TAIPEI, April 08, 2022 - According to a Pulse Survey on Taiwan’s high-tech industry salary budget planning, announced by WTW (NASDAQ: WTW) today, more than 50% of large technology companies in Taiwan reported over 5% of increment for 2022’s actual or projected salary budget. A quarter of these companies are also prepared to give a salary increase of over 7% which indicates that more organizations are taking actions to increase salary budget in response to the talent retention challenge they face.
Conducted in March 2022, 30 technology companies that are listed and/or within the top 100 by market value in Taiwan participated in the survey. One-third of the organizations have indicated that further differentiation will be implemented when allocating the annual salary budget among different job functions, especially in R&D and Engineering which are seeing growing market demands, and are expected to be entitled to higher salary increase. Furthermore, some organizations are determined to motivate employees by offering a merit increase of over 10%, or even up to 15%-20% for the top performing talents. In addition, about 20% of the companies surveyed have conducted a special off-cycle salary adjustment in January or February this year, while other companies have increased their competitiveness of their total guaranteed compensation by integrating the 13th and/or 14th month salary into employees’ base salary. Lastly, some companies raised their starting salary to attract fresh graduates to join them.
“With the changes in the demographic structure and increasing inflow of foreign investments, the pressure of labor shortage and talent competition has become fiercer in Taiwan. Leading companies have responded actively to these challenges, accelerating their actions to modernize total reward strategies, adjust salary structures and further differentiate their talents proposition to cope with the volatile environment,” said Colin Peng, Senior Associate of Work & Rewards Consulting / Rewards Data & Intelligence, Taiwan, WTW.
Anita Chiang, Head of Work & Rewards Consulting, Taiwan, WTW, added: “Proposing attractive and diverse reward solutions will be a trending topic for more and more organizations in the future.”
