SINGAPORE,- The Talent, Rewards & Performance practice of Aon plc (NYSE: AON) has just released new data on projected 2018 salary budgets and hiring plans at technology sector companies across the Asia-Pacific region. Leveraging insights from Radford, the firm's dedicated technology and life sciences unit, the new data shows technology companies in the region are preparing to spend more in 2018 in the face of rising employee turnover and strong demand for critical talent.
Outside of Japan, South Korea and Taiwan, median annual voluntary turnover rates now exceed 10% in all major Asia-Pacific markets. Australia leads the region with a trailing 12-month voluntary turnover rate of 12.9%, followed by ASEAN 5 (includes Philippines, Vietnam, Thailand, Indonesia and Malaysia) at 12.8%, Singapore at 12.7%, China at 12.5%, India at 12.1%, and Hong Kong at 11.8%.
Adding to the robust demand for talent, roughly two-thirds of technology sector companies in all major Asia-Pacific markets are currently pursuing normal or aggressive hiring plans. 6.4% of the companies in Singapore report aggressive hiring plans. India leads this trend at 16.3% followed by China at 9.1%.
In response, projected 2018 salary budgets are flat or up in a majority of markets across Asia Pacific.
Median Overall Salary Increase Budgets
The open question is whether companies will do enough to differentiate between top and bottom performers to retain key talent. Alexander Krasavin, Partner and Radford Leader for Asia Pacific, Middle East, and Africa says: "To compete for talent in this region, a rewards strategy focused on compensation is no longer enough. Technology companies must differentiate themselves with an employee value proposition that is built on a strong foundation of career development, work life balance and a sense of purpose."
Hot Jobs in Singapore
Singapore is not immune to the larger talent and rewards trends observed across Asia-Pacific. Median voluntary turnover at technology firms in Singapore currently sits at 12.7%, above the 10% threshold where companies typically begin to consider special retention programs. It is therefore not a surprise that companies in Singapore are increasing salary budgets heading into 2018.
The hot jobs at technology sector companies in Singapore, defined as those jobs that have seen the highest annual increases in market median base salaries over the past three years, include: IT Support Specialist, Software QA Engineer and Product Marketing Engineer.