{"id":19522,"date":"2021-12-15T02:00:00","date_gmt":"2021-12-15T02:00:00","guid":{"rendered":"https:\/\/eodishasamachar.com\/en\/2021\/12\/15\/salaries-expected-to-recover-to-pre-covid-19-pandemic-levels-in-southeast-asia-in-2022-aon-study-reveals\/"},"modified":"2021-12-15T02:00:00","modified_gmt":"2021-12-15T02:00:00","slug":"salaries-expected-to-recover-to-pre-covid-19-pandemic-levels-in-southeast-asia-in-2022-aon-study-reveals","status":"publish","type":"post","link":"https:\/\/eodishasamachar.com\/en\/2021\/12\/15\/salaries-expected-to-recover-to-pre-covid-19-pandemic-levels-in-southeast-asia-in-2022-aon-study-reveals\/","title":{"rendered":"Salaries expected to recover to pre-COVID-19 pandemic levels in Southeast Asia in 2022, Aon study reveals"},"content":{"rendered":"<p> \n<\/p>\n<div lang=\"en\">\n<ul>\n<li><i>Salary increases in 2021 were&#13;<br \/>\nlower than in 2020; bonus pay-outs dropped approximately 25 percent.<\/i><\/li>\n<li><i>Some industries, such as private&#13;<br \/>\nbanking, saw continued increases in salaries while retail and professional&#13;<br \/>\nservices faced challenges.<\/i><\/li>\n<\/ul>\n<p>SINGAPORE &#8211;\u00a0<a href=\"https:\/\/www.media-outreach.com\/\">Media OutReach<\/a>\u00a0&#8211; 15 December 2021<b>\u00a0&#8211;\u00a0<\/b>The<b> <\/b>COVID-19 pandemic has weighed&#13;<br \/>\nheavily on talent strategies with muted salary increases across Southeast Asia,&#13;<br \/>\naccording to a study by <a href=\"https:\/\/www.aon.com\/\">Aon plc<\/a> (NYSE: AON), a leading global professional&#13;<br \/>\nservices firm. The second edition of Aon&#8217;s <a href=\"https:\/\/radford.aon.com\/products\/market-practice-studies\/salary-increase-and-turnover\">2021 Salary Increase and Turnover Study<\/a> was conducted from June 2020 to June 2021, surveying&#13;<br \/>\nthe salary movements and turnover rates of more than 870 companies across&#13;<br \/>\nSingapore, Malaysia, Thailand, Indonesia and Vietnam.<\/p>\n<p>\u00a0<\/p>\n<p><b>Companies must prepare for potential talent risks in&#13;<br \/>\n2022 following a muted 2021<\/b><\/p>\n<p>In Singapore, salary increases across industries&#13;<br \/>\ndropped to 3.3 percent in 2021 from 3.8 percent in 2020. Similar trends were&#13;<br \/>\nseen in Malaysia and Thailand, with 2021 salary increases of approximately 4.5&#13;<br \/>\npercent and 4.4 percent, compared to 4.7 percent and 4.9 percent in 2020,&#13;<br \/>\nrespectively. Bonus pay-outs, which were relatively insulated in 2020&#8211;calculated&#13;<br \/>\nfor the previous performance year&#8211;also dropped between 20 &#8211; 25 percent in 2021&#13;<br \/>\nacross Southeast Asia. <\/p>\n<p>\u00a0<\/p>\n<p>However, as&#13;<br \/>\norganisations settle into new and agile workforce models, compensation policies&#13;<br \/>\nare expected to normalise to pre-pandemic levels in 2022. The study showed that&#13;<br \/>\nsalary increases for Singapore, Malaysia and Thailand are forecasted to recover&#13;<br \/>\nto 3.8 percent, 4.9 percent and 4.9 percent, respectively, in the coming year.