Salary forecast estimates 5 per cent increase for Thais

[snoop1130]

Salary forecast estimates 5 per cent increase for Thais

By THE NATION

 

Thanwa Chulajata, country manager for Korn Ferry Digital in Thailand

 

A forecast issued today (December 4) by a global organisational consulting firm Korn Ferry estimates that salary growth for Thailand will be 5 per cent for 2020, which is slightly lower compared to the average salary increment forecast for Asia at 5.3 per cent.

 

 After accounting for an inflation rate of 1.3 per cent, Thailand’s real-wage growth was forecast to be 3.7 per cent.

 

The Oil & Gas sector is the leader in salary increase in Thailand at 6.2 per cent while the Chemical sector has the highest variable bonus at 4 months.

 

Variable bonus payout was forecast to be 2.5 months on average across industries.

 

Total employee turnover in Thailand was 10.8 per cent and decreased slightly from last year (12.6 per cent). The retails sector possessed the highest total employee turnover by 36.3 per cent.

 

“With digital disruptions, many organizations in Thailand are rapidly adopting new technologies to remain competitive,” said Thanwa Chulajata, country manager for Korn Ferry Digital in Thailand. “The digital disruptions also changed the way how organisations work leading to changes in operating model, business and organization structure. These changes also impact how human capital is being managed from recruitment, performance management to talent development and retention. HR capital is a key factor to drive transformation within the organization to ensure sustainability, competitiveness and profitability.

 

“Besides recruiting new talent, organisations should also develop existing talent by reskilling and upskilling these talents for various key competencies, especially to multi-task. The new expectation is for one person to manage tasks equivalent to those that used to be managed by five people in the past. New business model often needs lesser number of employees while still driving productivity,” Thanwa added.

 

“With new multi-generations and emerging digital talent within the same workforce, a single HR practice or system would no longer work for all. Segmentation would be crucial when managing rewards and benefits. Unlike the baby-boomers, digital talent would want more challenging jobs in a highly competitive market and more flexibility in the work environment. They are more agility in learning and are also focusing more on achieving higher salary, faster career growth and better life status at a faster rate,” he continued.

 

Across Southeast Asia, Indonesia is forecast to have the highest real-wage growth at 5.1 per cent, after accounting for an inflation rate of 3.0 per cent. Malaysia is forecast to have a real-wage growth at 3.5 per cent, after accounting for an inflation rate of 1.5 per cent. 

 

Although salaries in Singapore are forecast to grow by only 4 percent, the island-nation's relatively low inflation rate of 0.4 per cent translates into a 3.6 per cent increase in real-wage growth in 2020. 

 

Around the world, salaries are predicted to grow at a rate of 4.9 per cent in 2020. With a global inflation rate prediction of approximately 2.8 per cent, real-wage salary increase is predicted at 2.1 percent. 

 

In 2019, real-wage salary increases across the globe were only 1.0 per cent, with salary growth rate at 5.1 per cent and global inflation at 4.1 per cent.

 

Source: https://www.nationthailand.com/business/30379082

 

-- © Copyright The Nation Thailand 2019-12-04

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[Number 6]

I thought the country was teetering on recession?

[30la]

11 hours ago, snoop1130 said:

 

 After accounting for an inflation rate of 1.3 per cent, Thailand’s real-wage growth was forecast to be 3.7 per cent.

And lie again ... check the inflation rate well!
5% are a poverty for most Thai (300 per day + 3% = 315)!

[sammieuk1]

Hub of high wages and "inflation" will be creeping in to happy endings????

[RichardColeman]

I guess that is 5% for those not employed by anybody that exports  ?

[zyphodb]

I don't think many in Isaan will have a 5% wage increase...

[khunPer]

5 hours ago, 30la said:

And lie again ... check the inflation rate well!
5% are a poverty for most Thai (300 per day + 3% = 315)!

Inflation rate is correct, you can check it yourself here.

Minimum salary was in 2018 from 308 baht to 330 baht a day, variating in different provinces (source Bloomberg).

????

[Orton Rd]

Inflation must be at least 7% in reality so that's a 2% wage cut then

[canopus1969]

2 hours ago, Orton Rd said:

Inflation must be at least 7% in reality so that's a 2% wage cut then

You are still dreaming of 2008  ????

 

https://www.statista.com/statistics/332274/inflation-rate-in-thailand/

[Cake Monster]

So who exactly will pay their Staff an extra 5% PA ?

The Boss,es of the large Exporting Companies maybe

Or, The Farmers to their Labourers

Possibly the Tourist Sector, to the Hotel Staff, Restaurant staff Etc Etc

Dream on

 

 

[Redline]

People are getting laid off, factories are closing, tourism is down, exports down, housing market bubble, huge household debt, faltering quality of rice at high price...the list goes on