PROPERTY & THE BUILT ENVIRONMENT
The RICS & Macdonald & Company
EXECUTIVE SUMMARY & KEY FINDINGS
ASIAN Rewards & Attitudes Survey 2011
2011 Executive Summary Introduction Now in its sixth year, the Annual RICS and Macdonald & Company Asian Rewards & Attitudes Survey is the most comprehensive survey undertaken for the property sector. The survey continues the success of earlier years. 1291 Asian real estate professionals participated online in August and September 2011, making this the largest and most comprehensive survey of its type. Thanks this year must go to RICS and HKIFMA who actively promoted their involvement in the survey amongst their members. We would also like to thank all the participants who took time to complete the online survey. Besides statistics on current salaries, recent salary increases, bonuses and employment package benefits, the results give insight into wider issues that are important to real estate professionals in their role and their attitudes toward employment. This executive summary sets out the key findings of the survey. For the 3rd year, we can now provide an easy to use online access to the full results, for more information contact Macdonald & Company.
Foreword This time last year, I wrote “it has been a year of swings in global and local sentiment… and there is little to suggest this era of uncertainty is about to change”. Twelve months on and as we publish the results of our sixth Asia Salary & Benefits Survey, a similar message would not be out of place. It is very easy to find bad news in every media source or piece of official economic data but as with twelve months ago, this would be to ignore all the positives that are apparent across Asia. Undoubtedly, employees in development and consultancy sectors have benefitted from higher salary increases in 2011, with the impetus for growth continuing to come from development pipelines in China predominantly. Professional qualifications are increasingly a feature of the mainland real estate professional and their remuneration is accelerating as a result. In fact, those respondents with an RICS qualification earned 43% more than those with no professional qualification. Happily, 2011 saw a significant decrease in the % of respondents who experienced redundancy and an impressive 82% of respondents reported they were fairly or very satisfied with their current employment. In contrast, the economic indicator question drew responses from 35% of people who felt their area of activity would improve in the next 12 months, down from 56% in 2010. Macdonald & Company hopes that you enjoy reviewing these results and would like to express its thanks to both RICS and HKIFMA for their support. Our consultants are available to offer interpretation and explanation of these findings and are able to offer in depth research into any area of the survey. If you have a particular geographical or sector query, please contact any of our team to discuss how we can produce bespoke research tailored to your specific requirements.
William Glover, International Director Macdonald & Company Property Limited, November 2011 For further information or analysis please contact: E: salarysurvey@macdonaldandcompany.com or call our Hong Kong office.
A comprehensive online statistics package for the 2011 survey is available at a cost of USD $999. In addition to the Asia, Macdonald & Company & RICS undertake remuneration and attitudes surveys for the following regions: UK, Middle East, Africa and Europe, all reports are available at www.macdonaldandcompany.com The results have been collated and analysed by BluSky Research (a research trading name of BluSky Marketing Limited – www.bluskymarketing.com) for the second year. Designed by Born Creative UK Limited. www.born-creative.co.uk
03 • Average annual base salary in USD is $89,851 (versus $95,554 in 2010), predominantly driven by less senior respondents to the survey versus last year • Those with a RICS qualification earn 43% more than those who are “not professionally qualified” • 47.7% of respondents received a base salary increase (versus 48.1%*), with the average salary increase for those respondents being 11.1% (versus 10.4%*) • 54.1% of the survey respondents received a bonus (versus 65.6%*) and the average bonus per year was USD$24,954 (versus $28,791*) • Only 5% of respondents have been made redundant in the last 12 months (down from 7%*) • 70% of those made redundant have already found new jobs (down from 85%*) • 80% were paid a redundancy settlement equal to or more than the contractual amount (equal to last year*) • Health insurance 67%, 5 day working week 65% and mobile phones 51% are the most popular additional benefits provided in the industry. • The majority of survey participants (82%, up 5%*) are fairly or very satisfied with their current employment. • 35% of respondents believe that the property market will get better over the next 12 months (versus 56%*), while 48% believe it will remain unchanged (versus 39%*). *In comparison to 2010
Research Sample Profile Response Rate Total
960
1,291
1,226
1,280
In its sixth year, with 1291 respondents, the survey remains the most robust and respected survey of its kind. The response rate has risen by 36.0% on the previous year, and is the second highest response total over the last six years.
