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Modest rise projected for Hong Kong salaries in 2018, amid stronger-than-expected GDP growth
Aon announces 6 Best Employers in Philippines for 2017
Technology Companies in Asia-Pacific Ready to Boost 2018 Salary Budgets to Address Rising Employee Turnover And Strong Demand for Talent
 

Modest rise projected for Hong Kong salaries in 2018, amid stronger-than-expected GDP growth

  • Hong Kong salary increase projected at 4.1% for 2018, one point higher than actual rate in 2017

  • The Life Sciences industry expects the highest increase, at 4.4%

  • Voluntary turnover rate falls to 17.1%, demonstrating Hong Kong employers’ increased ability to retain talent

Hong Kong, 17 November 2017—Aon, a leading global professional services firm providing a broad range of risk, retirement, and health solutions, has shared the latest trends in compensation and total rewards at its Aon & Radford Annual Rewards Conference 2017 Hong Kong.

A stable economy in 2017 coupled with small improvements to the business landscape in Hong Kong has translated to optimism when it comes to salary increases in the market. The workforce will see a modest growth of 4.1% in their salaries in 2018, one point higher than the actual average in this year, according to the Aon 2017 Total Compensation Measurement (TCM) Study Hong Kong. 

Key insights from the Aon 2017 TCM Study Hong Kong are:

  • Overall salary budget allocations and bonuses are expected to remain aligned across employee levels, at 4.1% to 4.2%.

  • Variable pay-outs (as a proportion of fixed pay) remain steady reflecting stable business performance in 2017.

  • Life Sciences will see the biggest jump in salaries of 4.4%, a result of superior business performance across the industry and a fierce talent war that has created an increased focus on retaining good existing talent.

  • Following a challenging year for Transportation, Logistics, and Shipping Services, these industries are expected to see a salary increase rate of just 3.4%, the lowest projection for 2018.

  • For the third year, base salaries and total compensation packages for top executives (Director level and above) remain higher in Shanghai than Hong Kong.

  • Only 0.7% of employers project a salary freeze in 2018, less than half the number this year.

Tzeitel Fernandes, Managing Director of Aon Hewitt Hong Kong, says: “While organisations may often perceive unmet pay expectations as the reason for employee turnover, employees are considering all aspects of their jobs and rewards as a whole when choosing to stay in an organisation or accepting a new offer of employment. As Hong Kong prepares for stronger business performance in 2018, organisations must be more creative and innovative than ever in their compensation practices in order to retain their best. Monetary incentives in isolation are not adequate enough. What differentiates progressive organisations is their use of non-monetary incentives including providing opportunities for career advancement, supporting learning and development, and timely and public recognition for a job well done, that enables them to motivate and retain their talent.”

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Aon announces 6 Best Employers in Philippines for 2017

Manila, 7 November 2017—Aon, a leading global professional services firm providing a broad range of risk, retirement, and health solutions, has named six organisations as Best Employers Philippines 2017.
 
In one of the most comprehensive and first of its kind employer benchmarking study in Philippines, participating organisations were assessed  based on Aon’s proven data-driven methodology and selected on achieving high levels of employee engagement, compelling employer brand, effective leadership and a culture of high performance.
 
With half of the total working population below 34 years, Philippines is home to one of the world’s youngest employee populations. Although a strong economic advantage to the country, this changing talent landscape presents challenges in attracting and retaining talent for employers.
 
CEOs cite rising salaries, poor availability and selection of talent, and inadequate leadership pipeline as top 3 people risks that inhibit their organisation’s success.  Key insights from the study also revealed that, with an engagement level of 65 percent, younger Filipino employees (born after 1991) are the least engaged at the workplace, indicating an urgent need for employers to transform their people practices.  
 
Yet, Aon Best Employers in Philippines excel with exceptional engagement scores of 87 percent (market average, 69 percent).   Furthermore, Best employer organisations also scored higher than the market average on the other three indices of Best Employer organisations namely Compelling Employer Brand (Best Employers 92 percent, market average 77 percent) Effective Leadership (Best Employers 88 percent , market average 68 percent), and High Performance Culture (Best Employers 86 percent, market average 67 percent). According to Aon’s research, higher engagement levels and greater scores on the Best Employer indices are a direct result of an enhanced work experience for employees that translate into higher retention and productivity levels for organisations.
 
