Competition hots up as HR returns to war for talent.
The latest Salary Survey—Human Resources conducted by Profile Human Resources sheds light on shrinking talent pools in Hong Kong, Singapore and China with some HR salaries up by as much as 40%.
Singapore salaries soar
Singapore has witnessed a marked increase in the number of Learning & Development and Organisation Development roles in the HR field. This seems to be, for the most part, a move by forward-looking organisations looking to retain top performers as Singapore heads into, it is hoped, another up-cycle later this year. In line with this, Diversity & Inclusion roles have also been in vogue. Top performers were looked after in many organisations with the smaller amount available within bonus pools going to them. Companies have been very keen to hang on to their employees who add the most value to the organisation. 2011 saw a much more polarised pay-out strategy when it came to base salary increases and bonuses. In Industry & Commerce bonuses of 10-15% were common for junior to mid-level HR staff and 15-25% was the norm for more senior roles, with 30-40% being seen for very senior Regional HR Directors who had performed above and beyond. For HR professionals moving between companies over the last 6 months, base salary hikes of 5-10% have been the norm, with 15% being seen, on occasion, for very specialist roles.
Hong Kong at war
In Hong Kong, Regional HR Director roles have been scarcer across all sectors and junior roles have been more abundant— there is a lower cost and risk attached to them which make them easier for an organisation to justify. Learning & Development as well as Organisational Development are two areas which are seeing growth. Some organisations foresee a return to the War for Talent in Asia in the coming months and are getting their houses in order to retain top talent. Hong Kong’s local talent pool is set to shrink from 2017, due to its falling birth rate, and the supply of skilled candidates is set to become tighter; employees who are being looked after in terms of development and career planning are likely to be more loyal in future. For HR professionals moving between companies, salary hikes have been and will be subdued. Over the last six months, salary increases of 5 – 10% were typical with 15 – 20% hikes for very specialist, hard-to-find skill sets—these types of increases will most probably continue to be seen for the next three to four months.
China, finders keepers
The twin issues of finding and keeping talent are currently still the two largest problems facing HR in China. Finding strong HR leaders who have been exposed to best practice and can think strategically has become crucial for organisations looking to survive and grow in China. As such, HR is increasingly earning a bigger seat at the table and this bodes well for HR generally within China. Expatriates, many of whom are not fluent Mandarin speakers, will remain in some key HR posts but their numbers have started to, and will continue to, dwindle. A quarter of HR professionals across all sectors and levels received a salary increment of 8% or more. Still, three quarters received an increase of under 8% and when offers of 15% or more are presented to candidates to move companies, job hopping will continue to be an issue. As a retention tool, companies with less brand recognition have been found to be far more generous with bonuses. Big brands have paid out less in bonuses, perceiving that employees are retained via the loyalty to the brand as well as through receiving an enhanced learning and developmental experience working for a company which is usually more progressive in its HR practices.
Paul Arkwright
Publisher