<\/p>\n<p>\u00a0<\/p>\n<p>Voluntary turnover in 2021 remained either mostly&#13;<br \/>\nflat or declined, as reported in Singapore (from 11.3 percent in 2020 to 10.8&#13;<br \/>\npercent in 2021) and Malaysia (from 10.6 percent in 2020 to 8.7 percent in 2021),&#13;<br \/>\ndemonstrating there is hesitation in switching employers amid an uncertain&#13;<br \/>\nbusiness landscape. <\/p>\n<p>\u00a0<\/p>\n<p>However, as the Southeast Asian <a href=\"https:\/\/humancapital.aon.com\/insights\/articles\/2021\/is-the-great-resignation-real\">economy is poised to recover<\/a>, Aon expects turnover to increase following the&#13;<br \/>\ncurrent downturn. <\/p>\n<p>\u00a0<\/p>\n<p>Rahul Chawla, Managing Director,&#13;<br \/>\nAon&#8217;s Human Capital Solutions, Southeast Asia, said: &#8220;Organisations need to&#13;<br \/>\nprepare for and have the right strategies for global talent trends such as &#8216;The&#13;<br \/>\nGreat Resignation.&#8217; This will be further complicated by other factors&#13;<br \/>\nintroduced by the pandemic, such as new working models and a higher demand for&#13;<br \/>\ndigital skills. However, these extraordinary times also present opportunities&#13;<br \/>\nfor companies to stay ahead of the curve in the war for talent as they continue&#13;<br \/>\nto build resilient workforces. We expect to soon see a surge in hiring and&#13;<br \/>\nturnover activity so rethinking compensation and benefits strategies will be a&#13;<br \/>\ncritical success factor to prepare for the next year.&#8221;<\/p>\n<p>\u00a0<\/p>\n<p><b>Retail, hospitality, and professional services continue&#13;<br \/>\nto face headwinds<\/b><\/p>\n<p>The study also revealed how the&#13;<br \/>\npandemic impacted individual sectors. In financial services, the consumer&#13;<br \/>\nbanking industry saw minimal salary increases due to prevailing macro-economic&#13;<br \/>\nconditions and the business performance of banks. However, private banking saw&#13;<br \/>\ncontinued salary growth on the back of continued wealth creation in the region&#13;<br \/>\nand the need for sophisticated financial planning. Similarly, the life sciences&#13;<br \/>\nand medical devices industries saw salary increases in Singapore, Malaysia and&#13;<br \/>\nThailand of 3.6 percent, 4.6 percent, and 5.0 percent respectively. In&#13;<br \/>\ncontrast, retail, hospitality, and professional services continue to face&#13;<br \/>\nheadwinds; for example, the Singapore market saw a salary increase of just 3.0&#13;<br \/>\npercent in the consulting and professional services industry. <\/p>\n<p>\u00a0<\/p>\n<p>To address some of these&#13;<br \/>\nchallenges, data from <span class=\"normaltextrun\">Aon\u00a0shows that organisations\u00a0have\u00a0invested\u00a0in&#13;<br \/>\ndifferent\u00a0talent groups and\u00a0skillsets.\u00a0For example, in response&#13;<br \/>\nto the growing importance of\u00a0digital\u00a0solutions in new working&#13;<br \/>\nmodels\u00a0and the\u00a0need to address the increased risk\u00a0to employee&#13;<br \/>\nhealth and wellbeing,\u00a0salaries in IT and human resources in\u00a0certain&#13;<br \/>\neconomies such as Thailand showed the strongest recovery, with salaries for&#13;<br \/>\njunior employees increasing by up to 20 percent.