Middle managers' pay increased 8.7 percent, 8.6 percent and 8.4 percent in Shanghai, Guangzhou and Beijing respectively last year.

But despite higher pay, middle managers preferred to job hop according to the survey, indicating they were the most sought-after employees in the job market.

Salary and remuneration packages have become a key factor for employees, said Brenda Wilson, managing director of Mercer China.

"Employers are faced with two great pressures the drain of excellent employees and increasing salary costs," said Wilson.

Analysts said that given the competitive employment climate, employers needed to find more efficient tools to retain high-caliber staff. A decent salary and attractive remuneration package were considered the most common measures.

"Employers realize they should adopt a new talent introduction and retaining mechanism," said Wilson. She said this would involve recognizing outstanding employees by widening the salary gap, formulating a quick-response pay adjusting system, and providing good conditions such as flexible working hours.

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