Hiring managers need to get on the phone quickly, as a surge in talent demand sees sought-after candidates receiving at least two offers.
- 1.7% salary increment in 2022, 0.9% higher YoY
- 32% of companies express interest in more hires, up 18% from 2021
- 46% of companies are cautiously optimistic towards Q1 markets
- 49% of companies anticipate stronger recovery to continue through the second half of 2022
- 47% of enterprises hired new graduates in the past 12 months, 5% more than 2021
Companies anticipate an average salary increment of 1.7 % in 2022, a near 1% increase compared to predictions of a 0.8% average pay rise as conveyed in the previous survey. This, according to the latest Hiring, Compensation & Benefits Survey by JobsDB. Looking into the markets of 2022, respondents remain cautiously optimistic while expecting the resumption of hiring plans to pre-pandemic levels. More than 30% (32%) of employers, up 18% from 2021, express interest in more full-time hiring to expand business. A considerable number of employers say that in addition to relevant work experience, candidates' personality, work ethics, and compatibility with corporate culture remain their top considerations. The report also reveals that 47% of employers hired new graduates over the past 12 months.
30% companies to increase headcount
With market landscapes continuing to hinge on the pandemic, recovery awaits. Similar to the prior year (23%), 21% of companies admit to lay-offs during June to August this year. Meanwhile, the report also reveals that more than 80% (81%) of companies recruited new staff, with 74% of respondents inducting new full-time members—up 19% from the previous year. Looking further ahead at overall market developments, with a small number of companies holding a pessimistic view (14%), 36% anticipate the situation to remain steady through the year. In comparison, 46% expect a more active employment market in Q1 2022, while 49% expect an even more robust recovery in the second half of the year.
Forecasting the upcoming Q1 2022, more than half (55%) of the surveyed companies say they would consider freezing or maintaining headcount, down 8% from last year. However, one-third (32%) of respondents—an increase of 18% from the previous year—plan to increase full-time headcount, expecting to rebound to the pre-pandemic levels of 2019 (38%) with different reasons for "business expansion" (70%), "growth of new roles" (38%) and replacement of resigned staff" (37%). The study has also found "Admin & HR" (24%), "Corporate Sales & Business Development" (19%), "Marketing & Branding" (16%), "Customer Services" (15%) and "Accounting" (14%) to be the most in-demand jobs in Q1 2022.
Employers predict 1.7% 2022 salary increments.
The report suggests that employers predict a 1.7% pay rise in 2022, which is around a 1% increase following sustained decreases in the last two years. Roles likely to benefit from salary increases include “Information Technology” (3.7%), "Banking" (3.5%), “Transportation & Logistics” (2.5%), “Analytics” (2.5%), "Hospitality/Tourism" (2.4%), and “Corporate Sales & Business Development” (2.4%). Meanwhile, "Media/Advertising" (0.3%), "Beauty Care/Health" (0.5%) and "Design" (1%) are expected to have among the lowest salary increments.
Bill Lee, Managing Director, JobsDB Hong Kong, noted, "The improving global economy helps enterprises revive business operational plans. Salary adjustments to digital transformation-related job functions, including 'Information Technology' and 'Analytics', continue to outperform market averages." He added, "The growing demand for new roles, 'new skill set required,' alongside 'business expansion', have also become main reasons for headcount increases. This shows that corporations are more focused on digital transformation. Companies will need to accelerate the recruitment of talent and internal training to avoid problems caused by talent shortage."
Surge in talent demand sees candidates receive multiple offers
Work experience of job applicants remains the top criteria for employers (70%), personality, attitude and compatibility with corporate culture ranks second (39%) under the new normal, slightly higher than "Academic Qualifications" (38%). Moreover, 5% more employers (47%) recruited recent graduates over the past 12 months compared to the previous survey result. On the other hand, 63% of employers experienced job applicants declining offers in the past 12 months due to "Have accepted another job offer" (89%) and "terms of the offer are unsatisfactory (54%)". Moreover, one-third (33%) of job applicants declined offers to stay at their original organisations. In addition to "Attractive salary/compensation" (41%), employers reportedly provided greater benefits, including "Good working environment/facilities" (35%), "Harmonious relationship among colleagues" (26%), and "Promotion of work-life balance" (25%) to attract suitable talents.
The report also shows that more companies are making work-life balance a part of employee retention measures, with "Five-day workweek" (82%), "Early leave on festive days" (79%), "Casual wear every day" (53%), "Free snacks, drinks, fruits" (55%) and "Work from home" (49%) among the most popular measures. For companies that offer work from home benefits, more than half of the respondents (51%) allow employees to choose their work at home arrangement.
“Employees this year are less concerned about retaining their jobs and much more actively seeking new jobs and better career development.”
Lee said, "Unlike 2021, employees this year are less concerned about retaining their jobs and much more actively seeking new jobs and better career development. Our report shows that with more headcount from growing businesses, talents have more options." He advised HR, "To effectively attract new talent or retain existing ones, employers should also, in addition to improving salary and compensation, look into non-monetary incentives, including positive work culture, good work environments with desirable facilities and fostering harmonious relationships among colleagues."
Paul Arkwright
Publisher
