- 50 per cent of employers in China increased salaries in their last review by between six and 10 per cent, and a further 16 per cent increased above that level;
- Looking ahead, again 50 per cent of employers will increase salaries by 6 to 10 per cent, and 20 per cent will offer increases above 10 per cent;
- Bonuses based on performance are used to reward top talent.
Steady hiring demand will continue in China across most sectors and industries this year, which is fuelling positive salary increase expectations amongst employers, says recruiting experts Hays.
According to the 2015 Hays Asia Salary Guide, released today, 70 per cent of employees in China can expect a salary increase of six per cent or more in their next review.
The Hays Asia Salary Guide includes salary and recruiting trends for over 1,200 roles in China, Hong Kong, Singapore, Malaysia and Japan. It is based on a survey of 2,361 employers, representing over four million (4,017,026) employees.
“Our Guide shows that hiring expectations remain steady across Asia,” says Christine Wright, Managing Director of Hays in Asia. “The factor that will impact on successful hiring outcomes is that employers in all five of our surveyed countries are seeing a gap – some more significant than others – between the skills that they are looking for and the skills available in the local labour market.
“Salary increases in China are the most generous of the countries surveyed in our Guide. Interestingly, employers are also offering extra benefits to help secure their preferred candidate. Performance-related bonuses are also used to reward top performers.
“For candidates, there are great opportunities presented by the current market. Savvy job seekers are taking advantage of Asia’s tight talent market to secure roles offering career progression, which long-term will ultimately lead to a higher salary,” she said.
The Hays Asia Salary Guide shows that China remains the standout for salary increases, as it was last year. In China, one in two (50 per cent) employers increased salaries in their last review by between six and 10 per cent, and a further 16 per cent increased above that level. 21 per cent increased salaries between three and six per cent. The final 13 per cent increased salaries by less than three per cent or gave no increases at all.
Looking ahead, employers in China are even more generous. Again 50 per cent intend to increase salaries by six to 10 per cent, while a significant 20 per cent will increase by more than 10 per cent. 21 per cent expect to increase salaries by three to six per cent, and the final nine per cent will increase by less than three per cent or not at all.
Country-by-country the Hays Asia Salary Guide shows that Malaysia also saw some impressive increases, with 31 per cent of employers increasing salaries in their last review by six to 10 per cent. A further nine per cent gave increases above 10 per cent. A slightly higher percentage of Malaysia’s employers will increase salaries by this extent this year.
Salary increases in Hong Kong are, and will remain, much more subdued than in mainland China. The majority of employers in Hong Kong (64 per cent) increased salaries between three and six per cent in their last review, with a similar number (63 per cent) expecting to increase at this level in their next review.
The situation is similar in Singapore, where 59 per cent of employers increased salaries in their last review by three to six per cent, and 54 per cent will do so in their next review.
Employers in Japan continue to show restraint when it comes to salary increases. In their last review the majority of employers (56 per cent) gave increases of less than three per cent, while a further 15 per cent gave no increase at all. The situation is similar for the year ahead.
The majority of employers (83 per cent) continue to give their staff benefits. Popular benefits in China are health (50 per cent), life assurance (37 per cent) and car/car allowance (34 per cent).
Bonuses remain a favoured method of rewarding staff; this year 51 per cent of employers across Asia said they will award bonuses to more than 50 per cent of their staff. In the majority of cases these bonuses are related to employee performance (80 per cent) and employer performance (73 per cent). This shows that rather than give across-the-board salary increases, employers are using bonuses based on performance to reward their top talent. Just 11 per cent of employers said bonuses are guaranteed.
In terms of the value of these bonuses, 44 per cent of employers said they will award between 11 and 50 per cent of staff salary as a bonus. 34 per cent said bonuses will equate to less than 10 per cent of staff salary.
Other key findings
In other key findings, the Hays Asia Salary Guide shows that 72 per cent of employers expect their levels of business activity to increase in the year ahead, 48 per cent expect permanent headcount to rise, and almost one half (45 per cent) said the skills shortage has the potential to hamper the effective operation of their business or department.
Get your copy of the 2015 Hays Asia Salary Guide by visiting www.hays.cn/salary-guide, contacting your local Hays office or downloading The Hays Salary Guide 2015 iPhone app from iTunes.
In China Hays operates from four local offices: Shanghai, Beijing, Suzhou and Guangzhou.
Hays, the world’s leading recruiting experts in qualified, professional and skilled people.
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Hays is the leading global specialist recruiting group. It is the expert at recruiting qualified, professional and skilled people worldwide.
Hays Specialist Recruitment (Shanghai) Co., Limited ("Hays China") operates across the public and private sector, dealing in permanent positions. Hays China’s eighteen specialisms span Accountancy & Finance, Banking, Architecture, Construction, Education, Engineering, Executive, Finance Technology, Human Resources, Hays Resource Management, Information Technology, Insurance, Life Sciences, Manufacturing & Operations, Oil & Gas, Property and Sales & Marketing.
Hays China operates four local offices in Shanghai, Beijing, Suzhou and Guangzhou. It is the local representative office for Hays plc, which is a global company. As at 30 June 2014 the Group employed 8,237 staff operating from 237 offices in 33 countries across 20 specialisms. For the year ended 30 June 2014, Hays placed around 57,000 candidates into permanent jobs and around 212,000 people into temporary assignments. 24% of Group net fees were generated in Asia Pacific.
Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Colombia, Chile, China, the Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA.