The RICS and Macdonald & Company Asia Rewards & Attitudes Survey 2013
Executive Summary and Key Findings
2013 EXECUTIVE SUMMARY
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Foreword As 2013 dawns, the results of this year’s survey emphasize the key patterns in real estate related activity in the last year. It has been another year characterized by swing’s in global and local sentiment, with oscillating opinion and economic data preventing many businesses from making decisive commitments to expansionary activity. There is evidence to suggest that this era of uncertainty is set to continue and the confidence of our respondents has softened slightly from last year with 40% predicting an increase in economic activity in their sector during the next twelve months.
Introduction Now in its seventh year, the Annual RICS and Macdonald & Company Asian Rewards & Attitudes Survey is the most comprehensive survey undertaken for the property sector.
Despite this underlying uncertainty, there are areas of the real estate market in Asia that have thrived and businesses that have grown far faster in recovery than others. The contrast between institutional investors and regional developers is startling, and the surging growth in salaries recorded in mainland China and Malaysia contrasts with relatively low growth in Singapore and Hong Kong.
Thanks this year as always must go to the RICS and IFMA 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.
In terms of regional salary growth, there was a significant rise in the overall growth rates (10.6%), but the market leading the way was not the PRC but Malaysia. Many of our clients have identified Malaysia and Indonesia as target markets and Macdonald & Company has worked closely with the Malaysian Consortium to build out the senior delivery team on their London based Battersea Power Station project. We have seen, first hand, the confidence and ambition coming out of this country and with average salary growth of 33% it will be interesting to see how the results look in twelve months time. Chinese development continues to be an exciting story with average salaries across the region rising everywhere, but established markets with relatively little development activity such as Hong Kong and Singapore seeing low growth in average salaries. The People’s Republic, however, recorded strong average salary growth again which was a similar rise to the previous year underlining why as an engine for so many careers and businesses in the region, the China growth story is so crucial.
The survey continues the success of earlier years. 1308 Asian real estate professionals participated online in December 2012 and January 2013, making this the largest and most comprehensive survey of its type. This year the months used for data collection have moved to December and January 2013 results are expressed as 2012/13.
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 further information or analysis please contact: E: salarysurvey@macdonaldandcompany.com or call our Hong Kong or Singapore offices. An online statistics package for the 2013 survey is available at a cost of US $999. In addition to the Asia survey, 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 For the fifth year, the results have been collated and analysed by BluSky Research (a research trading name of BluSky Marketing Limited – www.bluskymarketing.com).
William Glover, International Director, Macdonald & Company, March 2013
The RICS and Macdonald & Company Asia Rewards & Attitudes Survey 2013 Results
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KEY FINDINGS
Are anticipating an improvement in economic activity (+5%*)
Negative business sentiment dropped to 12% (-5%*)
of respondents received a base salary increase (+0.4%*)
Of the 48.1% who received a increase the average was 11.6% (+0.5%*)
is the average salary for Asian Real Estate Professionals (+$9,570*)
55.5% (versus 54%*) of all respondents secured a bonus of $28,852 (+$3,898*)
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*Versus last year
of respondents class their current employer as an employer of choice (+1%*)
respondents are either very or fairly likely to move jobs in the next 12 months
are fairly or very satisfied with their current employment
Better salary continues to be the most important job aspect
a MRICS/FRICS earns $120,923 in comparison to a non professionally qualified counterpart who earns on average $92,961
Health Insurance remains the the most popular employee benefit provided
The RICS and Macdonald & Company Asia Rewards & Attitudes Attitudes Survey Survey 2013 2013 Results Results
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5
RESEARCH SAMPLE PROFILE
Response Rate Total In its seventh year, with 1,308 respondents, the survey remains the most robust and respected survey of its kind. The response rate has risen marginally by 1.3% on the previous year, and is the second highest response total over the last six years.
2,000
1,536 1,500
1,226
1,291
1,308
2011
2012/13
1,090 949
1,000
500
0
2009
2010
22% 17%
18%
16%
14%
15%
18%
21%
15%
20%
19%
19%
25%
24%
22%
30%
26%
28%
2008
19%
Years’ Experience How many years’ experience do you have in your discipline? The general level of experience of the sample continues to be more senior this year with 26% of respondents having 20 years experience versus 22% the previous survey.
