2009 Quarter 3 HR Salary and Economic Outlook Report: Little Movement in HR Salaries across the Region from Quarter 2

The Chapman Consulting Group this week released the 2009 Quarter 3 Salary Report for the Human Resources profession across Asia Pacific Japan. Our salary report is based on collective discussions between April and June 2009 with HR practitioners based in Singapore, Hong Kong, Tokyo, Shanghai and Sydney.

Our salary report highlights the average base salary band for HR Head, HR Business Partner, Resourcing, Compensation & Benefits, Organisational Development and HR Operations talent in both regional and local positions in the above locations. The bands synthesise both current salaries that HR practitioners are being paid in their existing jobs, plus salaries being offered for new HR positions.

It seems the downward pressure on HR salaries across all locations that was exerted rapidly in Quarter 4, 2008 and Quarter 1, 2009 is set to show increased stability in Quarter 3, 2009. HR salaries across Singapore, Hong Kong, Tokyo, Shanghai and Sydney are expected to remain flat but could start to show growth as we move into Quarter 4.

“Hiring sentiments for HR talent have improved and this is serving to reduce the supply of HR talent on the market. This will definitely drive up demand in tight areas, as we move towards Quarter 4”, said Matthew Chapman, Managing Director of The Chapman Consulting Group. He described current skill shortages as being in niche skill-sets such as internal executive recruiters and Compensation & Benefits specialists. “We are still seeing an over-supply of Organisational Development and training talent in mature markets like Singapore, Hong Kong and Australia”.

Chapman also noted that there was a lot more caution about HR talent being in the market. “The shake-out of the last 12 months has made a lot of HR practitioners question whether it is necessary to move on from their positions. “People are thinking that it’s better to stay with what they know than venture into the unknown’. This conservatism is serving to reduce the pool of HR talent accessible to potential employers”, said Chapman.

HR hiring in China and India, not surprisingly, continue to remain strong, although the acceleration of salary growth seems to be slowing. “Employers know that they need to pay competitively to get the best talent in these tight markets, but more relevance is being given to international pay structures now. If salary budgets are tight elsewhere in the world, it doesn’t make economic sense to throw this out the window for hiring in China and India. Hiring and salary decisions are definitely being made with an international context now.

HUMAN RESOURCES SALARY REPORT, ASIA PACIFIC JAPAN

JULY-SEPTEMBER 2009

The Chapman Consulting Group publishes an HR salary report each quarter covering the principal markets of the Asia Pacific Japan region. This report is based on discussions with HR practitioners across the region during the months of April 2009 and June 2009.

The figures used are for guaranteed fixed cash (base salary plus guaranteed bonus) and excludes any discretionary payment (such as variable bonus, stock options) as well as allowances. This report should be taken as a guide only. The Chapman Consulting Group bears no responsibility for errors or omissions therein.