TAIPEI - Year-end bonuses paid out by companies in 2013 are poised to disappoint employees across Taiwan, as the average bonus dwindles to a four-year low, according to results of a study conducted by a job bank.
At a level of 1.16 months-worth of average compensation, anticipated year-end bonuses for employees this year only grew by about NT$2,500 (S$105), the average compensation for two days of work, said 104 Job Bank (104資訊科技集團). The figure is calculated on 1.16 months of the average recurrent salary of NT$37,652 recorded from January to August this year, 104 said.
Most notably, in its survey the job bank found that 62 per cent of Taiwanese companies have elected to adopt a performance-based compensation adjustment scheme in place of initiating across-the-board salary increases, the highest figure seen in four years. Salary increases this year, however, are poised to reach 4.7 per cent, a slight improvement over the 4.3 per cent seen last year, said 104.
The study also uncovered that numerous year-end bonuses across numerous industries including travel and leisure, agriculture and utilities, hospitality, and food and beverages averaged less than 1 month of a standardized annual salary.
The exception was the financial sector, where stellar year-on-year gains in operating results propelled bonuses to an average of 1.94 months of the average annual salary.
According to the job bank, only 12.7 per cent of Taiwanese enterprises promised to initiate across-the-board increases in compensation. Among the companies poised to initiate salary increases, 104 found that 80.9 per cent of enterprises had based their decisions on operating performance, while 30.1 per cent based their compensation adjustments solely on the whims of proprietors, with 16.7 per cent and 14.3 per cent of firms citing economic growth statistics and consumer price index developments, respectively, as significant determining factors.
The job bank indicated that overall, employee compensation did not change significantly as the year 2013 nears an end. The study was based on 769 effective samples, with a 95-per cent confidence interval and a sampling error rate of within 3.53 per cent, said 104.
The think tank advised employees to improve themselves, and demonstrate superior capabilities to improve their performance in the eyes of their managers in order to garner more favourable compensation terms.