Unlocking effective people practices in 2025 

As the labor market in Asia shows signs of recovery in mid-2024, with decreasing quit rates and stabilizing unemployment reflecting robust economic growth—especially in South and Southeast Asia—HR leaders face new challenges. 

While employers are poised to allocate a greater share of revenue to wages over the next five years, compensation increase budgets are starting to decline due to a gradual alignment between talent supply and demand. And, with over one-third of organizations re-prioritizing investments in employee-valued rewards for 2025, navigating this complex economic landscape—characterized by fluctuating job creation rates and varying interest rate adjustments—becomes crucial. 

Drawing on Mercer’s data and reports, this report equips HR leaders with insights into four key trends: 

• Talent Demand and Supply
• Salary Budget Movements
• Pay Segmentation
• Pay Transparency