Huge pay rises and flexible working hours: How Singaporean Companies Are Fighting for Talent

 

Companies in Singapore are adjusting salaries and increasing mental health benefits, bonuses, flexible work policies and more.


Jayson_lys | E + | Getty Images


In a typical year, lawyers for one of Singapore's top four local law firms can expect an annual increase of between 10% and 15%.


A former employee told CNBC that the company said that the number of employees would increase significantly this year. The man said his salary was increased by 40% and that the increase was not linked to any promotion.


The law firm is not the only Singaporean company that adjusts compensation packages to the hot labor market.


DBS, Southeast Asia's largest lender, told CNBC it had raised salaries across the bank by mid-2021. Accounting firm KPMG announced in May that the firm would spend S ڈالر 25 million ($ 18.23 million) on salary increases.


The SPH Media Trust, a news and media publisher, also said that it had recently reviewed salaries to adjust the market level.


Globally, tech companies Microsoft and Amazon have said they will increase their employees' salaries.


Cynthia Young, executive director of recruitment firm Carey Consulting, said the average increase this year has been significantly higher, and companies are paying a premium to attract and retain workers, especially if there is a shortage of skills in an industry. Be


New benefits

Companies in Singapore are also making other adjustments to employee benefits in the form of mental health assistance, bonuses, flexible working policies and more.


"The Singapore labor market is definitely moving forward, or looking at the concrete aspects of the agreement - wages and benefits - as a major competitive battlefield," said Lewis Gard, Mercer's Singapore career business leader.


About 60% of the 270 companies surveyed by Mercer reviewed their profits in 2021, up from 10% and 15% in previous years. This is at least partly due to the tight job market, Garad said.


Prudential Singapore awarded ملازم 1,000 worth of shares to each of its employees in October 2021, said Netha Nair, who heads a team that prepares the workforce for the future. He said the company also gave credit to some workers for using it to book co-workplaces as part of the hybrid work initiative.


Daljit Sal, general manager of technology at the recruitment company, told CNBC that in February, Randstad Singapore began allowing employees to work remotely for up to four weeks each year from anywhere in the world.


We are seeing a very wide range of health and wellness benefits.


Cynthia Ang


Executive Director, Carrie Consulting


An employee of a local media company, who declined to be named because he was not authorized to speak to the media, said more people had been promoted this year than in previous years.


"There's usually a cap in terms of numbers, so it's very limited, but this time they tried to promote the people who deserved it," he said.


Safina Samian, a partner at the communications agency, said employees who have successfully referred to a new hire at Finn Partners can now receive SG $ 5,000 in two payments. That bonus used to be SG $ 1,000.


Sam Partners said Art Partners also offers its employees four days of mental health leave, an annual الا 100 allowance for a welfare app membership and a half-day leave on a Friday.


"We're seeing a very wide range of health and wellness benefits," said Eng, of Kerry Consulting, referring to days of self-care and non-visits.



'Talent War'

Some companies say better benefits are part of a broader effort to retain talent to tackle the global trend of great resignations.


A senior DBS staffer, who asked not to be named because he was not authorized to speak to the media, said the bank adjusted salaries to keep the morale high and "so that we can fight the current talent war." Don't lose sight of what you see in Singapore. "


Li Yanhong, head of Group Human Resources at the bank, confirmed that the pay rise was "to ensure that our employees continue to be paid competitively in the market."


A spokesman for the SPH Media Trust also said it had increased salaries to "keep the competition competitive in recruiting and retaining talent."


Randstad Singapore's Cell said the company's remote work program has been well-received and helps employees reduce the push to find new jobs.


But not all companies explained the reason for the changes.


The legal professional who received the 40% increase told CNBC that the law firm only said it was reviewing the salary.


"This means that they are trying to offer more attractive salaries in order to maintain the role they are playing at home. Maybe this difference is different from what international firms are paying." Fill in the blanks, "he speculated, even though he had no evidence to back it up. This.


Adrian Tan, president of the Singapore Law Society, said in January that the legal industry had lost a record 538 lawyers in 2021 - a 30 per cent increase over the previous year.


'Extraordinary' narrow job market

Recent reviews of salaries and benefits are set against the backdrop of a competitive job market in Singapore, whether or not companies state the reasons for holding them.


"We are in an unusually tight labor market," said Mercer's Guard. He noted that Singapore has historically relied on foreign talent, and that Covid 19 has made it difficult to attract such workers over the past two years.


Although official figures show that Singapore has not been much affected by the drastic resignation, it is likely that different industries are experiencing different turnover rates and the average is hiding too much change. He told CNBC.


He added that there is a huge demand for talent in some parts of the workforce, such as life sciences and tech.


"This creates an environment where HR functions continue to predict increased competition for skills and, therefore, take action," he added.


Read more about the great resignation


Success in retaining talent?

How effective are employee retention efforts? It depends, the activists told CNBC.


A senior DBS employee said the pay adjustment had "stopped the wave of great resignations" for the bank.


"In 2021, our voluntary entry rate was comparable to the levels before the epidemic, and in fact our core markets were equal to or less than the market average," said Lee, head of Group Human Resources at DBS.


An employee of SPH Media Trust, whose salary has been increased by 20%, said that she is no longer in a hurry to find a new job because her salary is high. "It simply came to our notice then.


Maki Nakamura | Digital Vision | Getty Images


But other factors still matter.


The former lawyer, who achieved a 40% increase, said he left the practice "in search of better times."


An employee of a local media company who has seen further promotions at his firm, whose salary has increased by almost 40%, said that if they want to advance their career, they should still look for a new role. Will But he acknowledged that their salaries would make it more difficult to find attractive alternatives.


For Art Partners, there has been a 100% increase in employee referrals since the increase in referral bonuses, Samian said, adding that there must be more candidates in the competitive job market.


Look ahead

However, aggressive pay competition may not be sustainable in the long run, Mercer's Gerard said.


He said some companies were already beginning to withdraw financial incentives for all but "mission-critical" characters.


As economic concerns grow, things can change.


"Some are now considering hiring freezers in their organization to reduce the risk of recession," he said.


"The economic cycle seems to be in the midst of a boom where companies are still expanding and hiring," said Eng of Kerry Consulting.


"I believe in a further six to 12 months, possibly a little less," he said.


Competing over company culture is becoming commonplace.


Lewis Gerard


Mercer, Singapore's career business leader


However, the benefits introduced during the epidemic will remain significant and may become commonplace, Ang said.


He also said that companies that do not provide flexible or hybrid work arrangements may lose workers or potential jobs.


Mercer's Grad said benefits such as mental health coverage could send a message about the company's culture, and that's why unconventional benefits have increased.


"It's becoming more and more common to compete on company culture," he said.


Explanation: This story has been updated to reflect the name of SPH Media Trust more accurately.


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