+36.0% Yr/Yr
1,536
1,600
1,090 949 769
640 320 0
2006
2007
2008
2009
2010
2011
Years’ Experience How many years’ experience do you have in your discipline? 30%
27%
25% 20%
28% 25% 22%
19%19%
22%
21% 20% 19%
18% 14%
15%
12%
18%
17% 16%
The general level of experience of the sample continues to be more senior this year with 40% of respondents communicating 16 years plus experience versus 31% last year.
14%
12%
10% 5% 0%
Up to 4
5-10
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11-15
16-20
2011 2010 2009
Over 20
The RICS & Macdonald & Company Asian Rewards & Attitudes Survey 2011
Key Findings
04 50% 42%
42%
Level of Responsibility
40%
35%
2011 2010 2009
33%
What is your level of responsibility within the organisation for which you work?
27%
26%
25% 19%
The general level of responsibility or seniority of the sample has fallen a bit, with 50% either being a Manager/ Associate or Associate Director/Vice President versus 58% in 2010.
17%
13%
8%
18% 18% 17%
16% 10%
7%
5%
7%
0%
60%
Years with Employer
57%
Director
Principal/ Owner
55%
51%
Approximately how many years have you been with your present employer?
Associate Director/VP
Manager/ Associate
Assistant/ Analyst
46%
43%
55% of respondents have been with their present employer 3 years or more, up from 45% last year.
34%
28%
30%
34%
2011 2010 2009
26% 17% 9%
7% 7%
9%
6% 6%
9%
0%
Up to 2
3 to 6
7 to 10
11 to 20
2% 2% 3%
Over 20
Expatriate Worker Where are you from and when did you arrive?
Europe/UK Hong Kong Americas
Australasia Malaysia PRC
2011!
2010!
2009!
2008!
2007!
2006!
2005!
2004!
2003!
2002!
2001!
2000!
1999!
1998!
1997!
1996!
1995!
1994!
1993!
1992!
1991!
1990!
1989!
1988!
1987!
1986!
1985!
1984!
1983!
1982!
1981!
1980!
The majority of respondent who are expatriate workers are from Europe/UK and arrived to their current normal place of work largely between 2007 to 2010.
05
Average Asian Real Estate Salary What is your current annual base salary in US$? -6% yr/yr
$95.554
$100.00
$89.861
$78.000
$83.33
The average base salary of a Real Estate professional in Asia is US$89,851 per year. Taking this view and in comparative terms the average salary has decreased by 6.0% versus the previous year, which could also be attributed to the drop in percentage of respondents with more experience and responsibility within an organisation.
$66.67
2011 2010 2009
$50.00 $33.33 $16.67 $0
Average Salary (US$pa): Region What is your current annual base salary in US$? Those working in Singapore are the highest paid in the region with an average annual salary of US$123.8K (up from US$103.1K in 2010). Those working in the People’s Republic of China (PRC) have seen a significant decrease in their annual base salary, now US$68.3K down from US$97.3K or a decrease of 29.8% since 2010. $0
$18.571
$37.143
$55.714
$92.857
$74.286
$111.429
$130.000
$89.851 $95.554
Average All $78.100
Singapore
Hong Kong $68.344 $75.700 $26.653 $29.800
2011 2010 2009
$117.969
$98.652 $97.000
PRC
Malaysia
$123.778
$103.118 $104.200
$97.331
$51.276
Average Salary (US$pa): Region by RICS What is your current annual base salary in US$? Those working in the Asian Real Estate market with a RICS qualification earn 42% more than those who are “not professionally qualified” (US$106.9K versus US$75.1K). While on a regional basis those working in Singapore with a RICS qualification on average earn the most (US$172.3K) followed by those working in Hong Kong (US$104.6K).
