Base salaries and bonuses for senior managers have risen sharply over the past 10 years in emerging markets, according to new research from global management consultancy Hay Group.
The research, which uses data from Hay Group’s global PayNet database, based on over 14 million employees in 20,000 companies across the world, showed senior managers’ salaries jumping 3.5 times in China, 3 times in Indonesia and 2.8 times in Brazil. In Poland, management pay doubled over 10 years, while in Turkey it almost tripled.
In developed markets, growth has been more modest. In the US and the UK, the rise was of just 1.4 times and 1.7 times respectively over 10 years, while in Western Europe it doubled.
“A major factor in this equation has been the significant influx of investment by global corporations into emerging markets, looking to take advantage of lower production costs and fast-growing consumer needs,” Nick Boulter, global managing director, reward services at Hay Group, said in a statement.
“As a result, considerable attention has been given to the issues of attracting and retaining key talent in emerging markets – particularly as the management level talent needed is in short supply.”
In 2001, pay for senior management positions in Brazil was 51% of that in the US but last year, on average, it was 105% of that in the US, according to the study. It also showed that in South Africa, total pay for senior managers was 40% of that offered in the US back in 2001 but last year pay in South Africa was only 2% behind that in the US.
In Europe, pay levels in Turkey were 21% lower than in France in 2001 but by 2011, management salaries in Turkey had jumped to 12% higher than in France.