Fashion
Performance ratings continue to determine pay decisions in the majority of Thai organisations, a recent Aon Hewitt survey found.
With high turnover rates highest among junior managers and supervisors in the Land of Smiles, there is growing pressure on these staff to maintain their performance levels and prove their worth.
According to the Total Compensation Measurement Study and Benefit Survey 2016 by Aon Hewitt, performance continues to determine pay-related decisions for 95.1% of organisations in Thailand.
With junior management and supervisor levels recording voluntary turnover rates of 14%, and involuntary turnover rates of 5.3%, one tactic being utilised is to offer wage increases, with salary increments ranging from 4.7% to 6% in 2016 across industries polled.
Across the Thai economy, the retail and life sciences sectors offered the most generous wage increase in 2016, with an average increment of 6%.
On the other hand, the travel industry witnessed the lowest average salary increase, at 4.7%.
The study also showed that other strategies were used to keep hold of employees.
For example, 72.2% of employers offered individual performance awards, while 38.9% offered special recognition as short-term incentives to retain staff.
“The high turnover rate among junior managers should warn employers in Thailand to think about their compensation policies in the context of their overall talent retention strategy,” said Panuwat Benrohman, Country Leader, Aon Hewitt, Thailand.
Panuwat cautioned that companies have a responsibility to arm junior managers with the skillsets necessary to make the step up from individual contributor roles.
“With ‘better external opportunities’ and ‘limited growth opportunity’ among the top three reasons for attrition, a focus on learning and development will help employers in Thailand build a strong leadership pipeline from within, while still compensating high performers attractively,” he added.
A total of 174 organisations across all key industries in Thailand participated in the survey.
