Almost 1 in 2 Hong Kong bosses eye awarding wage hikes

Increases of up to 6% are being targeted.

49 per cent of Hong Kong’s employers expect to award salary increases of between three and six per cent during their next salary review, according to recruiting experts Hays.

The annual Hays Asia Salary Guide, now in its tenth year, highlights salary and recruiting trends in China, Hong Kong, Japan, Malaysia and Singapore. The Guide draws on research from more than 3,000 employers representing six million employees.

During their last review period, 55 per cent of employers in Hong Kong awarded increases of also between three and six per cent.

“Hong Kong is a resourceful nation, but the economic outlook for 2017 is challenging so it’s not surprising to see employers taking a moderate approach to salaries” says Dean Stallard, Regional Director of Hays Hong Kong.

Other salary related findings from the 2017 Hays Asia Salary Guide showed that 11 per cent of employers in Hong Kong expect to award increases from between six per cent and ten percent; 6 per cent plan to award over ten per cent, 25 per cent will look to award up to three per cent and 9 per cent will award no increase.

In terms of intended salary increases across the region, Malaysia (46 per cent) and Singapore (46 per cent) will offer between three and six per cent, China (45 per cent) will increase from between six and ten per cent with Japan (60 per cent) offering up to a three per cent increase.

15 per cent of respondents expect to receive an increase from six to ten per cent during their next review while a further 22 per cent will be expecting an increase of more than ten per cent. With only 6 per cent of employers intending to award more than ten per cent, respondents would be advised to readjust their salary expectations.

“Respondents in Hong Kong wanting a salary increase above what employers are planning to award are advised to do their homework and know why their performance merits a larger increase,” says Dean.

“Candidates also need to keep up with economic news as well as keeping abreast of market conditions to ensure their expectations are managed accordingly.”

8 per cent of employees in Hong Kong are not expecting a pay rise at all with 38 per cent expecting an increase from between three to six per cent and 17 per cent up to three per cent.