Why hopes are fading for fatter wage hikes in 2014

Expect a measly 4.4% increase.

Hay Group, the global management consultancy, said Singapore workers can expect only prudent pay rises this year, with a less than optimistic forecast for 2014.

Hay Group’s report, Building the Capabilities of the Next Generation Workforce, was based on a March 2013 pulse survey, covering over 190 Singapore-based companies (local and foreign-owned) from both the private and public sectors. They were polled on their business sentiments and salary and bonus projections for the next 12 months.

The Building the Capabilities of the Next Generation Workforce report showed that the actual average salary increase is 4.7 percent for 2013 while the average salary increase for 2014 is forecasted at 4.4 percent.

The Hay Group report also showed that the actual average variable bonus (i.e. performance-based bonuses excluding annual wage supplement, contractual bonuses) is 2.3 months for a 12-month period. This is 0.2 months lower than the average of 2.5 months in March 2012.

A breakdown by employee level revealed that Senior Management received an average variable bonus payout of 3.0 months, followed by 2.3 months for Middle Management, 2.1 months for Junior Professionals and 1.9 months for Clerical Support.

The forecast average variable bonus payout remains steady at 2.3 months for 2014.