Wages will inch up in Asia in 2017 and India will be leading the way.
Consumer goods are expected to see a 2.8% increase in salaries next year, according to a new report by global consulting firm Mercer titled, “Compensation Planning for 2017.”
Of the major textile souring countries, India will have the highest wage increase next year, with pay rising roughly 10.8%, the Indian Express reported. Vietnam will likely follow as a close second with salaries increasing close to 9.2%.
“Changing business models and restructuring in the financial services has meant that the sector may not be hiring at rates seen in the last three years, but we continue to see highest level of pay increases as retaining high-performing talent has become even more critical,” Mercer partner and growth markets talent leader Puneet Swani said, according to the Express. “We also find companies deleveraging pay in the wake of increased regulatory scrutiny of bonus payouts, thereby reducing year-end bonuses and significantly increasing base pay instead to reduce excessive risk-taking and discretion.”
Competition from emerging markets, talent scarcity, automation and machine learning and disruptive technology were just some of the trends Mercer said impacted labor in 2016, paving the way for the coming hikes.
In looking at Africa, where more companies could start sourcing or at least going on exploratory trips to the region in the coming year, Mercer said wages in Ethiopia will jump 10.9%, Egypt 10 percent, Kenya 7.5% and Mauritius 5 percent.
Mercer looked at more than 5,000 from 400 companies and 83 markets for the report.
“Hiring, retaining and engaging skilled talent will continue to be a top priority, especially for consumption-driven industries such as life sciences and consumer goods,” Swani said.