According to findings in the recently released 2015 Hays Asia Salary Guide, employers who are unable to offer a significant salary increase to their top staff are using bonuses as a way of rewarding, and hopefully retaining, their best people.
The survey of 2,361 employers, representing over four million (4,017,026) employees, found that 63% of employers in Hong Kong will increase salaries by a moderate 3 – 6%. But 51% will award bonuses to more than 50% of their staff this year.
In most cases these bonuses are related to employee performance (80%) and company performance (73%). This shows that employers are using performance-related bonuses to ensure they only reward employees who are achieving results.
Only 11% of employers said bonuses are guaranteed, while 4% said they are related to hours billed.
In terms of the value of these bonuses, the Hays Asia Salary Guide found that 11% of employers will award 100% of staff salary as a bonus. Another 11% of employers will award between 51% and 99% of staff salary as a bonus. The majority of employers however are far more conservative, with 44% offering between 11% and 50% of staff salary as a bonus, and the final 34 per cent offering a bonus equal to less than 10 per cent of staff salary.
“If you and your company are performing well there is a good chance you have or will soon receive a competitive bonus,” says Christine Wright, Managing Director of Hays in Asia.
“The demand for highly skilled professionals is one reason why bonuses continue to remain popular. Employers who are unable to offer a significant salary increase to their top staff are also using bonuses as a way of rewarding, and hopefully retaining, their best people.”
This article was originally published on Hays.