Thailand
Mercer: Thai salaries to spike by 5% in 2018
Salaries in Thailand are projected to grow 5% this year across industries, according to results from a survey by the global consultancy Mercer.
The automotive sector was projected to have the highest salary increases at 5.5%.
Ake Ayawongs, chief executive and partner of Mercer Thailand, said the future of work in the digital era poses great opportunities as well as risks for organisations in Thailand.
“Organisations that can adopt more agile workforce models and offer more personalised flexible employment options will likely thrive in this age of disruption,” he said. “Those that cannot will likely not survive.”
Thai companies are offering flexible new workforce models with options for full-time, part-time, freelance and retired talent to work outside the office, found Mercer’s “2018 Thailand Total Remuneration Survey”.
Mercer’s study reveals that agile organisation design plays a major role in shaping workforce trends. Leading companies are moving towards a more flexible, team-based organisation to attract, retain and harness the full capabilities of all generations in a tight labour market.
“For HR employees, the implication is clear: companies must reshape into an agile and flexible organisation,” said Mr Ake.
He said to effectively manage talent, companies must create rewards that reinforce employees’ emotional connection to the organisation and its vision. This can be achieved by introducing personalised rewards packages that resonate with employees’ needs, lifestyle and personal aspirations.
In addition, companies should use digital enablers to overcome natural operational hurdles and deliver a fluid, real-time and engaging experience, said Mr Ake.
With myriad choices for technologies, organisations must develop a clear digital HR road map that is integrated into its business model.
Piratat Srisajalerdvaja, career products leader at Mercer Thailand, said companies in Thailand indicate an overall salary increase of 5%. These figures and forecasts are based on Mercer’s flagship annual compensation and benefits benchmarking study, with participation from over 560 companies in Thailand across various industries this year.
The compensation and remuneration structure offered by companies is forecast to give more prominence to long-term incentives. One of the key drivers of this change is market competition.
“Companies in Thailand are also digitalising their internal HR services to provide employees with improved, real-time digital experiences,” Mr Piratat said.
Puneet Swani, partner and career products leader at Mercer, said companies in the region are taking a more holistic view of their total rewards philosophy and employers are increasingly focus on the experiential components of rewards, such as programmes that deliver meaningful career experiences and flexible arrangements, as well as those that help manage the physical, financial and emotional well-being of their employees.
Source: https://www.bangkokpost.com/business/news/1578806/mercer-thai-salaries-to-spike-by-5-in-2018