2016 HR Handbook - Salary Benchmark Insights: Expectation VS Reality

Bigger organizations have been preparing the Millennials as a successor. At the same time, this generation needs to take preliminary action regarding the future; one of them is to study their successor, Gen Z.

Understanding both generations is getting more crucial if one (or both) is the target audience for your products or services. Brands have been finding ways to study more about them, utilizing all the potentials, including digital.

In this sense, HR needs to evolve as business is evolving, to help employees and the business grow.

As professionals, what do employees expect and what do they get in reality?

In this 2016 HR Handbook, you will find all the insights you need: their behavior, their motivation or what drives them, and their goals. We hope you find this report interesting and helpful for future HR and business strategy.

Dino MartinCEO of Karir.com

Data on this handbook was gathered through two rounds of online survey: Salary Benchmark and City Survey.

Salary Benchmark is conducted during the October 2015 to January 2016 (3-month) period that gathered 37,000 respondents all over Indonesia.

As for users, Salary Benchmark 1.2 is a feature to measure salary relevancy based on industry, work experience and job level. This feature was developed by Karir.com in collaboration with Kelly Services Indonesia and Fokus Finansial.

City Survey took place during March to April 2016 in five big cities in Indonesia: Jakarta, Surabaya, Bandung, Makassar and Medan. It has gathered of more than 18,000 respondents.

This survey was developed to study employee behavior, their motivation or what drives them, and their goals; moreover, it is complementary to Salary Benchmark survey.

Introduction

About the Survey

Database Demography

Contact Us

Index

City Survey

Salary Benchmark

Conclusion

Prepared by

About Karir.com

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More than half or 60% (33,000 from total 55,000 respondents) of overall respondents is male, and nearly the same number of respondents belongs to Gen Y. The number of Gen Z respondents is less than 3% (less than 1,650 users), and the others are Gen X.

From the charts above, we can see that male and female, also Gen X and Gen Y respondents show almost the same level of enthusiasm for participating in the surveys.

Bachelor-graduates show the biggest enthusiasm among other respondents, followed by High-school and Associate-degree graduates.

The number of Master-graduates who are participating in the surveys is 1,749 respondents (representing 3.18% among 55,000 respondents).

The biggest number of respondents comes from Jakarta and the nearby cities, such as Bogor, Depok, Tangerang and Bekasi. These cities contribute to a number of 57% or 31,350 respondents. West Java has the second biggest number of respondents — 12% or 6,600 respondents.

Other locations include Kalimantan, Maluku, Bali, Nusa Tenggara, Papua, etc.

Total respondents 18,000.

More than 60% or 10,800 respondents find jobs on the internet. Papers, job fair and social media attract almost the same number of professionals.

*Information about comparison based on cities can be provided if requested.

30% (or 5,400) of our respondents prefer IT to other industries. In second place, 23% or 4,140 respondents prefer to work in Finance Industry. In the past, Finance Industry (include Banking) attracts the most. This shows that IT is an attractive emerging industry.

27% or 4,860 respondents are interested in HR, while only 12% or 2,160 respondents are interested in Marketing & Sales. This is an interesting finding. The question is; why is HR sexier than Marketing & Sales?

If you want to know more about this particular finding, please contact our business consultant

37.8% or 6,660 respondents will stay if working environment suits them, while 37.3% or 6,714 respondents will stay for a bright-future career path. So, if your company is able to provide sustainable working environment and career path, you have a 75.1% bigger chance to make them stay.

53% or 9,540 respondents mention that their dreams in 10 years is to own a business, while 17% or 3,060 respondents want to lead a company. This is a challenge for HR to fulfil the need of entrepreneurship in order to retain their employees.

30% or 5,400 respondents do not think of finding a new job.

Interesting to learn that there are 2,700 respondents or 15% who will find a new job in less than one year.

We asked our respondents; “What is the ideal salary for professionals with 5 years of experience?”

