BANGKOK, THAILAND – Media OutReach – 30 November 2017 – Salary increases during the year are in the range of 4.7% to 5.9% according to Thailand’s Total Compensation Measurement (TCM) Study and Benefit Survey 2017. The survey was conducted by Aon (NYSE: AON), a leading global professional services firm providing a broad range of risk, retirement, and health solutions.
At 5.3%, the average salary increase across industries surveyed in Thailand is the same as last year and is projected to remain at this level in 2018 as well. However, an increase in property targeted at high net-worth individuals and new projects for healthcare industry means the real estate industry will offer a higher increase at 6.2%. .
Performance continues to drive pay with top performers getting higher salary increases and short- term incentives. High-Potential employees are rewarded by promotions.
The study reveals that turnover rate in 2017 has increased to 16.6% from 16.3% in 2016. This is driven by a growing job market and a younger workforce that is open to change.
Other key findings of the Thailand TCM Study and Benefit Survey 2017 are:
- The average bonus rate stands at 16.81% of annual base salary.
- Chemical industry offered the highest salary increase at 5.9%. Travel industry has the lowest salary increase at 4.7%
- The variable pay range is at 15% for support level, 18% for the individual contributor and management levels, and 20% for executive level.
- 45% of organisations provide financial wellness advisory as a benefit to employees at all levels. Top 3 focus areas are investment planning, retirement planning, and tax planning.
- Top five employee benefits provided by organisations in 2016 are:
1. Medical Inpatient
2. Medical Outpatient
3. Group Accidental Insurance
4. Life Insurance
5. Retirement Benefit (Provident Fund)
- Highest employee benefits costs are towards:
1. Company Car and Transport Allowance
3. Medical Outpatient
- Benefit strategy over the next three years will focus on evaluating new benefits to suit employees’ evolving needs to boost engagement.
Panuwat Benrohman, Managing Director of Aon Hewitt Thailand says, “As Thailand aims for a stronger business performance in 2018, organisations must be more innovative in designing their compensation strategy. Cash is no longer enough to engage the workforce. Companies must provide opportunities for career advancement, learning and development and special benefits that align with their employees’ aspirations. This should be supported by a robust communication plan which helps employees to appreciate the value of their total rewards. At the same time, having a variable pay component will motivate them to strive for high performance and help companies reduce their fixed pay costs.”
Total Compensation Measurement Study and Benefit Survey includes more than 1700 participating organisations across 180 countries around the world. This year, there were 132 participating organisations across all key industries in Thailand.
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