Post on 22-Jun-2018
Mercer
HR Trends in ASEANInsights into the world’s fastest emerging market
23 APRIL 2015
MERCER
Thank You
2013 GDP $861b; Per capita $3,460
2013 GDP $298b; Per capita $55,1832013 GDP $269b; Per capita $2,707
2013 GDP $388b; Per capita $5,6792013 GDP $312b; Per capita $10,421
ASEAN
625m35% 25%
2013 GDP $2,395b; Per capita $3,83228.0
ASEANASSOCIATION OF SOUTHEAST ASIAN NATIONS
Indonesia, Philippines,Singapore, Malaysia,Thailand, Vietnam, Myanmar,Cambodia, Laos, Brunei
Percentage ofsmartphone users
Percentage ofinternet users
Notes:- GDP figures reflected in US$- ASEAN’s percentage ofsmartphone/ internet usersconsiders 5 key countries only(Indonesia, Philippines,Singapore, Malaysia, Thailand)- Source: Research Partnership,ASEAN.org, AEC Advisory
2
MERCER
4.7%GDP
1.3%GDP
ASEAN as a Market Has Tremendous Potential
329 April 2015
World
USA
Europe
APAC
ASEAN
3.8%GDP
3.6%GDP
4.2%GDP
Source: IMA Asia February 2015, World Bank Data 2014
Note: APAC GNE figures do not include Taiwan
74trillionGNE
12trillionGNE
17trillionGNE
2.2trillionGNE
21.5trillionGNE
MERCER
ASEAN GDP, Inflation & Salary Increase Differ per Country
429 April 2015
GDP Inflation
SalaryIncrease
(2015Forecast)
IDO 5.2 5.7 9.4MY 4.6 3.7 5.7PH 6.8 2.5 8.4SG 2.6 0.5 4.1TH 3.2 0.7 5.9VN 6.5 2.4 10.3
ID MY PH SG TH VN
GDP Inflation Salary Increase (2015 Forecast)
Source: IMA Asia February 2015, Mercer Market PulseSurvey 2014 Cycle 2
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q Free flow of goods across ASEAN Countriesü Tariff reductionü Certification requiredü Data integration & information for custom documentation
q Free flow of servicesü Reduction or elimination of barriers for foreign service providers and workers
q Free flow of investmentü Investment protectionü Cooperation and facilitation for investment policy
q Free flow of Skilled labour
Source : Kompas, November 2014
What Will the AEC Bring to ASEAN
4 Pillars of AEC
q single market and production baseq a highly competitive economic regionq a region of equitable economic developmentq a region fully integrated into the global economy
AECImpact
5
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More Focus on ProductivityProductivity per FTE: all industries by country
629 April 2015
Formula:Revenue (in USD 000s)
FTE
*NOTE: Based on averageSource : Mercer Analytics
Indonesia Malaysia
Philippines
Singapore
Thailand Vietnam
MERCER 729 April 2015
37
24
35
41
2725
45
38
31
26
37
22 22
3735
29
38
28
38
45
30 28
48
43
3330
38
25 25
40 41
33
0
10
20
30
40
50
60
AU BD CN HK ID IN JP KR LK MY NZ PH PK SG TH VN
2010 2020
More Focus on ASEAN’s Younger WorkforceMedian age across ASEAN is relatively low
MERCER
Modern Workforce in a Nutshell – ASEAN has do deal with this!
