Asia Pacific employees are expected to see salary increases inch up to 5.8 percent in 2015, as major countries in the region see the better economic performance of 2014 continuing into 2015.
Employee turnover also showed a slight uptick, and companies have adjusted their compensation budgets accordingly.
These are the among the findings of Aon Hewitt's 2014 Global Salary Increase Survey of 12,690 employers in 110 countries.
In 2014, salaries for employees in Asia Pacific rose 5.2 percent. Specifically, in China, annual salary increases are still quite high (8.2 percent); however compared with previous years, the speed of salary growth is declining.
The annual salary increase rate in China though still high (8.2% in 2014) has been on a downward trend over the last 2 years. This, and the fact that the voluntary turnover rate is now settling at a relatively low level of 16.5% are indications that the talent market in China is heading into a phase of stability.
Sustainable rewards, attraction of the best talent and high performance culture are high on the agenda of forward looking companies as the work on talent strategies and sharpen rewards tools.”
The survey reveals that most employees around the world received pay increases in 2014 and can expect to receive comparable increases in 2015.
Employeesin Africa are expected to see the highest rate of increase in 2015 at 8.0 percent, up from 7.4 percent in 2014. Conversely, workers in North America can expect to see the lowest salary increases at 3.0 percent, up from 2.9 percent in 2014.
“This year, improved GDP projections and lower unemployment rates for most countries meant good news for many employees around the world,” said Yanina Koliren, global compensation surveys and solutions leader at Aon Hewitt. “Employers are competing aggressively for talent, particularly in some regions of the world, and they recognize pay is a key factor in attracting and retaining top employees.”