PHILIPPINE companies are forecast to increase salaries by 6% next year, as they focus more on retaining current employees, according to a survey conducted by Mercer.
In its 2019 Philippines Total Remuneration Survey, Mercer said next year’s salary increase is higher than the 5.5% in 2019, as inflation is expected to ease.
The survey also showed consumer goods, energy and high tech industries are forecast to have the biggest salary increases at 6%.
Mercer noted that 45% of organizations surveyed will add new hires, lower than the 50% this year.
“While the country’s population is young with a median age of 24 years, workplaces are increasingly becoming multigenerational… At the same time, the rise of the gig economy is growing demand for flexible work arrangements. These emerging realities challenge companies to have more compelling and differentiated value propositions, increase pay transparency, and rethink pay for performance, so they can attract, retain, and manage talent,” Mercer Career Business Leader for the Philippines Floriza Molon said in a statement.
Based on the survey results, Ms. Molon said 55% of Philippine companies are reviewing their benefits package, with 43% looking to raise the budget for employee salaries and 21% hiking the budget for employee benefits.
Retention remains a concern for many companies. For the first six months of 2019, Mercer noted voluntary and involuntary attrition rates were at 6.2%, and 1.9%, respectively.
“While the top reasons cited for employees leaving their organization in Asia varies by age group and gender, the top three reasons for employees leaving their organization are competitive pay, manager interaction, and a lack of clear career path and job security,” Mercer said. — Vincent Mariel P. Galang