- Companies generally forecast a better or stable business outlook for 2014
- Average salary increase rate is at 4.4% in 2013 and forecast to be 4.6% in 2014
- One-fourth of respondents plan to increase headcount in 2014
Mercer Hong Kong conducted a snapshot survey for 2014 workforce planning and salary increase around the end of 2013. The survey shows that multinational companies in Hong Kong are very optimistic about their business outlook in 2014, even though the global economic situation still looks unstable. The survey shows 44% of companies expect their 2014 business performance to be better than that of 2013, and 56% expect next year’s business performance to be similar to this year’s.
The survey, now in its second year, features the forecasts of 158 multinational companies. Respondents were drawn from a variety of industries, including chemical, consumer goods, financial services, healthcare/pharmaceutical, hi-tech, logistics/transportation and manufacturing.
The survey shows that companies plan to offer higher salary increases, with an average rise of 4.6% in 2014, compared to the 4.4% in 2013. "Considering a better business outlook and the continuous high rate of local inflation, companies in Hong Kong generally plan to offer a higher salary increase next year in order to retain their employees. Companies in the healthcare/pharmaceutical industry even intend to offer an average salary increase of 5.7% in 2014, which is the highest among all the surveyed industries," said Ms. Connie Leung, Principal and Business Leader for Mercer’s Hong Kong Information Solutions.
The survey also shows that about one-fourth of the companies plan to increase their headcount in 2014 while approximately 70% of companies expect to maintain the existing headcount level.
"As the global economy slowly recovers and the business outlook seems better, employers in Hong Kong are looking to create a higher level of engagement with their employees," said Ms. Leung. "According to the survey results, many companies plan to review their overall talent strategy and market competitiveness of their compensation and benefits programs in the coming year."