Oil & Gas sector is the leader in salary increase in Thailand at 6.2% while Chemical sector has the highest variable bonus at 4 months. Variable bonus payout was forecast to be 2.5 months on average across industries.
Total employee turnover in Thailand was 10.8% and decreased slightly from last year (12.6%). Retails sector possessed the highest total employee turnover by 36.3%.
"With digital disruptions, many organizations in Thailand are rapidly adopting new technologies to remain competitive. The digital disruptions also changed the way how organizations work leading to changes in operating model, business and organization structure. These changes also impact how human capital are being managed from recruitment, performance management to talent development and retention. HR capital is a key factor to drive transformation within the organization to ensure sustainability, competitiveness and profitability," said Thanwa Chulajata, Country Manager for Korn Ferry Digital in Thailand.
"Besides recruiting new talent, organizations should also develop existing talent by reskilling and upskilling these talents for various key competencies, especially to multi-task. The new expectation is for one person to manage tasks equivalent to those that used to be managed by five people in the past. New business model often needs lesser number of employees while still driving productivity," said Thanwa.
"With new multi-generations and emerging digital talent within the same workforce, a single HR practice or system would no longer work for all. Segmentation would be crucial when managing rewards and benefits. Unlike the baby-boomers, digital talent would want more challenging jobs in a highly competitive market and more flexibility in the work environment. They are more agility in learning and are also focusing more on achieving higher salary, faster career growth and better life status at a faster rate," shared Thanwa.
"Total rewards strategy should no longer focus mostly on hygiene factor, but also understanding what's inside their talents' minds through exhaustive data analysis to determine the intrinsic aspect. In a nutshell, organizations must now adopt a holistic approach when determining pay and benefits," said Thanwa.
Across South-East Asia, Indonesia is forecast to have the highest real-wage growth at 5.1 percent, after accounting for an inflation rate of 3.0 percent. Malaysia is forecast to have a real-wage growth at 3.5 percent, after accounting for an inflation rate of 1.5 percent. Although salaries in Singapore are forecast to grow by only 4.0 percent, the island-nation's relatively low inflation rate of 0.4 percent translates into a 3.6 percent increase in real-wage growth in 2020.
Around the world, salaries are predicted to grow at a rate of 4.9 percent in 2020. With a global inflation rate prediction of approximately 2.8 percent, real-wage salary increase is predicted at 2.1 percent. In 2019, real-wage salary increases across the globe were only 1.0 percent, with salary growth rate at 5.1 percent and global inflation at 4.1 percent.
About the study
The data was drawn from Korn Ferry's pay database which contains data for more than 20 million job holders in 25,000 organizations across more than 130 countries.
It shows predicted salary increases, as forecasted by global HR leaders, for 2020 and compares them to predictions made at this time last year regarding 2019. It also compares them to 2020 inflation forecasts from the Economist Intelligence Unit.