7 out of 10 Singapore bosses plan to hike pay by 1-5%

Singapore firms to unveil more retention strategies.

According to the 2014 Michael Page Salary & Employment Forecast for Singapore, the majority of employers in Singapore are expected to continue hiring steadily during 2014 and, while skill shortages and staff turnover are likely to persist, salary increases will remain conservative.

Remuneration continues to remain as an important incentive for employees and this is reflected in the survey results. The vast majority of employers surveyed (70%) indicate that they plan to increase average salaries by 1-5%, in line with and taking into consideration inflation rates and market adjustments.

Additionally, 23% of respondents also indicated possible higher increases of up to 6-10%. Global and domestic economic conditions are the main factors likely to impact salary levels in the next 12 months, according to 56% and 52% of surveyed employers respectively.

“Singapore continues to enjoy the influx of companies looking to establish themselves regionally and this is expected to sustain the demand for skilled professionals,” says Mr Bouin.

“This demand is expected to see organisations lean towards hiring local talent as tighter local regulations make it harder to employ foreign professionals. As a result, attraction and retention strategies including offering employee benefits will take greater prominence.”