OCTOBER 2011
ASIA PACIFIC
MARKET PULSE SURVEY
INDONESIA REPORT
Contents
Confidentiality
Introduction and Background
Key findings
Detailed analysis
Appendix – List of participating organizations
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Section 1
CONFIDENTIALITY
Confidentiality
To ensure the confidentiality of all data, a minimum number of observations is required in order for statistics to
be displayed. Three organizations must report at least three observations for a variable in order for the mean
to be displayed. Four organizations and four observations are required for display of the median. Five
organizations reporting at least five observations are required to display 25th and 75th Percentiles. Where
there has been insufficient data for analysis, this has been indicated with “-“.
Human Resource professionals who deal regularly with surveys are aware of the variance that may exist in
survey data. Data may fluctuate slightly from year to year due to changes in the participant base. It is also
important to note that within a sample, a significant amount of data may be reported by one organization. It is
also possible for data to change drastically from year to year due to industry-related factors and economic
conditions.
The information and data contained in this report are for information purposes only and are not intended nor
implied to be a substitute for professional advice. In no event will Mercer be liable to you or to any third party
for any decision made or action taken in reliance of the results obtained through the use of the information
and/or data contained or provided herein.
Mercer is providing this survey information to its clients to permit them to make independent decisions
regarding salaries. Because the exchange of salary information among competitors may be construed in
certain circumstances as a means to facilitate an antitrust violation, Mercer has taken appropriate steps in
collecting and disseminating this information in order to avoid such perceptions.
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Section 2
INTRODUCTION AND BACKGROUND
Introduction and background
• To provide up to date information on key HR trends practices, Mercer conducted its second half 2011
Market Pulse Survey in September 2011 and this report details our findings.
Mercer’s Market Pulse survey gathers key HR information across the following areas:
-
Salary Increases
-
Variable pay
-
Attrition rate
-
Hiring intention
-
Jobs that are priority to recruit
-
Jobs that are challenging to recruit and retain
-
Business expectations
-
HR budgets
-
Workforce planning
156 organizations from various industry sectors participated in the survey. Their details are included in
Appendix – List of participating organizations.
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Participant profile – Industry
image005
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Participant profile – Type of entity
image009
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Participant profile – Headcount
Image013
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Participant profile – Net Sales Revenue
image025
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Participant profile – Type of Organization
image007
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Participant profile – Expatriates
Image021
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Participant profile – Location of Parent Company
image011
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Section 3
KEY FINDINGS
Key Findings
• Remuneration Issues:
– Amongst 156 participant, 3 companies applied salary freeze in 2011 across the board. While there are 5
companies applied partial salary freeze (for certain employee levels only).
– 93% of responses review their salary annually and most of them review it in January or April.
– All Industries average percentage base salary increase are as follow:
Year
Including Freeze
Exclude Freeze
2011 (actual/budgeted)
9.1
9.3
2012 (forecast)
9.6
9.6
2013 (forecast)
9.7
9.7
– Average promotion increment overall in 2011 (awarded) is 13.6% and 2012 (budgeted) is 13.3%.
– There are 46 companies that provide response for 2011 special salary adjustment by function (in percentage),
meanwhile for 2012 there are 38 companies, the details are as follow:
Function
2011
2012
Finance & Accounting
Administration
Marketing
Manufacturing/Production/Assembly
IT
Human Resource
6.9
15.9
6.1
11.0
6.7
-
9.3
6.9
7.1
4.0
13
13.4
10.3
Supply Logistic
Sales
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Key Findings (Cont’d)
• Staffing Issues:
– On the staffing side, 73% of companies (94 companies) plan to add headcount to their organization,
26% (33 companies) plan to maintain the same number of headcounts while 2% (2 companies) intend to
reduce headcount for the next 12 months.
– From 2 companies intend to reduce headcount in next 12 months, average decrease headcount
number is 15.0%. While from 94 companies who intend to increase headcount, the average increase is
13.8%.
• Hot Topics:
– Based on 151 All Industries responses, 51% said that best category to describe Company’s Expected
Business and Financial Performance in 2011 is 5-15% moderate increase from 2010 level.
– Based on 150 All Industries responses, 58% said that best category to describe Company’s HR
Budget for 2011 is 5-15% moderate increase from 2010 level.
–
–
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Base salary increases, Training & Development, and Recruitment are the Top 3 HR items, that would
likely be having higher proportion in budget allocation, compare to 2010.
