Inflation affecting salary budgets
RISING prices and worries about a competitive job market were seen affecting salary increase budget planning across various industries in the country, a survey revealed.
Inadequate salary has prompted employees to leave their current positions in search of more lucrative opportunities.
According to a WTW survey, voluntary turnover and attrition have risen, reaching 15.9 percent in 2023, as opposed to 14.2 percent in 2022.
Commonly cited reasons for leaving include the pursuit of better pay and growth opportunities, relocation or family migration; and the desire for flexible work arrangements or better work-life balance.
However, it has been revealed that the persistent inflationary pressures and concerns surrounding a tight labor market continue to impact the considerations for salary increase budget planning.
WTW reported that Philippine employees engaged in sectors such as biopharma and life sciences, financial services, and shared services and outsourcing received a more competitive annual base salary in 2023 compared to those in real estate, construction and engineering.
When measured against the general industry, companies in the banking and biopharma and life sciences sectors have surpassed expectations, providing annual base salaries that exceed the overall median in the general industry.
“This trend looks set to continue in 2024 and employers in the Philippines will continue to face significant talent challenges including the attraction and retention of key talent,” said WTW head of Work & Rewards Patrick Marquina.
“Winning the talent race will require employers to stay focused on balancing the entire package of rewards they offer, both monetary and nonmonetary, to remain competitive and align with employees’ needs and wants,” said Marquina.
Given the substantial shifts in the workforce landscape in the Philippines, WTW said employers are currently challenged to reconsider their work models, optimize organizational structures and project the necessary human resources required for operations. It said that employers intend to implement measures to tackle this issue.
NIÑA MYKA PAULINE ARCEO