I.T. firm, cafe among companies that raised salaries
Oneberry Technologies chief executive Ken Pereira. Photo: Wee Teck Hian
Bucking the trend, IT solutions firm Oneberry Technologies gave its workers a pay rise of between 5 and 10 per cent last year.
Chief executive Ken Pereira (picture) told TODAY that employees in the 220-strong company received a minimum of 5 per cent in wage increments, with the top performers — about 5 per cent of its workforce — receiving a 10-per-cent increase. In 2015, the pay rise was between 4.5 and 10 per cent.
Oneberry Technologies is an outlier: The Manpower Ministry’s yearly report on wage practices, which was released yesterday, showed that among firms which raised total wages last year, the increases stood at 4.9 per cent, down from 5.6 per cent in 2015. Real wages of workers rose by 3.6 per cent last year, lower than the 5.4 per cent seen in 2015, after taking into account inflation and employer Central Provident Fund contributions.
Mr Pereira said that the 13-year-old firm had to “do things differently” to retain its employees, having invested heavily in training them. It expects even better wage growth this year, since it would be rolling out new concepts in areas such as robotics, he added.
At homegrown cafe chain Joe & Dough, employees also saw wage increases of between 3 and 4 per cent on average. Managing director Damien Koh said that the company is exploring opportunities, including ones abroad, so that there is “continued growth for staff members”.
If business stays stagnant while wages increase, it would be tough, he added, saying that the company would try hard to maintain wage growth at the same level this year.
In the hotel sector, Royal Plaza on Scotts has kept the same wage increment at 4 per cent this year, as it was last year, primarily to “retain our current pool of talent”, its general manager Patrick Fiat said. Variable bonuses stand at two months, which is higher than the industry average, he added.
While firms are generally still cautious on wages and hiring, Singapore Human Resources Institute’s president Erman Tan said that bright spots remain as companies seek to stay competitive by tapping innovation.
These are in the information technology, e-commerce and engineering fields, with experienced workers in areas such as data analytics and cyber security in “huge demand”.
These places will also likely see bigger wage growth, he added. KENNETH CHENG