The Aon Best Employers in Philippines for 2017 are:

Organisation (listed alphabetically)

Category

American Express International Inc.

Best Employer Philippines

DHL Express Philippines Corporation

Best Employer Philippines

Home Credit, Philippines

Best Employer Philippines (Global Programme)

InterContinental Hotels Group, Philippines

Best Employer Philippines (Global Programme)

Marriott International, Philippines

Best Employer Philippines (Global Programme)

Sodexo Benefits & Rewards Services, Philippines

Best Employer Philippines (Global Programme)

In addition, four organisations received special recognition:

Organisation (listed alphabetically)

Category

Federal Express Pacific LLC

Commitment to Leadership

Federal Express Pacific LLC

Commitment to High Performance Culture

Golden Arches Development Corporation (McDonald’s)

Commitment to Gen Y

Golden Arches Development Corporation (McDonald’s)

Commitment to Employer Brand

NutriAsia, Inc.

Commitment to Women

Telus International Philippines Inc.

Commitment to Engagement

Iris Anne Hamada, Senior Consultant and Best Employers – Project Manager, Aon Hewitt Philippines, said: “The Aon Best Employers programme gives HR and business leaders a clear view of where they stand in the market when it comes to selecting, developing and retaining employees. With access to data and insights, they can make better people decisions that achieve organisational goals while meeting employee expectations.”
 
Prashant Chadha, Managing Director, Aon Hewitt Malaysia & Philippines, added: “When organisations have high engagement levels, employees say good things about working there, strive harder in their jobs, and stay for the long term. With the onset of a multi-generational workforce, employee expectations are varied and evolving, making it challenging for organisations to keep them engaged. Forward thinking organisations combine rigorous data, survey science and powerful technology to transform employee experience and accelerate growth.”

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Technology Companies in Asia-Pacific Ready to Boost 2018 Salary Budgets to Address Rising Employee Turnover And Strong Demand for Talent

  • In 2018, technology sector salaries in Singapore are projected to increase 4.1%, up from the 4.0% increase delivered in 2017. Projected increases for Hong Kong and China are 4.2% and 7.5% respectively.

  • Approximately two-thirds of technology companies in all major Asia-Pacific markets are pursuing normal or aggressive hiring plans. India leads this trend, with 16.3% of companies reporting aggressive hiring plans, followed by China at 9.1% and Singapore at 6.4%.

Singapore, November 1, 2017—The Talent, Rewards & Performance practice of Aon plc (NYSE: AON) has just released new data on projected 2018 salary budgets and hiring plans at technology sector companies across the Asia-Pacific region. Leveraging insights from Radford, the firm’s dedicated technology and life sciences unit, the new data shows technology companies in the region are preparing to spend more in 2018 in the face of 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 Asia-Pacific markets. Australia leads the region with a trailing 12-month voluntary turnover rate of 12.9%, followed by ASEAN 5 (includes 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 Asia Pacific.

Median Overall Salary Increase Budgets

Market

2017 Actual 

2018 Planned

Direction

Australia

 3.5%

3.4% 

Down

China

8.0%

7.5%

Down

Hong Kong

4.2%

4.2%

Fkat

India

10.6%

10.5%

Down

Indonesia

8.7%

8.9%

Up

Japan

2.8%

3.0%

Up

Malaysia

5.4%

5.5%

Up

Singapore

4.0%

4.1%

Up

South Korea

4.7%

4.8%

Up

Thailand

5.5%

5.5%

Flat

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 says: “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.”

Hot Jobs in Singapore

Singapore is not immune to the larger talent and rewards trends observed across Asia-Pacific. Median voluntary turnover at technology firms in Singapore currently sits at 12.7%, above the 10% threshold where companies typically begin to consider special retention programs. It is therefore not a surprise that companies in Singapore are increasing salary budgets heading into 2018.

The hot jobs at technology sector companies in Singapore, defined as those jobs that have seen the highest annual increases in market median base salaries over the past three years, include: IT Support Specialist, Software QA Engineer and Product Marketing Engineer.

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