Survey: Average salary increase next year fell to 3.8%
Under the turmoil of Sino-US trade war, a survey shows that wage earners have “shrinked" in the next year. The overall manual increase is 3.8%. The increase in each rank is 3.6% to 3.9%, which is 3.9% higher than this year. The 4.3% decline was significantly lower, and the salary increase of the grassroots employees in the coming year was a new low of 6 years.
Some human resources consultants pointed out that the Sino-US trade war continues, employers are cautious in adjusting their employees’ salaries next year, trade wars have hit logistics and manufacturing, and some related SMEs have slowed down the pace of hiring.
IT engineering construction industry has a higher rate of increase
The Hong Kong Talent Management Association and the Human Resources and Development Research Centre of the HKPC School of Business surveyed 99 institutions from July to September this year, mainly from 11 industries in Hong Kong. The total number of employees was 12,074. Analysis of this year’s average salary increase of 3.9% to 4.3%, with the highest increase in directors / professionals and grassroots employees. As for bonuses, this year’s average fixed bonus is 0.5 to 0.7 months, and non-fixed bonuses are 0.9 to 1.5 months.
Among the survey institutions, 85 provide salary increases next year. It is expected that the overall artificial increase will range from 3.6% to 3.9% next year. Although grassroots employees are expected to receive a 3.8% increase in salary, the increase is the six-year low for the survey.
The Hong Kong Talent Management Association Hong Kong District Remuneration and Welfare Investigation Committee Chairman Huang Yuzhen analyzed that the Sino-US trade war continued, affecting the business of some companies in Hong Kong, especially manufacturing industries, which are exported to the United States but set up factories in the Mainland. The salary increase next year is low.
However, she thinks that from the retail data and unemployment rate in Hong Kong in the past few months, the impact of the Sino-US trade war on Hong Kong’s economy has not been excessively pessimistic. I believe that the actual salary increase next year may not be lower than the overall average of 3.8%. It is also difficult to predict the enterprises. Will there be major layoffs?
In the light of the market demand and the new policy address mentioned in the new policy address, it is expected that the information technology, engineering and construction industries will become the top three industries with higher pay increases. There are less opportunities for salary and welfare adjustments.
Zhou Junping, managing director of Anjun Human Resources Consulting, said that the uncertainties in the Sino-US trade war have been large, and the impact has not yet fully emerged. In addition, the stock market and the renminbi in the near-Hong Kong stock market have fallen, making employers’ attitude toward the adjustment of the salary increase next year conservative. The salary increase for office workers does not exclude the lower than 3.8% predicted by the Hong Kong Talent Management Association.
Logistics manufacturing bears the brunt
She pointed out that some large enterprises with stable business will generally consider the salary adjustment and bonus arrangements for employees in the coming year from November to January, but many employers expect the Sino-US trade war to change greatly, and may extend to December this year to next year. The salary increase is only implemented in the month.
Xu Yushan, senior vice president of Manpower Group Greater China, pointed out that the Sino-US trade war has caused the logistics industry and manufacturing industry to bear the brunt. It has been heard that some relevant SME companies have suspended their manpower in the past three months, or they have not filled the vacancies immediately when employees are lost. . However, she said that most companies are still holding a wait-and-see attitude toward the trade war, and it is expected that the salary increase next year will be similar to this year.