Employers offer higher wage raises to their best performing workers.
According to a recent Voth Nixon Group survey, wage raises for Hong Kong employees are estimated to remain balanced in the coming year. The survey of more than 1,300 Hong Kong businesses also uncovered that managers usually reward their best performing workers with higher salary raises as they seek to maintain skilled talent in a continuously constricted labor market.
The study which was conducted by Voth Nixon Group’s Development and Strategy team discovered that nearly all respondents (96%) are preparing to raise salaries in the coming year and are predicting an average wage increase of 4.0% in 2016 for their nonexecutive employees, which is similar to the wage increase of 2015 as well as 2014. Corporate executives and managers can also expect an increase in salaries for 2016 which are estimated to average at 4.2%. Likewise, the number of businesses that are offering wage raises has been growing firmly since the onset of the latest economic recession.
“As the results of our study suggest 4% wage raises are now considered the norm amongst Hong Kong businesses and business leaders and there haven’t been many variations from this level for quite some years” said Carl Zayn, Senior Development and Strategy Manager of Voth Nixon Group. “Even though most companies are finding the skilled professionals that they require at present wage levels, we are noticing more business leaders seeking efficient methods to manage their salary budget expenditures given the ongoing struggle to attract and maintain top performers or employees that possess vital and necessary skills”.
The survey’s findings also show that more workers are becoming qualified to obtain superior incentives. Up to 82% of exempt employees in Hong Kong have received a bonus in 2015, which is up from 78% last year. At the same time, 85% of exempt employees were considered to be qualified to obtain an incentive or bonus in 2015, which represents an increase of 4 percentage points from last year’s 81%.
“The fact of the matter is that base wages are not the standard of measure of employee satisfaction anymore. While our research persistently shows the significance of salaries when workers decide to either remain with or part ways with a company, we are also aware that the finality of their decision is not solely dependent on money. In terms of the main drivers of talent retention career development opportunities and challenging work (as opposed to monotonous work based on repetition) play an important role in the employee’s decision process. What makes the difference is the complete package of compensation, benefits a nonmonetary rewards and incentives and the result of this is that businesses are playing closer attention to comprehending how their workforce value such features” concluded Mr. Zayn.
About Voth Nixon Group
VOTH NIXON GROUP is a global asset administration group, managing capital for both institutional and retail investors across the world. Our aim is to provide solid fund performance across various asset types in which we know we have a viable competitive edge. At VOTH NIXON GROUP your goals are important to us.
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