Salaries in Singapore are projected to increase 3.7% in 2020, up from a 3.6% rise this year, according to HR consulting firm Mercer.
However, according to Mercer, talent pools are ‘shrinking’ and companies may struggle to keep workers even after offering more compensation.
“Faced with the possibility that this alone may be insufficient to achieve retention of employees and recognise their contribution, companies are turning to other incentives in addition to salary increments,” Mercer said.
Mercer also found that one in three companies now pay retention bonuses, up from one of four in 2017, Mercer added.
Kulapalee Tobing, career products leader, Singapore, said, “There needs to be a shift toward “more holistic talent strategies that acknowledge pay as only one means of differentiation and motivation.”
Data from Singapore’s Ministry of Manpower found that workers’ income continued to grow, but at a slower pace, in 2019. Real median income of full-time employed residents grew by 2.2% in 2019, lower than the growth of 4.4% in 2018.
Source: Staffing Industry Analysis | Apply: Singapore – Salaries to rise in 2020 as talent pool is ‘shrinking’