BANGKOK, THAILAND – Media OutReach Newswire – February 8, 2024 –
Aon plc (NYSE: AON), a leading global professional services firm, revealed that salaries in Thailand are expected to increase in 2024, according to the firm’s report.
Study on salary increases and turnover 2023.
While wages in Thailand are expected to increase by 4.9 percent, wages in Singapore and Malaysia are expected to remain stable at 4.0 percent and 5.0 percent respectively. The survey finds that the median salary is expected to increase by 6.5 percent in Indonesia, 5.5 percent in the Philippines and 8.0 percent in Vietnam in 2024.
|
Attrition in 2022 |
Attrition in 2023 |
Real salary increase 2023 |
Salary increase expected for 2024 |
|
|
Indonesia |
15.9 percent |
15.1 percent |
6.0 percent |
6.5 percent |
|
Malaysia |
14.9 percent |
16.2 percent |
5.0 percent |
5.0 percent |
|
Philippines |
18.0 percent |
17.5 percent |
5.2 percent |
5.5 percent |
|
Singapore |
19.6 percent |
16.5 percent |
4.0 percent |
4.0 percent |
|
Thailand |
15.4 percent |
14.0 percent |
4.7 percent |
4.9 percent |
|
Vietnam |
15.2 percent |
13.8 percent |
7.5 percent |
8.0 percent |
Although slightly higher, Thailand’s expected wage increase continues to defy fears of an economic slowdown. Attrition rates in Thailand fell in 2023 to 14.0 from 15.4% in 2022, but continue to remain in double digits due to constantly evolving recruitment strategies and continued supply challenges and demand. Attrition rates were highest in the Philippines, at 17.5 percent, and lowest in Vietnam, at 13.8 percent.
“As businesses face new forms of volatility, planning for salary increases has become a challenge across the region. A reassessment of compensation strategies based on the latest data and analytics shows that companies need to remain competitive,” said Rahul Chawla, Partner and Head of Talent Solutions. for Aon in Southeast Asia. “By leveraging data from their own organization as well as that of the market, businesses can make more informed decisions, enabling them to not only meet the challenges of an uncertain economic climate, but also thrive in an increasingly demanding workforce landscape. work in progress.
The report further reveals that companies in Southeast Asia are cautiously optimistic about hiring, with 40 percent of companies reporting no change in their hiring figures and 40 percent of companies having hiring restrictions. Despite an increase in layoffs earlier in the year, Aon data shows that headcount across all sectors remains above pre-pandemic levels, with layoffs occurring primarily in non-core/expansion areas of the company, while they continue to hire for other activities. lines.
Bonuses for new hires average between 5.6 percent and 13.3 percent, with companies becoming more cautious about spending on compensation as they streamline their budgets, improve profitability and reevaluate their employee strategy. remuneration. This contrasts with 2022, when Southeast Asia saw a hiring boom and new hire bonuses averaged between 14.7% and 23.6%. In Thailand, increasing competition for talent has generated bonuses across the board for product management roles at 98 percent, 64 percent for systems design roles, 44.8 percent for enterprise partnerships. alliance, 37.9 percent in testing and validation roles and 30.1 percent for sales and telemarketing roles.
Sumate Kurasirikul, senior consultant for talent solutions in Thailand at Aon, said: “Aon’s 2023 Global Risk Management Survey shows that business leaders consider “failure to attract and retain talent” as one of the top 10 risks businesses face, highlighting the importance for leaders. Compensation market data is critical to helping companies understand whether their rewards offerings are competitive and make important decisions to attract and retain in-demand skills and therefore mitigate people risks. However, with the economy slowing, increasing wages may be unsustainable for businesses looking to maintain profits and reduce personnel costs, among other expenses. By putting a strategy in place holistic reward approach, driven by data and analytics, organizations will be in a better position to compete for the talent they need.”
Looking ahead to 2024, wages in Southeast Asia continue to vary across sectors and countries. The retail sector continues to have the highest budgeted wage increases, at 6.1 percent, followed by technology at 6.0 percent, the life sciences and medical devices industry at 5.9 percent, manufacturing at 5.8 percent and financial services at 4.8 percent.
The manufacturing sector is expected to see the largest increase in Thailand (8.0%), Malaysia (13.7%) and the Philippines (14.5%), compared to the technology industry which recorded the largest increase year-on-year salary increase in Singapore (4.5%). , Indonesia (10.2 percent) and Vietnam (10.9 percent).
Across Southeast Asia – in Malaysia, the Philippines and Singapore – more than half of positions saw salary increases above inflation. In Singapore and the Philippines, 71.7 percent of salary increases exceeded inflation and Malaysia, 56.4 percent. However, in Indonesia, Vietnam and Thailand, on average, 70 percent of wage increases lag behind inflation. For 67 percent of companies in Southeast Asia, inflationary pressures are factored into their wage policy considerations when considering salary increases.
This information is based on data collected in the third quarter of 2023 from 950 companies in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Find out more about the 2023 Salary Increase and Turnover study
here.
Hashtag: #Aon
The issuer is solely responsible for the content of this announcement.
