Salaries in the Philippines are poised to pick up next year, according to findings of a study by technology solutions provider Mercer.
The study titled “2019 Philippines Total Remuneration Survey” showed salary increase in the Philippines is forecast to grow to 6 percent from 5.5 percent in 2019, while the inflation rate is projected to drop to 3.3 percent from 3.8 percent in 2020 at 1.1 percent.
The consumer goods, energy and high-tech industries are predicted to have the highest salary increases at 6 percent.
The study showed 45 percent of companies plan to add headcount in the next 12 months across industries, a slightly smaller proportion than the 50 percent registered in 2019.
The shared services and outsourcing (SSO) industry is the most bullish in hiring (77 percent of companies plan to add headcount).
The report however highlighted that retention remains a challenge with a 6.2 percent voluntary turnover rate across industries during the first half of 2019
Mercer‘s survey covered 433 companies.
Given the stabilizing voluntary turnover rate, the focus of most organizations is turning to upskilling and retaining key talent.
The logistics industry in the Philippines has the highest involuntary turnover rate at 7.1 percent for the second quarter.
In 2018, the full-year attrition rate stood at 10.9 percent, with the SSO having the highest voluntary turnover rate of 14.6 percent due in part to the nature of this emerging industry with the average years of service at three years.
While the top reasons cited for employees leaving their organization in Asia varies by age group and gender, their top three reasons are competitive pay, manager interaction, and a clear career path and job security.
Earlier, results of a survey of recruitment specialist Robert Walters Philippines showed that
although Filipino professionals in managerial positions expect 20 to 40 percent increase in pay when moving from job to another, other factors like career growth and benefits weigh heavily in making such a switch.
According to the survey, professionals looking to stay in their current roles can expect salary increments of up to 10 percent.
Although competitive remuneration and benefits remain a top driver of employee satisfaction, 29 percent of those surveyed say they will change jobs for career progression.
The most demanding of the industries is in tech and transformation such as IT security professionals, data analysts and DevOps engineers. Candidates exploring new roles expect as much as 60 percent increase in their salary.
In accounting and finance, the top areas seeing demand are finance business partnering, transformation in shared services and tax.
At present, 98 percent of accounting and finance professionals are optimistic about job opportunities in the sector, with 24 percent of professionals staying in a role expecting up to 6 percent annual salary increment.
In banking and financial services, corporate banking and wealth management, data privacy, and risk and compliance are the areas seeing strong demand. The top reasons employees move jobs are better compensation and benefits, and career progression, at 28 percent and 24 percent, respectively.
In human resources, shared services and BPO, start-ups, pharmaceutical and consumer goods are the areas with strong demand. Candidates expect a salary increase of 20 percent to 25 percent in their new jobs.
In sales and marketing, the top sectors seeing demand are fintech and e-commerce, FMCG and retail, and construction, with competitive salary and benefits, good working environment, and good work-life balance as top drivers of job satisfaction. Candidates who decide to move jobs are expecting a 20 percent to 30 percent salary increment.
In supply chain, procurement and logistics, logistics managers, purchasing managers, supply chain managers and demand planning managers are in demand. Candidates moving jobs are expecting a 20 percent to 25 percent salary increase on average.