Cindy Chuah, Consultant - Malaysia Joon Tan Kenny Yeo Singapore

Transcription

1 2014 CHEMICAL INDUSTRY MEETING 30 APRIL 2014 Cindy Chuah, Consultant - Malaysia Joon Tan Kenny Yeo Singapore

2 MACRO TRENDS 2

3 GLOBAL OUTLOOK Uneven Growth & Uncertainty 3

4 GROWTH IN EMERGING VS ADVANCED ECONOMIES 4

5 GLOBAL GDP OUTLOOK FOR 2014 GDP Growth 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% Asia (14) US China ASEAN (6) India EU India ASEAN (6) China Asia (14) US EU 5 02 May 2014 Source: IMA Q Forecast

6 ASEAN GROWTH OUTLOOK 6

7 GLOBAL OUTLOOK Global Demographics Changing 7

8 Demographics Source: UN World Population Prospects

9 Human Capital Index Rank: 78 (n=122) Pillar 1: Education 63 India Pillar 2: Health and wellness 112 Pillar 3: Workforce and employment 49 Pillar 4: Enabling environment 67 Additional Indicators Total population (1,000s) 1,205,625.0 Median age of population 25 GDP per capita PPP (constant 2005, international $) 3,341 GDP growth (annual %) 3.2 Aged dependency: 7.8% Youth dependency: 46.6% Male labour force participation, age 65+: Female labour force participation, age 65+: n/a n/a Education and Workforce Distribution Key: 9 May May 2,

10 Japan Human Capital Index Rank: 15 (n=122) Pillar 1: Education 28 Pillar 2: Health and wellness 10 Pillar 3: Workforce and employment 11 Pillar 4: Enabling environment 13 Additional Indicators Total population (1,000s) 127,352.8 Median age of population 45 GDP per capita PPP (constant 2005, international $) 31,425 GDP growth (annual %) 1.9 Aged dependency: 36.0% Youth dependency: 20.9% Male labour force participation, age 65+: 2.9% Female labour force participation, age 65+: 1.8% Education and Workforce Distribution Key: 10 May 2, 2014

11 Human Capital Index Rank: 43 (n=122) Pillar 1: Education 58 China Pillar 2: Health and wellness 65 Pillar 3: Workforce and employment 26 Pillar 4: Enabling environment 47 Additional Indicators Total population (1,000s) 1,359,821.0 Median age of population 35 GDP per capita PPP (constant 2005, international $) 7,958 GDP growth (annual %) 7.8 Aged dependency: 11.4% Youth dependency: 24.7% Male labour force participation, age 65+: Female labour force participation, age 65+: n/a n/a Education and Workforce Distribution Key: 11 May May 2,

12 GLOBAL OUTLOOK Interconnected World Rethinking & Reskilling 12

13 21 ST CENTURY CONSUMER & WORKFORCE Global Highly Connected Technology Savvy Demanding Scarcity in critical new skills Uneven Distribution around the world... 13

14 CEO CHALLENGE 2013 ASIA Source: The Conference Board CEO Challenge

15 HOW READY ARE WE? Source: Global Human Capital Trends 2014,Deloitte 15

16 HOW READY ARE WE AGAIN? Source: Global Human Capital Trends 2014,Deloitte 16

17 RESULTS BY INDUSTRY Source: Global Human Capital Trends 2014,Deloitte 17

18 IMPLICATIONS FOR HR Lead and Develop Attract and Engage Transform and reinvent Leaders at all levels: Close the gap between hype and readiness Talent acquisition revisited: Deploy new approaches for the new battlefield The reskilled HR team: Transform HR professionals into skilled business consultants Corporate learning redefined: Prepare for a revolution Beyond retention: Build passion and purpose Talent analytics in practice: Go from talking to delivering on big data Performance Management is broken: Replace rank and yank with coaching and development From diversity to inclusion: Move from compliance to diversify as a business strategy Race to the cloud: Integrate talent, HR and business technologies The quest for workforce capability: Create a global skills supply chain The overwhelmed employee: Simplify the work environment The global and local HR function: Balance scale and agility Source: Global Human Capital Trends 2014,Deloitte 18

