Thursday, January 24, 2008
[IWS] Towers Perrin: ASIA/PACIFIC COMPENSATION PLANNING REPORT [17 January 2008]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Towers Perrin
ASIA/PACIFIC COMPENSATION PLANNING REPORT (October 2007) [From Press Release 17 January 2008]
http://www.towersperrin.com/tp/getwebcachedoc?webc=HRS/CHN/2008/200801/AsiaPac_survey.pdf
[full-text, 20 pages]
INCLUDES NUMEROUS TABLES....
SUMMARY OF KEY FINDINGS
The following is a summary of the key findings from
the survey, highlighting the current trends in salary
movement and review practices across Asia/Pacific.
Absolute salary growth rates are projected to be
slightly higher in 2008 than in 2007. Further, it is
forecast that healthy real salary growth will be
accompanied by a reduction in unemployment rates
in 2008 in all Asia/Pacific countries, except
Malaysia, where unemployment is expected to
increase marginally.
Salary movement by employee group
Overall, it is predicted that all employee groups will
experience a rise in salary growth rates in 2008.
The year-on-year changes suggest that the market
for production and support staff is heating up, and
will catch up with the markets for other employee
groups in many countries.
Salary movement by sector
On average, the financial services sector
experienced the largest increases in 2007, followed
by the Retail/FMCG and High-Tech sectors. In 2008,
we expect to see the same pattern.
Salary review status
Compared to 2007, a greater number of
respondents project their salary increase status to
be 'regular' in 2008 (99% versus 97%,
on average).
Salary budget increase
Less than 10% of companies are projecting lower
increases in 2008, when compared to 2007. Many
companies (46%) are projecting higher increases
in 2008, and 42% are expecting no change.
Allocation of budget increase to high performers
A vast majority of participants (70%) expect to
allocate a larger portion of their 2008 salary
increase budget to high performers. While only
10% will allocate the entire budget, only 20%
allocate the budget at the same rate to all
employees, regardless of performance.
Press Release
Towers Perrin Global Study Points to High 2008 Salary Growth in Emerging Markets in Asia [17 January 2008]
http://www.towersperrin.com/tp/jsp/hrservices_webcache_html.jsp?webc=HR_Services/China/Press_Releases/2008/20080117/2008_01_17.htm&selected=press&language_code=global
HONG KONG, CHINA, January 17, 2008 Towers Perrin, in its < http://www.towersperrin.com/tp/getwebcachedoc?webc=HRS/CHN/2008/200801/AsiaPac_survey.pdf > 2008 Global Compensation Planning Report, has projected continuing moderate salary growth in most countries next year, despite expectations for slowing economic growth in some markets.
The survey covered over 900 companies across 12 markets in the Asia Pacific region including Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand. Results show that absolute growth rates are projected to be slightly higher in 2008 than in 2007. On average, the financial services sector is expected to continue to experience the largest increases in 2008, followed by the Retail/Fast Moving Consumer Goods and High-Tech sectors.
"The report shows that, globally, the more mature economic markets are fairly conservative in terms of salary growth projections for 2008," said Tania Mendez, Asia-Pacific Compensation Database Manager. "In some of the developing countries, however, we're seeing double-digit salary growth due to the tightening of the local labor market or local economic conditions." For example in Asia, salary increases are projected to be highest in India (15%); followed by Indonesia (12%), the Philippines and China (both at 9%). On the other hand, more mature markets such as Japan, are projected to have the most modest increases (3%), along with Taiwan (4.6%). These are similar to increases expected in the U.S. and the UK (3.9% and 4% respectively).
The report also tracked budgeted salary increases by employee group. The year on year changes suggest that the market for production and support staff is heating up in Asia and globally, and will catch up with the markets for other employee groups in many countries.
Furthermore, with increasing budgets in 2008, a vast majority of companies (over 70%) are also expecting to allocate a larger portion of the budget to high performers.
"This information --on a global scale-- is especially important for multi-national organizations competing for talent in rapidly evolving labor markets around the world. Hence, competitive reward practices still remain critical to attracting their workforces across all geographies." added Mendez. "However, employers also need to understand the elements beyond pay to retaining and engaging their workforce."
About the Report
Towers Perrin's 2008 Global Compensation Planning Report reviews projected salary movements and key economic indicators around the world on an annual basis, based on a survey of over 4,000 companies, covering over 60 countriesworldwide. Over 2,000 responses were received from companies inEurope, the Middle East and Africa; over 1,000 were received from companies in theAmericas; over 900 were received from companies in the Asia/Pacific region. These companies represent a wide range of industries and size based on revenue.