$0
$57.143
$85.714
$114.286 $142.857 $171.429 $200.000
$106.94 $101.83 $90.07
Average All
Singapore
$127.54 $123.38 $104.58 $103.06 $106.31
Hong Kong
PRC $61.66 Malaysia
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$28.571
$39.25 $50.18
$80.22
$70.59
$102.41
2011 2010 2009
$172.28
The RICS & Macdonald & Company Asian Rewards & Attitudes Survey 2011
Average Asian Real Estate Salary (US$ per year)
06
Average Salary US$ pa
2009
2010
2011
Yr/Yr
All participants
$78,089
$95,554
$89,851
-6.0%
CEO/MD/Head
NA
NA
$229,633 NA
CFO/Financial Director/Controller
NA
NA
$149,091 NA
CRE Transactions
NA
NA
$137,830
Fund Management
$156,012
$135,797
$135,251 -0.4%
Commercial Agent
$67,908
$118,167
$120,650 2.1%
Property Asset Management
$129,333
$123,566
$119,209 -3.5%
Project Management
$96,535
$90,931
$98,523
8.3%
Facilities Management*
$66,665
$85,151
$93,558
9.9%
Sales & Marketing
NA
NA
$92,335
NA
Architect/Design
$82,750
$95,375
$91,278 -4.3%
Claims & Dispute Resolution
NA
NA
$88,379 NA
Leasing
$80,577
$95,038
$77,459
Consultant**
$82,219
$120,435 $74,816 -37.9%
Interior Design
NA
NA
$74,500 NA
Quantity Surveying
$42,376
$69,256
$60,877
New Build/Construction
NA
NA
$59,300 NA
Engineering
NA
NA
$57,639 NA
Valuation
$37,883 $53,282 $54,197 1.7%
Building Surveying
$45,735
$43,949
NA
-18.5%
-12.1%
$42,801 -2.6%
* 2011 is an average of Facilities Management Service Provider and Facilities Management In-house ** 2009 and 2010 title was General Practice / Consultancy
(base <100; base < 20)
Those working in CEO/MD/Head earn the highest average salaries in the Asian Region securing US$229.6K per year, with CFO/ Financial Director/Controller (US$149.1K), CRE Transactions (US$137.8K) and Fund Management (US$135.3K, down 0.4% from the previous year) following behind.46.5%) and Corporate Real Estate (US$113.6K, down 13.5%) following closely behind.
89%
90% 77%
Annual Salary Is your salary paid over: On average 71% of respondents salaries are paid over 12 months, with the highest being Malaysia (89%) and the lowest The Peoples Republic of China (PRC) (59%).
71%
71%
64%
59%
51% 39% 26%
12 Months 13 Months
66%
41% 29%
29%
34%
11%
13% 0%
Average All
Malaysia
PRC
Hong Kong
Singapore
07
Change to Salary at last review Up by 15% + 8.3% (+0.4%)
47.7% of respondents secured a base salary increase, down slightly from 48.1% last year, while those who received a reduction in salary dropped to 1.7% versus 2.5% in 2010. The average salary increase for those respondents who received a base salary increase was 11.1% (versus 10.4% in 2010).
No response 29.6% (+9.9%)
Up by 11-15% 5.1% (-0.8%) Unchanged 21.0% (-8.6%)
Up by 6-10% 15.8% (-3.8%)
Up by <5% 16.4% (+3.9%)
Reduced 1.7% (-0.8%)
Up not disclosed 2.1% (0.1%)
Average Increase: Age What (if any) was the % increase of your salary? 17.0% 14.6% 12.1%
16.1%
12.8%
15.0% 14.4% 13.9% 12.2%
11.1%
2011 2010 2009
11.8%
10.3%
9.7%
10.4% 8.6%
8.1%
7.3%
9.3%
8.6%
7.3%
6.8%7.1% 5.3%
4.9%
Of those who received a base salary increase, respondents aged between 25-30 years received the highest (15.0% on average) followed by the 18-24 years age group (12.8%).
2.4% 0%
18-24
25-30
31-40
Bonuses
41-50
51-60
61+
$20K plus 17.2% (-5%)
Annual Bonuses Received (US$â&#x20AC;&#x2122;000 per year)
What was the approximate value of your annual bonus (or bonuses) over the last 12 months? 54% of respondents received a bonus (down from 65.6% last year) and the average bonus they received was US$24,945K (down from US$28,791), those who did not secure a bonus has risen to 45.9% (from 34.4% last year).
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$10.0K - $19.9K 11.2% (-3.7%) Nil 45.9% (+11.5%) $5.0K - $9.9K 9.9% (-2%)
Nil 45.9% (+11.5%)
$2.5K - $4.9K 7.5% (+1.7%)
Up to $2.49K 8.2% (+0.7%)
The RICS & Macdonald & Company Asian Rewards & Attitudes Survey 2011
What change if any was made to your Annual Base Salary at your last pay review?
