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Close to nine in 10 Hong Kong SAR-based employees (87 per cent) are expecting to receive a bonus this year. Out of which, 73 per cent of the respondents said that they are anticipating an annual bonus of up to two months.
Natellie Sun, Managing Director of Randstad Hong Kong said, “There is no hard-and-fast rule as to how much bonus payout should be. Employees will always expect more for their loyalty and the time and energy that they have spent in the organisation. Therefore, it is the employer’s responsibility to manage expectations by having transparent discussions with their staff about the company’s profitability and individual performance and how their bonuses are being calculated to come to a mutual understanding.”
2019 bonus expectations survey: randstad hong kong SAR.
Randstad – the largest global recruitment and human resource services company – launched the first edition of its Bonus Expectations survey in Hong Kong SAR to compare employee expectations against bonus payout budgets set by employers and to better understand employee engagement.
Randstad Hong Kong surveyed more than 125 employers and 442 locally-based professionals across various disciplines over a six-week period from January to February 2019.
bonuses not essential for employee retention.
While almost all of the survey respondents (97 per cent) agreed that receiving a bonus is important to their engagement with the company, 57 per cent said that it is not the only factor that will make them start considering the possibility of a job change.
“The workforce in Hong Kong SAR is very motivated by financial remuneration. Therefore, they are more attracted to companies that offer a high salary and known for giving big bonuses. However, when it comes to leaving for another employer, people tend to consider a number of factors beyond salary or bonus such as development opportunities, culture and workplace flexibility. Our 2018 Employer Brand Research supported this, as 41 per cent of the respondents who considered leaving cited ‘limited career path’ as the top reason.” Sun added.
Needless to say, four in 10 respondents said that they will start a new job search if they do not receive a bonus this year, with a majority of these respondents working in the banking and financial services industry (38 per cent).
unaligned bonus expectations between employees and employers.
Hong Kong SAR-based companies plan to share profits with their staff this year in an effort to boost employee engagement and improve retention.
Eighty-five per cent of the companies surveyed have planned for a bonus payout this year. Of which, 77 per cent are prepared to reward their staff with a bonus between one to two months.
While 22 per cent of the employees surveyed are expecting an annual bonus averaging three to five months, only eight per cent of employers indicated they would pay out three to five months bonuses. This misalignment in expectations could lead to higher attrition than anticipated in the coming months.
Only one company of those surveyed is giving five months or more in annual bonus.
tiered bonuses more widely-practised in hong kong SAR.
The survey found that 56 per cent of the organisations in Hong Kong SAR practice tiered-bonuses. Unlike a flat-bonus scheme where all employees within the company receive the same amount of bonus regardless of their performance and job scope, a tiered-bonus scheme rewards employees based on their performance and scope of responsibility.
“A tiered-bonus scheme not only rewards good performers, it also helps motivate and incentivise employees to certain milestones and work towards surpassing their goals and targets. Companies that practice tiered-bonus structure tend to have a more flexible budget which is highly dependable on the organisation’s profit. However, companies will also reduce bonus budget when the company does not perform as well. As a result, employees are more driven to perform better so that they can receive more bonus at the end of the year.” Sun expressed.
Randstad is a global leader in the HR services industry, with Asia-Pacific operations in Singapore, Malaysia, Hong Kong SAR, China, Japan, Australia and New Zealand. Our offices in Southeast Asia have been supporting people and organisations in realising their true potential, helping find the best permanent and contracting talent in accounting & finance, banking & financial services, construction, property & engineering, corporate & secretarial support, human resources, information technology, legal, life science, sales, marketing & communications and supply chain & procurement. Human connection is at the heart of our business. Our personal approach, supported by state-of-the-art technology, is what sets us apart in the world of work. We express this with a new brand promise: Human Forward.
For more information, hear what our leaders have to say about our #HumanForward brand promise.