The survey had 2,900 sets of responses from over 300 different companies in 20 countries
Bangladeshi employees are expected to see a salary hike of 11% in 2015 – the fastest pace of wage increase with two countries among 20 Asian economies, according to an international survey.
Pakistan, Bangladesh and Vietnam are set to lead the way with over 11% overall salary increase while India is placed at the fourth position with 10.8% rise, According to the Towers Watson 2014-15 Asia-Pacific Salary Budget Planning Report released recently.
Towers Watson is a New York-based leading global professional services company that helps organisations improve performance through effective people and risk and financial management.
On overall salary increase, Indonesia is the fifth with a hike of 9.5%, followed by China 8.3%, Malaysia, 5.7%, Hong Kong 4.5%, Singapore 4.5%, Australia 3.7% and Japan 2.4%, the report said.
Salaries across Asia Pacific are set to rise by an average of 7% in 2015.
The survey had 2,900 sets of responses from over 300 different companies in 20 countries.
However, a corresponding rise in inflation in the region implies that pay increases in “real terms” will be eroded in the coming year.
After taking inflation into account, China rose to the top with a real salary increase of 5.2%, trailed by Pakistan 4.5%, Bangladesh 4.3%, Vietnam 4.1%, Sri Lanka 3.8%, India 3.5%, Indonesia 3.3%, Singapore 2.2%, Malaysia 2.2%, Australia 1.1%, Hong Kong 0.9% and Japan 0.6% .
The survey said all 20 surveyed countries will witness an increase in “regular salary reviews” in 2015 with a noteworthy reduction in the number of companies that opted for a “salary freeze” or “postponement” in the previous year.
“We foresee an increased economic growth in Asia Pacific in 2015 in light of a declining unemployment rate and rising GDP in the region,” said Sambhav Rakyan, Data Services practice leader, Asia Pacific at Towers Watson in a statement.
“This, in turn, will lead to inflationary pressures that affect real salary increases. Indians will only see an effective salary increase that is one-third of the overall salary increase due to such pressures.”
Across the region, the survey said employees will have pay rises equal to or higher than last year in percentage terms, with the exception of Taiwan, where the rate of increase will drop from 2.8% to 1.7% after inflation.
The Towers Watson survey illustrates the challenge faced by businesses in the region as they seek to balance the effect of growing inflationary pressures and managing costs while continuing to offer salaries sufficient to attract and retain skilled staff.
“Our research demonstrates that salary continues to be the number one factor for attracting and retaining talents. As a result, a majority of employers across Asia Pacific plan to allocate a larger portion of salary budget increase to high performers,” said Rakyan.
Commenting on the overall findings, Raghav Datta, Rewards Leader, India at Towers Watson, said as the salary-increase budgets stabilises, companies need to carefully evaluate where to spend their limited funds.
Differentiating between your crucial skill talent, high potentials and average performers is becoming more essential than ever to ensure the best use of your budget, he said.
Source: Dhaka Tribune
