Singapore – Employers say they are looking or considering freezing salaries as the region braces itself for an economic slowdown.
According to a Hay Group survey, it found that 33% of Asian companies say that they are currently freezing or looking to freezing base salaries, with 8% of companies saying that they are not confident of hitting their business targets. On a global level, only 15% of companies say that they will consider freezing salaries even when 16% of companies say that they are not confident of hitting their business targets.
Charlotte Park, managing director of Reward Information Services, Asia, Hay Group says that it not surprising that employers are taking a more cautious approach to salary and headcount increases in anticipation of a slowdown. This is because Asian employees who have been enjoying of an average of 5% increase for the past three years, compared to their European counterparts who have only been receiving
“Short of layoffs or salary cuts, this is as serious as you can get in terms of sending out distress signals,” Park adds.
In addition to that, 81% of Asian companies say that they plan to decrease or freeze the headcount hires in the future, while only 20% of global companies say that they would do so.
The survey was conducted among 1,003 companies in 80 countries.