Employers in Hong Kong to keep salary increases to between 3-6% this year

Most employers in Hong Kong (57 percent) plan to provide salary increases of three to six percent in their next review period while 19 percent plan increases of up to three percent.

This is according to findings of our recently published 2016 Hays Asia Salary Guide, which highlights salary and recruiting trends from more than 3,000 employers across China, Hong Kong, Japan, Malaysia, and Singapore representing six million employees.

This year’s Guide found a further 11 percent of Hong Kong employers plan to increase salary by six to 10 percent and only six percent by more than 10 percent. Seven percent of employers do not plan to award any increases this year.

Compared to actual increases awarded during last year’s reviews, we see little change. Of those taking part in the Guide, 57 percent increased salaries by three to six percent; 16 percent by up to three percent, 11 percent by six to 10 percent and eight percent by more than 10 percent. A further eight percent of employers did not provide any salary increases last year.

In our survey, we also asked employees what motivates them to stay in a job or what pushes them to leave. In Hong Kong, the top motivator for candidates to change jobs is to search for a better salary and benefits package.

Whilst candidates are hungry for more, employers are grappling with uncertain economic conditions and so will not be awarding big leaps in salary this year. They will also be looking to hold onto their top talent, so should consider what motivates employees to stay in a role.

In Hong Kong, employees in our survey cited work-life balance as the main reason for staying in a job. Whilst salary is important, striking a healthy balance between your work and personal life is a priority for most people. Flexible working options can enable such a balance, and allow more personal time for looking after children or elderly relatives.

Employers are doing what they can to keep salaries stable in the current climate. Issues will arise where candidate expectations are greater than what employers are willing to offer. According to our Guide, only 17 percent of employers in Hong Kong will award more than a six percent salary increase but 42 percent of candidates surveyed are expecting this level of increase.

With tighter budgets, it will be a challenge for employers to meet expectations, but they should consider what other benefits can be offered to bridge the gap in salary expectations, such as work-life balance or career progression opportunities.