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Towers Perrin
ASIA/PACIFIC COMPENSATION PLANNING REPORT (October 2007) [From Press Release 17 January 2008]
http://www.towersperrin.com/tp/getwebcachedoc?webc=HRS/CHN/2008/200801/AsiaPac_survey.pdf
[full-text, 20 pages]
INCLUDES NUMEROUS TABLES....
SUMMARY OF KEY FINDINGS
The following is a summary of the key findings from
the survey, highlighting the current trends in salary
movement and review practices across Asia/Pacific.
Absolute salary growth rates are projected to be
slightly higher in 2008 than in 2007. Further, it is
forecast that healthy real salary growth will be
accompanied by a reduction in unemployment rates
in 2008 in all Asia/Pacific countries, except
Malaysia, where unemployment is expected to
increase marginally.
Salary movement by employee group
Overall, it is predicted that all employee groups will
experience a rise in salary growth rates in 2008.
The year-on-year changes suggest that the market
for production and support staff is heating up, and
will catch up with the markets for other employee
groups in many countries.
Salary movement by sector
On average, the financial services sector
experienced the largest increases in 2007, followed
by the Retail/FMCG and High-Tech sectors. In 2008,
we expect to see the same pattern.
Salary review status
Compared to 2007, a greater number of
respondents project their salary increase status to
be 'regular' in 2008 (99% versus 97%,
on average).
Salary budget increase
Less than 10% of companies are projecting lower
increases in 2008, when compared to 2007. Many
companies (46%) are projecting higher increases
in 2008, and 42% are expecting no change.
Allocation of budget increase to high performers
A vast majority of participants (70%) expect to
allocate a larger portion of their 2008 salary
increase budget to high performers. While only
10% will allocate the entire budget, only 20%
allocate the budget at the same rate to all
employees, regardless of performance.
Press Release
Towers Perrin Global Study Points to High 2008 Salary Growth in Emerging Markets in Asia [17 January 2008]
http://www.towersperrin.com/tp/jsp/hrservices_webcache_html.jsp?webc=HR_Services/China/Press_Releases/2008/20080117/2008_01_17.htm&selected=press&language_code=global
HONG KONG, CHINA, January 17, 2008 Towers Perrin, in its < http://www.towersperrin.com/tp/getwebcachedoc?webc=HRS/CHN/2008/200801/AsiaPac_survey.pdf > 2008 Global Compensation Planning Report, has projected continuing moderate salary growth in most countries next year, despite expectations for slowing economic growth in some markets.
The survey covered over 900 companies across 12 markets in the Asia Pacific region including Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand. Results show that absolute growth rates are projected to be slightly higher in 2008 than in 2007. On average, the financial services sector is expected to continue to experience the largest increases in 2008, followed by the Retail/Fast Moving Consumer Goods and High-Tech sectors.
"The report shows that, globally, the more mature economic markets are fairly conservative in terms of salary growth projections for 2008," said Tania Mendez, Asia-Pacific Compensation Database Manager. "In some of the developing countries, however, we're seeing double-digit salary growth due to the tightening of the local labor market or local economic conditions." For example in Asia, salary increases are projected to be highest in India (15%); followed by Indonesia (12%), the Philippines and China (both at 9%). On the other hand, more mature markets such as Japan, are projected to have the most modest increases (3%), along with Taiwan (4.6%). These are similar to increases expected in the U.S. and the UK (3.9% and 4% respectively).
The report also tracked budgeted salary increases by employee group. The year on year changes suggest that the market for production and support staff is heating up in Asia and globally, and will catch up with the markets for other employee groups in many countries.
Furthermore, with increasing budgets in 2008, a vast majority of companies (over 70%) are also expecting to allocate a larger portion of the budget to high performers.
"This information --on a global scale-- is especially important for multi-national organizations competing for talent in rapidly evolving labor markets around the world. Hence, competitive reward practices still remain critical to attracting their workforces across all geographies." added Mendez. "However, employers also need to understand the elements beyond pay to retaining and engaging their workforce."
About the Report
Towers Perrin's 2008 Global Compensation Planning Report reviews projected salary movements and key economic indicators around the world on an annual basis, based on a survey of over 4,000 companies, covering over 60 countriesworldwide. Over 2,000 responses were received from companies inEurope, the Middle East and Africa; over 1,000 were received from companies in theAmericas; over 900 were received from companies in the Asia/Pacific region. These companies represent a wide range of industries and size based on revenue.
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
# posted by SBasefsky : 12:57 PM
