HK's top managers in the money
MANAGERS IN Hong Kong may want to think twice before they grumble about their salaries and purchasing power, following the release of a survey that reveals senior managers here are among the best-off in the world because of a favourable tax system and a moderate cost of living.
The recent release of a National Salary Comparison Survey, a worldwide survey that looks at the relative wealth of managers working in major economies, reveals that only senior managers working in the US are better off than those working in Hong Kong. Relative wealth takes into account actual spending power, local tax, social security and the cost of living.
'Although gross and net salaries are often the starting point for salary comparison between locations, relative wealth remains the most representative inter-country salary comparison,' said Lee Quane, general manager at ECA International, the company behind the National Salary Comparison Survey.
Mr Quane said gross and net salaries in Hong Kong had remained fairly static over the past five years. Also, there had been no significant increase in the cost of living, which meant that local senior managers were in the same relative wealth position as they were in 2001.
Consequently, the US has overtaken Hong Kong in terms of relative wealth afforded to senior managers, and other countries like Singapore are catching up.
'Singapore, like Hong Kong, has low taxes but has seen larger salary increases. This, coupled with low inflation, has led to a considerable rise in living standards compared with a moderate rise in Hong Kong,' Mr Quane said.
Senior managers in Singapore have on average received salary increases of 27 per cent over the past five years, driving up relative wealth. 'In Asia, Hong Kong has a slight edge over Singapore, but it is catching up fast,' he said.
In contrast to their counterparts in Singapore over the past five years, Hong Kong's junior managers had experienced a greater increase in relative wealth. This is due to the disparity in gross salaries across senior levels.
'In Singapore, senior managers are located towards the top of the purchasing power league, while junior managers are positioned much lower,' Mr Quane said.
The National Salary Comparison Survey also revealed that senior managers in Switzerland, Japan, the US and Denmark received higher gross salaries than their counterparts in Hong Kong - about HK$250,000 more in Switzerland, for example. However, according to Mr Quane, gross salary only tells a fraction of the story and can be misleading.
'By applying a cost-of-living index to show how much a net salary will actually buy is by far the better way of drawing an accurate picture,' he said.
Low inflation in recent years means that many expatriates coming to Hong Kong will find it comparatively cheaper now than five years ago.
In another survey carried out by Ambition, a Hong Kong-based recruitment and contracting business specialising in the accounting, audit, banking and sales and marketing sectors, 54 per cent of respondents said the most important factor in looking for a job was salary. Results from the web poll, which took into account feedback from 2,180 respondents, showed the salary component was followed by working hours (17 per cent), company name (15 per cent) and staff training (14 per cent).
'Job seekers should weigh up a number of factors when planning their next career move. While salary is on top of the list, it would be short-sighted if they aimed purely for a pay rise instead of long-term career prospects when moving jobs,' said Guy Day, Ambition's managing director for Asia.
Mr Day said employers had become more prudent in the selection process. Candidates with jumpy resumes without valid explanations for leaving previous jobs are likely to be the first to be screened out. Job seekers should also weigh up the benefits of staff training, which will give them opportunities to gain new skills and knowledge. It's only those companies that are willing to invest in staff training that can help employees further develop their careers.
'We have also seen that a work-life balance has gained more importance in Hong Kong. On average, employees work for 48 to 54 hours weekly and overtime work seems to be quite common here. We are glad to see the government and increasing number of private organisations follow the worldwide trend of a five-day week, which would definitely improve the productivity and efficiency of employees,' Mr Day added.