Key practices that are followed by your organization to increase Employee Motivation & Retention: Non
Monetary for Executive level and Monetary for Management level below.
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Section 4
DETAILED ANALYSIS
Frequency of salary review in organization
Image033
93% of the respondents that participated in the survey review salaries annually.
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Regular salary review month (1st review)
Percentage of Organizations
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
No. of
Org
Overall
30%
5%
9%
33%
6%
1%
5%
1%
2%
4%
2%
3%
152
Head of
organization
26%
3%
12%
38%
6%
1%
4%
1%
2%
4%
1%
3%
110
Executives
29%
2%
12%
38%
6%
1%
3%
1%
2%
4%
1%
2%
126
Management
30%
4%
9%
36%
6%
1%
4%
1%
1%
4%
1%
2%
138
Professional
- Sales
30%
3%
10%
37%
7%
2%
3%
2%
2%
4%
0%
2%
122
Professional
- Non Sales
29%
4%
10%
36%
6%
1%
4%
1%
1%
5%
0%
1%
138
ParaProfessional
- White collar
32%
3%
6%
38%
6%
2%
4%
2%
1%
5%
0%
2%
126
ParaProfessional
- Blue collar
43%
3%
4%
36%
5%
2%
3%
1%
0%
2%
0%
2%
101
January and April are the typical salary review months.
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Base salary increase % given/budgeted INCLUDING salary
freeze – All Industries
Table 5A
All Industries average salary increase including salary freeze in 2011 is 9.1%, 9.6% for 2012 and 9.7% for 2013.
No. of responses 2011= 148, 2012 = 145, 2013 = 99.
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Base salary increase % given/budgeted INCLUDING salary
freeze – By Industry
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Base salary increase % given/budgeted EXCLUDING salary
freeze – All Industries
Table 5B
All Industries average salary increase excluding salary freeze in 2011 is 9.3%, 9.6% for 2012 and 9.7% for 2013.
No. of responses 2011= 144, 2012 = 144, 2013 = 98.
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Base salary increase % given/budgeted EXCLUDING salary
freeze – By Industry
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Promotion increment by level in 2011
image039
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Promotion increment by level in 2012
image061
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Special salary adjustments for 2011 (1 of 3)
image055
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Special salary adjustments for 2011 (2 of 3)
image057
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Special salary adjustments for 2011 (3 of 3)
image059
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Special salary adjustments for 2012 (1 of 3)
image063
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Special salary adjustments for 2012 (2 of 3)
image065
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Special salary adjustments for 2012 (3 of 3)
image067
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Variable pay given/budgeted for – All Industries
Table 15
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Variable pay given/budgeted for – By Industry
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Voluntary turnover (%) – All Industries (2010 full year)
Table 20
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Voluntary turnover (%) – All Industries (2011 YTD)
Table 20
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Voluntary turnover (%) – By Industry
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Retrenchment (%) – All Industries (2010 full year)
Table 21
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Retrenchment (%) – All Industries (2011 YTD)
Table 21
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Hiring Intention in the next 12 months starting from August
2011
image069
Average Headcount Change %
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Hiring Intention in the next 12 months starting from August
2011 – By Industry
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Top 3 priority jobs to recruit for within organizations
Rank
Executive
Management
Professional
ParaProfessional
1
Sales
Sales
Sales
Sales
(2 cos)
(36 cos)
(56 cos)
(9 cos)
Marketing
Marketing
Engineering
(2 cos)
(26 cos)
(33 cos)
Manufacturing /
Production and
Assembly
2
(9 cos)
3
General Management
Engineering
Marketing
Engineering
(2 cos)
(6 cos)
(13 cos)
(7 cos)
‘x’ cos – No. of companies who have responded
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Top 3 most challenging jobs to recruit candidates for
within organizations
Rank
Executive
Management
Professional
ParaProfessional
1
Sales
Sales
Sales
Sales
(4 cos)
(35 cos)
(43 cos)
(5 cos)
Marketing
Marketing
Engineering
Engineering
(4 cos)
(31 cos)
(35 cos)
(2 cos)
General Management
Finance & Accounting
Marketing
(3 cos)
(12 cos)
(14 cos)
Manufacturing /
Production and
Assembly
2
3
(2 cos)
‘x’ cos – No. of companies who have responded
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Top 3 jobs that are challenging for organizations to retain
existing employees
Rank
Executive
Management
Professional
ParaProfessional
1
Sales
Sales
Sales
Sales
(2 cos)
(29 cos)
(48 cos)
(9 cos)
Marketing
Marketing
Engineering
Engineering
(2 cos)
(24 cos)
(32 cos)
(5 cos)
Administration
Finance & accounting
Marketing
(1 co)
(4 cos)
(20 cos)
Manufacturing /
Production and
Assembly
2
3
(5 cos)
‘x’ cos – No. of companies who have responded
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Organization’s expected business and financial
performance in 2011
Image041
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HR budget for 2011
Image043
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Change in HR budget for allocations for the following items
in 2011 compared to 2010
Image045
Base salary increases, Training & Development, and Recruitment are the top 3 HR items that would likely
be having higher proportion in budget allocation compare to 2010.