08
Market Attitudes Employment Benefits Which of the following additional benefits are included (received as new or last as benefits) in your current package? 10%
0%
20%
30%
40%
60%
50%
70%
67% 67% 65%
Health Insurance 5 Day Working Week 47%
Mobile Phone 30%
Performance Related Bonus 24%
Dental Insurance
51%
35%
22%
13 Month Guaranteed Housing Allowance Other Insurances
18% 18%
Pension/Gratuity
15% 15% 13%
Flights Flexitime Company Car Lunches/LVs Paid Overtime
5%
Profit Share
2011 2010
22% 24% 22%
Health Insurance (67%), 5 Day Working Week (65%), and Mobile Phone (47%) are the most popular employee benefits provided, while interestingly there was a drop in those respondents who did not receive any employee benefits (4% down from 10% in 2010).
21%
10% 11% 8% 10% 13% 9% 9% 11% 9%
Tax Efficiency Scheme
8%
Relocation Package
7% 7% 7%
School Fees Share option Scheme Club Membership 2%
Sign on Bonus
5% 6%
None
4%
Other
4% 6%
10%
0%
Important Job Aspects
13%
26%
39%
51%
64%
77%
Salary
How important are each of the following to you in your job? Salary continues to be most important factor when it comes to job satisfaction (77%, down from 84% last year), followed by Management Style (70%, down from 74%), Career Progression (66%, down from 69%) and Responsibility (65%, down from 69%).
10%
70%
66% 69% 71%
Career Progression
65%
Responsibility
69% 72%
63% 65% 67%
Range of Interesting Work
62% 59% 63%
Job Security
56%
Employer Status
55% 56%
Work Environment
54% 54%
Training/ Personal Development 39% 40% 36%
Location
38% 40%
Range of Clients
36% 35%
Job Title
Travel Opportunities
77%
74% 71%
Management Style
Latest Technology
77%
24%
30%
24% 22% 27%
31%
61% 60%
2011 2010 2009
90% 84%
09 Do you consider your current employer an employer choice?
No 32% (-4%)
Yes 68% (+4%)
0%
Government Practice/Consultancy/Advisor Financial Institution Education Development/Investment/Property Company Non-profit making organisation Contractor Occupier REIT FM Service Provider Retailer
11%
68% of respondents consider that there present employer is an “employer of choice”.
23%
34%
46%
57%
80% 79%
21% 72%
28%
72%
28%
70%
30%
67%
33%
64%
36%
63%
37%
60%
40%
58%
42% 45% 48%
55%
52%
The higher percentage of respondents who consider that there present employer is an “employer of choice” are Government (79%), Practice/Consultancy/Advisors (72%), and Financial Institutions (72%). Whereas REIT (58%), FM Service Providers (55%) and Retail (48%) have the lowest.
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69%
Yes No
The RICS & Macdonald & Company Asian Rewards & Attitudes Survey 2011
Employer of Choice
10 Employer of Choice How important are the following factors in making your current employer an employer choice? Of those who consider that they are working for an â&#x20AC;&#x153;employer of choiceâ&#x20AC;?(68% of respondents), the key factors are leadership/management style (65%, down from 68% last year), business visions & future potential (63%, down from 73%) and reward & recognition (63%, down from 71%). 0%
11%
23%
34%
46%
57%
69%
65% 68%
Leadership/Management Style
63%
Business Vision & Future Potential
63%
Reward & Recognition
60%
Company Values/Ethics
73%
71%
68% 65%
62%
55% 52%
Work life Balance
68%
80%
51%
53%
Promotional Opportunities
52%
Brand Values
51% 51%
Personal Development Culture
48% 45%
Internal Communication
59%
56%
58%
59%
53%
47%
45%
Colleagues/Social Dimension 41%
Support in gaining your qualifications C.S.R. Policy
27% 30%
Relocation Possibilities
30% 29%
49%
46%
29%
Job Satisfaction How satisfied overall are you with your current job? The majority of survey participants (82%, up 5% versus last year) are fairly or very satisfied with their current employment. 17% say that they are not satisfied (down 5% from last year).
