Philippine salary continues to increase in 2024 —survey
Philippine companies are seen to project an overall increase in salary for employees this 2024, a survey by a leading global advisory found.
According to results gathered from 500 companies by Willis Towers Watson (WTW), a multinational company providing insurance services, employees in the country will have a median salary increase of 5.7 percent by the coming year.
"The average salary increase has also continued to rise steadily over the last few years since the pandemic. Similar trends are largely observed across various industries in the country this year," the report stated.
Particularly, those in the shared services and outsourcing; real estate, construction and engineering; manufacturing, and consumer products and retail trade industries are forecasted to have an increase in salary this year.
The financial services and technology industries will have no significant change while those in biopharma and life sciences are projected to have a decrease in salary in the coming year.
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The report warned, however, that "inflationary pressures and concerns over a tight labor market" may still affect the different industries' salary increase budget planning.
Patrick Marquina, head of Work and Rewards of WTW Philippines, also said that voluntary turnover and attrition continue to increase and reach 15.9 percent in 2023 compared to 14.2 percent in 2022. This is due to employees wanting better pay and growth opportunities, relocation or family migration, and flexible work arrangements or work-life balance.
"This trend looks set to continue in 2024 and employers in the Philippines will continue to face significant talent challenges including the attraction and retention of key talent," Marquina said.
"Winning the talent race will require employers to stay focused on balancing the entire package of rewards they offer, both monetary and non-monetary, in order to remain competitive and align with employees’ needs and wants," he added.
Millennials and GenZs take over
In terms of the workforce, the survey revealed that millennials and Gen Zs make up the greatest number of employees in the Tech, Media, Gaming, and Shared Services and Outsourcing industries in 2023.
Gen Z in the Philippines is said to have grown rapidly at a 100 percent year-on-year increase, from 10 percent in 2022 to 19.9 percent in 2023. Overall, millennials and Gen Zs comprise the majority of the workforce at 77 percent, with Gen Xs at 22.3 percent and Baby Boomers at 0.7 percent.
WTW predicts that by 2025. 80 percent of the workforce will be made up of millennials and Gen Zs.
With the significant workforce changes in the Philippines, employers in the country are now planning strategies to adjust their work models, which include preparing for greater use of technology, increased flexibility in working conditions, and making better use of new sources of talent.