Wednesday, February 29, 2012

Wage increases of 15-20% this year for some sectors: survey

SINGAPORE: Workers can expect salary increases of between 15 and 20 per cent for some sectors this year.

Global recruitment firm Robert Walters said these sectors include aerospace, oil and gas, chemical, fast moving consumer goods and financial services.

However, in its latest salary survey released Tuesday, Robert Walters points out such wage increases would be unrealistic within areas of operations facing slower growth.

During uncertain times, professionals are less likely to change jobs.

Thus, a good salary increase is needed to attract top talent for selected niche roles.

Andrea Ross, Robert Walters' managing director for Singapore, Malaysia and Vietnam, said: "If an individual is job hopping every single year they shouldn't be expecting 15 to 20 per cent increase. It does come to those individuals who have stayed and gained a lot of experience in an organisation for at least two to four years."

For example, the firm said a tax accountant earning S$65,000 per annum, can expect a salary increase by at least S$10,000 per annum.

Other job positions that could see wage increases include business analysts and payroll specialists.

However, observers said salary increases of 15 and 20 per cent is an ambitious forecast.

Associate Professor Randolph Tan, head of the Business Programme at SIM University, said: "I think with the impending slowdown it's probably more realistic to think of a figure slightly below that. My own forecast is that the average real wage increase for the labour force in the coming year could be between 3 and 8 per cent and this is across the board for the entire labour force."

Bonuses are expected to be smaller this year.

The survey highlights that international banks are seeing a decline of between 25 and 40 per cent.

More companies are also becoming aware of the cost of replacing experienced employees. Therefore, they are putting more effort into retaining top talent. As a result, counter-offers are expected to become increasingly prevalent.

"HR departments are a lot more innovative on how to retain talent, on how to attract talent because you have to put different incentives on board for certain individuals... especially the younger generation to keep them motivated, whether that is work life balance (or) a certain way of remunerating them throughout the year as opposed to a bonus... Are they able to match the 15 to 20 per cent externally?" said Ross.

Robert Walters also expects many companies to be cautiously optimistic this year.

They will be careful in assessing global economic uncertainty as a factor in making headcount decisions.

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