Majority of our respondents or 33% choose 6-7 million rupiah as the ideal salary for professionals with 5 years of experience.

Surprisingly, only 11% of our respondents that consider salary above 12 million rupiah as the ideal salary for a five year experience.

*Salary data is in million Indonesian Rupiah (IDR), gross, per month.

4 to 5 22%

6 to 7 33%

8 to 9 21%

10 to 11 13%

abv. 12 11%

Total respondents 37,000.t

This chart helps us to understand the salary distribution in the top 9 industries. Market average represents average salary in each industry.

Sadly, in the Education industry 57% of our respondents have salary below the market average and only 6% have salary above.

The gap of average salary between Gen X and other Gens (Y & Z) is quite significant. However, between Gen Y and Gen Z is relatively close. Interestingly, 3.5% (116 respondents from total 3,330) of Gen Z has salaries above 11 million, and 1.4% (362 respondents from total 25,900) of Gen Y has salaries above 20 million.

The graphic above also shows that the majority of our Gen Y and Gen Z respondents still have salary between 2-5 million rupiah.

*Salary data is in million Indonesian Rupiah (IDR), gross, per month.

x y z

7,770 25,900 3,330

Majority of our users from local (55%) companies have salaries between 2-5 million.

Multinational pays more than local companies. They pay 70% higher average salary compared to local/national companies. Moreover, 20% (or 1,702 from total 8,510) respondents of employees who work at multinational companies have salaries above 11 million. Meanwhile, only 9% (or 2,564 from total 28,490) respondents from local companies have salaries above 11 million. However, the higher the salary range, the narrow the gap between local and multinational companies.

*Salary data is in million Indonesian Rupiah (IDR), gross, per month.

Local 28490 77%

Multinational

8510 23%

The data above shows the top ten industries with the highest average salary among 84 other industries in our database. Oil and Gas companies still offers the highest average salary in the market. The top five are Oil and Gas, Mining & Mineral, Chemical, Aviation, and Law.

*Salary data is in million Indonesian Rupiah (IDR), gross, per month.

Ironically, the Education Industry offers the lowest average salary in the market, followed by the Public Sector Industry. The Media and Automotive are among these ten bottom industries. This graphic also shows that industries which provide services, such as Travel, Restaurant and Healthcare, are below all-industry average.

*Salary data is in million Indonesian Rupiah (IDR), gross, per month.

The highest salary in the Oil & Gas Industry is twice higher than the highest in Mining & Energy. Finance & Banking is at the fourth lowest place, while surprisingly E-commerce is at the lowest among the top ten industries.

The top five industries with the highest salaries are FMCG, Oil & Gas, Computer/IT, Chemical, and Machinery & Manufacturing.

*Salary data is in million Indonesian Rupiah (IDR), gross, per month.

The purpose of this section is to give a picture on how much salary that is expected by professionals and how much that they actually get in real situations.

During the surveys, we encouraged users to measure their expectations based on how they see themselves — their experience, education, job level, and so on.

By comparing how much they expect and how much in reality, we can measure their level of satisfactions. The insights might accordingly give you a clue to define future recruitment or retention strategies.

We divide this chapter into 26 sub-chapters based on industry.

We provide data from Entry Level to Middle Manager only due to the number of sample available.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

All Actual salaries are based on the Salary Benchmark survey where it will vary from different year of experiences from one to at least fifteen years of experience. Salary data is in million Indonesian Rupiah (IDR), gross, per month.

Most professionals especially in the entry level set their expectations too high.

For example, in Computer/ IT Industry, the expected salary for Entry Level is 8.51 to 10.7 million, while the real situation is between 2 to 10 million. High expectations also happen in the Pharmaceutical Industry; the expected salary for Entry Level is 5.02 to 7.64 million, while the real situation is ranging from 2 to 6 million.

