The Salary Market For Accounting and Finance Professionals

Transcription

1 SALARY GUIDE 2012Finance & Accounting

2 2012 Salary Guide Finance & Accounting Asia Table of Contents From the Managing Director 1 Using the Salary Guide 2 Signs it s time to hire 3 Hiring landscape in Asia 4 Hiring and salary outlook Hong Kong 7 Singapore 10 Shanghai 12 Japan 14 Remuneration and bonus trends 16 Counteroffers: a potentially counterproductive strategy 19 A flexible approach to meeting business demands 20 Working with Robert Half 21 All trademarks contained herein are the property of their respective owners.

3 From the Managing Director Dear colleague: During times of economic change, the accounting and finance function assumes even greater importance. These teams are at the heart of an organisation s ability to meet regulatory requirements, maintain positive cash flow, capitalise on business opportunities, deliver accurate financial records and produce insightful information for decision-making. Hiring and retaining the most skilled finance and accounting professionals have therefore taken on new importance in today s marketplace. Access to the most current remuneration data can help you set competitive pay levels, allowing you to attract top professionals to your organisation and, just as important, keep them on board. Whilst pay is not the only factor employees consider, offering an attractive remuneration package can often be the difference between welcoming employees to your team and watching them accept job offers from elsewhere. This year, we ve added year-over-year percentage changes to average salary ranges to help you identify remuneration trends and establish competitive salaries. I hope you find our 2012 Salary Guide informative and welcome you to contact one of our specialised recruiting managers with questions about the survey findings and broader recruitment trends, or to discuss your hiring needs. Regards, David Jones Managing Director Robert Half Asia Pacific 1

4 Using the Salary Guide Consider the 2012 Salary Guide as your business and recruitment handbook, offering average salaries for finance and accounting professionals. This valuable resource can help you determine remuneration levels for new and existing employees, plan budgets and navigate today s hiring environment. Our Salary Guide includes average salary ranges for accounting and finance positions across Asia. The salary ranges represent average remuneration only, since factors such as seniority, skills and industry can impact pay levels. Bonuses and other forms of remuneration, such as benefits and pension schemes, are also not taken into account. The salary ranges are based on information from a variety of sources, including: Placements made throughout Robert Half locations in Asia Insights from our recruiting managers and senior managers Exclusive research we conducted among Chief Financial Officers (CFOs) and Finance Directors in Asia Analysis of current and future hiring trends This guide also includes insights into the hiring environment, skills in demand and practical hiring advice, as well as companies remuneration plans for existing employees based on our surveys of 550 CFOs and Finance Directors in Asia. Legend for the salary tables: S = Small; defined as a company with less than 50 employees M = Medium; defined as a company with 50 to 250 employees L = Large; defined as a company with more than 250 employees 2

5 Signs it s time to hire Whilst no organisation wants to over staff, particularly in challenging economic times, it is important that managers are also aware of the detrimental effect having too lean a team can have on its existing staff and productivity levels. So, what are the tell tale signs that can help an employer determine when it really is time to hire? Overtime is no longer the exception: If working overtime is the only way your team can avoid falling behind, then this is a clear indication that you need to add staff. Whilst some overtime can be expected, take notice if it becomes a regular occurrence. Asking your team members to continually burn the midnight oil can deplete employee morale. Your best employees are missing deadlines: It is a major red flag when you notice top performers who tend to provide consistently excellent job performance start turning in assignments late or regularly asking for extensions with projects. Non-urgent projects frequently get put on the backburner: When critical deadlines loom, lower priority tasks often get deferred. If due dates are constantly getting revised or even scrapped entirely, your organisation is likely to be short-staffed. Managers are stepping in regularly: If the absence of just one staff member due to illness or other work commitments forces you to take on routine tasks because no one else is available, this is another warning sign that it is time to hire. Increase in complaints: A growing number of complaints from other departments, clients and vendors about service can often signify that your team is struggling with workloads and is not dedicating enough time to specific projects. Turning away business: Is your organisation turning away new business or unable to act on strategic initiatives that could create a competitive advantage because you do not have the capacity to handle the additional work? Your company s future success may be at risk so it s time to think seriously about adding headcount. 3

