Smaller Hong Kong businesses offer higher pay rises

Smaller Hong Kong businesses offer higher pay rises Employees at Hong Kong’s small-sized organizations received a higher average pay rise percentage than those at medium-sized and large-sized companies, according to the January 2017 Pay Trend Survey conducted by Hong Kong Institute of Human Resource Management (HKIHRM).

Small-sized companies (less than 500 employees) awarded an average base pay increase of 4.0%, a percentage higher than that offered by large corporations (more than 1,000 employees) at 2.7% and medium-sized firms (between 500 and 1,000 employees) at 3.7%.

It is believed that small-sized organizations tend to increase base pay as a staff retention strategy and boost staff morale.

Across all companies regardless of size, Hong Kong employees received an overall base pay adjustment of 2.9% on average in 2017, down by 0.6 percentage point when compared to the average pay rise projection of 3.5% released in November 2016.

The study polled 79 companies involving a total of some 111,624 full-time salaried employees.

Among all companies participating in the survey, 35 responding companies confirmed a base pay adjustment in January 2017, covering a total of 35,136 employees.

The overall average base pay adjustment in January 2017 was 2.9% (weighted average), based on the data provided by the 35 responding companies. This is 0.6 percentage point lower than the figure of 3.5% projected in November 2016.

Of the 35 responding companies that made pay adjustments for employees in January 2017, 97.1% reported a pay increase while 2.9% of the responding companies imposed a pay freeze. No company reported a pay cut during the survey period.

In terms of employee number, 83.6% of the employees from the responding companies received a pay increase and 16.4% had pay freeze while no employees received a pay cut.

By staff level, employees at top level received the lowest pay increase of 2.0%, followed by employees at general level (2.9%) and those at senior and middle levels (3.1%).

The findings also indicated that there was no significant difference in pay rise level between multinationals (3.0%) and local companies (2.9%).