Salaries in China are forecast to rise 8.5% before inflation is taken into account. When interpreted, the findings could mean that many companies in the Asia-Pacific region are facing difficulties looking for and retaining suitably skilled staff. The companies are budgeting for the higher pay accordingly. The main factors behind the increase of salaries throughout the region include great increase in demand for compliance staff to meet with the increased regulations and also the regional expansions by local players that seek to go beyond their domestic shores.