Hefty bonuses lure banking professionals to Singapore’s local banks

Fatter paychecks are only secondary.

If you think higher pay from foreign banks is going to dampen hiring in Singapore’s local banks, think again. According to Lim Chaileng, director of banking, finance, and accounting at Randstad Singapore, hiring continues to remain relatively fluid in the city-state’s local banks which saw a 70% spike in job applications.

Local bank hiring thrives

In fact, Lim says a number of hiring trends are emerging in Singapore’s banking sector over the recent months, including Know Your Client (KYC), Transaction Monitoring and AML, Operational Risk, IT audit, as well as Corporate Finance.

But what attracts banking professionals into local banks when foreign banks reportedly give out fatter paychecks? Lim says it all boils down to bonuses, which are considerably higher compared to what is offered by global banks.

A nip-and-tuck affair with foreign banks

Kyle Blockley, managing partner of recruitment firm KS Consulting, affirms this, but says it was only recently local banks’ bonuses became competitive.

“Historically bonuses at foreign banks were far higher,” Blockley says. Foreign banks usually counter these bonuses with more competitive benefits and career exposure, and to combat this, local banks offer internal pay increments which can up to 15%, subject to promotions and performance, says Randstad’s Lim.

Rising employment inquiries

The adjustments have been largely paying off for Singapore’s local banks, Lim says. Hiring for mid-level candidates, or those with experience ranging between 5-9 years, remain fairly fluid.

 “On average, we see about 80 to 100 resumes per week, with an equal proportion of candidates coming from banks which are undergoing restructuring versus those who have remained in a bank for an extended period of time,” Lim says.

Perceptions of stability

Meanwhile, KS Consulting’s Blockley doesn’t think larger bonuses are the end-all-be-all for being competitive in hiring banking professionals. Blockley says job losses at banking behemoths such as Barclays and Standard Chartered have fueled the perception that Singapore’s local banks are in fact, more stable employers.

 “The local Singapore population have definitely started to stay away from the Western Banks due to the uncertainty of how long your career will last with them,” Blockley explains.