With global companies continuing to invest in Asia, many employers in the region are reporting pay increase and the trend is expected to continue in the next year, the annual report by global human resources consulting firm Hewitt Associates has said.
According to the report, India, which registered highest average salary increase at 13.9 per cent in the region in 2005, is expected to continue the trend of increased pay cheque with just 2.6 per cent of employers expecting salary freeze in the next year.
The annual Asia-Pacific Salary Increase Survey said only one per cent of the 270 companies in India, which participated in the study, reported salary freeze this year.
The IT-enabled industry received the highest increase in salary at 17.9 per cent, it added.
The study said Indian employees at professional/supervisor /technical level, who received the highest average increase of 15.7 per cent, are expected to do so again next year with 15.6 per cent.
The salary of the senior/top management is expected to rise by 20 per cent next year as against 19.4 per cent this year, it said.
"With an increasing number of organisations turning their attention to countries such as China and India, it comes as no surprise that salary increases in these markets were among the highest in the region," Hewitt Talent and Organization consulting analytics practice head in Asia Nishchae Suri said.
Despite receiving the highest salary hike, India is, however, amongst the countries with the highest attrition rates in the region at 13.1 per cent. The Philippines topped the list of attrition at 17.7 per cent followed by China at 14.4 per cent and Thailand at 13.4 per cent.
"Business and HR professionals across Asia continue to look for meaningful ways of managing rapid business growth amidst high attrition and challenges in attraction and retention of talent. Organisations will continue to strengthen their reward management practices and focus on pay for performance to retain talent and enhance overall productivity," Suri said.
The study pointed out that variable pay such as linking objectives to performance continues to be popular in Asia and the ratio between variable and fixed pay will likely continue to increase in most countries except Singapore next year.
While stock options remain the favored long-term incentive, fixed bonuses were also popular this year, it said.
Leading the way, 81 per cent of participating companies in Taiwan offered fixed bonuses to employees in 2005, closely followed by 72 per cent in Singapore, and 67 per cent in Thailand.