6 The hiring landscape in Asia In the current economy, the overarching sentiment amongst business leaders throughout the region remains one of cautious optimism. In 2012, organisations are adopting a more targeted approach towards hiring. Employers are selectively refilling positions that were cut as a result of the global financial crisis and making replacement hires to address attrition and turnover. In addition, some firms are hiring accounting and finance professionals to position themselves for growth and leverage emerging business opportunities. This is reflected in the latest Robert Half survey of CFOs and Finance Directors, which revealed that a net 1 20% of respondents in Hong Kong, 2 in Singapore, 50% in Shanghai and 2 in Japan are planning to increase permanent finance and accounting staff in the first half of What is your primary reason for increasing the number of permanent accounting or finance personnel during the first half of 2012? Business growth/expansion 38% 55% 61% 65% Rising workloads 21% 25% 40% 40% Financial systems upgrades New regulatory requirements Merger/acquisition Other/Don t Know 6% 5% 2% 0% 0% 6% 10% 7% 0% 4 Hong Kong Singapore Japan Shanghai Note: Percentages may not total 100% due to rounding. 1 The net hiring increase is calculated by subtracting the number of CFOs and finance directors planning to decrease employee levels from the number planning to add additional headcount.

7 The hiring landscape in Asia Indicative of the caution that exists in the market is the growing trend of companies using temporary and contract professionals. Whether this is due to headcount restrictions or the need to assess long-term hiring needs before making hiring decisions, this staffing model provides business leaders with the opportunity to gain flexibility and reduce costs, whilst at the same time giving them the opportunity to evaluate prospective new employees. Contract and temporary staff are frequently brought in to maintain productivity during workload peaks and troughs, and can often provide specialised skills that may be lacking amongst permanent employees. Organisations across Asia, with the exception of Japan, are continuing to experience a candidate-short market. With demand high and supply low, finance professionals with the specific regulatory and accounting skills may have many job offers from which to choose. Organisations need to look carefully at the remuneration and benefits packages they are offering their existing staff and new recruits to ensure they attract and retain top performers. Highly sought attributes Employers across the region are adopting a back-to-basics approach with a focus on core accounting skills. As a result, accountants who can conduct detailed financial and strategic planning analysis are particularly in demand as companies look to understand trends impacting the business, identify cost savings and ensure they are well positioned for business expansion. Across the region accountants with this breadth of experience coupled with bilingual skills, international experience and cultural awareness are highly sought after. Strong soft skills, such as communication skills, adaptability and business acumen are paramount for candidates across the region. Candidates who are flexible and can easily adapt to new project demands are especially marketable as companies across the region pursue change management projects. Employers are looking for professionals who are proficient with the most popular system and software applications. Whilst new systems are being rolled out to improve efficiencies in some organisations, many continue to require candidates with advanced knowledge of Microsoft Excel and experience using enterprise resource planning (ERP) systems, such as SAP, Oracle and PeopleSoft. Database management and business intelligence software know-how is also valued. The introduction of IFRS 9 will place additional reporting requirements on organisations providing financial products and services. As such, candidates with strong financial reporting and reporting standards conversion experience who understand and can implement the new standard will be in demand. In Japan, the CPA qualification remains the most in-demand credential for accounting and finance roles. Across the rest of the region, the CPA, CA, ACCA and CIMA accreditations are most frequently requested. 5

