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Winners and Losers in 2010 Pay Hike Projections
Asian-Pacific salaries are set for a hike next year as the region bounces back from the downturn – but some countries are likely to be bigger pay packet winners than others.
Pay rises are expected to be at least 50% higher than in 2009, when the downturn hit rock bottom and pay and benefits were frozen or cut by many companies.
The growth forecast for South East Asia in 2010 was reviewed by the Asian Development Bank and projected as 6.4% - with all countries expected to record positive growth.
Studies and a poll of 945 companies in the region reinforce each other and say salaries are expected to hit an average 4.8% across the region compared with 3.9% in 2009.
The companies were across 19 Asian countries – with the big winners expected in Pakistan, Vietnam and India.
Singapore workers to pick up to 3.5% extra pay
Singapore is the highest ranked Asian Pacific country – with workers seeing a 2.8% pay increase up from 1.6% in 2009.
Less significant increases are forecast for New Zealand and Hong Kong (2.3%), Japan (1.9%), and Macau (1.8%).
For Singapore, healthcare workers are likely to gain the most with 3.5% more cash in their pay packets while workers in the computer industry will a 2% hike.
Some employers fear that higher salaries will see the return of poaching staff as companies vie to expand their business by paying more than their rivals for the best staff and managers.
An example is Singapore, where the annual staff resignation rate slipped from 16.7% in 2008 to 6.2% during the downturn as workers sat tight and waited for bad economic conditions to subside.
Battle on to attract the best staff and managers
Companies in Singapore have tried to ready themselves for the battle to keep staff by building war chests for pay and benefits increases combined with schemes sponsored by the government designed to give better training and responsibility to key staff.
The worry is that improving skill sets and giving management experience has just made staff in smaller companies more attractive prospects for larger companies who do not have to pay out so much in training new workers.
Another threat to companies is China’s continuing expansion and swallowing of manpower resources.
The latest figures show that China’s economy is still expanding at 7% for three quarters in a row despite the global economic downturn – and is expected to hit 9-10% in the early part of 2010.
This phenomenal growth means businesses on mainland China need more and more managers and key staff and the best place to hunt for people to fill the jobs is their Pacific rim neighbours.
