Singapore salaries steadily rise

More than half of employers in Singapore last year increased salaries between 3 and 6 per cent and they intend to do the same when they next review, according to the Hays Salary Guide.

The 2013 Hays Salary Guide, out now, reveals salary and recruiting trends for 1,200 roles across Singapore, Hong Kong, China, Malaysia and Japan, and was based on a survey of 1,200 employers, as well as placements made by Hays.

According to the Salary Guide, 52 per cent of Singapore employers increased salaries 3 to 6 per cent in 2012.

10 per cent of employers implemented increases of more than 6 per cent while 5 per cent gave a raise of more than 10 per cent.

26 per cent chose to increase salaries by less than 3 per cent while 7 per cent did not give an increase at all.

Looking ahead, 52 per cent of employers intend to increase salaries 3 to 6 per cent when they next review. And 11 per cent will look at increases of more than 6 per cent. 4 per cent also intend to raise salaries by more than 10 per cent.

Meanwhile, 28 per cent will give increases of less than 3 per cent while 5 per cent will offer no increase.

The fact that salaries in Singapore continue to rise shows the country is weathering the economic storm which has affected other parts of the world.

According to the Hays Salary Guide, the amount of employers who raised salaries by 3 to 6 per cent in 2012 increased by 8 per cent from the previous year showing a steady climb in remuneration for Singapore workers.

Meanwhile, almost three quarters of employers across Asia, or 72 per cent, believe the economy is likely to remain stable or strengthen. 65 per cent of employers in Asia also say their business activity increased in the past 12 months and 66 per cent envisage it will increase in the next year.

26 per cent also indicated business activity would remain the same in the next 12 months while 8 per cent said they expected a decrease.

This is expected to put greater pressure on, not only sourcing the right skills to manage increased business but also potentially the package on offer to prospective employees.

Our Salary Guide revealed 93 per cent of employers believe skills shortages will hamper their business operations.

More than half of employers (52 per cent) also tell us they have used a flexible approach to staffing over the past year, either temporary or contract employees or the employment of part-time staff – in fact almost a quarter (24 per cent) of respondents say they use temporary or contract staff on an ongoing basis.
According to the 2013 Hays Salary Guide, trends at a glance for Singapore are as follows:

Accountancy & Finance:
Last year may have started with caution in response to the Eurozone’s economic concerns, but by the second quarter of 2012 we saw some confidence return and the market welcomed normal levels of post-bonus candidate movement.

Architecture:
Singapore continues its transformation into a cosmopolitan city by developing its infrastructure, government policies and framework to attract foreign investors. Unsurprisingly, multinational corporations continue to establish regional offices on the island state to take advantage of Asia’s growth potential.

Banking:
Singapore’s banking sector continues to come under pressure as a result of global economic conditions. Like many other banking markets, vacancy activity is still evident but every hire must be justified. Therefore the recruitment process is taking longer.

Engineering & Construction:
To say that Singapore’s construction sector is buoyant is an understatement. The sheer number of projects underway or about to commence ensures that demand for skilled professionals remains high. But contractors and builders are all looking for the same type of candidate, which is fuelling high demand and short supply.

Finance Technology:
Despite the global economic concerns in Europe and the US, Singapore remains a dynamic and resilient business environment for finance technology. In good news for employers, it has continued to lure talent, especially from the mature market, who believe it will remain an area of growth in the region.

Human Resources:
The focus of Singapore’s HR market in 2012 was the replacement of departing staff rather than increased headcount or the creation of new positions. As usual, vacancy activity for junior to mid-level roles remained constant, although this did not impact on salaries, which have remained steady.

Information Technology:
Singapore’s IT jobs market may have started last year softly in response to global economic uncertainty, but by the second quarter of 2012 a steady increase in demand was evident for IT professionals. This activity has continued into 2013.

Insurance:
Despite economic uncertainty around the globe, Singapore’s insurance industry, for the most part, remained resilient during the first half of 2012.

Significantly we saw, and continue to see, high profile acquisitions throughout South East Asia, which led to demand for projects, change and integration specialists, as well as strategy candidates. It also led to demand for sales and distribution professionals to grow and expand market share.

Legal:
Since the fourth quarter of 2011, the European economic uncertainty has created a climate of global caution which is likely to continue through the first two quarters of 2013. Accordingly, Singapore moved ahead conservatively in 2012 and this had a correlating impact on the jobs market.

Life Sciences:
Salaries in the region have increased for medical affairs positions, which were marked by one of the largest salary jumps in the industry. One of the major reasons for this is the continued finite talent pool in Singapore. In an attempt to cope with the talent shortfall and ease upward salary pressure, many companies have recruited professionals from India.

Office Professionals:
Singapore’s unemployment rate remains low and is underpinning the office professionals jobs market. As a result, candidates who were made redundant over the past year have quickly secured new roles.

Oil & Gas:
Like China and Malaysia, Singapore’s oil and gas jobs market was very active over the year. Asia Pacific continues to be seen as a region of growth by global MNCs and consequently many original equipment manufacturing (OEM) companies have expanded their operations in Singapore.

Procurement:
Procurement professionals took on a more influential role in organisations over 2012 by aligning themselves with corporate directions and priorities, and by better planning, sourcing and managing vendors to bring in value for money contracts.

Property:
Developers and service providers remain busy and have ensured continuous recruitment activity within Singapore’s property sector over the past year. In particular, high-end properties continue to be developed, which is creating demand for Residential Managers and Property Managers with exclusive property experience.

Sales & Marketing:
2012 was a positive year for sales and marketing recruitment activity. In most demand were sales and business development candidates, as well as strategic brand and marketing management professionals. This trend will continue throughout 2013.

Supply Chain:
Singapore’s supply chain jobs market is expanding at a steady pace as businesses cautiously observe market trends and situations, and assess headcount requirements.