The days of guaranteed bonuses appear to be coming to an end, as the number of companies offering employees such a payout have practically halved in a decade and is expected to continue dwindling.
Pay trend data compiled by the Hong Kong Institute of Human Resource Management show 46.4 per cent of companies offered a guaranteed bonus plan this year versus 89.7 per cent in 2001. Similarly, while 73.1 per cent of employees were eligible for a guaranteed bonus in 2001, only 36.9 per cent enjoyed this benefit this year. But, on average, companies have budgeted a 3.3 per cent pay rise for staff next year.
Along with rent, the staff payroll is one of the biggest overheads for a company, and many have abandoned the practice of guaranteeing employees a bonus. But knowing that a bonus is guaranteed each year is usually a key incentive for many workers, who may be counting on the extra payout, such as to pay off credit card debts or go on a family holiday.
'To me, whether the salary adjustment is 3 per cent, 5 per cent or 8 per cent, it's not really a big deal. But I do expect a bonus, because I need that to pay my tax bill,' Eva Lui, who works in the hotel industry, said.
According to the institute's survey, a brighter outlook for many companies means employees can look forward to slightly fatter pay packages next year with salary rises averaging 3.3 per cent. This is up from 1.9 per cent this year, when construction, banking and insurance firms recorded the highest pay increases. The property development, hotel and telecom sectors fared the worst this year, with average salary adjustments of about 1 per cent.
Lai Kam-tong, co-chairman of the institute's remuneration committee, said the actual pay rise next year may be higher than 3.3 per cent as a clearer picture of the business environment emerges. Many companies have not finalised an overall, budgeted pay increase for next year and are waiting for more information on the economic recovery, he said.
