Prudential Survey: Hong Kong SMEs’ Employees Hope for an Ideal 5.6% Salary Increase this Year

Insurance company Prudential has released the results of their survey on the “Happiness of Working Class” in 2024, which shows that the average desired salary increase for small and medium-sized enterprise (SME) employees is 5.6%. However, taking into account the company’s financial situation and external factors, the expected salary increase averages at 3.8%, similar to the 3.6% for employees of large enterprises.

Nevertheless, 42% of SME employees believe they will not receive a pay raise this year, compared to 25% of large enterprise employees expecting a pay freeze.

According to the survey, 90% of SME employees interviewed stated that salary is the primary factor determining whether they stay or leave their job, followed by job stability (85%), relationships with colleagues/supervisors (81%), and employee benefits (80%).

Moreover, 80% of SME employees consider employee benefits critical in their decision to stay or leave, yet only about half (49%) are satisfied with the employee benefits provided by their current company, significantly lower than the 62% satisfaction rate in 2022. Among the protection plans offered by employers, medical coverage (71%) is the most preferred, followed by critical illness coverage (54%) and accident coverage (51%).

Close to sixty percent (59%) of interviewed SME employees prefer to remain in the SME environment, a significant increase from 41% in 2022, while only 30% prefer to stay in large enterprises. SME employees believe that having harmonious relationships with colleagues/company culture (54%), less competition among colleagues (46%), and more freedom in work (45%) are advantages of working in SMEs.

The survey also found that over 35% of SME employees are open to new job opportunities, a percentage higher than last year’s 26%. However, the percentage of SME employees willing to stay with their current company (55%) is still higher than that of employees in large enterprises (51%).

When asked about their satisfaction with their current company, SME employees (62%) reported slightly higher satisfaction than employees of large enterprises (58%), attributed mainly to factors such as connection with colleagues, harmonious relationships with supervisors, and receiving fair compensation.