Sat, Dec 22, 2012 - Page 13 News List

Employers starting to link salaries to performance: report

By Amy Su  /  Staff reporter

More Taiwanese employers are linking pay-raise strategies to performance, an indication that across-the-board wage increases will be increasingly rare in local companies in the future, an online survey by 104 Job Bank (104人力銀行) showed yesterday.

The latest survey conducted by the online manpower agency, which polled 1,749 employers between Oct. 20 and Nov. 25, found that only 11 percent of respondents said they planned to raise employees’ salaries next year, marking the third consecutive year of a downward trend.

However, 60.9 percent of respondents said they would raise wages for employees next year based on their performance, the survey showed. The job bank said it is the first time the figure has moved above 60 percent in the last three years.

The survey also showed 14.9 percent of the companies polled said they had no plans to raise employees’ salaries at all, while the percentage of businesses which are set to cut or implement unpaid leave stood at 7.5 percent.

“In terms of salary policy, more companies in Taiwan have been breaking away from the principle of equality in pay raises and focusing more on performance-related systems,” 104 Job Bank project manager Pola Chang (張雅惠) said by telephone.

However, the proportion of employers planning to cut wages or force employees to take unpaid leave dropped 1 percentage point from a survey conducted last year, which showed that many local firms are not overly pessimistic about the economic outlook for next year, Chang added.

Chang said more employers are basing salary plans in line with companies’ performance and average salary levels in the industry, instead of linking them to consumer prices and pay raises for government employees.

Employers in transportation, chemical engineering, construction and law consultancy, as well as in certain segments of the service sector, were more likely to be willing to raise employees’ pay next year, data showed.

Meanwhile, employees who receive pay raises may see their salaries rise by an average of 4.5 percent next year, up from 4.1 percent recorded this year, the online job bank said in a report.

Employees with expertise in financial, bio-technology, medical and software engineering fields are likely to receive greater pay raises next year, the report said.

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