Singapore employers to dangle more carrots to retain staff

Companies in Singapore are set to give more incentives on top of salary increments in a bid to retain their employees in the new year, according to a survey by global consultancy firm Mercer.

The overall salary increase in the Republic projected for 2020 is 3.7%, up slightly from 3.6% in 2019, said the firm in its annual Singapore Total Remuneration Survey.

However, it might not be enough to prevent employees from jumping ship, with a quarter of Singaporean employees seeking new jobs in 2020.

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“Faced with the possibility that this alone may be insufficient to achieve retention of employees and recognise their contribution, companies are turning to other incentives in addition to salary increments,” said Mercer.

One of the incentives Singapore employers are adopting to keep their best talents is retention bonuses, with one in three companies doing so in 2019, compared with one in four in 2017.

With hiring new talents getting more costly for employers, it’s no wonder they are dangling more carrots to keep their staff.

Mercer’s survey showed that companies are paying 10.6% more for executive candidates and 11.6% more for management candidates if they join at the same level. This premium could be up to 14.4% and 15.3% respectively if the candidate is joining at a higher level.

Meanwhile, Kulapalee Tobing, Mercer’s career products leader for Singapore, urged companies to look beyond just monetary incentives to retain their employees.

“There needs to be a shift from developing isolated reward initiatives towards more holistic talent strategies that acknowledge pay as only one means of differentiation and motivation,” she said.