(MENAFNEditorial) China salary increase rate down in 2017, as involuntary turnover rises
SHANGHAI, CHINA - - December 12,
2017 - At an average of just 6.5% (excluding promotion), Chinese
enterprises recorded the lowest salary increase rate since 2010 this year,
according to the Human Capital Intelligence (HCI) Study 2017.
The study was conducted by Aon (NYSE: AON),
a leading global professional services firm providing a broad range of risk,
retirement, and health solutions.
Despite being the
leader in salary increases, the Internet industry saw the biggest decrease this
year--down by 1.3 points to 9%, compared
with the same period of last year. The hi-tech industry offered salary
increases of 7.4% this year, down by 0.5 points. Salary increase rates in other
industries are listed below:
Salaries in China are
projected to increase at an average rate of 6.6% in 2018.
Ms. Zhang Zhuolei, COO
of Aon Hewitt Greater China, says: "In recent years, salary related costs have
been increasing. Companies must focus on differentiated pay with the aim of
driving performance."
Turnover rate slows down, while involuntary turnover rate
rises
This year, average
turnover rate was 19.7%. Of this, 14.4% of turnover was voluntary while 5.3%
was involuntary. While the average turnover rate has gone down by 1.1 points
compared to last year, involuntary turnover rate has increased by 4.7 points in
engineering; 1.9 points in pharmaceutical Foreign Invested Enterprises (FIEs);
and 1.1 points in logistics.
Zhang Zhuolei adds:
"Faced with the pressure of an economic downturn, disruptive technology,
and changing regulatory environment a number of enterprises have taken the
initiative to transform their businesses. Organisational restructuring,
business divestitures, and M & As have resulted in an increase in involuntary
turnover. In addition, some sectors have experienced increase in voluntary
turnover due to more job opportunities available."
Artificial Intelligence skills are in demand,
but there is an acute shortage
The continuous demand for
artificial intelligence (AI) has resulted in an acute shortage of talent in the
Chinese market. A limited number of AI university graduates enter the job market
each year, exacerbating the already-tense talent supply and pushing up their
compensation levels. According to Aon's HCI Study 2017, senior machine-learning
engineers enjoyed an average salary increase of about 20% in 2017, and data
scientists received an average increase of 15% to 20%--much higher than the industry average of 7.4%.
Staffing tends to be more prudent as enterprises focus on improving
employees' capabilities & productivity
Headcount increase
rates are projected to decrease in 2018 across a majority of industries--demonstrating that companies are growing more
prudent about their hiring decisions. The study also shows that the cost of
employees' compensation & benefits have lowered in certain industries, such
as pharmaceutical FIEs and medical device FIEs.
This indicates that companies
are paying more attention to improving employees' capabilities and productivity
to drive business performance. At the same time, they are committed to attract,
motivate and retain 'high potential' employees via a reward strategy which
singles them out and provides them the right incentives.
About the Human Capital Intelligence (HCI) Study
The HCI Study covers
over 3000 enterprises in first-tier cities such as Beijing, Shanghai,
Guangzhou, and Shenzhen, as well as major second-tier and third-tier cities
across China. Study participants span a number of industries including hi-tech,
Internet, real estate, finance, healthcare, auto, machinery and industrial
manufacturing, consumer goods, retail, chemical, logistics, engineering, and
hotel.
About Aon Aon plc (NYSE:AON) is a
leading global professional services firm providing a broad range of risk,
retirement and health solutions. Our 50,000 colleagues in 120 countries empower
results for clients by using proprietary data and analytics to deliver insights
that reduce volatility and improve performance.
For further information
on our capabilities and to learn how we empower results for clients, please visit
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