WORKERS are gaining the upper hand in the booming Singapore
economy, as companies fight to retain talent with offers of higher
pay.
Employers, who gave an average pay rise of 4.1 per cent this year,
are expected to give 4.2 per cent next year.
These figures, released yesterday, are derived from a survey done
last month by the Singapore Human Resource Institute (SHRI) and
wages consulting firm Remuneration Data Specialists (RDS).
A total of 210 companies from all sectors were polled, and their
upbeat view of business in the next six months means an abundance
of jobs awaits the Singapore worker.
Latest official figures show there were 32,200 job vacancies in
March, 30 per cent more than a year ago.
The buoyant situation is set to soar further, with the economy
racing ahead by 8.2 per cent in the second quarter this year.
Poll snapshot
Business prospects
Satisfactory or very good currently: 95 per cent of companies
... more
According to the report, the services sector gave the best pay rise
this year, of up to 5.5 per cent on average.
Next year, it is expected to give up to 4.6 per cent.
The marine and shipping sector will top it next year, when it is
projected to give up to 5.9 per cent.
This year, it gave up to 5.1 per cent.
Said RDS's managing consultant Peter Lee: 'Now that it's an
employee market, companies are looking at their wage structure to
make sure they are competitive.'
Companies that worry most about having competitive wages are those
in health care and pharmaceuticals, aviation, information
technology and trading, said the report.
Information technology professionals are also being wooed with
fatter pay packets, said manager Irene Yeo of Singapore
Communications Equipment.
It is hard to stem the outflow because their skills are portable
across the industry, she added. 'Once you have trained them, they
will jump ship in 11/2 to two years.'
With many economists predicting this year's growth to be close to
last year's 7.9 per cent, the report said staff turnover, retention
and resignations are chief concerns of most companies.
Almost all the companies surveyed had employees who left in the
past year. The average turnover rate was 10 per cent for managers,
18 per cent for executives and 21 per cent for
non-executives.
To retain staff, companies are adopting several measures, said SHRI
executive director David Ang. They include flexible work
arrangements, better communication with employees and improving
training.
Singapore Computer Systems, an IT company, recently introduced a
programme to create a 'happy company' culture.
Besides subsidising gym memberships, it springs such surprises as
inviting an ice-cream man into the office. One day is also set
aside for children to come to the office to see their parents at
work.
Said its human resource vice-president, Ms Lilian