19 CHEMICAL INDUSTRY COMPENSATION INSIGHTS 19

20 Chemicals Industry Outlook 2014 Global Growth: 3.8% US : 2.5% (2014), 3.5% ( 2015) China: 8.8% (2014), 8.5% (2015) Japan: 4% (2014) India: 1-2%+ above GDP ROA: 6.5 % 20

21 GDP, INFLATION AND SALARY INCREASE 14.0% % 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% AU CN HK ID IN JP KR MY NZ PH SG TH TW VN GDP 3.1% 7.5% 3.5% 5.7% 6.5% 0.9% 3.7% 5.0% 3.6% 6.5% 4.5% 2.5% 3.0% 6.0% Inflation 3.0% 2.9% 3.8% 6.5% 7.7% 1.8% 2.0% 3.5% 2.6% 4.1% 3.0% 2.2% 1.3% 6.0% Sal Inc (Chem) 3.6% 8.3% 4.6% 9.2% 11.0% 2.0% 5.0% 5.3% 6.7% 4.4% 5.9% 3.7% 11.7% *Average salary increase (excluding freezes) Source: IMA Asia Brief March 2014; Mercer Chemical Surveys

22 SALARY INCREASE INDUSTRY COMPARISON All industries High-Tech Life Sciences Consumer Goods Chemical 2014 (Forecast) Australia China Hong Kong India Indonesia Japan Malaysia New Zealand N.A. 3.3 N.A. Pakistan Philippines Singapore South Korea Taiwan Thailand Vietnam *Average Merit Increase Excluding Freeze Source: Mercer High Tech Survey H1 2014; Mercer TRS Surveys

23 REAL SALARY INCREASES Country Real Salary Increase 1 Vietnam 5.7% 2 China 5.4% 3 Thailand 3.7% 4 India 3.3% 5 South Korea 3.0% 6 Indonesia 2.7% 7 Philippines 2.6% Country Real Salary Increase 8 Taiwan 2.4% 9 Malaysia 1.8% 10 Singapore 1.4% 11 Hong Kong 0.8% 12 Australia 0.6% 13 Japan 0.2% May 2014

24 SALARIES IN ASIA PACIFIC Upper Middle Management *Median Gross Total Cash Source: Mercer International Geographic Salary Differentials Report

25 SALARIES IN ASIA PACIFIC Senior Professional *Median Gross Total Cash Source: Mercer International Geographic Salary Differentials Report

26 VOLUNTARY TURNOVER RATE 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 17.2% 14.9% 14.9% 13.5% 12.5% 11.9% 11.1% 9.8% 9.9% 7.5% 5.9% CN HK ID IN JP KR MY PH SG TH TW Average voluntary percentage Industries doing better than country average CN HK ID IN JP KR MY PH SG TH TW VN Chemical (8.8%) Chemical (7.5%) Automob ile & Compon ent (4.3%) Machinery & Elec. Equip(7.8 %) Machin ery & Elec. Equip (3.6%) Automobi le (3.2%) Energy (8.2%) Energy (3.6%) Chemic als (8.0%) Automobil e& Compone nt (9.5%) Transport ation & Logistics (6.4%) Metals & Mining (5.3%) Pharma (12.8%) Machinery & Elec. Equip(9.9 %) Energy (6.1%) Energy (9.0%) High Tech (5.0%) Chemical s (5.3%) Chemical s (11.9%) High Tech (7.5%) Consum er Goods (11.4%) Chemicals (11.7%) Chemicals (7.3%) Real Estate (7.0%) May 2, Source: Mercer Surveys & Analysis

27 VOLUNTARY ATTRITION RATES Country Highest Turnover Lowest Salary Increase Lowest Turnover Highest Salary Increase Hong Kong High Tech High Tech Chemicals Chemicals Indonesia Pharmaceutical High Tech Chemicals Consumer India Consumer Auto Chemicals Chemicals Japan Consumer Pharmaceuticals High Tech High Tech South Korea Consumer Chemicals High Tech High Tech Malaysia Consumer Consumer Chemicals Pharmaceuticals Philippines Consumer Consumer High Tech High Tech Singapore Consumer High Tech Chemicals Pharmaceuticals Thailand Pharmaceutical Pharmaceuticals Chemicals Auto Taiwan High Tech Consumer Consumer High Tech Vietnam Pharmaceutical High Tech Consumer Pharmaceuticals China Retail Retail Chemical Pharmaceuticals Source: Mercer Pulse Survey H