8 The hiring landscape in Asia Positions in demand Accountants Demand is increasing for all levels of accountants. Individuals who show sound technical skills coupled with business acumen and commercial sense will be in demand. Controllers Many companies are expanding their controller ranks in response to business growth. Organisations need hands-on controllers and assistant controllers to plan, direct and coordinate critical activities, such as compiling financial statements, interacting with outside auditors and overseeing regulatory reporting. Finance Managers As finance directors spend more time at the board level, and regulatory activity increases, there is more strain on those performing day-to-day finance functions, heightening the need for capable finance managers. Financial Accountants Demand is increasing for accountants who are qualified or in the process of obtaining a CPA, CA, ACCA or CIMA qualification. Excellent technical skills, including experience with Excel and ERP systems, are often pre-requisites for some roles. Financial Analysts Companies seek experienced analysts who can help them understand the story behind their financial data and identify further expansion opportunities. The most in-demand candidates have strong financial, technical and communication skills, and are comfortable presenting their findings and recommendations to a variety of audiences. Internal Auditors In the aftermath of the global financial crisis, experienced internal audit professionals continue to be in demand as organisations seek to ensure internal controls are in place and any irregularities are dealt with prior to statutory audits being carried out. 6

9 Hiring outlook in Hong Kong This year, employers have shown renewed optimism and business confidence, both within the banking and financial services, and the commerce and industry sectors. Demand for finance and accounting talent within the consumer goods industry remains especially strong as these organisations continue to pursue expansion into China. This is particularly true for retail and luxury brands. In addition the Hong Kong government has announced that it will be undertaking infrastructure projects of various scales, and these are expected to create many employment opportunities. Permanent hiring tends to be the focus for organisations in Hong Kong, although contract and temporary employment remain a valuable staffing strategy, particularly for organisations that are unable to add permanent headcount or that require specialised skills that they do not have internally. The unsettled economic conditions of the previous year have caused many candidates to stay in existing roles rather than risk a move to another organisation. For a number of these professionals, job security and stability are chief factors when making employment decisions, whereas previously career choices would have been more financially motivated. Because of this new emphasis on security by professionals, it s likely that employers will face continued recruiting challenges and the much talked about war for talent will continue. This means that employers will need to closely monitor the remuneration packages and the career opportunities they are offering to retain existing employees and attract qualified staff. Hong Kong remains an attractive location for many candidates from overseas looking to further their careers, and this trend is expected to continue, given the ongoing volatility of the western recruitment markets. Firms are looking for candidates who not only have hands-on accounting and finance skills but also a high level of business acumen and strong soft skills, such as leadership ability and communication and business partnership skills. Relevant cultural and language (Mandarin) skills are also a high priority as companies look to expand into China and beyond. 7

10 Salaries IN HONG KONG Hong Kong Title Company size % Change Accountant S/M $ 240,000 - $ 360,000 $ 252,000 - $ 378,000 5% L $ 270,000 - $ 400,000 $ 283,000 - $ 420,000 5% Accounting Manager S/M $ 360,000 - $ 540,000 $ 378,000 - $ 567,000 5% L $ 480,000 - $ 660,000 $ 504,000 - $ 693,000 5% Accounts Payable Clerk S/M $ 132,000 - $ 180,000 $ 138,600 - $ 189,000 5% L $ 156,000 - $ 192,000 $ 163,800 - $ 201,600 5% Accounts Payable Manager S/M $ 240,000 - $ 300,000 $ 252,000 - $ 315,000 5% L $ 340,000 - $ 450,000 $ 357,000 - $ 472,500 5% Accounts Receivable Clerk S/M $ 132,000 - $ 180,000 $ 138,600 - $ 189,000 5% L $ 156,000 - $ 192,000 $ 163,800 - $ 201,600 5% Accounts Receivable Manager S/M $ 240,000 - $ 300,000 $ 252,000 - $ 315,000 5% L $ 340,000 - $ 450,000 $ 357,000 - $ 472,500 5% Assistant Accountant S/M $ 180,000 - $ 264,000 $ 189,000 - $ 277,200 5% L $ 216,000 - $ 300,000 $ 226,800 - $ 315,000 5% Business Analyst S/M $ 180,000 - $ 360,000 $ 240,000 - $ 378,000 14% L $ 300,000 - $ 480,000 $ 336,000 - $ 504,000 8% CFO / Finance Director S/M $ 1,000,000 - $ 1,600,000 $ 1,100,000 - $ 1,600,000 4% L $ 1,300,000 - $ 3,500,000 $ 1,400,000 - $ 3,500,000 2% Credit Manager S/M $ 240,000 - $ 360,000 $ 252,000 - $ 378,000 5% L $ 300,000 - $ 480,000 $ 315,000 - $ 504,000 5% External Auditor S/M $ 144,000 - $ 1,200,000 $ 151,200 - $ 1,260,000 5% L $ 169,000 - $ 1,500,000 $ 177,450 - $ 1,575,000 5% Finance Manager S/M $ 360,000 - $ 540,000 $ 378,000 - $ 567,000 5% L $ 480,000 - $ 660,000 $ 504,000 - $ 693,000 5% Financial Analyst S/M $ 180,000 - $ 360,000 $ 189,000 - $ 378,000 5% L $ 300,000 - $ 480,000 $ 315,000 - $ 504,000 5% 8

