Across APAC, drinks are on workers in the financial services as salaries are projected to increase by 5% in Hong Kong and 6.5% in Mainland China in 2018, comparing to 4.2% and 5% respectively in 2017. The report by consulting firm Pretium also suggests that Singapore is set to increase salaries by 3.9%, comparing to 3.5% last year due to the return of inflation.
The reason for this bumper pay packet seems to be boosted performance across the banking sector, with 81.4% of surveyed firms indicating 2017 firm-wide business performance will be better or significantly better than last year.
The research also found that the overall bonuses to be paid in 2018 are projected to be equivalent to 7.6 months worth of pay, up from seven months last year. Due to market recovery, senior executives are expected to receive 15 months whereas frontline staff will get nine months and corporate functions will get six months. May Poon, Managing Partner, Pretium commented, "As bonus pools are closely linked to revenue or profit levels, bonus levels in 2018 are likely to be the same as, if not higher than, the 2016 payout."
The buoyant mood has also spread to employee recruitment, with 60% of the surveyed firms intending to expand headcount in 2018, mainly in the areas of Fixed Income, Research and Compliance. This comes as banks retain more and more staff—the median staff turnover rate in 2017 was 14%, comparing to 12% in 2016. Poon suggested, "Improved market sentiment has led to increasing investment in new businesses; this drives headcount expansion and more recruitment. With the continued influx of Chinese financial institutions in Hong Kong and a tight supply of talent with the required financial expertise, these factors will drive up salary and bonus levels to retain talent."
Paul Arkwright
Publisher
