Huge salary increase, $1,000 stock donation and freelancing to attract talented people
The company said employees will get a bigger boost this year, one former employee told CNBC. This person said his salary has increased by 40% and that the increase is not related to the promotion.
The law firm is not the only one in Singapore to regulate bonus packages in a “hot” labor market.
Southeast Asia’s largest lender DBS told CNBC it raised salaries for the bank in mid-2021. Accounting firm KPMG announced in May that it would spend S$25 million (S$18,500). $23 million) for a salary increase.
SPH Media Trust, a news and media publisher, also said that it recently conducted a salary review to come up with a remuneration in line with the market.
Globally, tech giants Microsoft and Amazon said they would also raise wages for their employees.
Cynthia Ang, managing director at recruitment firm Kerry Consulting, said the average increase has been significantly higher this year and companies are paying a premium to attract and retain workers, especially especially talented people in the industry.
New perks
Companies in Singapore are also making other adjustments to employee benefits in the form of mental health support, bonuses, flexible working policies and others.
“The Singapore labor market is certainly looking towards, or looking at, the tangible aspects of the deal – wages and benefits – as a major battleground for competition,” said Lewis Garrad, Mercer’s business leader. Singapore said.
About 60% of the 270 companies surveyed by Mercer considered their benefits in 2021, up from 10% to 15% in previous years. That’s happening at least in part because the job market is tightening, Garrad says.
Neetha Nair, head of workforce preparation for the future, said Prudential Singapore gave each of its employees $1,000 worth of stock in October 2021.
In February, Randstad Singapore began allowing employees to work remotely anywhere in the world for up to four weeks per year, Daljit Sall, the recruitment firm’s chief technology officer, told CNBC. .
An employee at a local media company, who spoke on condition of anonymity because he was not authorized to speak to the media, said that this year more people received compensation than in previous years.
“Usually that’s pretty limited, but right now it seems like they’re trying really hard to treat the majority of the people who deserve it,” he said.
According to Safina Samian, a partner at the media agency, employees who successfully refer new hires at Finn Partners can now receive S$5,000 in two payments if the referrer stays at the company. for at least one year. That bonus amount used to be S$1,000.
Finn Partners also gives its employees four days of mental health leave, a $100 annual stipend for wellness app subscriptions, and a half-day off one Friday each month, Samian said. .
Fierce battle
Some companies say the welfare enhancement is part of their efforts to retain talent. Here’s how to deal with a global trend: mass resignations.
A senior employee at DBS, who asked to remain anonymous because he was not authorized to speak to the media, said the bank had adjusted wages to keep morale and “so that we don’t lose the war for money.” current talent you see in Singapore.”
Lee Yan Hong, head of the bank’s human resources team, confirmed that the pay increase was made “to ensure that our employees continue to be paid a competitive salary compared to the market.”
Similarly, a spokesperson for the SPH Media Trust also said they have raised wages “to remain competitive in recruiting and retaining talent.”
Randstad Singapore’s Sall says the company’s teleworking has been well-received and helps reduce the factors that drive employees to look for new jobs.
But not all companies explain the reasons for the changes.
According to one legal professional who received a 40% increase, the law firm simply said that it was conducting a salary review.
Adrian Tan, President of the Singapore Bar Association said in January that the law industry will see a record 538 lawyers leave the profession in 2021 – a 30% increase from the year before.
Stressful job market
The recent changes to wages and benefits come amid a competitive job market in Singapore, whether or not companies explain why they do so.
“We’re in an extremely tight labor market,” said Mercer’s Garrad. He points out that historically, Singapore has been dependent on foreign talent. However, Covid-19 has made it difficult to attract such elite workers over the past two years.
Although official data shows that Singapore has not been hit hard by mass layoffs, it is likely that different industries are seeing different turnover rates and the average “conceals much change”. ,” he told CNBC.
The number of vacancies in 2021 is the highest in at least a decade, and 35% of them remain unfilled for six months or so. This is up from 27% in 2020 and is in a broad downward trend, data from the Department of Manpower shows.
According to government data, the resignation rate of executives hit a 10-year high of 9.9% last year for Singapore’s public service.
On Sunday, the Public Service Division of Singapore announced that 23,000 employees will receive a salary increase of between 5% and 14%, according to media reports.
Retaining successful talent?
DBS senior staff said the salary adjustment was “rooted in a wave of resignations” for the bank.
“Our employee exit rate in 2021 is comparable to pre-pandemic levels and is in fact at or below the market average in our core markets,” Lee said. , HR team leader at DBS, said.
An employee at SPH Media Trust, who received a 20% raise, said she is in no hurry to look for a new job right now as her salary is already higher.
But other factors are still important.
One former lawyer, who received a 40% raise, said he is still leaving the job “in search of better hours.”
The employee at a local media company, who has noticed more promotions where he is working, has received a salary increase of about 40%. However, he said he will still look for a new job if he wants to advance his career. He also admits that because of the current salary being received, it is difficult to find a more attractive alternative job.
For Finn Partners, employee referrals have increased 100% since the referral bonus was increased, Samian said. The person also noted that it is important to have more applicants in the competitive job market.
Look forward
However, Mercer’s Garrad said fierce competition for wages may not be sustainable in the long run.
Things could also change as economic concerns grow.
“Some are now starting to look at hiring freezes in their organizations to stave off a recession,” he said.
It looks like the economic cycle is in an uptrend, where companies are still expanding and hiring, said Ang of Kerry Consulting.
“I believe that over a period of six to maybe 12 months, that number could drop a little bit,” she said.
However, benefits offered during the Covid-19 pandemic will remain important and may become the norm, Ang said.
She also said companies that don’t offer flexible or hybrid work arrangements could end up losing workers or potential employees.
Mercer’s Garrad says benefits like mental health coverage can reflect a company’s culture, and that’s part of the reason why there’s been a surge in non-traditional benefits.
“Competition on company culture is becoming more common,” he said.
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