Salaries across Asia Pacific are set to rise an average 7% in 2015—up a fraction from 2014—with China (5.2%) and Vietnam (4.1%) leading the way, however a pick-up in inflation across the region means that pay increases in real terms will drop slightly in the coming year. This, according to the APAC Salary Budget Planning Report conducted by professional services company Towers Watson.
Across the region, from factory floor to senior management, employees will have pay raises equal to or higher than last year in percentage terms, with the exception of Taiwan, where the rate of increase will drop from 2.8% to 1.7% after inflation. In real terms, however, increases will be lower for 12 of 20 Asia Pacific economies covered in the survey.
The survey, which takes into account approximately 2,900 sets of responses were received from companies across 20 countries in the Asia Pacific region, looks at a range of industry sectors and job grades from factory shop floor to executive suite. The findings illustrate the challenge to businesses in the region as they seek to balance the effect of growing inflationary pressures and managing costs, while continuing to offer salaries sufficient to attract and retain skilled staff.
Commenting on the findings, Sambhav Rakyan, Data Services practice leader, Asia Pacific, Towers Watson said, “We’re seeing a pick-up in economic growth in Asia Pacific in the coming year against a backdrop of declining unemployment, which will create inflationary pressures. The challenge for companies is to keep employees engaged and turnover down, while not getting caught up in a pay-inflation spiral.”
Despite what some may say, salary is the number one driver for attracting and retaining highly skilled staff, according to the study, indicating that a fine balance needs to be found in the coming months.
Paul Arkwright
Publisher
