Asia’s economy grew in 2006 and so did salaries. In India salaries rose by about 13.8% in 2006 which is more than in any other Asian country. The “7th Asia-Pacific Salary Increase Survey” by the Hewitt Associates management consultancy also shows that German companies recruiting managers in Asia have to take into account modified conditions.
“In Asia top talents are very much sought after too. In order to bind the best people in the long term to the company and in order to increase a company’s attractiveness as an employer companies apply the best remuneration policies possible”, says Marco Reiners, salary expert at Hewitt Associates.
For the second time in a row the total annual income on the Philippines rose by 8.2 percent on average, whereas salaries in China were up by 8% (8.3% in 2005). In Thailand salaries increased by 6.5%, in Malaysia by 6.2%. Due to the positive economic development in Singapore salary increases by an average 4.6% were registered there.
78% of companies questioned apply variable remuneration models. Performance-orientated bonus payments are most common (in 56.2% of companies questioned). The variable part of salaries amounted to on average 14.9% of the total annual salary. For senior and top management this percentage was even 21.8% and an increase to 22.3% is expected for 2007.
More than 1400 companies from the following countries of the Asian-Pacific region took part in the Hewitt study: Australia, China, Hong Kong, India, Japan, Korea, Macau, Malaysia, the Philippines, Singapore, Taiwan and Thailand. The study can be ordered from Hewitt Associates.