Employers in Singapore prepare salary raise to attract and retain talent
Prospective employees’ general dissatisfaction with the benefits packages offered to them caused many organisations in Singapore to lose out on hiring new talent over the last six months.
According to global talent services organisation Morgan McKinley’s recent 2024 Salary Guide report, 80% of organisations in Singapore faced multiple challenges in hiring new talent in 2023. Nearly four in ten organisations reported losing out on hiring new talent in the last six months as they are unable to compete on salary and benefits, and 44% of employers predicted a ‘lack of skilled candidates available’ to be their greatest 2024 recruitment challenge.
Four out of ten employees, on the other hand, are planning to actively look for new jobs in the next six months, with 43% citing ‘higher salary’ as the most valued reason for wanting to move jobs, followed by ‘career growth and development opportunities’ at 14%. 60% of employees are optimistic of receiving a salary increase in 2024, with 72% of employers planning to increase salary offers in 2024 for certain in-demand roles.
Other benefits employees in Singapore are seeking include bonus, the ability to work from home, flexible working hours, health and wellbeing support, as well as health insurance.
Gurj Sandhu, Managing Director of Morgan McKinley Singapore, commented that,”Despite a significant slowdown in hiring from the post-pandemic highs in Singapore, recruitment for top talent is still happening – but it has been difficult. Apprehension from jobseekers, the widening skills shortage due to international talent leaving the region, and increased hiring process length deterring candidates each played a role in this.
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Sandhu concluded: “In a difficult market where headcount may be reducing and workload per person is increasing, employee engagement and togetherness is key. It’s important you understand your people – their career goals and aspirations – to keep them engaged.”