Hay Group Hong Kong. January 2013
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1 Hay Group Hong Kong Hay Group Hong Kong Pulse Survey Report January 2013
2 1 Introduction List of Participants Main Findings Analysis on All Organizations Main Findings Sector Analyses Consumer Goods Consumer Services Financials Industrials Natural Materials, Chemicals, Oil & Gas Public Sector & Not-For-Profit Others Employee Turnover Rate Recruitment Plan HR Issue HR Challenges, Salary Forecast for Hourly-rate employees and Referral Practices Appendix Methodology and Definitions
3 About Hay Group Hay Group assists clients in interpreting the findings of the survey and is involved in numerous assignments to define and implement compensation philosophies and strategies. It is our goal to continually enhance our products and services to assist you with your human resources issues. Any comments or suggestions from you will be much valued. For further information, please contact:- Hay Group Hong Kong Hay Group Limited 27/F, No. 3 Lockhart Road Wanchai, Hong Kong Tel: (852) Fax: (852) hk.enquiry@haygroup.com Website: and Hay Group Hong Kong. Copyright Hay Group This report is confidential to participating organizations and its contents should not be disclosed to any other party without the written consent of Hay Group. 3
4 1 Introduction 1 Introduction 01 Introduction 4
5 The Hay Group Hong Kong Pulse Survey Report January 2013 presents findings based on 120 organizations that participated in this survey. All data refers to a base date of January The purposes of the report are as follows:- Enables you to understand the latest salary trends in Hong Kong. Provides information on variable pay actual payouts and targets. Understands the employee turnover rates in Hong Kong Recruitment plan and HR issues that organizations are facing in Hong Kong. Report Contents This report is divided into the following sections:- 1. Introduction This section contains an overview of the report structure. 2. Participants This section lists the participating organizations and their sectors. 3. Methodology and Definitions Explanation of the various terms and methodologies used by Hay Group in the report is outlined in this section. This information will help you understand, interpret and apply the report results. 5
6 4. Main Findings This section presents the key findings of the survey on Movement and Forecasts of Base Salary and Bonus Payment by all organizations and by sectors: Analysis on All Organisations - Actual Base Salary Movement and Forecasts - Actual Variable Bonus Payment and Forecasts Sector Analyses - Consumer Goods - Consumer Services Consumer Services Leisure & Hospitality Consumer Services Retail - Financials Financials Banks Financials Financial Services Financials Insurance - Industrials Industrials - Construction & Materials Industrials High Technology Industrials Others Industrial Activities Industrials Transportation - Natural Materials, Chemicals, Oil & Gas - Public Sector & Not-For-Profit - Others 5. Employee Turnover 6. Recruitment Plan 7. HR Issues 6
7 2 Executive summary 2 List of Participants 02 List of Participants 7
8 * Please refer to Section 4 for detail break down of distribution for each sector. 12
9 13
10 3 Salary markets overview 3 Main Findings Analysis on All Organizations 03 Main Findings Analysis on All Organizations 14
11 Average Base Salary Movement and Forecasts by Employee Categories 15
12 8 Appendix 08 Appendix 53
13 Methodology and Definitions The following methodology and definitions will help you understand the information provided in the report and assist you in applying this information to your own organization. Statistics on the Range of Market Data The following statistical measures are used in the presentation of the survey findings: P90 The value that divides the top 10 per cent of data values from the bottom 90 per cent, when all data values are ordered sequentially. Q3 The value that divides the top 25 per cent of data values from the bottom 75 per cent, when all data values are ordered sequentially. Median The mid-point value that divides the top 50 per cent of data values from the bottom 50 per cent, when all data values are ordered sequentially. Q1 The value that divides the bottom 25 per cent of data values from the top 75 per cent, when all data values are ordered sequentially. P10 The value that divides the bottom 10 per cent of data values from the top 90 per cent, when all data values are ordered sequentially. Average The value derived when the sum of all individual values is divided by the number of items in the sample. Average differs from median in that it is influenced by all values in the sample and does not just represent the mid-point. When the average and the median are close or identical, the distribution of values above and below the median tends to be symmetrical. Where there is a larger variance between the median and the average indicates that the spread of values on each side of the median is asymmetrical, with extremely high or low values skewing the average away from the median. 54
14 Definitions of Employee Categories The table below describes the employee categories used in the report. A broad translation of the categories into Hay Reference Level and Hay Point range is also given. Employee Categories Hay Reference Level Hay Points Description Clerical/ Operations Performs routine tasks, under supervision, which have specific objectives. Requires basic knowledge of work routines or simple machinery. Generally, tasks are repetitive in nature and training is acquired on the job. Supervisory/ Junior Professional Middle Management/ Seasoned Professional Senior Management/ Executives Performs standard work routines under general guidance. Requires authoritative knowledge of specialized methods acquired on the job or through professional qualification. May supervise a group of workers. Performs general practices in a specialized field with considerable freedom to achieve end results. Requires proficiency in a specialized field or broad understanding of relationships between different fields and an ability to assess the suitability of techniques. This will be an individual contributor or a manager of a team. Performs practices requiring in depth specialization in a professional field or a broad understanding of relationships between different fields. Both are gained through deep and broad experience built on concepts and principles. These jobs require the ability to select, develop and assess the suitability of techniques, not just the application of those techniques. The level represents generalist and managerial skills. Final responsibility for supervision of functions. Controls a major function in a large organization or all functions in a small organization. 55
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