Employees in tech companies rejoice - new data from Aon has revealed that tech companies in the region are preparing to up their spending in the face of rising turnover and strong demand for critical talent.
Leveraging insights from Radford, Aon's dedicated technology and life sciences unit, it found that tech sector salaries in Malaysia projected the increase to be 5.5% in 2018, up from the 5.4% increase delivered in 2017. Neighbouring Singapore are projected to increase 4.1% in 2018 - compared to the 4.0% increase delivered this year; while projected increase for Hong Kong came in slightly higher than Singapore at 4.2%, same as the increase delivered this year.
Median overall salary budget increase in 10 APAC markets
Malaysia 2018 planned: 5.5% 2017 actual: 5.4%
Singapore 2018 planned: 4.1% 2017 actual: 4.0%
Hong Kong 2018 planned: 4.2% 2017 actual: 4.2%
China 2018 planned: 7.5% 2017 actual: 8.0%
India 2018 planned: 10.5% 2017 actual: 10.6%
Japan 2018 planned: 3.0% 2017 actual: 2.8%
South Korea 2018 planned: 4.8% 2017 actual: 4.7%
Australia 2018 planned: 3.4% 2017 actual: 3.5%
Indonesia 2018 planned: 8.9% 2017 actual: 8.7%
Thailand 2018 planned: 5.5% 2017 actual: 5.5%
The data further revealed that approximately two-thirds of technology companies in all major Asia-Pacific markets are pursuing normal or aggressive hiring plans; with India leading this trend - 16.3% of companies in India reported aggressive hiring plans, followed by China at 9.1% and Singapore at 6.4%.
Worringly, excluding Japan, South Korea and Taiwan, the median annual voluntary turnover rates were found to exceed 10% in all major Asia Pacific markets.
Australia leads the region with a trailing 12-month voluntary turnover rate of 12.9%; followed by Philippines, Vietnam, Thailand, Indonesia and Malaysia all at 12.8%; Singapore at 12.7%; China at 12.5%, India at 12.1%; and Hong Kong at 11.8%.
Alexander Krasavin, partner and Radford leader for Asia Pacific, Middle East, and Africa, warned: "To compete for talent in this region, a rewards strategy focused on compensation is no longer enough. Technology companies must differentiate themselves with an employee value proposition that is built on a strong foundation of career development, work life balance and a sense of purpose."
Photo / 123RF