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Salary forecast estimates 5 per cent increase for Thais


A forecast issued today (December 4) by a global organisational consulting firm Korn Ferry estimates that salary growth for Thailand will be 5 per cent for 2020, which is slightly lower compared to the average salary increment forecast for Asia at 5.3 per cent.

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 After accounting for an inflation rate of 1.3 per cent, Thailand’s real-wage growth was forecast to be 3.7 per cent.
The Oil & Gas sector is the leader in salary increase in Thailand at 6.2 per cent while the Chemical sector has the highest variable bonus at 4 months.
Variable bonus payout was forecast to be 2.5 months on average across industries.
Total employee turnover in Thailand was 10.8 per cent and decreased slightly from last year (12.6 per cent). The retails sector possessed the highest total employee turnover by 36.3 per cent.
“With digital disruptions, many organizations in Thailand are rapidly adopting new technologies to remain competitive,” said Thanwa Chulajata, country manager for Korn Ferry Digital in Thailand. “The digital disruptions also changed the way how organisations work leading to changes in operating model, business and organization structure. These changes also impact how human capital is being managed from recruitment, performance management to talent development and retention. HR capital is a key factor to drive transformation within the organization to ensure sustainability, competitiveness and profitability.
“Besides recruiting new talent, organisations should also develop existing talent by reskilling and upskilling these talents for various key competencies, especially to multi-task. The new expectation is for one person to manage tasks equivalent to those that used to be managed by five people in the past. New business model often needs lesser number of employees while still driving productivity,” Thanwa added.
“With new multi-generations and emerging digital talent within the same workforce, a single HR practice or system would no longer work for all. Segmentation would be crucial when managing rewards and benefits. Unlike the baby-boomers, digital talent would want more challenging jobs in a highly competitive market and more flexibility in the work environment. They are more agility in learning and are also focusing more on achieving higher salary, faster career growth and better life status at a faster rate,” he continued.
Across Southeast Asia, Indonesia is forecast to have the highest real-wage growth at 5.1 per cent, after accounting for an inflation rate of 3.0 per cent. Malaysia is forecast to have a real-wage growth at 3.5 per cent, after accounting for an inflation rate of 1.5 per cent. 
Although salaries in Singapore are forecast to grow by only 4 percent, the island-nation's relatively low inflation rate of 0.4 per cent translates into a 3.6 per cent increase in real-wage growth in 2020. 
Around the world, salaries are predicted to grow at a rate of 4.9 per cent in 2020. With a global inflation rate prediction of approximately 2.8 per cent, real-wage salary increase is predicted at 2.1 percent. 
In 2019, real-wage salary increases across the globe were only 1.0 per cent, with salary growth rate at 5.1 per cent and global inflation at 4.1 per cent.

Published : December 04, 2019

By : THE NATION