Very, 22% (+4%)
Fairly, 60% (+6%)
Not Very, 14% (-5%)
Not at all 3% (-1%)
2011 2010 2009
11
If you were to leave your present employer, what would your main (important) reasons be? Salary continues to be the most likely reason for leaving an employer (81%, down from 83% the previous year), followed by Career Progression (74%, up from 72%), Better Benefits Package (66%), and a better Management Style (63%, down from 64% last year). 0%
18%
36%
54%
72%
Salary Career Progression 66%
Better Benefits Package
77% 74% 72% 71%
63% 64% 64%
Management Style Range of Interesting Work Responsibility 51% 49% 50%
Job Security Working Environment 38%
Training/Personal Development
50% 48% 51% 46%
32% 31% 30% 31% 32% 33% 27%
Range of Clients Location Change of Career
57% 58% 57% 55% 60% 59%
51%
2011 2010 2009
26%
Work in a different Country
24%
Redundancy
21% 21% 23% 20%
Travel Opportunities To start your own Business
18% 15%
Latest Technology
Economic Activity Change In your chosen professional activity, do you anticipate economic activity in the next 12 months to: 35% of respondents anticipate the economic activity to increase (down from 56% last year), while 48% believe it will remain unchanged (up from 39%). 70% 56%
62% 56%
42%
48%
2011 2010 2009
35%
39% 32%
28% 17%
14%
6%
0% Increase
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5%
Decrease
Remain Unchanged
90%
81% 83%
The RICS & Macdonald & Company Asian Rewards & Attitudes Survey 2011
Reasons for leaving Employer
12 % anticipate increase in economic activity
2009
2010
2011
All participants
62%
56%
35%
Claims & Dispute Resolution
NA
NA
62%
Building Surveying
44%
26%
55%
Leasing
67%
55%
53%
New Build/Construction
NA
NA
50%
Commercial Agent
93%
77%
46%
Facilities Management*
48%
54%
45%
Engineering
NA
NA
42%
Sales & Marketing
NA
NA
41%
Quantity Surveying
64%
54%
39%
CEO/MD/Head
NA
NA
38%
CFO/Financial Director/Controller
NA
NA
36%
Architect/Design
72%
61%
36%
Property Asset Management
62%
63%
35%
Fund Management
77%
57%
34%
Interior Design
NA
NA
33%
CRE Transactions
NA
NA
25%
Project Management
56%
63%
23%
Consultant**
80%
56%
22%
Valuation
47%
54%
22%
* 2011 is an average of Facilities Management Service Provider and Facilities Management In-house ** 2009 and 2010 title was General Practice / Consultancy All professional activities with a response rate lower than 15 have not been included.
2009, 2010, 2011 and base response total to read Base: All giving an answer: 2009 = 1,536, 2010 = 949, 2011=1,291 (base <100; base < 20)
Further Information Macdonald & Company is the leading professional recruitment consultancy to the property industry and built environment. We have offices in the United Kingdom, Dubai, Hong Kong, and South Africa enabling us to offer global reach with local knowledge. We act for a diverse range of clients, these include developers, investors, institutions, property companies, funds, banks and consultancies – indeed any organisation that occupies, owns, develops, invests in, finances or advises on property and construction. Annual surveys of remuneration and attitudes are undertaken for the following regions, UK, Middle East, Asia, Europe & Africa. www.macdonaldandcompany.com Macdonald & Company: 16/F, 1 Duddell Street, Central, Hong Kong T: +852 2248 3000 E: salarysurvey@macdonaldandcompany.com RICS is the world’s leading qualification when it comes to professional standards in land, property and construction. In a world where more and more people, governments, banks and commercial organisations demand greater certainty of professional standards and ethics, attaining RICS status is the recognised mark of property professionalism. Over 100 000 property professionals working in the major established and emerging economies of the world have already recognised the importance of securing RICS status by becoming members. RICS is an independent professional body originally established in the UK by Royal Charter. Since 1868, RICS has been committed to setting and upholding the highest standards of excellence and integrity – providing impartial, authoritative advice on key issues affecting businesses and society. RICS is a regulator of both its individual members and firms enabling it to maintain the highest standards and providing the basis for unparalleled client confidence in the sector. www.rics.org. RICS Asia, Room 1804, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong
The International Facility Management Association (IFMA) is the world’s largest and most widely recognized international association for professional facility managers, supporting more than 20,000 members in 78 countries. The association’s members: • Include 127 chapters and 16 industry councils worldwide • Manage more than 37 billion square feet of property • Annually purchase more than US$100 billion in products and services Formed in 1980, IFMA certifies facility managers, conducts research, provides educational programs, recognizes facility management certificate programs and produces World Workplace, the world’s largest facility management conference and exposition.
A comprehensive online statistics package for the survey is available at a cost of USD $999.
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DUBAI
SOUTH AFRICA
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