HK firms are so optimist that they are willing to raise pay next year

Guess by how much increase.

According to a recent snapshot survey of workforce planning and salary increase forecast conducted by Mercer Hong Kong in November, multinational companies in Hong Kong are optimistic about their business outlook in 2013, even amid the unstable global economy with the US fiscal cliff and the Euro Zone debt crisis not yet settled. The survey shows 45% of the companies expect their 2013 business performance to be better than that of 2012 and 48% of the companies expect next year’s business performance to be similar to this year’s.

In terms of salaries, a key concern to both employers and employees in Hong Kong, the survey shows that companies across different industries plan to offer an average salary increase of 4.7% in 2013, slightly under the 4.8% offered this year. “Although the average salary increase in 2013 is not very different from 2012, we see companies in some industries being conservative with 2013’s salary increase budget. Examples can be found in chemical, food and beverages, retail, healthcare/pharmaceutical and hi-tech industries, as their 2013 average budgeted increases are around 0.2% to 0.5% lower than their average increases in 2012,” said Ms Connie Leung, Hong Kong Business Leader for Mercer’s Information Product Solutions. “When companies determine their salary increase budgets, they consider a series of factors such as local inflation rate, general economic conditions, and their own business outlook. We are also aware of the fact that many multinational companies with headquarters offshore also take additional factors such as global business conditions into consideration,“ Ms Leung added.

The survey also shows that approximately 70% of the companies expect no headcount change in 2013 and about a quarter of the companies plan to increase their headcount. The remaining companies plan to have a headcount reduction in 2013.

“In light of the stable business outlook, employers in Hong Kong are looking to further improve their business by creating a higher level of engagement with their employees,” said Ms Leung. “They plan to do so by addressing the pay as well as other factors which affect retention including employee benefits, communication with employees, performance management and career development.”

About the Survey

Mercer’s 2013 Hong Kong Human Resources Planning Snapshot Survey includes responses from 144 multinational companies across different industries covering chemical, consumer goods, engineering, food and beverages, financial services, healthcare/pharmaceutical, hi-tech, logistics/transportation, retail and various others in Hong Kong.