No pay hike for most employees this year: Survey

SINGAPORE — Employees in Singapore are not likely to get a pay hike this year, unless they are in sectors such as information technology (IT) and digital marketing where talent is scarce, and where they can expect a 10 to 20 per cent salary increment when switching jobs.

This was revealed yesterday in an annual survey by recruitment firm Robert Walters on the employment and wage outlook globally.

“Singapore’s situation is what I would call relatively neutral at the moment. There are some really bright spots and there are some areas that are in a little bit of duress… Even with the global economic and political uncertainty, Singapore will experience moderate levels of recruitment in 2017,” Mr Toby Fowlston, managing director of Robert Walters Southeast Asia, said at the launch of the firm’s Global Salary Survey.

Robert Walters’ findings contrasted with several surveys released earlier this year and late last year, such as one by Korn Ferry Hay Group that held a more optimistic forecast of a 4.7 per cent growth in wages this year after accounting for inflation. Another report by Willis Towers Watson projected a 3.2 per cent increase in real wages this year.

Robert Walters’ report found that the basic salaries for most industries in Singapore — from financial services to human resources as well as sales and marketing — are expected to remain the same this year.

However, salary expectations for certain roles in the supply chain and procurement sector are lower this year compared to last year. For example, an operations manager in the supply chain and logistics sector would command an annual income of S$60,000 to S$100,000 this year, down from the S$90,000 to S$130,000 per annum last year.

On the other hand, the salary expectations for roles in growth sectors are rising due to demand for talent. For instance, the annual salary of a digital marketing specialist is expected to grow from a range of S$50,000 to S$80,000 in 2016 to between S$60,000 and S$90,000 this year.

Hiring activity this year will likely be focused on industries with a heavy IT and digital focus, as well as the start-up space, noted Mr Fowlston.

“We anticipate that the IT job market will continue to experience high levels of recruitment, especially with the Singapore National Research Foundation’s plans to boost the local start-up ecosystem.

As more traditional firms shift from traditional retail to e-commerce, this will drive very high demand for technology professionals with experience in developing the latest technologies and platforms,” the Robert Walters’ report said of the recruitment outlook in Singapore.

“Due to the shortage of professionals with niche specialist skills, especially in markets such as IT, digital marketing and financial services, we recommend that employers keep their options open by considering high-potential candidates with transferable skills to fill their roles,” the report added.