2018 Salary Budgets will give greater leverage to employees negotiating their salaries
- In 2018, technology sector salaries in Hong Kong, Singapore and China are projected to increase 4.2%, 4.1% and 7.5% respectively.
- Approximately two-thirds of technology companies in all major APAC markets are pursuing normal or aggressive hiring plans.
Newly released data from Aon has suggested that technology companies in the APAC region are preparing to spend more on compensation in 2018 amidst rising employee turnover and strong demand for critical talent.
Outside of Japan, South Korea and Taiwan, median annual voluntary turnover rates now exceed 10% in all major APAC markets. Australia leads the region with a trailing 12-month voluntary turnover rate of 12.9%, followed by ASEAN 5 (Philippines, Vietnam, Thailand, Indonesia and Malaysia) at 12.8%, Singapore at 12.7%, China at 12.5%, India at 12.1%, and Hong Kong at 11.8%.
Adding to the robust demand for talent, roughly two-thirds of technology sector companies in all major Asia-Pacific markets are currently pursuing normal or aggressive hiring plans. 6.4% of the companies in Singapore report aggressive hiring plans. India leads this trend at 16.3% followed by China at 9.1%.
In response, projected 2018 salary budgets are flat or up in a majority of markets across APAC.
| Median Overall Salary Increase Budgets | ||
| Market | 2017 Actual | 2018 Planned |
| Australia | 3.5% | 3.4% |
| China | 8.0% | 7.5% |
| Hong Kong | 4.2% | 4.2% |
| India | 10.6% | 10.5% |
| Indonesia | 8.7% | 8.9% |
| Japan | 2.8% | 3.0% |
| Malaysia | 5.4% | 5.5% |
| Singapore | 4.0% | 4.1% |
| South Korea | 4.7% | 4.8% |
| Thailand | 5.5% | 5.5% |
The open question is whether companies will do enough to differentiate between top and bottom performers to retain key talent. Alexander Krasavin, Partner and Radford Leader for Asia Pacific, Middle East, and Africa, Aon commented "To compete for talent in this region, a rewards strategy focused on compensation is no longer enough. Technology companies must differentiate themselves with an employee value proposition that is built on a strong foundation of career development, work life balance and a sense of purpose."
Paul Arkwright
Publisher
