Market Report & Salary Survey for HR Professionals in Asia

2 FRAZER JONES | HR IN ASIA @FrazerJonesHR

INTRODUCTION AND OVERVIEWGrowth in

areas such as organisational

design, learning and development,

and talent management

demonstrate the importance of human capital

as being key to tangible business

growth.

2 013 saw HR further develop across Asia with more organisations entering

emerging markets. We have seen new ‘Head of’ roles in Malaysia, Indonesia and increasingly the Philippines and Thailand. As strong economic growth continues across the region, organisations are set to continue building their HR functions by establishing and expanding regional hubs in either Singapore or Hong Kong. HR is therefore continually developing, taking on a more prominent position in the boardroom as it is seen as a key function in spearheading growth in this region.

Consequently, the drive to hire experienced HR professionals continues to rise and companies are investing in the development of staff in order to combat high attrition and loss of local talent to competitors. As a result, organisations are being innovative to ensure their employees are fully engaged and have a sense of belonging to the organisation. Many companies now view HR representatives as a key component to successful leadership teams; companies now have HR professionals sitting on the board to help drive the human capital agenda. We are seeing global HR Heads entering the region as companies recognise they need global experience and leadership where growth is thriving.

Our clients all indicate that HR transformation is high on the agenda moving forward. From a systems, policy, and process perspective, many organisations are working with their global headquarters to ensure that HR in emerging

markets is competitive and inventive, keeping up with the demands for talent attraction and retention. HRIS system upgrades have been big on the agenda, with the cloud based system Workday emerging a front runner across the market, taking lead from the UK and the US.

We are witnessing more focus on specialisms within HR. Growth in areas such as organisational design, learning and development and talent management demonstrate the importance of human capital in connection with tangible business growth. This is in addition to a desire to have strategic compensation partners in place.

We have also seen an increase in demand for contract roles, mainly within the banking and financial services space, albeit the market is struggling to deliver here. Locally, contracting is still seen as a poor alternative to a permanent role and until these perceptions change, many people will shy away from such opportunities.

3FRAZER JONES | MARKET REPORT & SALARY SURVEY /company/frazer-jones

London Düsseldorf

Hong KongDubai

SydneyMelbourne

Singapore

L ocal talent is, and will continue to be, a key concern for the Singapore HR market. In September 2013, the Singapore

government announced new measures aimed at reducing the practice of hiring foreigners without fully exploring Singaporean talent. From August 2014, all job advertisements will first be featured on a MOM managed job board, aimed at tracking and calculating the opportunities made available to local applicants over foreign talent. Certain steps are already in place to limit the favourability of foreign hires; shorter employment pass validity, increased salary and/or educational requirements, demonstration that the local market has been exhausted for potential talent and more stringent consequences for companies who violate these laws are already in place. As these measures are implemented, how will this affect the recruitment landscape? Will we see a shake-up in the market from both a talent and salary perspective?

SINGAPORE

T he Hong Kong HR market has seen a distinct shift from a preference for HR generalists to more experienced

functional specialists. This trend was evident throughout 2013 as companies across all industries looked to develop their targeted HR services with many implementing a more developed ‘COE’ framework. In demand functions include hiring C&B specialists, aimed at increasing competitiveness and retention rates; and L&D managers to help spur on employee capability and development. In addition, the return of the ‘traditional’ business partner has been evident in many organisations as companies look to strengthen the relationship between the strategic elements of HR and the tangible impact on the business. We expect this focus on specialist functions to continue in 2014 and this will naturally result in increased salaries for HR professionals.

HONG KONG

T he economic growth in China notably slowed in 2013 due in part to a variety of factors including candidates’

unwillingness to move into new positions. Companies also developed their retention plans and, in addition to salary increments, offered benefits and development that encouraged longevity in employees. As a result of this change, companies were inclined to hire more specialist C&B professionals to assist in the redesign of benefits options to cope with the ‘war on talent’. Similarly, other HR functions took a more prominent role; organisational development, change management and L&D professionals were recruited to assist in employee retention. Looking to 2014, we see workforce planning and organisational development as key focus areas in the development of HR in China.

China

Our office locations:

Munich


COMMERCE AND INDUSTRY

2 013 saw a marked improvement on the prominence of HR as a strategic partner to

the business within Asia. Whilst HR has more traditionally been considered an administrative department, the momentum over the last few years has seen a push towards more of a partnership between HR professionals, business leaders and board members.