2007
10% 5%
UP TO 4
42% 40%
50%
0%
Assistant/ Analyst
2011
Manager/ Associate
2012/13
Associate Director/Vice President
GM/Director/ Principal
7%
7%
18%
5%
10%
2010
6
16% 10%
20%
17% 16%
30%
OVER 20
24%
26%
40%
16-20
2012/13
19%
Level of Responsibility What is the level of responsibility within the organisation for which you work? The general level of responsibility or seniority of the sample has seen a growth in the % of respondents who are at Manager/Associate level, up from 40% to 44% this year. While those who are either at an Assistant or Analyst level have dropped from 26% to 24% of the total respondents.
2011
11-15
10%
2010
5-10
44%
0%
Executive Director/MD/ CFO/COO
60% 50%
30% 33%
40%
30%
55%
30%
0%
UP TO 2
2010
Average Asian Real Estate Salary (US$pa) What is your current annual base salary in US$? The average base salary of a Real Estate professional in Asia has grown on average by US$9,570, up to US$99,421 per year or up by 10.6% the year. The increase in average base salary can be partly attributed to the increased seniority of the participants this year.
2011
3%
3%
2%
8%
7%
11-20
OVER 20
$99,421 $89,851
$80,000
$60,000
$40,000
$20,000
2010
2011
2012/13
$99,421 $89,851 $95,554
Average All
$135,937 $132,765
Singapore
$103,118 $106,633 $96,466 $97,331
PRC
$100,349 $87,691 $98,652
Hong Kong
Malaysia
$0
2010
The RICS and Macdonald & Company Asia Rewards & Attitudes Survey 2013 Results
10%
7-10
2012/13
$95,554
$100,000
$0
Average Salary (US$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$135,957 (up from US$132,765 late 2011). Average salaries across the region have increased, with Malaysia demonstrating the highest % increase at 33% year on year.
3-6
6%
10%
9%
20%
7%
Years with Employer Approximately how many years have you been with your present employer? The % of respondents who have been with their present employer up to 2 years has seen a growth from 47% to 50% in 2013. While those who have been with their present employer between 3 to 6 years has declined from 33% to 30%.
47% 50%
AVERAGE ASIAN REAL ESTATE SALARY & BONUSES (US$ )
2011
$55,660 $41,745 $26,653 $30,000$
60,000
$90,000
$120,000
$150,000
2012/13
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AVERAGE ASIAN REAL ESTATE SALARY & BONUSES (US$ )
Average Salary (US$pa): Level of Responsibility What is your current annual base salary in US$?
2010
2011
2012/13
+/-
Total
$95,554
$89,851
$99,421
10.60%
Assistant/Trainee/Graduate
-
$21,222
$19,251
-9.30%
Analyst/Officer
$33,666
$36,242
$46,814
29.10%
Manager
-
$64,445
$72,850
13.00%
Senior Manager/Associate
$73,862
$88,446
$99,429
12.40%
Associate Director/ Vice President
-
$113,675
$120,067
5.60%
GM/Director/Principal
$168,312
$142,695
$161,059
12.90%
Executive Director/MD/CFO/COO
$154,657*
$217,334*
$235,344*
8.30%
* Response rate below 100 per response year
$120,923 $106,943 $101,833
Average All
$181,342 $172,281
Singapore
$127,538 $107,903 $104,581 $103,056
Hong Kong
$120,938 $102,411 $80,224
PRC
$91,740 $70,592
Malaysia
$39,250
$0
$200,000
0%
38%
9%
29%
40%
26%
60%
20%
Average All
12 MONTHS
8
71%
74%
76%
100%
80%
$150,000
2012/13
24%
Annual Salary Is your salary paid over: On average 76% of respondents salaries are paid over 12 months, with the highest being Malaysia (91%) and the lowest The Peoples Republic of China (PRC) (62%). Inversely, 38% of PRC respondents are paid over 13 instalments during the year.
