Wage increase, Bonus and Recruitment Plans
SHRI in conjunction with RDS surveyed 128 companies in June 2011 to find out about their wage increase, bonus, and recruitment plans.
Summary of Key Findings
- Due to expectation of a moderated economic growth in the second half of 2011, the business outlook for the next six months dipped slightly. As a result, companies are also somewhat cautious on wage increases, bonuses as well as recruitment.
- The basic wage increase this year will average around 4.1%, higher than the 3.6% in 2010 but not substantially higher as the strong 2010 growth would have led some to expect.
- Variable bonuses (excluding AWS) will average 2.2 months, slightly lower than the 2.3 months in 2010. The total wage increase will be only 3.4% which will result in a small decrease in real wages of around 0.1 to 0.6% as the consumer price index inflation for the whole of 2011 is expected to come in at the upper half of 3 to 4%.
- For the first half of 2011(similar to last year), 77% of companies hired staff but for the second half, less companies (59%) expect to hire and the numbers to be recruited per company is also expected to be lower than in the first half of the year.
- 7% of the companies retrenched or expect to retrench staff in 2011, slightly less than the 8% last year.
- 86% of companies experienced staff turnover in 2011, same as in 2010. The turnover rate is expected to average 7 to 8%.
- Entry -level salaries increased significantly across the board over the last six months. The increases ranged from 1.4% to 9.3%
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