Singapore bosses to give workers wage hike to retain top talents

46% are eyeing to boost staff retention.

According to the latest Global Sentiment Survey from Berkley Recruitment, businesses are increasing headcount at a time when the war for talent is at its highest.

Whilst the global economic crisis put a freeze, and in some cases a stop, to pay rises the survey reveals that the market appears to be turning a corner as we head towards 2014 with 99% of respondents now expecting an increase of some sort. This figure is up 29% on the previous survey in March 2013 and one of the highest recorded across the globe.

With recent reports by the Ministry of Trade and Industry (MTI) noting Singapore's economy had grown 5.1% year-on-year in the third quarter of 2013, faster than the second quarter's revised 4.2% growth, organisations are expecting to see an increase in recruitment activity.

Consequently talent retention is paramount, and businesses in the area are using financial incentives to keep key players engaged with the business. This is sentiment the Regus Business Confidence Index (BCI) survey concurs with. In its report, the BCI found that 46% of Singapore respondents plan to improve staff retention over the next twelve months to optimise business processes and gain maximum advantage from existing assets.

Headcount growing in wake of government policy changes

Headcount is on the rise in Singapore with 58% of respondents noting an increase in roles within their business – up 17% on last year’s figures. This positivity comes at a time when the Government has committed to increasing the ratio of local talent in employment.

The latest measure, which comes into force next August, will require companies operating in Singapore to give priority to local residents in the recruitment process, a policy which looks set to exacerbate the war for talent.