2017
Thailand
Salary & Employment Outlook
Overview of employment conditions, skills in demand and sector trends in Thailand
Overview of employment conditions, skills in demand and sector trends in Thailand
The demand for talented professionals remains high, spurred by the high levels of foreign investment, especially in the services and manufacturing sectors.
The fast-moving consumer goods sector has been one of the country’s most consistent markets over the last two decades and its growth is expected to stay steady through 2017. While traditional sectors such as consumer, manufacturing and industrial have seen high levels of recruitment in recent years, a dramatic increase in activity within the services space, including professional and financial services, in Thailand has also emerged.
Despite concerns about the country’s stability, companies are still demonstrating strong appetites for growth. As a result, recruitment levels have remained healthy and the competition for talent has increased among leading companies based in and around Bangkok.
Professionals moving into a new role can expect a 10 to 20% increase in salary — higher for those with specialist market knowledge, a similar trend to last year. Salary increases have generally remained around 5 to 6% for professionals staying in their roles, with selected high performing individuals receiving 10 to 15%.
Companies that have a well-run recruitment process in place will continue to snap up the best talent. The development of human capital and ability to offer attractive and transparent career paths for employees remain a challenge for employers. That, combined with increasing living costs, has resulted in more frequent job moves typically driven by remuneration and promises of career development.
To retain talent, companies should ideally have clear career paths for employees and programmes to develop them into leaders. Companies relying on overseas talent would also require a strong transition plan to transfer knowledge to domestic employees. This will help to groom employees for leadership positions.
The industrial, consumer goods and services sectors are poised for growth in 2017. Significant investments flowing into Thailand are driving its manufacturing sector, while developments in e-commerce, payment gateways and digital marketing strategies are paving the way for stronger consumer and services sectors.
Still, the next 12 months may be challenging. Thailand is currently in a period of economic and political instability, and the job market remains highly competitive and candidate-tight. Employers seek highly-qualified candidates – preferably educated overseas – who are proficient in English. Unsurprisingly, these candidates command premium salaries and are in high demand.
Companies’ recruitment processes are also likely to be affected by differences in opinion between local and regional decision-makers. Employers are also continuing to reduce external recruitment budgets, with more multinationals investing in internal recruitment functions to service their staffing needs.
Across all sectors :
In the industrial sector :
In this market, candidates who switch jobs can expect between 10 and 20% in increments. Candidates who are proficient in English, have skills in business partnering, stakeholder management, ERP (enterprise resource planning) system implementation, and who have a strong business acumen, are likely to be in demand.
In Thailand, human resources (HR) professionals are increasingly being recognised as a valuable resource for improving business performance. Employers are working at reducing attrition by providing opportunities for learning and development, as well as clearer career paths for their top talent. They are also investing more in internal communications and employee engagement.
HR professionals are also being encouraged to deliver value-added solutions, which has resulted in an increase in the demand for competent HR business partners, as well as specialists in organisational development and effectiveness, talent management, engagement and employer branding.
However, it is still challenging to find skilled HR business partners and specialists in Thailand as firms often do not invest sufficiently in up-skilling their employees. Salaries are at a premium as the demand for such candidates far exceeds availability.
As new businesses set up operations in Thailand, the business services, industrial and tourism sectors will continue to grow in the near future, making 2017 an exciting period for HR professionals of all levels. The market is likely to be competitive, and employers must offer competitive salaries and make quick decisions on recruitment.
Candidates who switch jobs can expect increments of 18 to 22%, and those who are proficient in specific languages will have an advantage.
Thailand’s fast-moving consumer goods sector is likely to have a good showing in 2017, buoyed by a growing middle class with higher spending power. The country’s industrial and manufacturing sectors will also likely enjoy growth, as will its information technology, digital and Internet services sectors. Likewise, the country’s up-and-coming payment and financial services sector will also perform well, due in part to the Thailand government’s support.
Despite growth across these sectors, Thailand has a limited pool of candidates to match the growing demand for skilled labour. Employers are looking to hire Thai nationals who are proficient in English and preferably educated overseas to take on mid-level and senior management positions.
In this market, candidates who switch jobs can expect increments of between 10 and 20%. Those who were educated overseas, are proficient in English, have experience in negotiation and client acquisition have an edge.
