COVID-19 changed how vital headcount and compensation are to employee retention. Now, organizations are tasked to modify incentive plans that suit this new reality.
With its recent survey, Sprout dug deep into how the pandemic affected salary distribution and payroll in the Philippines. The survey covered average salary and headcount by industry, company size, employee type, and company location.
This article will look at key insights and what HR leaders can do to improve their post-pandemic compensation models.
Average Salary & Headcount by Industry
Sprout analyzed employee salary and headcount across 15 industries, ranging from Accommodation & Food Services to Wholesale & Retail Trade. Below, we’ve shared key figures for average pay and headcount by sector.
Industries with the Highest Average Salary Increase
The Accommodation & Food Services industry came out on top, with a 32.3% increase, thanks to hotels and restaurants improving how they give out salaries.
Meanwhile, Information & Communication placed second with a 22.7% increase. Finance & Insurance had the third-highest average salary raise at 21.8%.
Industries that Experienced a Drop in Salary
COVID-19 affected the Philippine construction industry the most, resulting in a -22.3% dip in salary.
The Manufacturing and Scientific & Tech Services sectors rounded out the top three industries with the lowest average salary decrease. Pay for Manufacturing workers got a -9.5% drop, while Scientific & Tech Services salaries dropped by -7.8%.
Sectors that Grew in (Employee) Numbers
As for growth in employee headcount, the Real Estate industry took first place. It recorded a 647% increase in overall headcount, possibly due to Filipinos eyeing pandemic-proof investments.
The Wholesale & Retail Trade sector came in second with a 316.7% growth in headcount, and Construction was third at 311.6%.
Sectors with a Decreased Headcount
While some local industries saw their headcounts rising, some sectors experienced the opposite. Our survey found that:
- Education had the lowest growth in headcount, suffering a -2.8% drop.
- The Electricity, Gas, Steam, & Air-conditioning Supply sector’s headcount only grew by 1%.
- Accommodation & Food Services had the third-lowest growth in headcount at 12.4%.
Average Salary & Headcount by Company Size
We also examined how the pandemic affected salary and headcount across company sizes. Our report noted how much pay and headcounts increased in local SMEs (small and medium-sized enterprises), mid-market firms, and enterprises.
Regarding average salary increases, SMEs took the lead with a 31.7% increase. This figure is 11% higher than the average pay raise for enterprises, which saw a 20.6% surge overall. Mid-market companies had the lowest average salary increase at 6.3%.
But despite placing last in average pay raises, mid-market firm headcounts grew more immensely than those of SMEs and enterprises. Philippine mid-market companies saw a 98.8% increase in headcount. Meanwhile, local enterprises and SMEs recorded 29.1% and 27.7%, respectively.
Average Salary & Headcount by Employee Type
Next, we analyzed average salary and headcount across rank-and-file workers, officers, and managers.
Our survey noted that officer-level employees got higher pay raises (33.4%) than rank-and-file employees and managers. However, they placed second in headcount increases (54.6%), while rank-and-file workers led that area at 55.8%.
Average Salary & Headcount by Location
Only responses from employees in NCR and non-NCR (National Capital Region) regions were considered for our survey.
In two years, pay raises for workers in NCR rose by 12.9%. Conversely, non-NCR employees enjoyed a 20.8% increase in their average salary. The average headcounts for both categories tell a different story, though.
NCR-based workers recorded the most significant growth in numbers, with a 74.4% increase. Meanwhile, the non-NCR employee headcount rose by 52.6%.
Digging Deeper with Side-by-Side Analyses
Additionally, we paired our survey’s primary demographics and compared average pay and headcount side-by-side with these pairs. Let’s look at these comparisons one by one.
Industry & Size
Wholesale & Retail Trade SMEs had the highest average salary raise (94.3%) and headcount increase (578.7%). They topped Accommodation & Food Services SMEs (90.6%) and SME BPOs (59.5%) in pay increases. And for headcount growth, wholesale and retail SMEs held a .4% advantage over Human Health & Social Work SMEs (578.3%).
While Human Health & Social Work SMEs recorded the second most significant headcount increase, their average pay dropped by -62.2%. Manufacturing SMEs came second with a -14.4% decrease in average salary.
Finally, Electricity, Gas, Steam, & Air-conditioning Supply SMEs saw their headcount drop to -38.9%.
Industry & Employee Type
Wholesale & Retail Trade officers were the biggest winners in average salary increases, receiving 123% more pay than other employees. Finance & Insurance officers (97%) and Wholesale & Retail Trade managers (95.7%) followed suit.
As for salary dips, Construction managers felt them the most. Their pay went down by -30.3% over the last two years. But despite low wages, the Construction industry is growing. Its rank-and-file headcount rose to a whopping 1,830% in two years.
On the other hand, the Electricity, Gas, Steam, & Air-conditioning Supply sector recorded considerable drops in headcount across employee types. It mostly saw a significant dip in rank-and-file employees (48.1%).
Industry & Company Location
When we analyzed average pay and headcount across industry and company locations, we got results mainly representing non-NCR workers. Here’s a glance at these figures.
- Finance & Insurance employees outside NCR received a 58% increase in their pay.
- Salaries of Non-NCR Human Health & Social Work employees dropped by -64.3%.
- Manufacturing companies in other Philippine regions recorded a 797.2% growth in their headcount. This increase comes despite pay dips within the sector (-42.9%).
- The headcount for Non-NCR Accommodation & Food Services businesses decreased to -32.4%.
Retain Top Talent with More Competitive Compensation
As companies navigate the new world of work, they’re challenged to improve their compensation. Employers can tackle this hurdle by evaluating current pay levels and introducing reward programs, new benefits, and skill-based compensation. More importantly, businesses must digitize and remain transparent about the changes that accompany the new world of work. In turn, they can succeed while keeping employees around.
Do you want a deeper dive into our survey results? Get the full report from here today. And if you need more help improving your HR and payroll processes, check out the insightful resources on the Sprout blog.