Cautious but optimistic outlook for salaries, bonuses in 2013

SINGAPORE: Human resource experts say most Singaporeans can expect a three to four per cent pay rise this year, in line with inflation estimates.

HR experts say Singaporeans earning under S$4,000 a month can be optimistic, with a recently-announced government subsidy that pays for 40 per cent their wage increases this year.

Mark Hall, vice president at Kelly Services Singapore, said: “Most companies will still be cautious because of the uncertain economic climate. Nevertheless they are going to look forward to the Wage Credit Scheme, to capitalise on it, especially since it’s quite an easy scheme to apply to their employees. In the first year, most companies will take advantage of it, because we’re not yet in a restrictive economic environment, not yet anyway.”

Announced in February, the Wage Credit Scheme will be in effect for three years till 2015.

Observers say those in industries like digital media, IT, life sciences and pharmaceuticals can be positive about their wage prospects. On the down side are export-oriented sectors like manufacturing, electronics and construction. Some say bonuses are conservative, even for the banking and finance sector this year.

Tricia Liverpool of Morgan McKinley says she is seeing bonuses of between 3 and 5 per cent of total annual salary for this group. She said: “Expectations have lowered substantially this year.”

She added: “A couple of years ago in banking and finance, people were expecting very good bonuses, because it was the traditional way things were happening in a financial hub such as Singapore. However, with what’s happening globally, and with banks having been hit with fines, particularly the global banks, less so the local banks, a lot of people are being made redundant, or not getting bonuses altogether.”

People whom Channel NewsAsia spoke with had varying expectations on wage prospects and bonuses.

For employers, the pressure is on – to raise productivity as part of a national drive, to keep their workers happy in a tight labour market, and to stay afloat in a less buoyant, slower growth economy.

Michael Smith, director at Randstad Singapore, said: “The employment market and the war for talent in Singapore are only going to get worse as time goes on. Subsequently, it will be difficult for Singaporean employers to strike that right balance with meeting their productivity targets as well as attracting and retaining the top talent. It’s about making sure that they have a strong employer brand, that they’re offering what employees want, and being flexible in their working options for their staff.”

Companies that want to succeed, experts say, have to focus on people as their key lever for the future. 

Cautious but optimistic outlook for salaries, bonuses in 2013