11 Salaries IN HONG KONG Hong Kong Title Company size % Change Financial Controller S/M $ 540,000 - $ 780,000 $ 567,000 - $ 819,000 5% L $ 600,000 - $ 1,000,000 $ 630,000 - $ 1,050,000 5% Financial Planning & Analysis Director S/M $ 720,000 - $ 1,200,000 $ 756,000 - $ 1,260,000 5% L $ 1,000,000 - $ 1,500,000 $ 1,050,000 - $ 1,575,000 5% Financial Planning & Analysis Manager S/M $ 540,000 - $ 650,000 $ 567,000 - $ 682,500 5% L $ 600,000 - $ 780,000 $ 630,000 - $ 819,000 5% Internal Auditor S/M $ 216,000 - $ 540,000 $ 226,800 - $ 567,000 5% L $ 360,000 - $ 720,000 $ 378,000 - $ 756,000 5% Internal Audit Director L $ 840,000 - $ 1,500,000 $ 882,000 - $ 1,575,000 5% Management Accountant S/M $ 144,000 - $ 300,000 $ 151,200 - $ 315,000 5% L $ 180,000 - $ 455,000 $ 189,000 - $ 477,750 5% Merger & Acquisition Manager / Director L $ 600,000 - $ 1,300,000 $ 630,000 - $ 1,365,500 5% Tax Manager S/M $ 390,000 - $ 600,000 $ 409,500 - $ 630,000 5% L $ 540,000 - $ 840,000 $ 567,000 - $ 882,000 5% Treasurer L $ 720,000 - $ 1,200,000 $ 756,000 - $ 1,260,000 5% Treasury Manager S/M $ 240,000 - $ 360,000 $ 252,000 - $ 378,000 5% L $ 300,000 - $ 480,000 $ 315,000 - $ 504,000 5% Tax Director L $ 720,000 - $ 1,200,000 $ 756,000 - $ 1,260,000 5% Please note, salaries represent average remuneration and do not include pension schemes, bonuses or any other benefits. 9

12 Hiring outlook in Singapore The hiring prospects in the finance and accounting sector in Singapore remain strong, particularly amongst the energy-related industries such as oil, gas and chemicals. The technology and real estate sectors also remain robust due to a combination of company expansion and growth. An increasing number of organisations are hiring contractors at more senior levels and using temporary and contract workers to supplement their permanent staff. Many of these hires are in lieu of replacement hires whilst organisations evaluate their staffing needs for the year ahead. Perhaps because of the increased use of temporary and contract professionals by companies, job candidates have grown increasingly receptive to this type of arrangement. In fact, many enjoy the opportunity to work at a variety of firms. Some companies in Singapore are experiencing longer recruitment processes with more stakeholders involved and multiple approvals required. This is indicative of the cautiously optimistic approach that many organisations are taking as they are upbeat about growth prospects in Asia but mindful of threats posed by an uncertain global economic environment. At the same time, in demand finance and accounting talent are receiving multiple offers so organisations need to act quickly, as well as evaluate salaries and staff benefits to ensure that they remain competitive. This is particularly true in the commerce sector, where demand is greater and employees have more career options. Singapore remains an attractive location for international candidates and organisations are looking overseas for top talent to help bridge the skills shortage. However, business leaders have become far more stringent in terms of the technical ability and the regional exposure required of international job candidates. Most expect overseas candidates to have knowledge of local accounting practices and regulations as well as cultural understanding. 10