<\/span> <\/p>\n<p align=\"center\"><i><u>Median Salary Increase in 2020 and 2021<\/u><\/i><\/p>\n<div align=\"center\">\n<table border=\"1\" cellspacing=\"0\" cellpadding=\"0\">&#13; <\/p>\n<tbody>\n<tr>&#13; <\/p>\n<td width=\"166\" valign=\"top\">&#13; <\/p>\n<p><b>Country\/Territory<\/b><\/p>\n<p>&#13;\n  <\/td>\n<p>&#13; <\/p>\n<td width=\"153\" valign=\"top\">&#13; <\/p>\n<p><b>Salary Increase 2020<\/b><\/p>\n<p>&#13;\n  <\/td>\n<p>&#13; <\/p>\n<td width=\"153\" valign=\"top\">&#13; <\/p>\n<p><b>Salary Increase 2021<\/b><\/p>\n<p>&#13;\n  <\/td>\n<p>&#13;<br \/>\n <\/tr>\n<p>&#13; <\/p>\n<tr>&#13; <\/p>\n<td width=\"166\" valign=\"top\">&#13; <\/p>\n<p><b>Singapore<\/b><\/p>\n<p>&#13;\n  <\/td>\n<p>&#13; <\/p>\n<td width=\"153\" valign=\"top\">&#13; <\/p>\n<p align=\"center\">3.8%<\/p>\n<p>&#13;\n  <\/td>\n<p>&#13; <\/p>\n<td width=\"153\" valign=\"top\">&#13; <\/p>\n<p align=\"center\">3.3%<\/p>\n<p>&#13;\n  <\/td>\n<p>&#13;<br \/>\n <\/tr>\n<p>&#13; <\/p>\n<tr>&#13; <\/p>\n<td width=\"166\" valign=\"top\">&#13; <\/p>\n<p><b>Malaysia<\/b><\/p>\n<p>&#13;\n  <\/td>\n<p>&#13; <\/p>\n<td width=\"153\" valign=\"top\">&#13; <\/p>\n<p align=\"center\">4.7%<\/p>\n<p>&#13;\n  <\/td>\n<p>&#13; <\/p>\n<td width=\"153\" valign=\"top\">&#13; <\/p>\n<p align=\"center\">4.5%<\/p>\n<p>&#13;\n  <\/td>\n<p>&#13;<br \/>\n <\/tr>\n<p>&#13; <\/p>\n<tr>&#13; <\/p>\n<td width=\"166\" valign=\"top\">&#13; <\/p>\n<p><b>Thailand<\/b><\/p>\n<p>&#13;\n  <\/td>\n<p>&#13; <\/p>\n<td width=\"153\" valign=\"top\">&#13; <\/p>\n<p align=\"center\">4.9%<\/p>\n<p>&#13;\n  <\/td>\n<p>&#13; <\/p>\n<td width=\"153\" valign=\"top\">&#13; <\/p>\n<p align=\"center\">4.4%<\/p>\n<p>&#13;\n  <\/td>\n<p>&#13;<br \/>\n <\/tr>\n<p>&#13; <\/p>\n<tr>&#13; <\/p>\n<td width=\"166\" valign=\"top\">&#13; <\/p>\n<p><b>Indonesia<\/b><\/p>\n<p>&#13;\n  <\/td>\n<p>&#13; <\/p>\n<td width=\"153\" valign=\"bottom\">&#13; <\/p>\n<p align=\"center\">7.5%<\/p>\n<p>&#13;\n  <\/td>\n<p>&#13; <\/p>\n<td width=\"153\" valign=\"top\">&#13; <\/p>\n<p align=\"center\">6.5%<\/p>\n<p>&#13;\n  <\/td>\n<p>&#13;<br \/>\n <\/tr>\n<p>&#13; <\/p>\n<tr>&#13; <\/p>\n<td width=\"166\" valign=\"top\">&#13; <\/p>\n<p><b>Vietnam<\/b><\/p>\n<p>&#13;\n  <\/td>\n<p>&#13; <\/p>\n<td width=\"153\" valign=\"bottom\">&#13; <\/p>\n<p align=\"center\">8.5%<\/p>\n<p>&#13;\n  <\/td>\n<p>&#13; <\/p>\n<td width=\"153\" valign=\"top\">&#13; <\/p>\n<p align=\"center\">7.5%<\/p>\n<p>&#13;\n  <\/td>\n<p>&#13;<br \/>\n <\/tr>\n<p>&#13;<br \/>\n<\/tbody>\n<\/table>\n<\/div>\n<p align=\"center\"><i><u>Median Voluntary Turnover in 2020&#13;<br \/>\nand 2021<\/u><\/i><\/p>\n<p align=\"center\"><i><u><img width=\"500\" data-src=\"https:\/\/images.media-outreach.com\/Thumb\/500x0\/206887\/aon-table.JPG#image-206887\" class=\"lazyload\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\"\/><noscript><img src=\"https:\/\/images.media-outreach.com\/Thumb\/500x0\/206887\/aon-table.JPG#image-206887\" width=\"500\"\/><\/noscript><br \/><\/u><\/i><\/p>\n<p>\u00a0<\/p>\n<p>&#8220;The trends observed for 2021 reflect the phases of&#13;<br \/>\nreact, recover and reshape that most companies have experienced in the last 18&#13;<br \/>\nmonths. With higher vaccination rates across Southeast Asia and the resumption&#13;<br \/>\nof travel, the expectation in 2022 is for a long-awaited recovery where we will&#13;<br \/>\nsee more movements in the talent market. While continuing to fight the war for&#13;<br \/>\ntalent, organisations can leverage these data and insights to make better, more&#13;<br \/>\ninformed decisions as they build roadmaps to deliver enhanced value for&#13;<br \/>\nemployees in the future,&#8221; said Chawla.