The post Covid labor market In Singapore
Our recent salary review found many companies are having to increase remuneration in line with market levels.
On the global front according to media, big firms like Microsoft, Amazon claimed they will adjust increasing salaries of their employees.
Average increments have been significantly higher this year, and companies are paying larger premiums to attract and retain workers especially talents is scarce in their industries..
While data suggests Singapore has not been hit hard by the Great Resignation, it’s likely that some industries are experiencing difficult turnover rates and underlying challenges .
Talent is in high demand in some segments of the workforce, such as Life Sciences ,Technology. With business travel & Tourism returning back in large demand, Aviation & Airline are also facing mountain of talents shortage with Singapore Airline reporting needed to recruit 6,000 workforce .
That creates an environment where many HR leader to predict increased competition for talent.
One of Gemin’si Senior Consultants has stated that around 1 in 5 offers she receives from her clients met with a “significant counter offer” from the candidate’s current employer.
The number of job vacancies in 2021 was at its highest in at least a decade, and 35% of those openings remained unfilled for six months or longer even with help from recruitment agencies— up from 27% in 2020 and bucking a broad downtrend, data from the Ministry of Manpower showed.
Attrition has increased in Singapore’s public service, with the resignation rate among management executives reaching a 10-year peak of 9.9% last year, according to government data.
Last week , Singapore’s Public Service Division announced that 23,000 workers would receive salary increments of between 5% and 14%.
The Legal industry is also booming. In pre covid times, lawyers in Singapore’s top four local firms could expect to receive an annual increment of between 10% and 15%. However now employees would get a larger increment in 2022 with one former employee openly shared in the media salary jumped by a significant amount and the increase wasn’t tied to a promotion
Forecast salary increases across the globe are expected to grow at 4.9% , overall salaries in Singapore are estimated to increase by 3.6% in 2020, up from 3.0% last year.
How effective are employee retention efforts? One senior DBS employee said pay adjustments stemmed the tide of the Great Resignation for the bank.
But other factors should be addressed.
One former legal candidate shared during our interview who recently received a 40% increment said she left the practice seeking s a better work life balance as her current position was “driving her nuts”.
Looking ahead competing aggressively on pay may not be sustainable in the longer run as some companies we know of are already starting to wind back financial incentives , things could also take an abrupt turn as economic recession fears increase.
Competing on company culture is becoming more common you hear from many HR leader are stating that benefits that were offered during the pandemic will remain important and may become the norm to retain and attract talents.
Companies that don’t provide flexible or hybrid work arrangements could eventually lose workers or potential hires.
Gemini Personnel is always happy to discuss current salary and benefit trends and suggest strategies for recruitment or outplacement.