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Plans regarding workforce levels in 2012
Image047
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Change in headcount of different job functions in 2012
compared to 2011
Image049
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Key practices that are followed across levels to increase
employee motivation & retention
Image051
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Impact on the budget in 2012 for the below on account of
current economic conditions
Image053
From 147 response, 74% said that employee salaries is the factor that will increase in 2012
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APPENDIX
LIST OF PARTICIPATING ORGANIZATIONS
Appendix – List of participating organizations
Automotive
Chemical
1.
BMW Indonesia, PT
1.
Air Products Indonesia, PT
2.
General Motors Indonesia, PT
2.
Akzo Nobel Industrial Finishes Rep Office
3.
Hyundai Mobil Indonesia, PT
3.
Amoco Mitsui PTA Indonesia, PT
4.
TVS Motor Company Indonesia, PT
4.
Asahimas Chemical, PT
5.
BASF Indonesia, PT
6.
Cabot Indonesia, PT
Electronic Manufacturing
7.
Chandra Asri Petrochemical Tbk, PT
1.
Danfoss Industries Pte Ltd
8.
DSM Nutritional Products
2.
Flextronics Technologies
9.
3.
Philips Indonesia, PT
DuPont in Indonesia (DuPont Agricultural Products Indonesia,
PT)
4.
Samsung Electronics Indonesia, PT
10.
Essence Indonesia IFF, PT
5.
Volex Indonesia, PT
11.
Fosroc Indonesia, PT
12.
Givaudan
13.
ICI Paints Indonesia, PT
14.
Jotun Indonesia, PT
15.
OCI Kaltim Melamine, PT
16.
PPG Coatings Indonesia, PT
17.
SABIC Asia Pacific Pte Ltd - Indonesia Rep Office
18.
South Pacific Viscose, PT
19.
Syngenta Indonesia, PT
20.
TITAN Petrokimia Nusantara, PT
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Appendix – List of participating organizations
Consumer Goods
1.
3M Indonesia, PT.
25.
Nestlé Indonesia, PT
2.
Amway Indonesia, PT
26.
Newell Rubbermaid Global Sourcing Asia Ltd (Hong Kong)
3.
Arnott's Indonesia, PT
27.
Novartis Indonesia, PT (Consumer Goods)
4.
Bentoel Prima, PT
28.
Nutricia Indonesia Sejahtera
5.
Ciba Vision Batam, PT
29.
Perfetti Van Melle Indonesia, PT
6.
Columbia Sportswear Company
30.
Pernod Ricard Indonesia Representative Office
7.
Export Leaf Indonesia, PT
31.
Procter & Gamble
8.
Fonterra Brands Indonesia
32.
PZ Cussons Indonesia
9.
Garudafood Putra Putri Jaya, PT
33.
Quaker Indonesia, PT
10.
Gitaswara Indonesia, PT
34.
Reckitt Benckiser Indonesia, PT
11.
Heinz ABC Indonesia, PT
35.
San Miguel Pure Foods Indonesia, PT
12.
HM Sampoerna Tbk, PT
36.
Sari Husada, PT
13.
Johnson & Johnson Indonesia, PT
37.
Sterling Products Indonesia, PT
14.
Johnson Home Hygiene Products, PT
38.
Tirta Investama (Danone Aqua), PT
15.
KAO Indonesia, PT
39.
Tupperware Indonesia, PT
16.
Kapal Api Global, PT
40.
Uni-Charm Indonesia, PT
17.
Kellogg Asia Marketing Inc.
41.
Unilever Indonesia Tbk, PT
18.
