Singapore banking professionals better than their Hong Kong counterparts

Companies are now replacing employees from Hong Kong with candidates from Singapore.

According to Robert Walters Singapore’s Market Update, hiring activity was relatively slower in the first half of the year, with employees holding off switching jobs as they waited for their bonus payouts and salary reviews. Although most companies had aggressive revenue targets, they were cautious in terms of hiring, and focused more on up-skilling existing employees’ capabilities and productivity in the form of training and development. Hiring levels picked up from March onwards, especially after bonuses were paid out.

We also saw more financial services organisations outsourcing part of their HR operations to external companies or to lower cost countries. Areas which were typically outsourced included payroll, recruitment and staff mobility assistance.

Many financial services firms are viewing Singapore as a more affordable option as compared to Hong Kong as HR salaries for junior levels tend to be lower in Singapore. In addition, the standard of English amongst Singapore candidates tends to be better. This gives Singapore banking professionals, especially the more operational ones, a better competitive advantage over their
Hong Kong counterparts.

As a result, we are starting to see a trend where companies are replacing headcounts from Hong Kong, particularly for those who have resigned, with candidates from Singapore.

In terms of salary expectations, candidates were seeking salary increments of at least 25% upon moving roles. However on the average, actual salary increments ranged between 12 to 15% across the board as companies continued to focus on cost-saving initiatives.

Moving into the second half of the year, we expect recruitment levels to be healthy, especially at the middle management level. This is largely due to the trend of employees actively seeking new job opportunities after receiving their bonus payout in the first quarter. Roles in demand will likely focus on key areas such as compensation & benefits (including dedicated benefits roles), generalist, training and recruitment.

Salary levels and increments for HR candidates are likely to remain steady throughout 2011.