Singapore employers' plans for salary increases do not match employees' expectations, according to recruiting and human resources firm Hays.
It said on Tuesday at the launch of its 2017 Hays Asia Salary Guide that 46 per cent of employers in Singapore plan for moderate salary increases of 3 to 6 per cent.
However, only 29 per cent of employees expect an increase in this range.
Instead, more employees are expecting salary increases to be at the higher end of the spectrum, with 33 per cent anticipating salary increases to either be in the 6-10 per cent range or above 10 per cent.
In contrast, only 11 per cent of employers in Singapore intend for such an increase.
Eight per cent are not planning for any increase.
Salaries appear to be a strong driving force in job-seeking this year.
Landing a better salary or benefit package was the most cited reason by Singapore employees for looking for a new employer.
The same factor was the second most cited reason by staff for staying with their current organisation.
In their last review, 27 per cent of Singapore employers raised salaries by up to 3 per cent while 52 per cent raised salaries by 3 to 5 per cent.
A further 7 per cent increased salaries by 6 to 10 per cent, and 4 per cent hiked salaries by more than 10 per cent. The remaining 10 per cent did not increase staff salaries.
In general, 51 per cent of employers surveyed across five markets said that more than half of staff can expect bonuses this year, unchanged from Hays' findings last year.
The annual Hays Asia Salary Guide highlights trends in salaries and recruitment in Singapore, China, Hong Kong, Malaysia and Japan by gathering insights from some 3,000 organisations employing more than six million people.
Looking ahead, 61 per cent of employers surveyed envisaged business activity to increase in the next 12 months.
However, 64 per cent revealed that their organisation does not have the talent needed to achieve current business objectives.
Meanwhile, Hays found that 56 per cent of employers have used flexible staffing in the last 12 months, with temporary/contract workers being the most popular option.
"This method of recruitment is slowing gaining traction in Asia, which offers benefits to both candidates and employers," said Christine Wright, managing director of Hays Asia.
"In Singapore, 65 per cent of employers used temporary workers or contractors from a recruitment agency, and 21 per cent said they will use temporary workers in white-collar roles on an ongoing basis."
Of the total employers surveyed, 65 per cent plan to maintain their use of temporary/contract staff, while 21 per cent intend to increase their figures.
This article was first published on February 22, 2017.
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