Asia-Pacific companies planning larger pay raises in 2022: Willis Towers Watson Click Here
EMPLOYERS in the Asia-Pacific plan to give the highest 2022 salary increases compared with North America and Western Europe, which are expected to stay flat, according to findings from a Willis Towers Watson survey.
Asia-Pacific companies estimate average salary increases of 5.3 percent for executives, management and professional employees, and support staff in 2022. This will be higher than the 4.9 percent average increases employees were granted this year, the study noted.
High-tech companies in the region are projecting the largest increases (5.5 percent) followed by manufacturing (5.4 percent), pharmaceutical and health sciences (5.2 percent), and media companies (5.2 percent).
Strong foreign direct investment into the Asia-Pacific, along with the demand for technology, communication, and 5G equipment, have created new demand and job opportunities across the high-tech and media industries, Willis Towers Watson said.
Companies are also going through extensive planning in 2021 and experimenting with hybrid models that better fit employee lifestyles, which may result in long-term business savings. This means companies will need to pay top dollar to retain top talent, amid a buoyant job market and challenges surrounding engaging employees outside an office environment.
“Beyond competitive salaries, which are table stakes at the moment, companies also need to focus their spend on a diverse set of benefits, well-being, and upskilling programs to drive employee engagement,” said Edward Hsu, business leader, rewards data and software, Asia-Pacific, Willis Towers Watson.
In Singapore, employers expect an average salary budget increase of 3.2 percent for 2021 and 3.7 percent for 2022. This is especially so in the fintech, media, pharmaceutical, and health sciences sectors, with companies reporting the highest average salary budget increments at 4.2 percent, 4 percent, and 4.4 percent respectively for next year.
Organizations are also likely to create more jobs in functions such as sales, information technology, and engineering. Some 27 percent of companies surveyed have plans to raise headcount in the next 12 months.
“Increments are expected across the board in organizations, particularly at junior and mid-levels, partially driven by the turnover rates at these levels,” the report said.
On the flip side, the energy and natural resources industries indicated the lowest average salary budget increase at 3.1 percent for 2022.