13 Salaries IN Singapore Singapore Title % Change Accountant / Senior Accountant $ 36,000 - $ 72,000 $ 38,000 - $ 78,000 7% Accounts Receivable Accountant / Manager $ 48,000 - $ 100,000 $ 50,000 - $ 110,000 8% Audit Senior / Manager $ 55,000 - $ 100,000 $ 60,000 - $ 100,000 Business Analyst / Manager $ 57,000 - $ 120,000 $ 60,000 - $ 130,000 7% CFO / Finance Director / Vice President of Finance $ 144,000 - $ 320,000 $ 150,000 - $ 350,000 8% Cost Accountant / Manager $ 60,000 - $ 110,000 $ 65,000 - $ 112,000 4% Credit Controller / Head of Credit $ 55,000 - $ 130,000 $ 60,000 - $ 140,000 8% Finance Manager $ 70,000 - $ 110,000 $ 72,000 - $ 120,000 7% Financial Analyst / FP&A Manager $ 55,000 - $ 135,000 $ 58,000 - $ 150,000 10% Financial Controller $ 90,000 - $ 200,000 $ 100,000 - $ 210,000 7% Financial Planning & Analysis Director $ 130,000 - $ 200,000 $ 120,000 - $ 225,000 5% Internal Auditor / Internal Audit Manager $ 58,000 - $ 125,000 $ 65,000 - $ 130,000 7% Internal Audit Director $ 120,000 - $ 200,000 $ 120,500 - $ 210,800 4% Payroll Specialist / Manager $ 60,000 - $ 112,000 $ 60,000 - $ 120,000 5% Risk / Compliance Manager $ 54,000 - $ 120,000 $ 60,000 - $ 125,000 6% Tax Specialist / Manager $ 45,000 - $ 150,000 $ 60,000 - $ 150,000 8% Treasury Accountant / Manager $ 60,000 - $ 150,000 $ 60,000 - $ 162,000 6% Treasury Director $ 140,000 - $ 200,000 $ 145,000 - $ 215,000 6% Tax Director $ 130,000 - $ 250,000 $ 140,000 - $ 262,000 6% Please note, salaries represent average remuneration and do not include pension schemes, bonuses or any other benefits. 11

14 Hiring outlook in Shanghai Despite the global economic downturn, mainland China s economy continues to grow at an accelerated rate, and the job market is dynamic. An increasing number of global organisations are offshoring business units to China, which has increased employment needs in the region. Shanghai has seen an influx of talent from overseas looking to capitalise on the country s booming economy. When hiring professionals from abroad, organisations value relevant cultural and language skills (English and Mandarin) as well as strong communication skills and business acumen. Despite this influx of international candidates, firms are finding it more difficult to locate professionals who meet all their requirements. In some areas, qualified professionals are receiving multiple job offers and counteroffers. Many employees in Shanghai today are looking for an improved work-life balance and positive corporate culture, and will look for new job opportunities that offer these benefits. The pharmaceutical and healthcare sectors are especially strong due to support from the Chinese government. Other sectors showing strong demand for staff include retail, advertising and FMCG. The manufacturing and chemical industries are also continuing to grow, and hiring managers in these sectors face additional recruiting challenges in luring candidates to their locations. 12

