Salary hike expectations converge at 6-10%

NEARLY HALF of employers are planning 6-10% salary adjustments for middle managers and above, in line with the expectations of their executive staff, recruitment consultancy Robert Walters Philippines said.

Alejandro Perez-Higuero, the firm’s director, said that results of Salary Survey 2024 showed that 44% of employers intend to provide 6-10% salary increases, while 44% of employees expect the same.

“If we look at the data, I think what’s interesting to mention is that the largest percentage of employers and employees would be agreeing somehow in that range of increased salary that goes from 1-10%,” Mr. Perez-Higuero said.

“Especially at 6-10% we can see an even 44% of employers intending to provide that increase and a same percentage of employees that are expecting the same increase,” he added.

Robert Walters found that 34% of employers intend to provide 1-5% salary increases, while only 18% of employees had the same expectations.

For salary adjustments of 11% and above, 38% of employees have such expectations and 15% of employers intending to make such adjustments.

Mr. Perez-Higuero said that in total, the salary survey showed that 83% of the employers intend to provide salary increases and 48% of the employees are actively negotiating for higher pay.

He said the study concentrated on middle management roles and above, which Robert Walters specializes in.

“It could be different for let’s say if we focused on junior profiles,” he added.

He said that the survey also showed that 80% of the employers are prioritizing retention initiatives amid rising costs, a more competitive job market and a shortage of qualified candidates.

“This is among their top priorities, and this is because the market in the Philippines is having, of course, rising cost of living, and also it’s getting more competitive,” he added.

Mr. Perez-Higuero said many multinational companies are launching hubs in the Philippines for shared services.

“This means that at the end of the day, Filipinos have access also to these types of jobs that sometimes have an international exposure, so it is becoming more competitive,” he said.

He said that the increasing competition also results in a shortage of qualified candidates.

“This is because it is a market that is in different functions which are developing, hence these fantastic professionals with very new skills are not a lot or not many,” he said.

“If we put together the increasing cost of living, increasing competition etc., of course, the best candidates have higher expectations when it comes to benefits, salary, etc. And at the end of the day, this translates to a shortage of qualified candidates,” he added.

Meanwhile, Mr. PerezHiguero said that across all the industries, employees with niche skill sets expect an average of 15%-25% salary increases, while job movers with niche skill sets expect up to 30%.