<\/p>\n<p>\u00a0<\/p>\n<p>To view the study, please click <a href=\"https:\/\/radford.aon.com\/products\/market-practice-studies\/salary-increase-and-turnover\">here<\/a>.<\/p>\n<p><span class=\"normaltextrun\"><b>About the study<\/b><\/span><\/p>\n<p><span class=\"normaltextrun\">Aon&#8217;s Salary Increase and Turnover Study provides clients with&#13;<br \/>\nactionable insights to ensure their pay cycles are aligned with overall market&#13;<br \/>\ntrends. Conducted twice a year, the study spans more than 130 countries\/territories&#13;<br \/>\nand 4,100 companies globally.<\/span><\/p>\n<p><span class=\"normaltextrun\">The Salary Increase and Turnover Study covers the following<\/span> key market practices:<\/p>\n<ul type=\"disc\">&#13; <\/p>\n<li>Actual overall and&#13;<br \/>\n     merit-based salary increases<\/li>\n<p>&#13; <\/p>\n<li>Budgeted overall and&#13;<br \/>\n     merit-based salary increases<\/li>\n<p>&#13; <\/p>\n<li>Expected hiring and&#13;<br \/>\n     workforce growth trends<\/li>\n<p>&#13; <\/p>\n<li>Key talent&#13;<br \/>\n     identification and rewards differentiation practices<\/li>\n<p>&#13; <\/p>\n<li>Performance management&#13;<br \/>\n     practices<\/li>\n<p>&#13; <\/p>\n<li>Promotion practices<\/li>\n<p>&#13; <\/p>\n<li>Salary structure&#13;<br \/>\n     movement trends<\/li>\n<p>&#13; <\/p>\n<li>Voluntary and&#13;<br \/>\n     involuntary turnover rates<\/li>\n<p>&#13;\n<\/ul>\n<p>\u00a0<\/p>\n<\/p><\/div>\n\n<br \/><a href=\"https:\/\/www.media-outreach.com\/news\/2021-12-15\/111148\/salaries-expected-to-recover-to-pre-covid-19-pandemic-levels-in-southeast-asia-in-2022-aon-study-reveals\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Salary increases in 2021 were&#13; lower than in 2020; bonus pay-outs dropped approximately 25 percent. Some industries, such as private&#13; banking, saw continued increases in salaries while retail and professional&#13; services faced challenges. SINGAPORE &#8211;\u00a0Media OutReach\u00a0&#8211; 15 December 2021\u00a0&#8211;\u00a0The COVID-19 pandemic has weighed&#13; heavily on talent strategies with muted salary increases across Southeast Asia,&#13; according &hellip;<\/p>\n","protected":false},"author":1,"featured_media":19523,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[],"_links":{"self":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/19522"}],"collection":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/comments?post=19522"}],"version-history":[{"count":0,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/19522\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media\/19523"}],"wp:attachment":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media?parent=19522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/categories?post=19522"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/tags?post=19522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}