28 HIRING INTENTIONS Australia China - Beijing Hong Kong India Indonesia Japan Malaysia New Zealand Philippines Singapore South Korea Taiwan Thailand Vietnam 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Increase No Change Reduce Source: Mercer Pulse Survey H

29 MINIMUM WAGES IN ASIA PACIFIC 350 USD (Monthly) China - Shenzhen Thailand - Bangkok Indonesia - Jakarta India - Delhi Vietnam Region *Monthly rate is computed based on an average number of 26 working days a month Source: Government news releases 29

30 FRESH GRADUATE SALARIES Average 75 th Percentile Median 25 th Percentile 70,000 60,000 Annual Base Salary (USD) 50,000 40,000 30,000 20,000 10,000 0 AU NZ JP SG KR HK TW MY CN TH ID PH IN VN Business Administration MSc Source: Mercer TRS Surveys

31 LEGISLATIVE UPDATES 31

32 NOTABLE LEGISLATIVE UPDATES China Changes in Tax Treatment for Enterprise Annuity in 2014 (Retirement) For employee contribution, tax deductible amount is up to 4% of employee s average monthly salary of previous year with the salary cap at 3 times of City Average Earnings. Investment returns will not be taxed Total amount withdrawn treated as salary and compensation; subjected to Individual Income Tax at time of withdrawal Changes in treatment of injuries (Insurance) The new Evaluation Standards for Personal Accident Injury and Disability issued by the Insurance Association of China and Chinese Forensic Medicine Association has significantly expanded the scope of potential injury and disability claims Vietnam New Employment Law from 2013 (Working Conditions) Changes to maternity leave (6 months vs. 4 months) 1 additional day of public holiday for locals, 2 additional day for expats Higher overtime payment and stricter limits In effect from Jan 2014, this requires employers to pay 2% of total payroll as union fees to fund social security 32

33 NOTABLE LEGISLATIVE UPDATES Singapore Changes to contribution rates for CPF (Retirement) CPF (Central Provident Fund) contribution rates for employers will increase by 1% for all workers, to be channeled into the medisave account with effect from 1 st January 2015 Reduction in eligibility period for retrenchment benefits (Working Conditions) From 1 April 2015, the eligibility period for retrenchment benefits will reduce from three years service to two years service Enhancement of benefits in Employment Act (Working Conditions) Professionals, managers and executives (PMEs) earning up to SG$4,500 will benefit from extended coverage of the EA, including sick leave benefits and unfair dismissal provisions. PMEs will need 12 months service to seek redress for unfair dismissal Changes to Maternity, Paternity, Childcare Leave in 2013 (Working Conditions) Enhancement to existing legislation South Korea Setting of Retirement Age (Retirement) By 2016, public sector and private sector with at least 300 employees are expected to set their retirement age at 60 years old. For small firms, they must comply by

34 NOTABLE LEGISLATIVE UPDATES Malaysia Changes to EPF (Retirement) Taiwan Changes to both employee & employer contributions in the different age bands in 2013 Minimum savings for members have been raised to RM196,800 by age 55 from Compulsory pension contribution for foreign spouses (Retirement) Indonesia Employers of foreign spouses of Taiwanese nationals are required to contribute funds toward their pensions as part of the Labor Standard Act ( LSA) effective 17 Jan Contribution from employer must be at least 6%of the employee s monthly wages. Compulsory contribution to Health Insurance Employers in State Owned Enterprises (SOEs), large enterprises, medium-sized businesses, and small businesses must register with the Health Insurance membership to employees by January 1, The contribution rate for employers is 4% of monthly salary, while the employees pay 0.5% until 30 June 2015, and 1% thereafter. 34

35 Mercer (Singapore) Pte Ltd ( E)