Compensation and Benefit Trends 2018: Modest Increase in Salaries as Voluntary Turnover Rises in Thailand

BANGKOK,
THAILAND�- Media OutReach - 15 November 2018 - The
average salary increase across industries surveyed in Thailand is expected to
rise slightly from 5.2% to 5.3% in 2019, according to the Total Compensation
Measurement (TCM) Study and Benefit Survey 2018 conducted
by Aon
(NYSE: AON), a leading global professional services firm
providing a broad range of risk, retirement, and health solutions. Companies in
the Life Sciences industry (Pharmaceutical) report the highest increase rate at
7.2% as a result of superior business performance across the industry and an
increased focus on retaining good talent. 

 

Performance
level of employees continues to drive pay with top performers getting higher total
variable pay than other employees on average.

 

The
survey also reveals that turnover rate in 2018 has increased to 16.9% from
16.6% in 2017. This is driven mainly by a growing job market and a younger
workforce. From the study, top three reasons that attribute to turnover are 1) better external
opportunity, 2) limited growth opportunity internally, and 3) equity of
compensation.

 

Mr.
Panuwat Benrohman, Partner and Managing Director—Talent, Rewards and Performance, Aon Thailand said: “Increase
in turnover isn’t surprising in the current business landscape. The new
generation workforce generally does not want to wait for a year to earn an
average salary increase when they can get a much higher increase with a change
of employer.” 

 

Other key findings of the
Thailand TCM Study and Benefit Survey 2018 are:

 

• The average bonus rate is at 2.03 months or 16.94%
  of annual base salary.
• Top five employee benefits provided by
  organisations in 2018 are:

1.
Medical Inpatient

2.
Medical Outpatient

3.
Retirement Benefit (Provident Fund)

4. Group
Accidental Insurance 

5. Life
Insurance

• Highest employee benefits costs are
  towards:

1. Company Car and Transport Allowance

2. Retirement

3. Medical Outpatient

• Benefit strategy over the next three
  years will focus on evaluating new benefits to suit employees’ evolving needs
  to boost engagement.

 

Mr.
Panuwat added: “The key challenge faced by HR professionals in this age of
disruption is how to attract and retain the right talent, as well as maintain
healthy dynamics between new and existing employees. Thai companies must invest
in creating a holistic employee experience and motivate current and future top
talent to achieve their
business objectives.”

 

The Total Compensation Measurement
Study and Benefit Survey includes
more than 1,700 participating organisations across 180 countries around the
world. This year, there were 146 participating organisations across all key
industries in Thailand.

 

About
Aon

Aon plc (NYSE:AON) is a
leading global professional services firm providing a broad range of risk,
retirement and health solutions. Our 50,000 colleagues in 120 countries empower
results for clients by using proprietary data and analytics to deliver insights
that reduce volatility and improve performance.

 

Aon announced in May
2018 it will retire the business unit brands of Aon Benfield and Aon Risk
Solutions, which follows the retirement of the Aon Hewitt business unit brand
in 2017. This move was designed to increase the rate of innovation across the
firm and make it easier for colleagues to work together to bring the best of
Aon to clients. Aon has five specific global solution lines: Commercial Risk
Solutions, Reinsurance Solutions, Retirement Solutions, Health Solutions and
Data & Analytic Services.

 

For further information on our capabilities
and to learn how we empower results for clients, please visit https://apac.aonhewitt.com