2011
$100,000
91%
2010
$50,000
62%
Average Salary (US$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 have secured a salary increase, on average US$120,923 up from US$106,943 the previous year or up by 13%. While on a regional basis those working in Singapore with a RICS qualification on average earn the most ($181,342) followed by those working in the PRC ($120,932) now exceeding Hong Kong ($107,903).
Malaysia
13 MONTHS
Hong Kong
Singapore
PRC
AVERAGE ASIAN REAL ESTATE SALARY & BONUSES (US$ )
Change to Salary at last review what change if any was made to your Annual Base Salary at your last pay review? 48.1% of respondents secured a base salary increase, up slightly from 47.7% last year, while those who received a reduction in salary dropped to 1.1% versus 1.7% in the previous year. 22.2% of the respondents did not see a change at all, in their annual salary, up by 2.2% versus last year.
1.9% Up not disclosed 2% (-0.2%) 7.5% Up by 15% + (-0.8%) 5.9% Up by 11-15% (+0.8%) 16.1% Up by 6-10% (+0.3%) 16.7% Up by <5% (+0.3%) 1.1% Reduced (-0.6%) 22.2% Unchanged (+2.2%) 28.7% No Response (-0.9%)
Average Increase: Region What (if any) was the % increase of your salary? CHANGE TO SALARY – LAST YEAR =
PRC
14.1
23.0%
50.3%
2.7%
Singapore
11.4
26.7%
52.6%
0.0%
Malaysia
10.0
25.7%
50.5%
0.0%
Hong Kong
9.5
20.0%
54.8%
0.9%
9%
6%
3%
0%
2010
The RICS and Macdonald & Company Asia Rewards & Attitudes Survey 2013 Results
7.3% 7.8%
12%
6.8% 7.2%
15%
9.6%
Average Increase: Age What (if any) was the % increase of your salary? All age groups aged 31 years and above, on average, secured a salary increase with the largest growth within the 51 – 60 years group, 7.2% increase up to 9.2% Those aged 18-24 received a decline in their average salary increase down from 12.8% to 9.6% year on year. While the 2530 years still retain the highest average salary increase at 14.5% (down from 15.0% in late 2011).
9.2%
1.1%
8.6% 8.1% 9.7%
48.1%
10.3% 11.8% 12.9%
22.2%
13.9% 15.0% 14.5%
11.6
11.1% 12.8%
Total
5.3%
AVERAGE INCREASE
18-24
2011
25-30
31-40
41-50
51-60
61+
2012/13
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AVERAGE ASIAN REAL ESTATE SALARY & BONUSES (US$ )
Annual Bonuses Received (US$â&#x20AC;&#x2122;000pa) What was the approximate value of your annual bonus (or bonuses) over the last 12 months? 54.5% of respondents received a bonus (up slightly from 54% last year) and the average bonus they received was US$28,852 (up from US$24,945), those who did not secure a bonus declined to 45.5% (from 46% last year).
Employment Benefits Which of the following additional benefits are included (received as new or last as benefits) in your current package? Health Insurance (63%), 5 Day Working Week (61%), and Mobile Phone (47%) are the most popular employee benefits provided, while interestingly those respondents who did not receive any employee benefits remains unchanged at 4% year on year.
16.1% $20.0K plus (-1.1%) 10.3% $10.0K-$19.9K (-0.9%) 8.8% $5.0K-$9.9K (-1.1%) 7.2% $2.5K-$4.9K (-0.3%) 12.1% Up to $2.49K (+3.9%) 45.5% Nil (-0.4%)
Health Insurance 5 Day Working Week Mobile Phone Performance Related Bonus Dental Insurance Housing Allowance Other Insurances 13th Month Guaranteed Bonus Pension/Gratuity Flights Flexitime Lunches/Luncheon Vouchers Relocation Package Company Car Company Car Allowance Paid Overtime Share Option Scheme School Fees Club Membership Sign On Bonus None Other
2010
Important Job Aspects 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 (78%, up from 77% last year), followed by Management Style (68%, down from 70%), Responsibility (67%, up from 65%) and Range of Interesting Work (66%, up from 62%).
