HONG KONG, Nov. 15, 2017 /PRNewswire/ -- Financial services employees in Hong Kong can expect their salaries to increase by 5% and performance bonus is equivalent to 7.6 months of salaries due to buoyant markets, according to independent management consulting firm, Pretium Partners Asia Limited ("Pretium").
Pretium Year-end Rewards and Human Resource Trends Survey - 2017 ("Survey") examined changes in salary increase, bonus levels and payout ratios, business performance, headcount changes and staff mix ratios as well as top priorities for HR to be a game changer among financial institutions. It covers 70 international, regional and local investment banks, commercial banks, asset management and private equities firms with multiple offices in Asia. Key findings of the survey are as follows:
Business Performance in 2017, Projected Salary Increase and Bonus Payout in 2018
Financial services industry is planning to increase salaries by 5% in Hong Kong and 6.5% in Mainland China in 2018, comparing to 4.2% and 5% respectively in 2017. Singapore is set to increase salaries by 3.9%, comparing to 3.5% last year due to a return of inflation.
81.4% of the surveyed firms indicate 2017 firm-wide business performance will be better or significantly better than last year. Investment banking and fixed income will make the biggest revenue contribution. "The increase in H-share listings of Mainland companies and market turnover has led to a surge in both fee and trading income among financial institutions, Chinese firms will outperform their international counterparts as they top the league table," said May Poon, Managing Partner at Pretium.
The overall bonus to be paid in 2018 is projected to be 7.6 months (expressed in monthly salaries), up from 7 months last year. Due to market recovery, senior executives are expected to receive 15 months whereas frontline will get 9 months and corporate functions will get 6 months. "As bonus pools are closely linked to revenue or profit levels, bonus levels in 2018 can be the same if not higher than the 2016 payout," Ms. Poon added.
Headcount Change and Staff Turnover
60% of the surveyed firms intend to expand headcount in 2018, mainly for Fixed Income, Research and Compliance. The median staff turnover rate in 2017 is 14%, comparing to 12% in 2016, with the Finance department tops the list in staff turnover. "The improved market sentiment has led to increasing investment in new businesses; this drives headcount expansion and more recruitment. With more influx of Chinese financial institutions in Hong Kong and a tight talent supply with the required financial expertise, these will drive up salary and bonus levels to retain talent," Ms. Poon explained.
About Pretium Year-end Rewards and Human Resource Trends Survey - 2017
The Pretium Year-end Rewards and Human Resource Trends Survey - 2017 examines performance, reward and human resources trends in Asia, including salary increase, bonus levels and payout ratios, business performance, headcount changes and staff mix ratios as well as top priorities for HR to be a game changer among financial institutions. It covers 70 international, regional and local investment banks, asset management and private equities firms with multiple offices in Asia.
About Pretium Partners Asia Limited
Pretium Partners Asia Limited ("Pretium") is an independent management consulting firm that helps accelerate clients' growth and increase profitability through unique spectrum of solutions which include rewards, performance management, benchmarking, organization transformation and integration for mergers & acquisitions.
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