In many Asian countries a ‘13th check’ is a standard practice (and sometimes legally mandated) as well as expected by staff.
San Diego, CA (PRWEB) January 14, 2013
Tiger-Consulting, an American-managed HR and Payroll Outsource Firm specializing in helping global businesses to successfully expand into new markets, shared insights today with Western enterprises regarding how Asia employee bonuses are different, and what to expect when the firm is hiring in the region on their behalf to support local satellite operations. He also addressed the challenge American corporations face in remaining competitive worldwide as they fight to retain top talent in the U.S. given new government restrictions that are curtailing bonus packages in the West.
“A big topic this time of year, as always, is the annual bonus. From conversations with our 100+ global enterprise customers combined with my experience in managing enterprise payroll for many years, bonuses in the U.S., Europe and Australia are markedly lower this year with estimates at a 30-90% decrease depending on the industry,” said Tiger-Consulting Founder & CEO, Neil Satterwhite.
According to the Bangkok, Thailand-based firm with offices supporting satellite operations for clients in more than a dozen Asia-Pac countries, big bonuses in the United States are under close scrutiny. Satterwhite points to an increasingly difficult economic situation in the West rife with strong emotions over un-related bailouts, higher taxes, changes to healthcare and other increases in the overall cost of doing business in the U.S., which he says has led to regulatory bodies, government restrictions, caps and claw backs of bonus packages. He notes that, in some cases, employers are even attempting to recover bonuses of U.S. employees, which have already been distributed.
“While economic challenges in the West certainly require that companies work to recalibrate bonus structures, employee expectations and future compensation packages for new staff, the result of the significant bonus cuts we are seeing now is that top-performing companies—ones that can really make a difference in corporate growth, job creation and improvement of local economies—risk losing high-performing leaders in their field due to the increasing financial, political and regulatory pressure they face,” said Satterwhite.
The HR and Payroll Outsource Firm owner notes that large reductions in bonuses, especially for what he calls the “rainmaker types” is unfortunate because it’s often the “first-round draft picks” that can help to turn a company around during tougher times. Satterwhite said that it’s these “hired guns” who typically see businesses through crisis in often bold, inventive ways such as driving disruptive innovation, creating new revenue streams and helping to grow (or at least maintain) the bottom line.
“In contrast, Asia is on an upswing and becoming more attractive to high achievers as the place for career growth, lifestyle and reward. Given those unique attractions, bonuses are often different here. While the real dragon-slayers in the U.S., Europe and Australia may be unimpressed with monetary bonuses offered in Asia—even the smaller ones they are seeing in those regions currently—bonuses in Asia are more diverse and equally if not more rewarding,” Satterwhite added.
The firm founder said, for example, new client commissions are often a bigger employee incentive in Asia year-round. He noted that Asia bonuses can also be seen in ongoing benefits offered including housing allowance, club memberships and, of course, the opportunity for less-costly and exotic travel throughout Asia Pacific. While he said these alternate types of bonuses are often considered a higher priority in Asia, an incremental or commission-based bonus each January is a highlight of the New Year in Asia like anywhere else.
“In many Asian countries a ‘13th check’ is a standard practice (and sometimes legally mandated) as well as expected by staff. Just don’t be surprised when your team members here also want a percentage of each new client delivered. But that’s a win-win opportunity any smart business should be happy to offer when recruiting. Oh, and we’ll do that for you too, if needed. Just let us know how we can help you to enter and thrive in new markets including Asia-Pacific, Europe and South America,” Satterwhite said.
Founded by an American Expatriate with 40+ years of HR and payroll management expertise, Tiger-Consulting is committed to making expansion and management of satellite operations easier for international businesses. The HR, Payroll and Employment Outsource Firm supports operations for 100+ enterprise clients across Asia, Europe and South America. Asia-Pac countries supported include Australia, Cambodia, China, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand and Vietnam. Operations support in Europe and surrounding countries: Austria, Belgium, Czech Republic, Denmark, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Spain, Sweden, Switzerland and the U.K. Support in South America includes Brazil. Other countries also now covered under the Tiger-Consulting umbrella are Canada, Israel, Mexico, Russia, UAE and Ukraine. http://www.tiger-consulting.net