The newly released 2013 annual salary strategy research report highlights that companies across various sectors are planning to increase salaries in the coming year. According to the findings, a significant majority of enterprises—54.9%—are expected to raise their pay by between 6% and 10%. Overall, the approach taken by businesses in their compensation strategies for 2013 can be described as cautiously optimistic, reflecting a balance between growth and economic uncertainty.
In different industries, the environmental protection, internet, and pharmaceutical sectors have seen relatively higher salary increases. For instance, 83% of environmental protection companies are planning to offer raises in the 6%–10% range, while only 59% of telecom companies expect similar increases. The recent smog issues have heightened public awareness of environmental concerns, which is likely to drive further growth in this industry.
Many companies are focusing on rewarding core employees with salary increases. A notable 36.2% of organizations plan to provide raises based on individual performance, targeting top performers rather than all staff. Private enterprises, in particular, show a stronger tendency toward this strategy, with 44% adopting it, compared to just 23% who prefer general salary hikes. In contrast, foreign companies tend to favor broader salary increases, with 40% opting for this approach.
Interestingly, salary cuts remain rare, with only 3.6% of companies indicating they will reduce wages. Meanwhile, 15.3% plan to keep salaries unchanged. This suggests that most businesses are still leaning toward increasing compensation despite economic uncertainties.
Larger companies, however, appear more cautious. Enterprises with over 2,000 employees show a higher proportion (44%) of salary increases within the 0%–5% range, whereas smaller companies (under 2,000 employees) have a lower percentage in that bracket, at around 30%.
While private and foreign companies are offering more substantial salary increases, state-owned enterprises tend to be more conservative in this area. However, they often provide better non-mandatory benefits. Over 59% of private companies and 61% of foreign firms have salary increases between 6% and 10%, while more than half of state-owned enterprises fall into the 0%–5% category. On the other hand, some state-owned companies offer generous self-funded welfare packages, with over 18% providing more than 10% in additional benefits, and 3% offering over 30%.
Lastly, the survey also reveals that most companies set their annual compensation strategies during January to April. A large portion—35%—chooses January–February, while another 34% opt for March–April. This pattern is especially evident among foreign companies, with 82% setting their plans in that timeframe, compared to only 54% among state-owned enterprises.
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