Planning to Quit? Salary Hikes in the Philippines Might Reach 5.6 Percent Next Year
Employers in the Philippines are planning to give their employees higher pay raises next year as they slowly recover from the effects of the pandemic, a survey found.
The latest Salary Budget Planning Report commissioned by Willis Towers Watson, a global advisory, broking and solutions company, also found that companies are facing mounting challenges to attract and keep talented employees.
Companies in the Asia Pacific are expected to see the highest salary increases in 2022, with an average of 5.3 percent for executives, management and professional employees, and support staff next year. This is up from the average 4.9 percent increases that employees received this year.
Employers in the Philippines are also expecting an average salary budget increase of 5.6 percent in 2022, up slightly from five percent in 2021.
In Southeast Asia, only Indonesia and Vietnam are projected to have higher salary increases than the Philippines, with 6.5 percent and 7.4 percent respectively.
Meanwhile, salary hikes of employees in companies based in North America and Western Europe are expected to stay flat.
In terms of industries, companies engaged in MedTech, Business Support Services (including Business Process Outsourcing) and Manufacturing reported the highest average salary budget increments between 5.2 percent to 5.7 percent this 2021.
“Although there is a positive outlook among businesses, companies are also monitoring the Philippine economic landscape, hence, organizations may further adjust their 2022 salary budget forecast in the later part of this year,” said Chantal Querubin, Rewards, Data & Software Practice Leader, Philippines, at Willis Towers Watson.
On business outlook, close to 51 percent of companies in the Philippines expect their business performance to be in line with target while 43.8 percent expect it to be ahead of target this year. More jobs in functions such as sales, information technology and engineering are also expected in the next 12 months.
As for manpower, the survey shows that 65.3 percent of companies plan to maintain headcount in the next 12 months, about 25.8 percent are looking to hire more, while only 8.9 percent answered that they are planning to reduce headcount, largely due to the negative impact of the pandemic on their businesses.
Of all the companies surveyed, a whopping 98.1 percent are expecting to proceed with their regular salary review in 2022.
“Attracting and retaining employees remains a major challenge for employers,” Querubin said. “In fact, the current environment makes these challenges even more difficult. Employers need to deliver a sound employee value proposition supported by comprehensive Total Rewards programs. Beyond competitive salaries, which are table stakes at the moment, companies also need to focus their spend on a diverse set of benefits, wellbeing and upskilling programs to drive employee engagement.”
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