72 % of Singaporean companies are budgeting a pay rise for staff

But its not all good news, with 41% of companies having no plans to hire and 6% planning to fire staff this quarter.

Over half of the employers surveyed expect business conditions to improve in the first quarter, with a further 37% predicting conditions will remain stable.Most companies (39%) will be hiring in operational areas to help support increasing levels of business activity. An additional 35% of respondents will be focusing recruitment on front line, revenue generating roles in areas like sales and business development in an effort to further boost revenue lines and increase market share.

The retention of key talent is a critical business challenge for many companies in Singapore. Some 72% of employers will be increasing their budgets for salary rises in 2011 in an effort to financially reward their top performing employees.Most companies in Singapore (56%) will be offering performance-based rewards to help retain their most valuable staff. A further 27% of businesses will be providing training and development opportunities for employees as an incentive to remain with their company.

Despite the strong focus on staff retention in the first quarter, the majority of respondents in Singapore (58%) expect turnover to increase during this period. This is higher than the comparative figures for China (48%), Hong Kong (46%) and Australia (32%).

Click here to find out more about Michael Page's employment forecast for 1Q 2011.