Talent shortages fuel attrition threat

71 % of employers say their staff are being poached for more money.

On a downside,findings highlight concerns of talent shortages and climbing attrition rates. Paul Endacott, Managing Director, Singapore explains, “In a talent short market attrition has become a major concern given the challenges to recruit additional, let alone replacement positions.

According to Ambition's survey, in both Singapore and Hong Kong, almost 50% of respondents said that they had seen their attrition rate increase through the course of 2010. This in itself isn’t surprising given the market in 2009, but what is concerning is that 71% of respondents indicated that the main reason for this is due to employees being lured by better remuneration packages by competitors and 41% indicated that there were a lack of career opportunities available.

“2010 has seen a considerable shift in candidates’ confidence in the market as the number of candidates willing to consider opportunities outside of their current employment continues to increase. In addition, given that growth in 2011 is still on the agenda for most respondents this remains a very real threat moving forward. Through the course of 2010 in Hong Kong and Singapore, we have seen an average salary increment of 10%-20% for candidates that switch companies. It would be unrealistic and indeed unsustainable for companies to offer their employees salary increments of this size, so there needs to be a real focus on retaining people through training, development and career progression. An increased attrition rate, coupled with the difficulties of attracting high calibre talent in a talent short and hugely competitive market like Asia is possibly the greatest threat to business growth.”