80% of Singapore employees will barely feel their salary increase in 2011

A survey reveals that only 20% of the country’s workforce can expect to be paid 6% higher this year.

Findings from the latest Hays Salary Guide indicated that almost two thirds (62 per cent) of all employers expect to increase salaries between three and six per cent in their next review.

With a strengthening economy and improved firm performance, 69 per cent of employers have indicated they will award bonuses to more than half their staff this year. This is up from 57 per cent last year.

The Hays Salary Guide includes recruiting trends and typical salaries for over 600 job functions in 17 specialist industries across Singapore, China, Hong Kong and Japan.

More than half the respondents said they had increased staff levels in the past 12 months and a further 54 per cent intend to recruit again this year, indicating bright prospects for hiring new employees.

Nigel Heap, Managing Director of Hays Asia Pacific said that with jobseekers benefited from Singapore’s robust economic performance last year, with candidates in the finance, banking, oil and gas, pharmaceutical and IT sectors being easily recruited.

Heap noted that with skill shortages dominating the market this year, many employers have said they are prepared to pay top salaries to attract the best talent.

“In the IT industry for example, salaries could increase by up to 25 per cent for specialist roles or positions where the candidate pool is very limited. Business development and sales professionals will also be a hot commodity, particularly those with a strong network of contacts within their industry,” Heap said.

“Overall, candidates are in a much stronger position than they were 12 months ago. The momentum of this new landscape will put pressure on salaries and recruitment processes with organisations having to carefully consider their employee attraction and retention strategies,” the managing director added.