ABS-CBN News, Feb 16 2017
MANILA – Salary increases in the private sector are slowing down as employers hold off on adjustments to make sure top performers are rewarded, according to a survey released Thursday.
The 5-percent average increase for 2016 was below the 6 percent increase that companies had budgeted, said consulting firm Willis Towers Watson.
“The 1-percent differential exists because companies were not able to spend, as they are now more careful in allocating this budget, making sure that they use it to reward their high performing employees,” the report said.
Merit-based increases help companies improve employee performance, as long as it is based on well thought-out metrics, the report said.
The pharmaceutical industry gave the most bonuses last year, the equivalent of 2.5 months salary versus the overall average of 1.6 months.
Financial companies gave out two months worth of bonuses, followed by consumer with 1.9 months, semiconductors with 1.4 months, energy and telco with 1.3 months each and retail and business process outsourcing with 0.9 month each.
The study found that companies paid a starting salary of P10,580 to P17,000 for high school graduates, P15,000 to P22,100 for university graduates and P23,100 to P30,000 for those with post-graduate studies.
Men edged out women in management positions, 57 percent versus 43 percent, and in executive positions, 61 percent versus 39 percent.
Generation Y made up 64 percent of the workforce followed by Generation X with 30 percent. Baby boomers accounted for 6 percent.
The Willis Towers Watson Total Compensation Report was culled from 400 responses in 12 industries.