India tops in average salary increase at 13.8 pc
Asian markets maintained a steady growth in the previous year, which has led to a stabilization of salary increases in most markets during 2006.
By TNN |
BANGALORE: Asian markets maintained a steady growth in the previous year, which has led to a stabilization of salary increases in most markets during 2006.
Though employers are reporting pay increases, the hikes are modest in comparison to previous years, and this trend looks set to continue in 2007, according to the 7th annual Asia-Pacific Salary Increase Survey conducted by human resources services company Hewitt Associates.
This year, India once again reported the highest average salary increase at 13.8%, compared with 14.1% in 2005. Philippines recorded an average overall salary increase of 8.2%, while salaries in China rose by 8%, down from 8.3% last year.
As Singapore's economy continued to strengthen, employees experienced average salary increases of 4.6%, up from 3.9% in 2005, demonstrating one of the largest year-on-year hikes. Meanwhile, Thailand and Malaysia saw raises of 6.5% and 6.2% respectively, marking an increase from 6.3% and 5.6% in 2005. Salaries also rose in Australia, Korea and Hong Kong.
"While organizations are being driven to increase their spend on compensation as a result of the ongoing attraction and retention challenges we are facing in Asia, many companies are reassessing their human resources strategies and broader business goals to ensure they are getting the most out of their talent and increasing productivity," said Nishchae Suri, head of Hewitt's Talent and Organization Consulting Analytics practice in Asia.
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According to the study, companies increased variable payout in 2006 to 14.9% of their payroll, up from 14.5% in 2005. This year, target variable payout was highest for senior/top management at 21.8%, and is expected to rise to 22.3% in 2007. Hewitt's study also highlights that the prime challenge faced by organizations in implementing variable pay plans is poor communication of their objectives and measures to employees.
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