Salary & Employment Forecast HONG KONG 2014

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1 Salary & Employment Forecast HONG KONG 2014 sales

2 Market Analysis Recruitment Activity Strength of current hiring activity compared to the last 12 months Expectation of a professional skills shortage in the next 12 months Stronger (21%) Slightly stronger (18%) Steady (32%) Slightly weaker (18%) Weaker (11%) 50% 32%? 18% Market observations: The demand for sales professionals in Hong Kong is currently steady. Many companies are actively hiring. Not only are they focusing on recruiting for replacement roles, they are also seeking new employees to expand products and cover new geographic markets. The requirement for sales professionals is expected to strengthen over the next 12 months. The highest demand is expected from the manufacturing, food and beverage as well as professional services sectors, due to a shortage of talent in these areas and increased competition in the marketplace. Roles such as Director, Business Development Manager/Director and Account Manager/Director are anticipated to be in highest demand, as companies seek such sales talent to further grow the business and gain higher levels of market penetration. With a relatively optimistic employment outlook in the Asia Pacific region, many sales positions in Hong Kong have regional coverage for Greater China, South East Asia or the entire Asia Pacific region. With China s continued robust growth, many employers have a strong preference for candidates with work experience in China, along with fluency in Mandarin. There is an increased demand in sales professionals with software, digital or software as a service (SaaS) experience due to the transformation from traditional to online channels across most industries. Note: All infographics in this report are based on the views of survey participants. The accompanying market commentary is based on the experience and observations of the Michael Page team. 92

3 Recruitment Activity Skills shortage placing upwards pressure on salaries Impact of skills shortage on business in Hong Kong over the next 12 months Yes, it will cause salaries to rise above the inflation rate (71%) 57% Yes, salaries will increase but only at the rate of inflation (14%) No, the skills shortage will not impact salary levels (15%) 22% 21% Need to develop more targeted attraction strategies It will be difficult to maintain headcount Source talent from overseas Note: All infographics in this report are based on the views of survey participants. The accompanying market commentary is based on the experience and observations of the Michael Page team. 93

4 Salary and Remuneration Salary increases over the next 12 months Average percentage salary increases over the next 12 months 6% All my employees will receive the same percentage increase 61% 1% - 5% 6% - 10% 11% - 15% 54% 25% 14% All my employees will receive an increase, but it will vary according to performance 21% Only my best-performing employees will receive an increase 12% No one in my team will receive an increase Combination of factors likely to impact salary levels in the next 12 months* 16% - 20% 21% - 30% 3% Market observations: For sales professionals in Hong Kong, the average percentage salary increase anticipated over the next 12 months will be between 1% and 5%. Higher than average salary increases are likely to be reserved for Directors who overachieve on their targets. Shares and stock options has been a well adopted strategy for start-ups to attract experienced and driven sales candidates. 4% 54 % Competition with other companies 54 % 46 % 7 % 7 % Domestic economic conditions Global economic conditions Don't expect any factors to particularly impact salaries Other (business and employee performance, etc) * More than one option could be selected. 94

5 Salary and Remuneration Flexible salary packaging or fringe benefits offered to employees Companies providing bonus as part of the remuneration package 74% 26% 91% 9% Basis for bonuses over the next 12 months Average percentage bonus of gross salary Company performance 11 % 52 % 11 % Team performance Individual performance 26 % Combination of all 1% - 5% 6% - 10% 5% 36% 11% - 15% 16% - 20% 21% 11% 21% - 30% 11% 31% - 40% 11% Above 40% 5% 95

6 Attraction and retention Employer expectations for staff turnover in the next 12 months Key reasons employees are likely to leave 59% 21% $ 20%? 50% 38% 6% 6% Broaden experience / opportunity to learn Improve salary Gain more seniority Overseas opportunities Most popular tools for attraction and retention Most popular options offered to support employees work-life balance* Global career opportunities Recognition and rewards Strong company culture Work-life balance initiatives Structured career progression Training and mentoring partnerships 31% 19% 19% 19% 6% 6% 61% Flexible working arrangements 43% Team building / offsite activities 21% Alternative leave options (e.g. volunteering) 18% Other 11% Increased maternity / paternity leave Market observations: While a competitive salary, on-target earning potential or retention bonus remains the top motivators for sales professionals in Hong Kong, some candidates prefer to receive a mix of financial and non-financial rewards from their employer. Popular non-financial incentives include flexible hours, higher medical premiums, increased annual leave and minimum travelling with standard work hours. 11% Sabbatical leave * More than one option could be selected. 96

7 Attraction and retention Combination of benefits offered to employees* 89 % 86 % 79 % 36 % 14 % 11 % 4 % 4 % Medical and dental benefits Bonus Mobile phone Transport allowance Car parking Company car Other (education, etc) Personal loan 5 % Working hours Average weekly working hours Less than 37.5 hours hours hours hours 10 % 10 % 55 % 25 % * More than one option could be selected. 97

8 SALARY TABLES Consumer Products & FMCG Business Manager General Manager Director 10+ 1,000 1,500+ General Manager 12+ 1,000 1,500+ Financial Services Product Development Product Development Manager Product Development Director 10+ 1,200+ Corporate Manager IT & Telecommunications & Account Management Channel Account Manager / Account Manager Manager / Global Account Director Division Manager / and Marketing Manager / General Manager Vice President, and Marketing / and Marketing Director / Marketing Director ,200+ Director / Business Development Director 12+ 1,200-1,500+ Managing Director / General Manager 12+ 1,500+ Please note: 1. Salaries indicated are based on an annual basic salary (12 month), excluding bonus / incentive schemes. 2. Market rates are becoming much less uniform. While we have taken great care, these salary ranges can only be approximate guides, as there are often specific circumstances relating to individual companies. Please call us for additional information. 98

9 Manufacturing / Industrial Engineer / Senior Engineer Manager / Business Development Manager General Manager / Director ,200+ Media / Entertainment & Business Development Assistant Manager / Business Development Manager Advertising / Media Manager ,000 / Business Development Director ,200+ Advertising / Media Director ,200+ General Manager 10+ 1,200 1,800+ Professional Services Business Development & Research Business Development Executive Research Manager Business Development Manager ,200+ Business Development Director 10+ 1,200 1,500+ Please note: 1. Salaries indicated are based on an annual basic salary (12 month), excluding bonus / incentive schemes. 2. Market rates are becoming much less uniform. While we have taken great care, these salary ranges can only be approximate guides, as there are often specific circumstances relating to individual companies. Please call us for additional information. 99

10 contact us Hong Kong - Pacific Place Suite 611, One Pacific Place, 88 Queensway, Hong Kong Tel Fax Hong Kong - Admiralty Centre 1611, Admiralty Centre Tower 1, 18 Harcourt Road, Admiralty, Hong Kong Tel Fax Kowloon Room , Tower 1, Grand Century Place, 193 Prince Edward Road West, Mongkok, Kowloon Tel Fax

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