The 2025 Hays Asia Salary Guide, released annually, focuses on key trends in salaries, hiring, and workplace priorities across the continent. Responses are based on a survey taken in late 2024 from nearly 8,800 working professionals in China, Hong Kong, Japan, Malaysia, Singapore, and Thailand. Some 3,670 respondents identified themselves as hiring managers.
Salary Expectations
Regionwide, 30% of participants indicated that their salary remained static in 2024, while 27% received an increase between 2.5%-5%. Of employees who received a pay raise, 30% attributed it to their individual performance, rather than promotions, switching jobs, or standard annual increases, highlighting the growing importance of performance-based pay.
This year, 30% of workers anticipate a raise between 2.5%-5%, while 17% expect less and 16% expect more (up to 10%). Looking at projections from organizations’ perspectives, 43% say pay rates are likely to remain the same or decrease, while 48% expect raises between 2.5%-10% and up.
In-Office vs. Hybrid Schedules
China proved to be an outlier in 2023 when it came to flexible work arrangements, with only about a quarter of participants emphasizing it. This year’s report has shown some changes, with 62% of participants in China indicating they come to the office five days a week. Hong Kong follows closely at 54%; though this shows a slight divergence from mainland China, overall it points to the significance of in-office culture within the country.
Meanwhile, all other nations and territories lean significantly more toward flexibility. In aggregate across Asia, three days a week in the office is the ideal schedule for organizations and employees. According to respondents, this balanced approach is one of the reasons they’ll stay with their current organization, stressing the growing importance of hybrid arrangements in today’s workforce.
A Skills Gap Dilemma
Six in 10 organizations faced moderate to extreme skill shortages in 2024, Hays’ latest report shows, with intermediate-level roles proving particularly difficult to fill. This is only made more cumbersome by more than half of professionals saying they are actively seeking or planning to look for new opportunities in 2025.
Despite resignation rates being lower than pre-pandemic levels, a lack of room for career growth is driving individuals’ interest to seek opportunities elsewhere. According to the survey, 55% of employees believe their current role offers no opportunities for advancement. This can lead to lower morale and, ultimately, poorer performance.
To tackle skills shortages and improve productivity, Hays urges organizations to prioritize upskilling their workforce. “Investing in targeted training programs and establishing clear career advancement pathways can enhance job satisfaction, lower turnover rates, and address the skills gap,” the report says. Companies facing budget constraints can offer alternatives, like mentoring or online courses and tutorials. “This proactive strategy supports employee retention, fosters a dynamic and engaged workforce, and aligns with both strategic goals and financial limitations,” the report says.
From Sci-Fi to Practical Tool: Growing Use of AI
While generative AI was just getting off the ground a few years ago, its adoption has grown significantly, impacting nearly all facets of work and life. “AI's transformative potential will continue to evolve in 2025, where it will continue to drive innovation, enhance efficiency, and unlock new opportunities across the workplace,” the report says. “This evolution marks a shift from viewing AI as a futuristic concept to recognizing it as a practical, integrated tool that addresses both immediate needs and long-term strategies.”
The main benefits of AI, according to respondents, are increased productivity and efficiency (64%), increased creativity and idea generation (46%), and higher quality of work (36%). By location, participants from China and Hong Kong were among the most likely to embrace AI at work, with 31% and 33% of organizations in those locations, respectively, offering training or support for the technology. At 32%, Thailand also marked relative high adoption, while Japan, Malaysia, and Singapore ranged between 25%-27%.
Patterns in Asia Support Worldwide Workforce Trends
While Hays’ report focuses on trends in Asia, its findings have worldwide implications and affirm macrotrends. Difficulty in finding workers to fill labor needs in the United States has, for example, recently been reported on by the U.S. Chamber of Congress. In December, the European Commission warned that skills shortages risk becoming entrenched in the EU economy, according to a report by Euractiv. Likewise, trends related to AI and workplace flexibility have also been stressed by reports covering other regions. While the details vary country by country, coverage points to the fact that these issues are not limited to one part of the world.
In 2025, the challenge of attracting and retaining talent remains for employers across Asia, paired with workplace dynamics that continue to shift while employees desire flexibility and the opportunity to grow their careers. To sustain business growth, adapting talent strategies will be essential. Talent mobility leaders, in partnership with HR professionals, will be critical to this effort, focusing on effective flexible work policies, strong adoption of technology in the age of AI, and training programs that meet employees where they are — and where they want to go next.
For more insights and trends from Asia, join us for WERC APAC 25, taking place 27-28 May in Singapore. Enjoy two days of localized education and networking with talent mobility industry professionals, featuring conversations about the region’s labor market, broad economic implications, and immigration trends. Register today.