In spite of the looming uncertainties of 2019, salaries at financial services firms in Hong Kong and Singapore are predicted to go up by 4%. That said, according to according to a report by an independent management consulting firm, Pretium Partners Asia Limited, bonus will predictably be low to 5 months due to sluggish performance as compared to 7.8 months for 2018.
The Pretium Year-end Rewards and Human Resource Trends Survey, 2018 reached its conclusions by examining changes in salaries, bonus levels, business performance, headcount changes along with workforce mix ratios and the key HR priorities across organizations. The survey pulled in responses from 67 international, regional and local investment banks, commercial banks, asset management and private equities firms with multiple offices in Asia.
In 2018, Hong Kong went through a 4.8% salary hike while mainland China increased it by 6.2%. In 2019, both are planning hikes by 4% in and 5.5% respectively. Singapore is also set to see a surge in salaries by 4% in 2019 as compared to 4.2% in 2018.
Out of the firms surveyed, 81% indicate that the business performance this year would not be much different from last year. However, private equities and real estate investment seem to moving towards better performance with investment banking and wealth management in close pursuit.
May Poon, Managing Partner at Pretium said, “First half business performance shows signs of growth but economic uncertainties have dampened market sentiment on pay increase.” Moreover, 40% of the participating firms indicated that they intend to expand headcount in 2019, mainly for fixed income, research and compliance verticals. “Growth prospects are increasingly threatened by uncertainties surrounding trade which stifles confidence and leads to more prudent headcount expansion,” Poon added.
The bonus levels will also be reflecting the considerably poor performance in fixed income, currencies and commodities. These trends and statistics are sure to have ripples across the talent landscape that would reach a lot further than salary hikes and bonus levels. Would those ripples leading to new demands and changes be managed well too considering that the predicted performance does not look as bright and positive at the moment?
Image Source: Pretium Year-end Rewards and Human Resource Trends Survey Report- 2018