Singapore has slipped to fourth place as China moves up to third on the Asian list of the pay rankings for managers by the Hay Group.
This is because their disposable incomes do not mean as much as they once did, due to such factors as rising living costs and regional competitiveness for managers.
This is because their disposable incomes do not mean as much as they once did, due to such factors as rising living costs and regional competitiveness for managers.
According to the report released yesterday, Singapore managers are No. 4 in Asia this year, one spot down from last year's, in terms of disposable income.
Hong Kong leads the table in Asia, second place Thailand and China third. Globally, Singapore managers rank in at number 22.
Industry observers say they are not surprised that Chinese managers are now enjoying better disposable incomes than their Singapore counterparts.
Ms Charlotte Park, managing director of Reward Information Services of Hay Group Asia, explained: 'The shortage of management talent in China's booming economy means companies need to pay...to find and keep management talent.'
Comparatively, this situation is less pressing in 'developed markets such as Singapore', she added
THE HAY REPORT
The global talent quest
The market for management talent is now undoubtedly global. Developments in one region having a flow-on effect to others – whether it is the rise of the Indian rupee impacting on salaries in the Middle East, where much management talent is sourced from the subcontinent, or China’s white-hot economy pulling up-and-coming managers away from the established markets of Western Europe.
The factors that influence individuals’ decisions on where they pursue their careers are many, but a key one is the powerful link between earning capacity and lifestyle. The World Pay Report examines the average salary of a management level employee (Hay Reference Level 20, roughly equivalent to a head of department or function in a large multinational company), applies the relevant tax rate for that salary, and subtracts a generic ‘cost of living’ measure, to reach a ranking of the relative spending power of managers in 51 countries around the world.
Overall findings
Managers in the fast-growth economies of the Middle East, Asia, and Eastern Europe tend to have the highest spending capacity. The demand for management talent far outstrips supply in these markets, meaning that companies need to compete with developed economies for the talent they need. At the same time, the cost of living is determined more by local factors, keeping the relative value of management salaries high.
2008 ranking of managers’ spending power by country (Top 37 Only Listed Here)
This table ranks management spending power, and provides an index using the USA as the base point of measurement. The cost of living figures which these rankings take into account also use the USA as their base point.
The global talent quest
The market for management talent is now undoubtedly global. Developments in one region having a flow-on effect to others – whether it is the rise of the Indian rupee impacting on salaries in the Middle East, where much management talent is sourced from the subcontinent, or China’s white-hot economy pulling up-and-coming managers away from the established markets of Western Europe.
The factors that influence individuals’ decisions on where they pursue their careers are many, but a key one is the powerful link between earning capacity and lifestyle. The World Pay Report examines the average salary of a management level employee (Hay Reference Level 20, roughly equivalent to a head of department or function in a large multinational company), applies the relevant tax rate for that salary, and subtracts a generic ‘cost of living’ measure, to reach a ranking of the relative spending power of managers in 51 countries around the world.
Overall findings
Managers in the fast-growth economies of the Middle East, Asia, and Eastern Europe tend to have the highest spending capacity. The demand for management talent far outstrips supply in these markets, meaning that companies need to compete with developed economies for the talent they need. At the same time, the cost of living is determined more by local factors, keeping the relative value of management salaries high.
2008 ranking of managers’ spending power by country (Top 37 Only Listed Here)
This table ranks management spending power, and provides an index using the USA as the base point of measurement. The cost of living figures which these rankings take into account also use the USA as their base point.
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