Mainland China’s wage growth forecast for 2018 highest in the region

With an increasingly stronger economy in Mainland China, salaries at the higher end of the scale are projected to rise in 2018 with 51 per cent of employers planning to offer an increase of more than 6 per cent increase, up from 45 per cent in 2017, according to recruiting experts Hays.

The Hays Asia Salary Guide includes salary and recruiting trends for Mainland China, but also Hong Kong, Japan, Malaysia and Singapore. It is based on a survey of more than 3,000 employers, representing over six million employees.

“Our Guide shows that most companies in Mainland China are committed to offering higher salary increases to current/new employees compared to other countries in the Asia region. We also see that in some sectors, employers are willing to go above average when hiring those with niche skills and in areas of skill shortages,” said Simon Lance, Managing Director of Hays Greater China.

“For example, specialised roles in some areas of IT will see companies engage in fierce competition for candidates by offering substantial salary increases (20 per cent minimum),” he said.

“Candidates are advised to do their homework on what their job role and industry is paying before deciding to move job roles in search of a higher salary.”

“For employers, communicating to staff about the process behind salary increases will be even more important in 2018 particularly if the economy continues to show the strong improvements we seen in 2017 and likely to see in 2018, creating the perception that there should be more budget for salary increases,” said Simon.

Salary reviews
The 2018 Hays Asia Salary Guide shows that most employers in Mainland China (45 per cent) awarded salary increases of more than 6 per cent in their last review period. A further 38 per cent of employers increased salaries from between 3 to 6 per cent, 10 per cent increased salaries by up to 3 per cent while 7 per cent gave no increases at all.

Looking ahead, 51 per cent of employers will increase salaries by more than 6 per cent, 35 per cent will increase salaries from between 3-6 per cent, nine per cent will increase by up to 3 per cent and five per cent will offer no increase at all. 

How Mainland China compares
The 2018 Guide shows employers in China are again the most generous in the region when it comes to salary increases.

In Malaysia, 49 per cent of salary reviews will result in an increase of 3 to 6 per cent and 39 per cent will offer more than 6 per cent. Three per cent of employers plan no increases and eight per cent modest increases of up to 3 per cent.

In Japan, 60 per cent of employers plan salary increases of only up to 3 per cent in their next review and 12 per cent plan no increases at all. Only 18 per cent will award increases from between 3 to 6 per cent while a modest 10 per cent plan increases of more than 6 per cent.

Most Hong Kong employers (49 per cent) plan increases of 3 to 6 per cent in their next review while 24 per cent plan only go up to 3 per cent and 16 per cent between 6 and 10 per cent. 22 per cent will increase salaries by more than 6 per cent and six per cent plan no salary increase at all. 

49 per cent of employers in Singapore will increase salaries from between 3 to 6 per cent, six per cent will offer no salary increase, 32 per cent will increase salaries up to 3 per cent and 14 per cent will increase salaries by more than 6 per cent.  

Benefits
The majority of employers in Mainland China (73 per cent) award staff benefits against an average for all five countries of 83 per cent. The most popular benefit in Mainland China by far is ‘health/medical’ benefits nominated by 63 per cent of employers. Next was ‘housing allowance’ (43 per cent) and life assurance (36 per cent).

Bonuses
In our 2018 Guide, 46 per cent of employers in Mainland China told us they plan to award bonuses to more than 50 per cent of staff, this is an increase of three per cent from our previous salary. 

Most of our Mainland China respondents said bonuses would be based on individual and company performance, both at (89 per cent). 54 per cent cited team performance.

Candidate salary expectations
Of the candidates surveyed in Mainland China, 57 per cent are unhappy with their current level of compensation but 74 per cent did not ask for a pay rise during their last review.

The largest proportion of candidate respondents in Mainland China (85 per cent) expect a pay rise of more than 6 per cent while nine per cent expect an increase from between 3-6 per cent.

Get your copy of the 2018 Hays Asia Salary Guide by visiting www.hays.cn/en/salary-guide or by contacting your local Hays office.