- POSTED: 21 Jan 2014 13:41
- UPDATED: 21 Jan 2014 23:49
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Employees in Singapore will receive conservative salary increases this year, according to the 2014 Salary Guide by recruiting group Hays.
SINGAPORE: Employees in Singapore will receive conservative salary increases this year, according to the 2014 Salary Guide by recruiting group Hays.
But a survey by international recruiter Robert Walters found that job switchers could see a significant pay increase.
Hays said in Singapore, 56 per cent of employers intend to increase salaries between 3 and 6 per cent, and only 14 per cent offered increases of 6 to 10 per cent.
Just 5 per cent of employers gave increases above 10 per cent.
Human Capital Singapore expected an overall wage increase of 3 per cent this year, but things may be looking up for those hoping to make a career switch in 2014.
A (Global) Salary Survey by Robert Walters suggested that job movers in Singapore could command an average of 15 to 20 per cent salary increment, depending on the job.
Career switchers in accounting and finance could expect a 10 to 15 per cent increase, while those in human resources could expect a 12 to 20 per cent increase.
Job movers in the legal and compliance market could command a 20 per cent salary increment.
But with a tight talent pool, Robert Walters Singapore’s managing director Toby Fowlston said employers are looking for quality candidates.
Mr Fowlston elaborated: “Clients are looking people with good clean CVs, good academic qualifications, sometimes multi-language skills, also people who might have the appetite to look at overseas opportunities.”
While changing careers may be a good sign for workers, employers may suffer.
David Ang, director of capability & business development at Human Capital Singapore, said: “They have to grapple with this high cost of manpower. So the next issue the company would have to ask themselves is: How am I going to be more productive? How can I derive higher productivity for the workforce?
"In certain situations, you many have to consider retaining the right person and high-performing employees rather than to lose them if you don't pay them appropriately."
The survey by Robert Walters also noted that contract hiring is likely to be on the rise as employers are looking for a more flexible workforce.
In the year ahead, the survey expects firms to increase their focus on hiring locals.
The 2014 Salary Guide by Hays revealed salary and recruiting trends for over 1,200 job roles in Singapore, Malaysia, Hong Kong, China and Japan.
It is based on a survey of over 2,600 employers and placements made by Hays.
The findings by the recruitment firm are slightly more conservative than those for Asia overall, where 22 per cent of employers offered increases between 6 and 10 per cent, and a further 7 per cent increase above that level.
38 per cent of employers increased salaries between 3 and 6 per cent.
Looking ahead, employers in Singapore expect to award similar increases this year.
56 per cent intend to increase salaries between 3 and 6 per cent.
17 per cent will increase salaries above that level, but 27 per cent expect to give an increase of less than 3 per cent, or no pay increase at all.
In comparison, across Asia, 40 per cent of employers intend to increase salaries between 3 and 6 per cent and 29 per cent will offer increases above 6 per cent.
So while more employers will offer increases at the higher level, 31 per cent also expect to give an increase of less than 3 per cent or no pay increase at all.
Chris Mead, regional director of Hays in Singapore and Malaysia, said: "Cost control has lowered the ceiling for salary increases in many organisations across Asia. Employers are more focused on the bottom line.
“Certainly salaries remain competitive, and for the top talent many employers offer higher packages to entice candidates, proving that money still talks. But in general, salaries are starting to become more conservative than they once were.
"In an attempt to manage retention, we have seen an increase in the number of organisations offering benefits. 85 per cent of organisations now offer their staff benefits, which is up from 79 per cent last year.
"And according to our survey, 53 per cent of employers intend to award a bonus to more than 50 per cent of staff.”
Mr Mead also said that in the next 12 months, 71 per cent of employers expect business activity to increase and 43 per cent expect their permanent staff levels to increase.
He said: “That's strong evidence in support of a local economy that is both confident and providing jobs.
"This means that those candidates with in-demand skills and realistic salary expectations can be confident that this year will provide them with the opportunity to secure a challenging career move and a salary increase.”