13% average bonus increase last year failed to satisfy Singapore finance sector professionals

While 53% of those surveyed reported that their bonus was higher than in 2009, only 45% of respondents indicated they were satisfied with their bonus.

According to the eFinancialCareers Global Bonus Survey, despite higher bonuses this year, attrition rates are expected to increase as 62% of Singapore-based professionals surveyed expect to change positions in 2011: 49% of them looking to change firms and another 13% looking for new positions within their existing firms. The 19% of respondents who do not plan to change jobs earned on average higher bonuses than those who plan to change positions.

“Dissatisfaction amongst Singapore-based finance sector professionals will likely fuel post-bonus turnover across the city’s finance industry, a sector that is already experiencing significant talent shortage as companies look to expand,” commented George McFerran, Head of Asia Pacific, eFinancialCareers. According to the eFinancialCareers’ Global Bonus Survey, finance professionals are expecting expansion across all business sectors including wealth management and investment banking, trading, risk management, equities, and operations just to name a few.

“Employee retention is key in the current climate as people who were reluctant to move during the financial crisis look for new career opportunities. Higher average bonuses in 2010 versus 2009 will do little to retain employees. Companies need to gear up their retention efforts and invest in their employees’ career development in order to prevent star performers from jumping ship,” added Mr McFerran.

Overall, nearly seven out of ten (68%) Singapore-based professionals in the finance sector reported increased earnings (salary and bonus) in 2010. These professionals experienced a growth in earnings on average of 31%. Not only did front office professionals earn the most in 2010, they also received the largest annual increase in earnings (26%).