'Attempts to retain staff via increments will have an impact on the salaries of those not looking to move'
Two-thirds (67%) of employers in Singapore are having to offer higher-than-expected salaries to attract new employees.
That’s according to a new survey by Morgan McKinley that also found 61% of employers have had to increase salaries to retain existing staff in the last year. Furthermore, 75% of employers in Singapore think that salaries in their specific sector will rise in 2023, with a third (33%) planning on increasing base salaries across all teams.
On the employee side, just over half (51%) of Singaporean employees are expecting their salaries to increase this year, with 65% also expecting some form of bonus.
And 64% say they are looking to move jobs in the first half of the year. Why? Almost half (43%) selected “higher salary” as the primary reason for wanting to move, followed by “better career growth and development opportunities” (18%).
With inflation a growing concern among many employees, nearly half of Singapore's workforce will be asking for a salary hike or look for a higher-paying job this year, according to Indeed.
Singapore's hiring market was bullish throughout 2022 due to an appetite for growth, says Gurj Sandhu, managing director of Mogan McKinley Singapore.
“This came as the economy opened up post-COVID-19, and companies sought to meet pent-up demand to hire. With a level of economic uncertainty impacting global markets, recruitment is likely to be more subdued this year, with companies and professionals focusing more on stability as opposed to growth.
“We anticipate that, as companies watch their headcount and costs, short-term contract hiring will be more prevalent — we are already seeing a rise of flexible and contract resources."
As a result, there will be a slight recalibration of salaries, he said.
“Whilst professionals will receive an uplift when moving externally, the increases are broadly not likely to be as significant as they were in 2022. Attempts to retain staff via increments, alongside managing inflation, will also have an impact on the salaries of those not looking to move."