29 April 2015
LOL
TL; DR / TL;NR
IDRC
kthxbye
Like a boss
FTW
IDKJTLYK
IAWTC8
MERCER
Annual Growth in Job Advertisements in Asia – Malaysia tops the list
929 April 2015
Malaysia Japan Singapore China Hong Kong South Korea
+48% +42% +23% +19% +3%
Gro
wth
inon
line
reta
ildr
ives
hirin
g
+15%
Ups
killi
ngcr
eate
smor
ere
plac
emen
tpos
ition
s
Impr
oved
busin
ess
perfo
rman
cesu
ppor
tsst
eady
grow
th
Gov
ernm
enti
nitia
tives
boos
tsjo
bcr
eatio
n
Regu
latio
nsdr
ive
hirin
gin
gove
rnan
ce
Mod
estg
row
thsp
urre
dby
polic
ych
ange
Source: Robert Walters, 2015
MERCER
Voluntary Attrition Rates Remain High In ASEAN
1029 April 2015
8.80%
17.10%
12.60%
12.70%
17.60%
12.00%
8.40%
14.70%
14.90%
11.40%
14.70%
11.00%
ID MY PH SG TH VN
Voluntary attrition percentage(Average)
2013 ( Full Year) 2014 (Jan - Oct)
1.70%
3.00%3.20%
1.50%
3.30%3.20%
1.50%
2.40%
6.10%
1.90%
2.80%2.70%
ID MY PH SG TH VN
Retrenchment Rate (Average)
2013 ( Full Year) 2014 (Jan - Oct)
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Salary Increases Across ASEAN are a Concern for Companies
1129 April 2015
9.1%
5.4%
7.8%
4.3%
5.8%
10.2%
9.4%
5.7%
8.4%
4.1%
5.9%
10.3%
ID
MY
PH
SG
TH
VN
Salary increase (Average)
2014 (Actual /Budgeted) 2015(Forecast)
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Short Term Incentive Plans are of High Value to Employees
1229 April 2015
31.6 30.8 30
22.6
43.5
27.9
33.5 34.6
39
23.2
47.2
30.0
ID MY PH SG TH VN
Sales Incentive Increase (Average)
2014(Budgeted) 2015 ( Forecast)
24.8%
17.0%
23.9%
16.3%
21.0% 15.4%23.6%
19.2%
29.7%
16.8%
21.4%
15.3%
ID MY PH SG TH VN
Variable Bonus Increase(Average)
2014(Actual/Budgeted) 2015 ( Forecast)
MERCER
Benefits Play a Key Role in Competitive Total Rewards
1329 April 2015
HK 62%
ID 67%IN 65%
KR 57%
MY 69%
PH 65%
SG 57%
TH 71%
64%77% 78% 71% 70% 70%
51%40%
58% 75% 69%54%
51% 39%28%
43%35%
41%
14%12% 8%
14%
9%7%
VN TH SG PH MY ID
Objective behind Benefits Review
To ensure that the benefits are above the median market offering
To align with the corporate HR philosophy
To have an understanding of where the company benefits standagainst the marketTo ensure that the benefits are competitive with the medianmarket offering
Percentage of companies planning toreview benefits policy
MERCER
Although Cost and Legislative Changes tend to Drive Change in Policies
1429 April 2015
HK ID IN JP KR MY PH SG TH TW VN
Allowance 2 3 2 3 2 2 3 2 1 1Life/Personal
Accident 2 2 1 1 3 2 2 1 3Health
Insurance 1 1 1 3 2 1 1 1 1 1 2Leave
Benefits 3
Car Benefits 3 3
1 2 3Not in top 3
Attribute's rank in importance
Top 3 Benefits that companies want to review
MERCER
COMPENSATION BENEFITS
CAREERWORK
PLACE /LIFESTYLE
CULTURAL ALIGNMENT
DIFFERENTIATED
CONTRACTUAL
AFFINITY/PRIDE /
PURPOSEUNIQUE
EMOTIONAL
COMPETITIVE
Focusing on A Complete Employee Value Proposition will Make aDifference
MERCER 1629 April 2015
LET’S HEAR FROM OURLOCAL EXPERTS
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ASEAN
ASEANWE HAVE 5MERCER LOCALOFFICESIndonesia, Philippines,Singapore, Malaysia,Thailand and our affiliatepartner, TalentNet, inVietnam.
• ECONOMICOUTLOOK
• BUSINESSLANDSCAPE
• TALENT TRENDS
• LOOKING AHEAD
GODELIEVE KROONENBERG
FLORIZA MOLON
SATYA RADJASA
KULAPALEE TOBING
NICHANANT DULSARIANNA CHABBAT
17
MERCER 1829 April 2015
QUESTIONS
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