Kraft Foods Indonesia
42.
Wrigley
19.
Levi Strauss Indonesia, PT
43.
Yasulor Indonesia, PT
20.
L'Oreal Indonesia, PT
21.
Louis Vuitton Asia Pacific
22.
Mattel Indonesia, PT
23.
Mead Johnson Indonesia, PT
24.
Multi Bintang Indonesia Tbk, PT
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Appendix – List of participating organizations
High-Tech
Manufacturing
1.
Alcatel-Lucent Indonesia, PT
1.
American Standard Indonesia, PT
2.
AT&T
2.
Argha Karya Prima Industry Tbk., PT
3.
Berca Hardayaperkasa, PT
3.
Avery Dennison Indonesia, PT
4.
Cisco Systems, Inc
4.
Avery Dennison Packaging Indonesia, PT
5.
Emerson Network Power
5.
Donaldson Filtration Indonesia, PT
6.
Ericsson Indonesia, PT
6.
Filtrona Indonesia, PT
7.
eServGlobal
7.
Goodyear Indonesia, PT
8.
Hitachi Data Systems
8.
Grundfos Pompa, PT
9.
Honeywell Indonesia, PT
9.
Riau Andalan Pulp and Paper, PT
10.
HP
10.
Schaeffler Bearings Indonesia, PT
11.
Oberthur Technologies
11.
Sonoco Indonesia, PT
12.
Profesional Telekomunikasi Indonesia, PT
13.
Symantec Indonesia
14.
ZTE Indonesia, PT
Logistics
1.
Birotika Semesta, PT
2.
CEVA Logistics Indonesia
3.
DHL Logistic
4.
HAVI Indonesia, PT
5.
Kamadjaja Group
6.
TNT Indonesia
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Mining
1.
Adaro Indonesia, PT
2.
Arutmin Indonesia, PT
3.
Bahari Cakrawala, PT
4.
Bayan Resources Tbk., PT
5.
Cytec Australia Holdings Pty Ltd
6.
Freeport Indonesia, PT
7.
Newmont Nusa Tenggara, PT
8.
Padangbara Sukses Makmur, PT
9.
Straits Consultancy Services, PT
10.
Supreme Energy Muara Laboh, PT
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Appendix – List of participating organizations
Mining Services
Pharmaceuticals & Healthcare
1.
AEL Indonesia, PT
1.
Alcon Indonesia
2.
Thiess Contractors Indonesia
2.
AstraZeneca Indonesia, PT
3.
Covidien, PT
4.
Darya Varia Laboratoria Tbk., PT
5.
Eisai Indonesia, PT
6.
Eli Lilly
7.
Glaxo Wellcome Indonesia, PT
8.
Janssen Pharmaceutical Companies of Johnson & Johnson
9.
Meiji Indonesia, PT
10.
Merck Tbk, PT
11.
Novartis Indonesia, PT (Pharma)
12.
Novo Nordisk Indonesia, PT
13.
Otsuka Indonesia, PT
14.
Roche Indonesia, PT
15.
Sandoz Indonesia, PT
16.
Sanofi Group - Indonesia
17.
Sysmex Indonesia, PT
18.
Taisho Pharmaceutical Indonesia Tbk., PT
Oil & Gas
1.
ConocoPhillips
2.
Shell Companies in Indonesia
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Appendix – List of participating organizations
Telecommunication
Others
1.
Bakrie Telecom Tbk., PT
1.
Alstom Power Energy Systems Indonesia
2.
Indosat Tbk, PT
2.
Asuransi CIGNA, PT
3.
ISAT, PT
3.
Atlas Copco Indonesia, PT
4.
Sampoerna Telekomunikasi Indonesia, PT
4.
Cargill Indonesia, PT
5.
Smart Telecom, PT
5.
Clause Indonesia, PT
6.
IKEA Trading (Hongkong) Ltd Indonesia Representative Office
7.
ITOCHU Indonesia, PT
8.
Jebsen & Jessen Group of Companies South East Asia Indonesia
9.
PAREXEL International
10.
Petromine Energy Trading, PT
11.
PLN (Persero), PT
12.
Prudential Life Assurance, PT
13.
Quintiles
14.
Robert Bosch
15.
Tenaris SPIJ, PT
16.
Vopak Asia
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If you have any questions, please contact
Evy Kriswandi at 62 5790 5566 or Jane Evelyn Tansy at 62 21 5797 8211