1 in 4 Singapore employers plan to freeze salaries subsequent yr: Survey

1 in 4 Singapore employers plan to freeze salaries next year: Survey

SINGAPORE (THE BUSINESS TIMES) – A couple of quarter of organisations in Singapore plan to introduce or proceed with wage freezes in 2021, a tad fewer than the 30 per cent that paused wage increments this yr.

As for pay cuts, about 3 per cent of employers stated they intend to implement them subsequent yr, in contrast with the 29 per cent who made wage reductions this yr.

Nonetheless, most employers are taking a wait-and-see method, as they proceed to tread with warning on wage increments whereas navigating the affect of the coronavirus pandemic.

That is in line with findings launched on Thursday from Mercer’s annual Whole Remuneration Survey, which polled 992 firms throughout 16 industries in Singapore this yr.

The general wage enhance projected for 2021 in Singapore will soften barely to three.5 per cent, in comparison with 3.6 per cent this yr, the research discovered.

“Companies stay cautiously optimistic concerning the future and are contemplating extra holistic expertise methods to energise their staff within the new form of labor,” Mercer chief govt officer for Singapore Peta Latimer stated, including that some are rolling out further incentives, as an illustration.

“Leaders are additionally waiting for appeal to and retain expertise required to speed up enterprise digitalisation,” Ms Latimer famous.

Salaries for the banking and finance sector in addition to the high-tech sector are anticipated to extend at a secure charge within the yr forward.

The logistics and shopper items industries will doubtless see barely greater increments of three.3 per cent and three.5 per cent respectively, in comparison with the will increase of three.1 per cent and three.4 per cent this yr.

This “correlates with a shift in shopper buying behaviours to on-line”, stated Mercer profession merchandise chief for Singapore, Kulapalee Tobing.

In distinction, wage progress is predicted to gradual within the life sciences, actual property, chemical compounds and way of life retail sectors subsequent yr. Staff in way of life retail could expertise the sharpest dip in increments, with salaries rising 2.9 per cent in 2021 in comparison with the three.3 per cent enhance in 2020.

Ms Tobing famous that the prediction of a smaller wage progress within the way of life retail trade was additionally unsurprising, given the shift to on-line buying behaviours, decrease discretionary spending capacities and decreased leisure exercise because of the pandemic.

This yr, base salaries on the administration and govt ranges inched up by 2 per cent and 1.2 per cent respectively from 2019. That is a a lot slower progress than final yr’s 6.8 per cent enhance for administration and seven.1 per cent leap for executives.

Employers are additionally going through intensifying competitors for expertise to assist the digitalisation of their companies.

Essentially the most in-demand are information scientists, IT resolution architects, enterprise intelligence analysts and cybersecurity engineers, Mercer’s ballot discovered.

Roles that assist digitalisation efforts will appeal to wage premiums, particularly at senior and specialist ranges, in comparison with the overall market.

For instance, specialists who’ve capabilities in cybersecurity incident-response evaluation are anticipated to obtain wages which might be 33 per cent greater than the median annual base wage, whereas specialists in robotic course of automation will get a 30 per cent premium over the median stage.

In the meantime, many firms in Singapore are specializing in bumping up incentives and advantages to staff in addition to redesigning the work expertise.

About three in 10 of respondents stated they need to add or broaden telemedicine or digital care to their well being programmes subsequent yr.

Half of the employers surveyed indicated that they may present or reimburse remote-working bills akin to Web payments, laptops and cellphones. They’re additionally contemplating giving extra flexibility for onsite and distant working.

A rising variety of Singapore banks – that are among the many largest employers within the nation – will make versatile work preparations a everlasting fixture for his or her workers, The Enterprise Instances reported this week.

DBS introduced a slew of recent practices for its 29,000-strong workforce, together with the choice to work remotely as much as 40 per cent of the time and a proper job-sharing scheme. UOB will institute a two-day work-from-home coverage, whereas Maybank Singapore has plans to undertake a hybrid working mannequin.

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