It's been undoubtedly a tough couple of years for Hong Kong but as the economy picks up pace and unemployment drops in the SAR, can staff expect a pay hike in 2022?
According to the Hong Kong Institute of Human Resource Management (HKIHRM) employees in HKSAR may be looking at a 3% pay rise for 2022. Among the 105 companies surveyed by the institute, the majority (57%) had not any done salary projections for the next financial year yet, 37% said they had forecast pay increases while just 6% would implement a pay freeze.
This is up considerably from 2021 where Hong Kong employees received a modest pay increase of between 1%. When adjusted for inflation this has left people 0.4% poorer, the lowest in a decade, according the institute.
“When COVID-19 struck hard, HR professionals who trained their sights on and performed an excellent job in employee wellness, especially through the provision of mental wellbeing and emotional support initiatives and hybrid work, and the embrace of technology to accelerate learning for knowledge transfer and retention, proved to be most effective in helping their organisation navigate these challenging times,” said Lawrence Hung, Vice President of the HKIHRM in a press statement.
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Other findings from the report:
- Among the responding companies, 30.5% implemented a pay freeze, 68.6% offered a pay increase, while 1% administered a pay decrease in 2021.
- In 2021, medium-sized companies (500-1000 employees) provided the biggest pay rise at 2.8%, while large-sized companies (more than 1000 employees) offered the smallest pay rise at just 0.7%. Small-sized companies (fewer than 500 employees) provided a pay rise at 1.4%.
- Senior-level staff received the biggest pay adjustment at 1.5% with general level staff trailing behind at only 0.9% in 2021.
- The average size of guaranteed bonus in 2021 was 1.01 months of base pay – the same level recorded for four years in a row.
- For non-guaranteed bonus amount in 2021 by employee level, top-level staff received the biggest slice at 6.40 months of base pay. Senior-level, middle level, and general staff were given 2.64, 1.77, and 1.21 months of base pay respectively.
“Against a backdrop of more respondents indicating a better economic outlook, HR practitioners equipped with the ability to curate a better workplace culture via enhanced communication, fair treatment, and transparency in company strategy, etc., will emerge as frontrunners in engaging their workforce and boosting their productivity," added Hung.
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