15 Salaries IN Shanghai Shanghai Title Company size % Change Senior Accountant S/M 108, , , ,000 8% L 108, , , ,000 8% Accounting Manager S/M 260, , , ,000 4% L 260, , , ,000 6% CFO / Finance Director S/M 650,000-1,100, ,000-1,200,000 9% L 800,000-2,500, ,000-2,500,000 Costing Manager S/M 300, , , ,000 7% L 350, , , ,000 7% Compliance Manager S/M 300, , , ,000 1 L 400, , , ,000 10% Credit Manager S/M 235, , , ,000 5% L 260, , , ,000 5% Financial Analyst S/M 130, , , ,000 14% L 156, , , ,000 1 Finance Manager S/M 260, , , ,000 5% L 300, , , ,000 7% Financial Controller S/M 500, , , ,000 4% L 600,000-1,000, ,000-1,050,000 Financial Planning & Analysis Manager S/M 300, , , ,000 6% L 350, , , ,000 6% Internal Auditor (senior or junior manager) S/M 120, , , ,000 11% L 195, , , ,000 14% Tax Manager S/M 400, , , ,000 9% L 700,000-1,400, ,000-1,600,000 10% Treasury Manager S/M 300, , , ,000 11% L 400,000-1,000, ,000-1,000,000 4% Please note, salaries represent average remuneration and do not include pension schemes, bonuses or any other benefits. 13

16 Hiring outlook in Japan The natural disasters in the early part of 2011 had a significant impact on the Japanese markets. These, combined with the turbulent global economy, volatile financial markets and the slowdown in business activity, have compounded this impact and led to a very challenging business environment across the country. The latter part of the year saw many organisations focus purely on the maintenance of their business rather than company growth. In 2012, however, business leaders are showing more optimism. This, coupled with the stronger Yen, has meant that the level of hiring activity for finance and accounting is starting to steadily increase. This increase is particularly noticeable in the pharmaceutical and medical industries as well as within IT and manufacturing. Japan Title Company size % Change Accountant S/M 3,000,000-7,000,000 4,000,000-7,000,000 10% L 3,000,000-9,000,000 4,000,000-8,000,000 0% Accounts Payable Clerk S/M 3,000,000-5,000,000 3,000,000-5,000,000 0% L 3,500,000-5,000,000 3,500,000-5,000,000 0% Accounts Payable Manager S/M 4,000,000-7,000,000 4,000,000-7,000,000 0% L 4,500,000-8,500,000 4,500,000-8,500,000 0% Accounts Receivable Clerk S/M 3,000,000-5,000,000 3,000,000-5,000,000 0% L 3,000,000-5,000,000 3,000,000-5,000,000 0% Accounts Receivable Manager S/M 4,000,000-7,000,000 4,000,000-7,000,000 0% L 4,500,000-8,500,000 4,500,000-8,500,000 0% Business Analyst S/M 5,000,000-7,000,000 5,000,000-7,000,000 0% L 5,000,000-8,000,000 5,000,000-8,000,000 0% CFO / Finance Director S/M 7,000,000-12,000,000 7,000,000-12,000,000 0% L 8,000,000-18,000,000 8,000,000-18,000,000 0% Credit Manager L 7,000,000-14,000,000 7,500,000-14,000,000 2% External Auditor L 4,000,000-25,000,000 4,000,000-25,000,000 0% 14

17 Salaries IN Japan In contrast with other parts of Asia, Japan has a larger talent pool today than in previous years with a ready supply of immediately available candidates. As a result, expectations are high when companies are hiring. Business leaders are looking to bring in candidates with a blend of hands-on accounting and finance skills coupled with communication and leadership ability. They want professionals who possess a solid track record of achievements, strong business acumen, language proficiency in both Japanese and English, and who fit with the prevailing workplace culture. Qualifications such as the CPA and experience with major ERP systems are also valued. Many organisations are taking their time to ensure they have the right hire and, in some cases, require multiple approvals before a job offer can be extended. Despite the larger talent pool that now exists, companies that take too long to hire risk missing out on the most desirable job candidates. Japan Title Company size % Change Finance Manager S/M 7,000,000-14,000,000 7,500,000-14,200,000 L 8,000,000-14,000,000 8,000,000-14,000,000 0% Financial Analyst S/M 4,000,000-8,000,000 4,000,000-8,000,000 0% L 5,000,000-9,000,000 5,200,000-9,200,000 Financial Controller S/M 7,000,000-13,000,000 7,000,000-13,000,000 0% L 8,000,000-14,000,000 8,300,000-14,500,000 4% Financial Planning & Analysis Director L 9,000,000-16,000,000 9,000,000-15,900,000 0% Financial Planning & Analysis Manager S/M 7,000,000-14,000,000 7,000,000-13,900,000 0% L 7,000,000-14,000,000 7,000,000-14,000,000 0% Internal Auditor L 4,000,000-14,000,000 5,000,000-14,000,000 6% Tax Manager L 7,000,000-20,000,000 7,000,000-20,000,000 0% Treasurer L 7,000,000-20,000,000 7,000,000-20,000,000 0% Please note, salaries represent average remuneration and do not include pension schemes, bonuses or any other benefits. 15

