Seventy percent of Taiwanese employers are likely to raise wages modestly by between 1 and 5 percent this year, despite uncertainty and challenging conditions across the globe, a report published yesterday showed.
While the anticipated wage increases are in line with inflation, they are lower than other Asian nations with better growth prospects, according to the annual Michael Page Asia Salary and Employment Outlook, which was jointly conducted by recruitment consultancy Michael Page and the European Chamber of Commerce Taiwan.
The survey showed that 46 percent of employers are expected to recruit new employees, of which 58 percent are seeking mid-level workers.
Employment market prospects this year are slightly less upbeat compared with last year due to concerns about looming political and economic uncertainties, Michael Page Greater China senior managing director Andy Bentote told a news conference in Taipei.
Overall, most of the wage increase and hiring would be concentrated in the fast-expanding healthcare, technology and digital sectors, while traditional industries, manufacturing and financial services would see limited gains, Bentote said.
The semiconductor industry is expected to remain the driving force behind the nation’s vital electronics sector, Bentote said.
Employers are also in the midst of adjusting to the government’s new labor policies, with many electing to postpone the hiring process as they gauge the impact of the “one fixed day off and one flexible rest day” law, Bentote said, adding that it is too early to gauge the response of businesses.
European Chamber of Commerce Taiwan chief operating officer Freddie Hoglund urged the government to allow for greater flexibility in its labor laws.
Some leeway is needed to accommodate peak working periods, such as during major trade shows, and highly paid executives with monthly salaries higher than NT$200,000 (US$6,442) should be exempt from the overtime requirements, as their compensation packages have long hours already factored in, Hoglund said.
The entrance of more start-ups in both e-commerce and software development has raised demand for employees with specific sets of skills, which cannot be adequately filled by the nation’s talent pool, Bentote said.
Due to smaller hiring budgets, the talent shortage puts local companies at a disadvantage against their international rivals, Bentote said.
However, local firms have begun turning to non-financial initiatives to attract and retain talent, such as by improving career progression paths for employees through training and development, a better work-life balance, as well as greater diversity and inclusion for workers of different religions and genders, Bentote said.
Other non-financial factors such as an employers’ brand image and corporate culture have began to gain importance in the eyes of job seekers, he added.
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