Companies based in Asia are gunning for bigger salary budgets to meet the expected wage increase
Salary budgets at technology companies are expected to increase in China, India, Japan and South Korea in 2019 according to new data from Radford, a division of the rewards solutions practice at Aon plc.
In Singapore, salary budgets are expected to remain flat at 4.0% in 2019. The fast-growth, developing markets of China and India report the highest increases in salaries at 7.8% and 10.5%, respectively.
Meanwhile, technology companies across Asia Pacific also report increasingly optimistic hiring plans despite battling high employee turnover. The prevalence of technology companies reporting aggressive hiring plans increased during the third quarter of this year in five of eight key Asia Pacific markets.
In Singapore, the percentage of technology companies that plan to hire aggressively increased for the second consecutive quarter to 4.9%. Companies reporting aggressive hiring plans in India saw the biggest jump in figures.
Voluntary employee turnover, another key metric on the health of the overall technology sector, is up for the past quarter in six out of eight markets. Voluntary employee turnover is highest in Australia at 13.8%, followed by China (13.7%), Singapore (13.2%) and India (12.6%).
While salary increase budgets are forecasted to be up in several markets, merit increases alone won’t be enough to hire, engage and retain talent in a hot labour market.
“Companies must assess what jobs are needed for future growth and hire for those roles in a competitive marketplace while also engaging and retaining their current talent when many other job opportunities exist,” said Alexander Krasavin, Partner and Radford Leader for Asia Pacific, Middle East, and Africa.
“Businesses with a voluntary turnover of above 10% should evaluate their employee value proposition and talent practices carefully.”