18 Remuneration and bonus trends In a challenging hiring market, employers need to ensure compensation and benefits are competitive to attract and retain top talent. Retention has become a growing area of concern for managers, and businesses are taking steps to maintain the continuity of their teams and avoid losing institutional knowledge. This is reflected in the latest Robert Half survey of Chief Financial Officers (CFOs) and Finance Directors, which revealed that 47% of respondents in Hong Kong, 5 in Singapore, 77% in Shanghai and 24% in Japan are planning to increase salary levels during In the next 12 months, how much on average do you expect salaries for existing accounting and finance employees to increase? 1-2% 1% 0% 14% 14% 3-4% 4% 24% 3 44% 5-6% 11% 22% 36% 3 7-8% 7% 11% 12% 9-10% 5% 8% 1 48% >10% 1% 0% 14% Don t know 0% 16% 19% Hong Kong Singapore Japan Shanghai Note: Percentages may not total 100% due to rounding. 16

19 Remuneration and bonus trends The ability to meet or exceed performance targets and the ability to contribute to profitability were cited by CFOs and Finance Directors as the two most important factors when awarding pay raises. What do you think is the most important factor when awarding employee pay raises? Ability to meet/exceed performance targets 37% 39% 45% 69% Ability to contribute to profitability 11% 22% 2 30% Company loyalty/length of service 2% 9% 17% 17% Qualifications/ Certifications obtained Additional job responsibilities 9% 6% 5% 5% 7% 1% Other/Don t Know 2% 7% 12% 20% Hong Kong Singapore Japan Shanghai Note: Percentages may not total 100% due to rounding. 17

20 Remuneration and bonus trends Bonus trends Some organisations are offering higher bonuses as a means of retaining staff. Of those who indicated they are planning to increase bonuses, the average bonus increase is expected to be 5.7% in Hong Kong, 4.6% in Singapore, 4.4% in Japan and 8.5% in Shanghai, according to survey respondents. In the next 12 months, how much, on average do you expect bonuses for existing accounting and finance employees to increase? 1-2% 1% 6% 1 16% 3-4% 12% 41% 7% 48% 5-6% 10% 16% 32% 44% 7-8% 6% 9% 11% 9-10% 6% 1 15% 3 >10% 0% 0% 16% Don t know 0% 10% 15% 16% Hong Kong Singapore Japan Shanghai Note: Percentages may not total 100% due to rounding. 18

21 Counteroffers: A potentially counterproductive strategy As companies grow increasingly concerned about retaining critical staff, they may be tempted to extend counteroffers to employees who plan to leave for another job. But counteroffers often cause more problems than they solve. Here are four key drawbacks of counteroffers to consider: Trust may never be the same: Once an employee plans to leave, managers may no longer view the professional as a loyal team member. Conversely, the employee may begin to question why it took the threat of departure for the company to recognise his or her value and make improvements to the job. Some things can t be changed: Although financial concerns may be addressable, there may be additional considerations that can t be resolved. For example, old conflicts with other staff members or incompatibility with the corporate culture may continue to cause the employee dissatisfaction, even after a raise has been awarded. Salary adjustments may be complicated: A counteroffer not only impacts the department s budget, but also potentially affects the entire team. Paying someone more than the typical pay scale could disrupt an organisation s remuneration structure and create resentment among other deserving employees. Future advancement may be limited: If competent, productive employees feel there is no room for further growth in your firm, it would be unfair to attempt to convince them to stay. Even with a bump up in salary, they eventually want to move up and will start looking for new opportunities. Counteroffers may solve a short-term problem, but they rarely lead to longterm satisfaction. While the prospect of losing a valued employee may seem daunting, there is a bright side: Managers may uncover new stars on their team or bring in a replacement who brings an even more impressive skill set to the organisation. 19