0%
10%
2011
2012/13
20%
30%
40%
50%
70%
Salary 68% 70% 70% 67% 65% 65% 66% 62% 62% 65% 67% 67% 61% 62% 62% 58% 55% 55% 56% 54% 54% 56% 56% 56%
Management Style Responsibility Range of Interesting Work Career Progression Job Security Working Environment Training/Personal Development Employer Status/Reputation 42% 39% 39% 37% 38% 38% 33% 35% 35% 31% 30% 30% 26% 24% 24%
Location Range of Clients Job Title Latest Technology Travel Opportunities 0%
2010
10
60%
2011
10%
2012/13
20%
30%
40%
50%
60%
70%
80%
78% 77% 77%
80%
MARKET ATTITUDES
Employer of Choice Do you consider your current employer an employer of choice? Overall 69% (+1%) of the survey respondents consider that their current employer is their employer of choice, which improved slightly in comparison to from last year.
31% No (-1%) 69% Yes (+1%)
Employer of Choice Reward & recognition How important are the following factors in making your current employer an Leadership/management style employer of choice? Company values/ethics Salary continues to be most important Business vision & future potential factor when it comes to job satisfaction Promotional opportunities (78%, up from 77% last year), followed Work life balance by Management Style (68%, down from 70%), Responsibility (67%, up from 65%) Brand values and Range of Interesting Work (66%, up Personal development culture from 62%). Colleagues/social dimension
63%
45%
68%
72% 68% 65% 69% 64% 60% 65% 63% 63% 73% 57% 53% 59% 56% 55% 52% 55% 51% 59% 55% 51% 51% 51%
49% 51% 48% 45%
Internal communication 37% 41% 30% 27% 30% 24% 26% 23%
C.S.R policy Relocation possibilities 0%
2010
Job Satisfaction How satisfied overall are you with your current job? 20% of all respondents have expressed that they are “not very” satisfied with their current job. This 5% growth from 2011 can be attributed to the 5% decline in those who are “fairly” satisfied (55% down from 60%).
The RICS and Macdonald & Company Asia Rewards & Attitudes Survey 2013 Results
2011
10% 2012/13
20%
30%
40%
50%
60%
70%
80%
3% Not at all (=) 20% Not very (+5%) 55% Fairly (-5%) 22% Very (=)
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MARKET ATTITUDES
Moving Job How likely are you to change employer in the next 12 months? Across Asia there is significant change in the intention to move jobs in the next 12 months, with 60% of the respondents very or fairly likely to change jobs in the next 12 months.Effectively 10% of all respondents have shifted from “not at all” + “not very” to “fairly” + “very”. The “very” intention to move jobs has seen the dramatic growth, up 6% versus last year.
28% Not very (-11%) 34% Fairly (+4%)
48%
60%
38%
40%
40%
50%
20%
5%
10%
12%
17%
30%
0%
Increase
2010
Economic Activity Change In your chosen professional activity, do you anticipate economic activity in the next 12 months to increase, decrease or remain unchanged? Those working in Malaysia are generally the most optimistic with 45% anticipating a increase in economic activity. Only 32% of those working in Singapore however anticipate an increase compared to 40% across the Asian regions.
48%
56%
26% Very (+6%)
35%
Economic Activity Change In your chosen professional activity, do you anticipate economic activity in the next 12 months to increase, decrease or remain unchanged? Those working in Malaysia are generally the most optimistic with 45% anticipating a increase in economic activity. Only 32% of those working in Singapore however anticipate an increase compared to 40% across the Asian regions.
12% Not at all (-7%)
2011
Decrease
Remain unchanged
2012/13
40% 12%
Average All
48% 45%
Malaysia
9%
Hong Kong
9%
46% 42% 49% 37% 13%
PRC
50% 32% 21%
Singapore
0%
Remain unchanged
12
47% 10%
Decrease
20%
Increase
30%
40%
50%
â&#x20AC;&#x201D; Peter Moore, Managing Director Macdonald & Company, Singapore
People make the difference. We connect you to that difference. macdonaldandcompany.com
The RICS and Macdonald & Company Asia Rewards & Attitudes Survey 2013 Results
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