What does this mean for talent? The competition to hire top-tier local talent is already on the rise across all industries. Industry forecasters are expecting continued expansion in energy, hospitality, pharmaceutical, retail and technology sectors, whilst employers congruently expect a rise in skills shortage. This will see the implementation of various HR strategies to attract top talent, but most importantly to retain employees – a focus on career development and advocating a strong work/life balance will be key in achieving this. As a result, HR professionals with a specialist focus in talent, succession planning, organisational design & development and training have been in high demand. Whilst historically salary has always been a motivating factor when attracting and retaining talent, this is no longer the sole consideration for employees. Utilising a range of strategies to retain staff, not just relying on a competitive salary package, is vital in reducing attrition.

Whilst there is continual development across the board, certain sectors have seen a real shake up in their HR offering to the business. Pharmaceuticals, IT and FMCG are leading the way in HR transformation and we have

seen more roles in these sectors arising for candidates with change management and strategic partnering experience. These industries, along with the financial services space, typically attract candidates who perceive them to pursue best practice and innovative HR policies. Typically, FMCG and the media industry are the lower payers in the market but attract candidates who thrive in a creative culture, promote a positive work/life balance and have great employee retention practices.

We have also seen an increase in candidates wanting to move out of the uncertain financial services space and into the IT/telco or FMCG space, although typically candidates are facing a 30% reduction in pay to make the jump. Some companies are open to candidates from these sectors, whilst others feel that the cultures are worlds apart and are concerned about the longevity of candidates in these roles.

Specialist capability is seeing a surge and we have seen a strong demand for specialist roles sitting within the centre of expertise (COE). The increases in headcount have been seen mainly at the mid-to-senior end as these specialist functions become true strategic partners as headcount increases and entries into new markets continue across Asia. Key talent shortages have been seen in the L&OD space, particularly as this is an emerging function for many organisations in Asia and from a leadership perspective, historically a function based in the US or Europe.

Specialist capability is seeing

a surge, and we have seen a strong demand

for specialist roles sitting within the centre of

expertise.


BankingThere was a notable reduction in the volume of roles coming from the bulge-bracket banks during the first half of 2013. This was largely due to business restructuring and HR transformation that was reviewed and implemented during the second half of 2012. In September 2013, activity mostly resumed with a focus on the recruitment of talent and training professionals, and C&B specialists. Whilst some banks will continue to push their change-agenda and not resume hiring until March/April 2014, we have seen a requirement for replacement hires at the top-tier levels, particularly in specialist areas.

Asset Management, Private Equity, BoutiquesOutside of the big-name banks, boutique or privately owned financial organisations saw considerable growth across the region with many looking to build their HR function on either a specialist or generalist level. Once again, talent, training and organisational design were key requirements, and there is high demand for ‘traditional’ business partners. We have also seen organisations grow the size and capability of HR teams to better perform with increasing company size.

Furthermore, organisations with already sizeable HR functions have focused on the delivery agenda. This resulted in a review of talent and, in many cases, replacement of post-holders with more strategic, business minded counterparts. Total compensation packages in private equity continue to remain highly competitive with many paying well in excess of the wider financial services space.

InsuranceThe insurance sector remained buoyant throughout the course of 2013 with a surge coming from July through September 2013. In-demand roles included Heads of HR, as well as specialist functions, and an increase in demand for highly strategic business partners to help steer the transformation of these organisations. “Positive attrition” is a phrase being utilised regularly in this space with many HR directors seeing turnover as teams react to change and development. Vacancies are being filled with forward-thinking HR professionals, often from the banking sector who may have been through such change in the past.

BANKING AND FINANCIAL SERVICES

LEGALThe legal market in Singapore has been making comprehensive changes to their HR capability. Traditionally, bar a couple of exceptions in the larger firms, HR within law firms in Singapore has been a blend of office management and HR operations. In recent months we have seen our clients requesting dedicated HR professionals to focus on not only Singapore, but to have a regional coverage and also act as an advisory partner to the business as it grows. Historically, regional roles have been placed in Hong Kong and where we have no doubt that this is set to continue, we also expect there to be more strategic and regional based roles being placed in Singapore, potentially covering a South East Asia portfolio.

The legal market in Hong Kong has been busy, particularly at the end of 2013. Movements have been at the higher level in the international law firms and we have also seen firms advancing their HR functions, thus creating new positions. In 2014, we expect movements will continue, particularly at the middle level. As the Regional HR Managers move on to become Regional Head of HR, there will be a number of backfill positions at the middle level. Moreover, the increase in demand of HR professionals in the financial services industry will also trigger the flow of HR talent from law firms.


