Singapore Companies Signal Strong Bonus Plans and Salary Increments, Reveals Latest Survey
A recent quarterly employment outlook survey from ManPowerGroup Singapore, released on 12 December, has shown that a significant 84% of companies in Singapore have intentions to award bonuses of at least one month’s pay.
This comprehensive survey offers valuable insights into hiring plans of Singapore employers across 8 sectors, encompassing transport, logistics and automotive, communication services, consumer goods and services, energy and utilities, financials and real estate, health care and life sciences, industrials and materials and information technology.
The finance and real estate sector leads the way, with 11% of employers planning to give over 1.5-month bonuses, while other sectors show a more conservative approach, with an average of under 7% of employers planning to issue bonuses exceeding 1.5 months.
However, before getting enticed by the prospect of additional bonuses, it’s advisable to delve into the survey’s details for a more comprehensive understanding of the landscape.
Bonus Plans and Salary Increments
Apart from the finance and real estate sector, the transport, logistics and automotive sector and energy and utilities sector stands out as the leaders in offering at least one month’s bonus with a remarkable 96% of employers expressing intentions of providing such bonuses.
Following closely is the healthcare and life science sector, where 91% of employers intends to do the same.
Notably, one in two employers plan to award bonuses averaging one month, marking a 4% increase compared to the previous year.
The average bonus given out tend to differ based on the size of firms. Larger enterprises tend to offer more substantial bonuses, with 44% of very large and 43% of large companies planning to provide bonuses exceeding one month’s salary. This differs significantly from small firms where only 20% plans to issue a bonus exceeding one month’s pay.
We have reached part that most of you are probably looking forward to in 2024: pay increments.
More than half the companies surveyed, intends to increase salaries by 3% to under 5%. Additionally, there has been a notable 19% increase in the number of employers planning to raise salaries by 5% to 7%, compared to the previous year.
Intriguingly, the energy and utilities sector leads the pack in terms of salary increments, with 81% of employers planning to increase salaries by 3% to 5%, surpassing other sectors. On the flip side, the communication services sector has a higher proportion of 37% of employers intending to offer increments under 3%.
Hiring Outlook
Singapore’s hiring outlook has seen a 7% decrease compared to the previous quarter and a 4% dip compared to the same period last year. Looking ahead to the first quarter of 2024, 44% of employers expect an increase in headcount, 15% anticipate a decrease, and 39% have no plans to change their headcount.
Among various sectors, the transport, logistics and automotive industry as well as the communications and services industry exhibit the most promising outlook for future hiring while energy and utilities stood at the other end of the spectrum.
Furthermore, hiring expectations vary depending on the size of the companies. Larger companies with 1000-4999 employees have lower hiring expectations at 10%, whereas smaller companies with 50-249 employees are more optimistic, with a 41% hiring expectation.
Ms Linda Teo, ManpowerGroup Singapore Country Manager, emphasised that most companies are adopting a prudent approach to hiring. She notes that while companies are still actively hiring, they exercise greater diligence when assessing candidates, resulting in less urgency to fill vacancies.
The survey also highlights that globally, 75% of employers struggles to find the talent with the required skills. In particular, skills related to environmental, social, and corporate governance as well the green economy, are in high demand.