22 A flexible approach to meeting business demands As companies attempt to control costs, one of the first places they commonly look to cut is the size of their workforce. Following the global financial crisis, redundancies left many organisations under-resourced as conditions improved and workloads began to increase. Businesses increasingly recognise that bringing in talented temporary and contract professionals can be a key component of their comprehensive staffing strategy in any economy. Flexible recruitment models that supplement a core permanent workforce with skilled temporary and contract workers have proved to be the ideal solution for businesses hoping to avoid the cycle of adding and subtracting headcount. Bringing in professionals on a temporary or contract basis also gives you the opportunity to: Evaluate the need for specific positions before committing to the costs involved in creating a permanent role. Introduce new or specialised skills into the organisation that may be lacking amongst your permanent employees. Ensure you have the right combination of permanent, temporary and contract staff in place with the specialised experience to complete current initiatives and progress towards long-term goals. Increase efficiency, morale and job security for permanent staff. Reduce the costs associated with hiring and training new permanent staff. Bring in skilled professionals who are ready to hit the ground running without undergoing the lengthy hiring process for a permanent role. The bottom line: flexible recruitment gives a company resource and cost-control options it wouldn t otherwise have. 20

23 Working with Robert Half Robert Half is the world s leading specialised recruitment firm and a pioneer in global placement services for accounting and finance professionals. Founded in 1948, the company is traded on the New York Stock Exchange (symbol: RHI). Our Robert Half Finance & Accounting and Robert Half Management Resources divisions specialise in placing accounting and finance professionals on a temporary, permanent and seniorlevel project and interim basis, respectively. There is no substitute for the human touch when hiring. While any number of online tools can identify potential hires, they can t tell you about the person behind the profile. We take the time to understand the unique needs and cultures of the businesses we serve. Then, we carefully select professionals with skills, work styles and career goals that align with those organisations. How else is Robert Half different from other recruitment firms and hiring resources? We can find the most effective match. We have one of the largest networks of skilled talent in the recruitment industry as well as access to job candidates that other sources don t. Among other distinctions, our status as the exclusive partner of The Wall Street Journal allows us frequent exposure to highly skilled professionals who are dedicated to their careers. We can lead you through the process. We guide you through every step of the hiring process. We can help you determine your recruitment needs, set remuneration levels and handle hurdles along the way, such as addressing a potential candidate s counteroffer. Communication is our specialty. We can provide immediate assistance. The hiring process can be long and drawn out, and you likely need help right away. We use the recruitment industry s most advanced technology to quickly identify candidates who meet your exact requirements. We can meet any need. Robert Half can provide you with a choice of skilled candidates with specific expertise and experience to match your unique needs. No matter your budget or requirements, we can locate a skilled professional who can assist your business. For more information about Robert Half s finance and accounting recruitment divisions and the ways in which we can help meet your hiring needs, please contact a recruitment manager at your local office. To stay informed of the latest trends affecting the Asia employment market, follow us on Twitter at roberthalf_asia. 21

24 Contact Us: Hong Kong Tel: Website: roberthalf.com.hk Singapore Tel: Website: roberthalf.com.sg Tokyo Tel: tokyo@roberthalf.jp Website: roberthalf.jp Osaka Tel: osaka@roberthalf.jp Website: roberthalf.jp Shanghai Tel: shanghai@roberthalf.cn Website: roberthalf.cn Connect with Us: 2012 Robert Half International. An Equal Opportunity Employer. RHFA-Asia-0312