Most employees would recoil in disgust at the thought of receiving a demotion or salary decrease. This sentiment, however, changes drastically when it comes to protecting careers, with a much larger number of people willing to accept a pay decrease or demotion to stay employed.
According to Randstad’s latest Workmonitor Research for Q2 2017, 43% of employees globally were willing to accept a lower salary or demotion in order to remain employed. When looking at Singapore, Hong Kong and Malaysia, this sentiment jumped to 52% on average, a significant increase compared to the global average.
Employees in Singapore were the most likely to accept a salary decrease or demotion with 61% stating so in the research. Hong Kong employees were the least willing, with only 46% willing to protect their employment through a decrease or demotion.
The research also revealed that men across all three countries, as well as globally, were more willing than women to accept a demotion or salary decrease.
Surprisingly, more senior employees in Singapore, Hong Kong and Malaysia were more willing to accept a decrease or demotion than younger employees. This was in stark contrast with the global trend where we see younger employees being more willing than senior employees.
Managing Director for Randstad Singapore, Hong Kong and Malaysia, Michael Smith noted, “It’s interesting to note the higher willingness of employees in Singapore, Hong Kong and Malaysia than that of the global average to take a demotion or salary decrease. We expect this falls down to a mix of the recent global economic sluggishness and the fear of staying unemployed, coupled with traditional mindsets where losing a job would result in ‘losing face’.”
“While we don’t have statistics to see how this sentiment has trended in the past, I would expect the willingness to accept decreased salaries or demotions to drop as the economy recovers and the workforce matures,” added Smith.
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The Randstad Workmonitor
The Randstad Workmonitor was launched in the Netherlands in 2003 and now covers 34 countries around the world, encompassing Asia Pacific, Europe and the Americas. The Randstad Workmonitor is published four times a year, making both local and global trends in mobility regularly visible over time.
The Workmonitor Mobility Index, which tracks employee confidence and captures expectations surrounding the likelihood of changing employers within a six month time frame, provides a comprehensive understanding of job market sentiments and employee trends. In addition to measuring mobility, it provides insights into employee satisfaction and personal motivation, as well as explores sentiments around key trends shaping the world of work for employees each quarter.
The quantitative study is conducted via an online questionnaire among a population aged 18-65, working a minimum of 24 hours a week in a paid job (not self-employed). The minimal sample size is 400 interviews per country, using Survey Sampling International.
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The Randstad Group is a global leader in the HR services industry and specialized in solutions in the field of flexible work and human resources services. Our services range from regular temporary Staffing and permanent placements to Inhouse Services, Professionals, and HR Solutions (including Recruitment Process Outsourcing, Managed Services Programs, and outplacement). By combining our human touch with technology-driven solutions and tools, we aim to offer both clients and candidates the best tools and solutions for increased efficiency and engagement, connecting more people to more jobs. Randstad has top-three positions in Argentina, Belgium & Luxembourg, Canada, Chile, France, Germany, Greece, India, Italy, Mexico, the Netherlands, Poland, Portugal, Spain, Sweden, Switzerland, the UK, and the United States, and major positions in Australia and Japan. At year-end 2016, Randstad had 36,524 corporate employees and 4,752 branches and Inhouse locations in 39 countries around the world. In 2016, Randstad generated revenue of € 20.7 billion. Randstad was founded in 1960 and is headquartered in Diemen, the Netherlands. Randstad Holding nv is listed on the NYSE Euronext Amsterdam, where options for stocks in Randstad are also traded.
For more information, see www.randstad.com.
Posted: Thursday, 10 August 2017 - 11:00 AM