SINGAPORE: Nearly seven in 10 (68 per
cent) of employers in Singapore promote their staff without giving
them a pay rise.
Singapore comes in third after Chile (76 per cent) and China (70
per cent) as the top three countries that adopt this practice.
That’s according to a survey by recruitment firm, Robert
Half.
It polled 1,800 human resource managers across 17 countries.
In Japan, only 26 per cent of HR managers promote their staff
without pay increases, with 66 per cent saying they would never use
the practice.
According to the survey, 53 per cent of Singapore companies
promote staff to more senior positions without a rise in salary
because they prefer to offer a performance bonus instead.
Another 47 per cent prefer to offer their employees more
flexible working hours.
Additional annual leave is also offered by 35 per cent of HR
managers in lieu of additional pay.
Robert Half said there are risks for companies offering a
promotion without a pay rise, and employers should offer adequate
compensation either through pay or other benefits to retain their
staff.
Ms Stella Tang, director of Robert Half Singapore, said: “While
pay is not the only factor employees consider, if companies do not
provide adequate compensation either through pay or other benefits,
then they may lose their top performers to the competition. In
particular, within the banking & financial services and
commercial sectors, companies are struggling to get the right
finance and accounting professionals to fill jobs.
“If employees with the right skills tests their worth in the
employment market, they may find they have several job offers to
choose from. If budget constraints mean no additional monetary
compensation can be offered, the reasons need to be clearly
communicated.”
She added that for some employees, especially those with
families, offering more flexible work arrangements may be of more
value than money.
“It comes down to whether an employee can come to an agreement
with their employer that balances their professional goals with
remuneration for their efforts,” said Ms Tang.
- CNA/cc
