BANGKOK--6 Dec--Xinhua-PRNewswire-AsiaNet/InfoQuest
The Average Overall Salary Increase Budget in Thailand Ranged from 6.3% to 6.6% in 2006. Few Companies Reported a Salary Freeze this Year.
Asia's markets have maintained steady growth in the last year, which has led to a stabilization of salary increases in most markets during 2006. Though employers are reporting pay increases, the hikes are modest in comparison to previous years, and this trend looks set to continue in 2007, according to the 7th annual Asia-Pacific Salary Increase Survey conducted by Hewitt Associates,
This year, India once again reported the highest average salary increase at 13.8%, compared with 14.1% in 2005. For the second year in a row, The Philippines recorded an average overall salary increase of 8.2%, while salaries in China rose by 8%, down from 8.3% last year. As Singapore's economy continued to strengthen, employees experienced average salary increases of 4.6%, up from 3.9% in 2005 and demonstrating one of the largest year-on-year hikes. Meanwhile, Thailand and Malaysia saw raises of 6.5% and 6.2% respectively, marking an increase from 6.3% and 5.6% in 2005. Salaries also rose in Australia, Korea and Hong Kong.
"While organizations are being driven to increase their spend on compensation as a result of the ongoing attraction and retention challenges we are facing in Asia, many companies are reassessing their human resources strategies and broader business goals to ensure they are getting the most out of their talent and increasing productivity," said Nishchae Suri, head of
Increasing Market Orientation
With the pressure to retain key talent growing, an increasing number of organizations are ensuring their pay is competitive by closely monitoring market movements. Over 80% of participating organizations review their markets annually, using multiple sources of information to benchmark compensation, such as industry surveys and information through personal contacts. While 81.6% of
Rising Variable Payouts
Hewitt's study indicates that variable pay continues to be an important means of attracting and retaining talent, with 78% of responding organizations using them.
Individual performance awards continue to be the most popular, with 56.2% of responding organizations saying they are their preferred type of variable pay plan. They also indicated individual performance awards have the highest impact on business results, followed by business incentive plans and team awards.
According to the study, companies increased variable payout in 2006 to 14.9% of their payroll, up from 14.5% in 2005. This year, target variable payout was highest for senior/top management at 21.8%, and is expected to rise to 22.3% in 2007.
Hewitt's study also highlights that the prime challenge faced by organizations in implementing variable pay plans is poor communication of their objectives and measures to employees.
Pornpimon Maneewongwattana, head of Hewitt's Talent and Organization Consulting Analytics practice in Thailand, commented, "Rewards are an emotive issue with employees and it is of paramount importance that companies not only house a fair, transparent reward system, but also properly communicate guidelines to employees. Despite this, an alarming number of organizations still fall short when it comes to communicating pay decisions to employees. There is clearly a huge gap between what employees want to know and what organizations are sharing."
Achieving Business Objectives Through Rewards
Though organizations have the right intent when it comes to fostering a healthy performance and reward culture, most said they are only partially achieving their objectives of attracting, engaging and retaining talent, as well as achieving business results. At 60.1%, more than half of participating organizations said their reward programs do not achieve the desired outcome because of budgetary constraints, while 33.3% cited lack of communication as the primary reason.
About Hewitt's Salary Increase Survey
Hewitt surveyed more than 1,400 foreign, locally-owned, and joint-venture companies this year, making this the most comprehensive salary study in Asia Pacific to date. The survey covered 11 markets including Australia, China, Hong Kong, India, Japan, Korea, Macau, Malaysia, the Philippines, Singapore, Taiwan, and Thailand. It measured actual and projected salary increases, and compensation practices for five specific job categories, namely senior/top management, manager, professional/supervisor/technical, clerical/support, and manual workers.
To obtain a copy of the individual 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 consulting and outsourcing services. The company consults with more than 2,400 organizations and administers human resources, health care, payroll and retirement programs on behalf of more than 350 companies to millions of employees and retirees
Asia-Pacific Salary Increase Survey 2006-2007
Market Highlights
Thailand
and 1% expect a salary freeze in 2007.
the five employee groups surveyed for 2006, and from 6.5% to 6.7% for
2007.
employees received the greatest average overall salary increase budget
at 6.6% and are expected to receive 6.7% respectively in 2007.
variable pay in total cash compensation as compared to all other
employee groups.
total guaranteed pay with the market, while 35.1% benchmark base salary
with the market.
in 2006.
participating companies.
Contact:
Rongrong Khemarangsi
Tel: +662-636-0575
Email: [email protected]
Melinda Earsdon
Tel: +852-2877-8600
Email: [email protected]
SOURCE Hewitt Associates
--Distributed by AsiaNet ( www.asianetnews.net )--
Hewitt Associates today announced a re-organizing of its Southeast Asia business to a “one-market” operating model. This “one-market” model will allow the company to leverage and maximize the strengths and capabilities of its talents across the Southeast Asian countries, and focus more on delivering best quality solutions to clients in the local markets efficiently and effectively. “The decision to move to a “one-market” model followed a world-wide company review. While the Thailand market has