The JobsDB Compensation and Benefit Survey shows that the average pay rise rate for 2013 is 3.4%. 91% of companies plan to pay performance bonus in 2013 and the average bonus size is 1.3 months of basic salary. For employee benefits, 76% of employers have implemented the five-day working week, 40% and 31% have overtime compensation and paid paternity leave policies respectively. With an increasing concern over work-family balance and long working hours, employers are advised to establish family-friendly policies to attract and retain talents.
The Compensation & Benefit Survey was conducted by JobsDB.com in October 2012, covering a total of 114 companies from 18 business sectors.
Average pay rise 3.4%
The JobsDB Compensation & Benefit Survey indicates that the average pay rise rate for 2013 is 3.4%. According to the data provided by employer respondents, 70% of employees will be offered a pay rise and 34.9% of them will receive a pay rise between 4.1-5%. The top three sectors which offer the highest base pay increase are: Medical/Pharmaceutical (7.8%), Engineering – Building, Civil, Construction/Quantity Survey (6.9%) and Engineering – Electrical/Electronic/Mechanical (5%).
Mr. Justin Yiu, JobsDB Hong Kong’s General Manager of Sales and Marketing, comments, “The average pay rise rate of 3.4% reflects a conservative adjustment. We can see from the data that the adjustment rate depends very much on the operating environment of individual business sectors. Overall speaking, employers are cautious as rising commodity prices and office rents have put upward pressure on operating costs. Employers’ concern over the global business environment also has an impact on salary adjustment decision. Right now the US fiscal cliff is a major concern because it could affect the global economy if not handled strategically. Such worries have cast as shadow over future prospects and companies are adopting a cautious approach towards pay adjustment to control manpower costs.”
“If the economic uncertainties persist, the negative impact will become apparent next year. At this moment we find that 63% of employers intend to hire staff in the next three months, a 9% increase compared with the last quarter. Currently the unemployment rate stands at a low level of 3.4%, indicating that the labour supply is quite limited. I believe there is still a considerable demand for quality candidates.”
Average bonus size: 1.3 months of basic salary
The survey reveals that 91% of companies plan to pay performance bonus in 2013 and the average bonus size is 1.3 months of basic salary – same bonus size when compared to last year’s findings. The Medical/Pharmaceutical sector reports the highest bonus size (2.9 months of basic salary), followed by Banking, Electronics/Electrical Equipment and Manufacturing (1.8 months of basic salary).
The forecast of overall double pay amount is 0.5 month of basic salary – same amount when compared to last year’s findings. The Medical/Pharmaceutical and Clothing/Garment/Textile sectors report the highest double pay size (1 month of basic salary), followed by Banking and Trading and Distribution (0.9 month of basic salary).
Mr. Justin Yiu says, “Due to the unfavourable economic climate, employers are adopting a cautious approach towards bonus payments and we do not find any significant change in bonus size compared with last year. Of the companies that have a bonus policy, 93% offer non-guaranteed bonus to be paid based on the performance of the employee and the business. I believe employers favour this policy because it offers more flexibility and the trend will be likely to sustain in the future.”
Family-friendly practices for attracting talents
According to the survey, the benefits packages offered by employers are mostly the same for 2012 and 2013. In addition to annual leave and basic medical benefits, 76% of employers have implemented the five-day working week, 40% and 31% have overtime compensation and paid paternity leave policies respectively. Only 9% have introduced flexible work hours.
Mr. Justin Yiu says, “In recent years, the government has conducted a lot of research on labour policies such as the legislation of paternity leave and standard working hours. We can see that the concern about work-family balance and long working hours is increasing. Employees expect more work flexibility so that they can take better care of their families. Although the legislation is still under discussion, employers are advised to consider establishing family-friendly policies to improve work environment such as 5-day working week, flexible working hours, work from home, job sharing, paternity leave and child care. Such practices can be served as an effective way to attract and retain talents.”