HUMAN RESOURCES consultancy Mercer said it expects Philippine salaries to increase 6% in 2019 as companies seek out new skills to deal with digital disruption to their business models.
The 6% forecast put the Philippines in the middle of the pack in Asia, with the highest increase forecast for Bangladesh (10%), India (9.2%) and Vietnam (9.8%). On the low end of the scale, salaries in Australia are forecast to grow 2.6%, New Zealand at 2.5%, and Japan at 2%.
“The overall hiring outlook for the country is positive, with an average of 50% of companies across different industries looking to grow their talent pool to seize diversification and growth opportunities in the face of ongoing digital disruption,” according to Floriza Molon, Mercer’s Career Business Leader for the Philippines, in a statement on Wednesday.
The study found that the shared services and outsourcing industries have the most positive hiring outlook in 2019, with 70% of Philippine companies in these sector looking to expand and 24% looking to maintain current number of employees.
Mercer also found that the changing nature of work due to digital disruption is driving demand for new skills, as companies in the Philippines begin to offer a significant premium for employees in data analysis and specialist sales roles.
However, Mercer also found that many companies in the Philippines are struggling to retain their employees. On average, employees across all industries only stay in their current organization for five years.
According the study, respondents cited a lack of career path and opportunities to grow, low pay, and unpleasant relationships with supervisors as their top reasons for leaving their current organization.
Respondents said they value workplaces that focus on employee health and well-being, career empowerment, and a sense of purpose.
Ms. Molon noted, “To attract and retain employees, companies are going beyond offering generous incentives and retention bonuses, and taking a more holistic view of their total rewards philosophy. They are increasingly focusing on the experiential components of rewards programs to deliver meaningful career experiences and flexible arrangements, as well as programs to help manage the physical, financial and emotional well-being of their employees.” — Vince Angelo C. Ferreras