Pay raises in Asia’s financial sector lag behind
Salaries in the financial sector have gone up 5.7% across Asia Pacific in what is a bleak rebound of only 0.1% from the previous year.
On average, almost one fifth of the salary increase budget is being allocated to top performers, which represent 12.8% of employees across the region. This implies that for each $1 allocated to an average or below-average performer, $1.44 is allocated to a top performer, according to the latest Salary Budget Planning Survey Report (Q3) by global advisory firm Willis Towers Watson.
The financial sector in the region is however still lag behind in most of the markets in the region as fintech startups have disrupted the landscape. Intensifying competition from fintech developments have made firms in this sector to be even more cautious with their overall spending, as specialised media outlet finews reports.
On average, the 2018 median salary increase in Financial Services is 0.3% points lower than the general industry.
Despite the stable business outlook, recruitment efforts could slow down over the next 12 to 24 months, as only 27% of Asia Pacific organisations plan to add new headcount, compared with 39% in the previous year.
Nonetheless, organisations planning to maintain their current headcount increased from 54% to 66%.
The Willis Towers Watson ‘Getting Compensation Right’ survey includes information on pay practices for nearly 2,000 global companies, with about 40% representing Asia Pacific.