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Hong Kong companies forecast an average salary increase of 4.6 percent in 2014 – Mercer survey shows

Last updated: 7 January 2014
  • 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."

 

About Mercer
Mercer is a global consulting leader in talent, health, retirement and investments. Mercer helps clients around the world advance the health, wealth and performance of their most vital asset – their people. Mercer’s 20,000 employees are based in more than 40 countries. Mercer is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy and human capital. With 52,000 employees worldwide and annual revenue exceeding $10 billion, Marsh & McLennan Companies is also the parent company of Marsh, a global leader in insurance broking and risk management; Guy Carpenter, a global leader in providing risk and reinsurance intermediary services; and Oliver Wyman, a global leader in management consulting. For more information, visit www.mercer.com. Follow Mercer on Twitter @MercerInsights.