Benefits are hot amid zero to slight salary increases

Providing in-depth insights of salaries and employment market trends across various industry sectors, the Hays 2012 Salary Guide indicates that Hong Kong employees should brace themselves for only a modest salary increase over the coming months.

In spite of a generally positive outlook, Nick Fenn, Hays associate director in Hong Kong, says the city's employers are taking a cautious approach regarding salary increases. 'In most sectors, employers are watching developments in Europe, and for signs of market improvement in the US,' says Fenn.

Of the Hong Kong employers polled, 60 per cent plan to increase salaries between 3 and 6 per cent when they next review. This range is roughly in line with the city's current inflation rate. A further 24 per cent will offer increases above 6 per cent.

The planned increments are notably more generous than those paid out by the same respondents during their last reviews, reflecting a more confident business outlook.

On an industry basis, expected increases in the human resources sector, at 10 to 20 per cent for senior roles, far outpaced those in others.

Due to the shortage of local talent, a steady rise in increments has also been seen in the insurance industry, coupled with a strong reduction in expatriate packages.