Five industries with the highest average salaries are Oil & Gas (12,099,508), Mining/Mineral (11,403,607), Chemical (9,175,496), Aviation (9,045,126) and Law (8,551,094).

The five industries with the lowest average salaries are Education (3,804,423), Public Sector (4,183,167), Travel (4,312,803), Restaurant (4,326,429) and Printing & Packaging (4,601,167).

The top five industries with the highest salary are FMCG, Oil & Gas, Computer/IT, Chemical, and Machinery. We found that the highest salary in FMCG is at 504 million, Oil & Gas 500 million, Computer/IT and Chemical 400 million, and Machinery 350 million.

*Salary data is in million Indonesian Rupiah (IDR), gross, per month.

Big corporations in Indonesia like Google, L’Oréal, Coca-Cola, Net.TV, Bank BTPN, Mead Johnson, Tokopedia.com, Kaskus.co.id and many others spent a significant investment in making their working environment exciting and a fun place to work. However, creating a supporting environment does not necessarily mean that companies need to spent significant budget. What is important, companies need to create ‘Work-Life Integration’ in the office environment.

Clear career path also plays a significant role in retaining top talents. Since the future lies on Gen Y and Z – where they require a constant attention – companies should consider to implement a 6-month performance review rather than the regular one-year review.

Companies also need to create a sense of ownership to their talents making them even more attached to the companies. For example, creating a project-based tasks, business competition, regular town hall to inspire, regular trainings and development, incentives, stock options and many others.

*If you want more information regarding this, please contact our Business Consultant

As a reminder, 55,63% of respondents are Gen Y, and another 41.4% is Gen X. Also that 58.17% are Bachelor-graduates, 57% lives in Jabodetabek (Jakarta, Bogor, Depok, Tangerang, Bekasi), 60% finds jobs on the internet, their two most favorite industries are IT (30%) and Finance (23%), and their two most favorite job functions are Human Resources (27%) and Accounting & Logistics (18%).

The average salary for the Gen X group is 11,977,541, Gen Y is 4,972,518, and Gen Z is 4,291,994.

The average salary at the multinational company group is 9,493,856, while local/national is 5,571,019.

*Salary data is in million Indonesian Rupiah (IDR), gross, per month.

Rizka SeptiadiChief Marketing Officer

rizka.septiadi@karir.com

Ratih PulkeriaProduct Manager

Bobby PranotoDigital Marketing

AriawanSoftware Engineer

Hanni AngelicaGraphic Designer

HartonoSr. Graphic Designer

Cindy NaraHead of Content

Dino MartinChief Executive Officerdino.martin@karir.com

Karir.com was founded in 1999 as the pioneer of the Indonesian career portals.

Since December 2014, Karir.com becomes the part of EMTEK Group, an integrated group of companies with Media, Telecommunications & IT Solutions, and Connectivity as main business divisions.

Some of EMTEK's online portfolios are Liputan6.com, lakupon.com, Vidio.com, and now Karir.com. We provide services for companies to hire the best talents through online job ads.

Products we have developed so far:

City Pages: Jakarta, Surabaya, Yogyakarta, Bandung, Medan, Makassar

Startup Page

MT Academy, our talent scout program

Karir.com Expo, our offline job fair in cities in Java, Sumatra, Kalimantan and Sulawesi

Next Career, our Headhunter Division

EFSET, in collaboration with Education First (EF)

Salary Benchmark, in collaboration with Kelly Services and Fokus Finansial

Interest Test and Communication Style Test,

in collaboration with Atma Jaya University’s Institute of Psychology

Karir.com Blog

Headquarter

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Ph. (+6221) 2930 5891

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Ph. (+6231) 9914 1126, 9914 1127, 9914 1328

Yogyakarta Branch Office

Ruko Panda Kavling Q, Jl. Arteri Ringroad Utara, Yogyakarta 55281

Ph. (+62274) 292 0790

Or, drop your email to: cc@karir.com

PT. Karir Komunika Pratama

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