Singapore employers are among the most likely in the world to promote their employees without pay rises, a study has revealed.

The island-state prides itself on having a productive, efficient workforce, and in doing so, employers may promote employees to more senior positions without a corresponding pay increase.

Top 10 countries which offer promotions without pay rises Click on thumbnail to view (Photos: AFP, Reuters, Bloomberg)

The study, conducted by recruitment firm Robert Half, said 68 per cent of Singapore's Human Resource (HR) managers say they often give promotions without pay rises.

Chile (76 per cent) and China (70 per cent) are the only two countries where such practices are more common, making Singapore employers the third most likely in the world to do so.

53 per cent of Singapore employers said they prefer to offer performance bonuses instead of pay rises, while 47 per cent prefer to offer flexible working hours.

Another goody offered in lieu of pay rises is additional annual leave.

Recruitment experts said there are risks involved for companies which offer promotions without accompany pay rises; they may lose their top performers to the competition.

"In particular, within the banking & financial services and commercial sectors, companies are struggling to get the right finance and accounting professionals to fill jobs.

"If an employee with the right skills tests their worth in the employment market, they may find they have several job offers to choose from," said Ms Stella Tang, Director of Robert Half Singapore. Companies also need to communicate to their employees if budget constraints prevent additional monetary compensation from being offered.

This will maintain employer-employee relationships and ensure employees feel valued.

However, some employees - especially those with families - may find that flexible work arrangements are more important.

The employer should then discuss with the employee on how to balance their professional goals with remuneration for their efforts, Ms Tang said.

In Japan, only 26 per cent of HR managers promote without pay increases. 66 per cent of HR managers said they would never use the practice.

The survey was conducted across 17 countries with 1,800 HR managers.

paullim@sph.com.sg