SALARY TABLES

SINGAPORE


Non-Manager Manager Level Senior Director/Head Director Level

Business Partner

Recruitment

Learning & Development

48-72

48-72

48-60

48-60

60-90

60-78

60-78

60-78

60-84

60-84

60-96

60-96

60-96

60-96

72-102

96-144

96-144

72-96

72-96

96-144

120-180

120-180

120-144

120-144

120-156

180-240

180-300

120-240

120-240

144-288

220+

220+

220+

220+

220+

260+

260+

260+

280+

280+

SINGAPORE REGIONAL SINGAPORE REGIONAL SINGAPORE REGIONALSINGAPORE REGIONAL

SG$ -,000

Entry Level or Graduate to 5 years’ experience

5 to 8 years’ experience 7 to 12 years’ experience 15+ years’ experience

FINANCIAL SERVICES

Manager/AVP Senior Director/SVP/Director/VP

HR Business Partner


Recruitment

Payroll/HRIS

Global Mobility

60-80

60-90

60-80

60-90

55-75

50-65

60-90

70-110

70-120

60-80

60-90

55-75

50-65

60-90

90-110

120-150

100-130

120-160

90-130

60-90

70-100

110-130

130-180

125-155

150-200

120-180

100-130

90-130

120-170

140-180

120-160

150-190

110-160

80-120

90-150

150-200

160-210

140-190

180-260

150-220

100-150

120-180

250+

250+

220+

280+

220+

140-180

130-200

350+

400+

300+

400+

250+

160+

200+

SINGAPORE REGIONAL SINGAPORE REGIONAL SINGAPORE REGIONALSINGAPORE REGIONAL

SG$ -,000




Singapore 30 Cecil Street #21-03/04 Prudential TowerSingapore 049712T: +65 6420 0515

Melbourne Level 4,520 Collins StreetMelbourne, VIC 3000T: +61 (0)3 8610 8450

London 95 Queen Victoria StreetLondon EC4V 4HN T: +44 (0)20 7415 2815

DüsseldorfSchwanenmarkt 15Düsseldorf, 40213T: +49 (0)211 2479 1130

Hong Kong 1918 Hutchinson House 10 Harcourt Road , Central, Hong Kong T: +852 2973 6737

Sydney Level 12, 25 Bligh Street SydneyNSW 2000T: +61 (0)2 9236 9090

Dubai Suite 614, Liberty House DIFC PO Box 506739 T: +9714 448 7775

MunichMaximilianstraße 13 München, 80539T: +49 (0)89 716 7756 30

Hong Kong

Business Partner

Recruitment


900-1,800

900-1,800

900-1,800

900-1,800

900-1,800

420-700

420-700

420-700

450-700

450-700

HONG KONG

600-1,000

600-1,000

600-1,000

600-1,000

600-1,000

REGIONALHONG KONG REGIONAL

780-1,200

780-1,200

780-1,200

780-1,200

780-1,200

HONG KONG REGIONAL

1,800+

1,800+

1,800+

1,800+

1,800+

HONG KONG REGIONAL


Manager Level Director Level

240-420

240-420

240-420

240-420

240-420

264-456

264-456

264-456

264-456

264-456

Non-Manager


5 to 8 years’ experience 7 to 12 years’ experience

1,500+

1,500+

1,300+

1,300+

1,500+

Senior Director/Head

15+ years’ experience

HK$ - ,000

FINANCIAL SERVICES

HR Business Partner


Recruitment

Payroll/HRIS

Global Mobility

300-400

300-400

300-400

300-400

300-400

300-400

300-400

360-500

280-400

320-480

400-600

400-600

280-400

280-400

560-900

560-900

560-900

560-900

560-900

480-700

420-900

600-1,200

780-1,200

700-1,200

870-1,200

700-1,200

720-1,100

780-1,000

1,100-1,200

780-1,080

780-1,200

780-1,200

780-1,200

900-1.200

900-1.200

1,200-1,560

1,200-1,560

1,200-2,160

1,440-2,160

1,200-1,800

1,000-1,200

1,140-1,440

1,500-2,800

1,200-2,500

1,200-2,500

1,400-2,800

1,400-3,000

1,200-1,800

1,200-2,000

1,800-3,000

1,800-3,000

1,800-3,000

1,800-3,000

1,800-3,000

1,800-3,000

1,620-1,800

HONG KONG REGIONAL HONG KONG REGIONAL HONG KONG REGIONALHONG KONG REGIONAL

HK$ - ,000 Manager/AVP Senior Director/SVP/Director/VP



Market Report & Salary Survey for HR Professionals in Asia

Recruiting & HR

Transcript of Market Report & Salary Survey for HR Professionals in Asia