3 in 10 Hong Kong employers won’t give pay rises in 2017

3 in 10 Hong Kong employers won’t give pay rises in 2017

December 17, 2016

Only 1 in 3 employees will get up to 5% increase.

A greater number of Hong Kong workers can anticipate pay increase in 2017, as per new research, which has also discovered that 74% of the businesses are arranging a compensation increase in 2017.

A statement from jobsDB says that, however, this is below than the 79% in 2016 and notably lower than 91% in 2015.

Although, the size of the wage increases differs significantly from businesses and industry to industry. A little more than 33% of workers will get an increase of between 4.1-5%, while the normal increase is anticipated to be 3.7%, contrasted with 3.4% a year ago.

Among all businesses measured, the general normal size of bonus gave in 2016 was 1.3 months of basic compensation. The normal bonus size is likely to remain the same in 2017.

Employees in the IT industry will see the highest normal compensation rise at 5.9%, with expert software engineers accepting 6.0% increase and developers getting an 8.0% bump. This may mirror a lack of significant ability in HK, and managers may feel the weight to retain these workers by increasing their pay. The industry is also anticipating the biggest jump in rewards, from 0.8 to 1.1 months.

Here’s additional from jobsDB:

The study also investigated hiring patterns. Businesses stressed their enthusiasm for applicants’ important working knowledge (87%) as opposed to their capability (52%).

“This may demonstrate that in times of economic instability, businesses tend to avoid from procuring the wrong individual and would incline toward staff with hands-on understanding and past accomplishments. Experienced staff can likewise give a quick commitment to the business without an excessive amount of preparing,” said Justin Yiu, General Manager of Jobs DB Hong Kong Limited.

“The preference for applicable working knowledge may likewise incite businesses to proactively search for passive applicants by means of online portals, or to discover solid applicant by referral. This could clarify the big jump in the rate of respondent businesses that have utilized such hiring strategies – 54% in 2016 versus 39% in 2015,” said Yiu.

Among the applicants who turned down such employment offers, approximately 83% of them did as such in light of the fact that they had officially acknowledged another offer. “This may show a mismatch in the talent market, with businesses competing aggressively for the best applicants. A solid and positive manager brand is the way to pulling in ability. Sadly, just 35% of HR groups utilize online channels for employer branding and 28% utilize offline channels. Local employers may require a genuine reexamine about their employer branding strategy, in order to build up an engaging business picture to draw in and hold workers,” said Yiu.

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