A majority (84%) of employers in Singapore intend to raise staff salaries this year, said Hays recently when releasing its 2022 Hays Asia Salary Guide survey.
This is a significant increase over similar projections from the previous years, Hays pointed out, adding that 69% of employers also said that they are planning to give bonuses this year as well.
“The growing economic stability is resulting in higher optimism among employers in Singapore,” said Kirsty Hulston, Regional Director of Hays in Singapore. “In fact, 95% of employers said that they expect business activity levels to increase or stay the same for the rest of the year,”
In addition, recruitment activity is also predicted to rise compared to the previous year, the recruitment agency observed.
Survey results indicate that 47% of employers expect to add to their permanent headcount in 2022, higher than what was reported for the previous year.
For the 75% of candidate respondents in Singapore who said they are open to new opportunities or actively looking for a new job, 2022 will be a good year to act on these plans, according to Hays.
The gap between what employees want and what employers can give
However, data from the survey shows that more people are expecting increments that are higher than what employers are prepared to give, Hays noted.
Of the 80% of employees surveyed who said they expect a pay rise in 2022, 29% are anticipating increments of 6% and above, the firm said.
But only 10% of employers plan on increasing salaries by 6% or more, Hays pointed out.
Given the skills shortages and rising competition for talent, companies that intend to hire in the coming months will need to manage this expectation gap with care, Hulston advised.
“This is especially critical as 42% of employers reported a lack of confidence in hiring the skilled talent they need,” she said.