Here's why the labour market must watch out for skills shortage

1 in 2 bosses expect staff turnover.

According to the 2012/13 Michael Page Salary & Employment Forecast, rmployers across Singapore’s professional sectors expect their business will be faced with a skills shortage in the coming year due to staff turnover.

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The report, which is based on the responses of almost 300 employers, reveals that over half of employers surveyed (56%) expect staff to change roles and companies in the next 12 months.

This turnover is likely to lead to a limited supply of available talent in the white collar job market, with 42% of surveyed employers expecting a skills shortage.

“Many employers are expecting that some of their staff will change companies and roles in the coming year as more job opportunities become available. This is most likely to be seen in the procurement, supply chain, sales, marketing and insurance areas as organisations continue to establish headquarters in Singapore,” says Mr. Andrew Norton, Regional Managing Director of PageGroup in South East Asia.

“With top talent expected to seek new job opportunities in 2013, a shortage of skilled professionals is also anticipated in companies. Therefore, talent management will be a priority for employers next year,” Mr. Norton adds.

Amidst a job market that is limited in its supply of available quality talent, employers are likely to implement both financial and non-financial incentives to attract and retain professionals.

The report reveals 35% of employers rate recognition and reward incentives as the most important talent management tool, followed by 26% citing the provision of structured career progression.

“Talent attraction and retention remains a challenge for employers as skills shortages exist and local talent remains in demand. While retention is a relatively new focus for employers in Singapore, some of our clients are looking to offer non-monetary based strategies such as training and opportunities for career development. Many will also continue to reward their best performing employees with monetary incentives in an effort to retain them,” says Mr. Norton.

A reasonably high percentage of surveyed employers (60%) anticipate that the skills shortage will place an upwards pressure on salaries, leading many to award salary increases in the coming year. Some 40% of employers expect to award pay rises in the range of 4-6%, while 28% will award their staff with a 3-4% boost in wages.