Salaries set to balloon in finance and accounting sector

Firms are considering outsourcing to reduce costs.

The optimistic outlook for the sector has driven firms to consider expanding their team headcounts, boosting the demand for quality talent.

According to Michael Page 2016 South East Asia Salary and Employment Outlook, the increased demand would lead to a degree of salary inflation, as 58% of workers interviewed expected increases of 1-5%.

The report also says 29% are expecting even bigger increases at 6-10%, while 91% of firms interviewed will offer bonuses in 2015.

“They know they are in demand, so where there are opportunities they will ask for a big jump (in pay),” said Jeffrey Ng, director of Michael Page Singapore.

Consequently, predicted turnover also jumped, with 30% of respondents thinking they will lose 11% or more of their staff in the next 12 months.

“40% cite an improved salary as the main reason they expect employees to leave. 67% state money is the most important factor in attracting new staff, a figure which is notably higher than the 60% average across all industries,” the report said.

To save costs, the report said companies are considering outsourcing some functions to see continued growth in shared services.