SINGAPORE - Singapore employees are more confident about receiving a year-end bonus this year than they are about seeing their salaries go up, the latest global Workmonitor report by recruitment firm Randstad has revealed.
Despite the slowing economy and a number of industries undergoing restructuring, nearly seven out of 10 (68%) Singapore employees are still expecting to receive a year-end bonus.
However, only 58 per cent expect to see their salaries go up this year, according to the report, which is based on the results of an online questionnaire of employees aged 18 to 65 who worked at least 24 hours a week in a paid job.
Nevertheless, the confidence levels of Singapore employees regarding their remuneration remains relatively high. Globally, just 49 per cent expect to get a year-end bonus, whereas only 53 per cent expect a salary raise.
The report also reveals that there is a significant gap in salary expectations between millennial employees (those aged from 18 to 34) and older workers (aged 35 to 54).
A total of 72 per cent of millennials expect to receive a bonus while 71 per cent anticipate a pay raise.
By contrast, just 65 per cent of older workers think that they will get a bonus, while only 51 per cent are confident of getting a raise.
Meanwhile, Singapore women (73 per cent) are also more confident about their bonuses than their male counterparts (63 per cent), according to Randstand.
There are also differences between the confidence levels of Singapore employees and their counterparts in Hong Kong and Malaysia.
Working Hong Kongers seem to place a stronger focus on salaries, with 67 per cent expecting to get a pay rise compared to 60 per cent who expect a bonus.
But perhaps most surprisingly, given the gloom over the depreciation of the ringgit, salary expectations of professionals in Malaysia surpassed both Singapore and Hong Kong workers. According to Randstad, 77 per cent of employees in Malaysia surveyed expected a year-end bonus, while 74 per cent stated they were expecting a raise.
Mr Michael Smith, managing director for Randstad Singapore, Hong Kong and Malaysia noted that employees in the three economies have remained very confident about their remuneration despite the weaker economic climate.
However, he said that it remains to be seen how generous organisations are with regards to rewarding their employees this year.
Earlier surveys have indicated that salaries in Singapore are expected to go up by about 2.9 per cent next year. Firms may also be inclined to promote their employees without giving a corresponding pay increase.
"It is crucial for these companies to consider the importance of keeping their employees happy. Research has shown the cost of replacing an employee can surpass the cost of a raise and bonus by many multiples," Mr Smith said.