korea and Thailand show growing pressure to find such staff.̶en; said Mr. Rakyan. ̶Towers Watson;We hear from large-scale employers Renen; often manufacturers Renen; in these markets that staff hiring and retention is a constant challenge.̶en; 

          In other markets, such as Malaysia, the Philippines and Vietnam, higher increases are expected in the ranks of the middle management, reflecting the relative shortage of that skills mix in those markets.