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Firms cautious, stint on bonus, pay raise

SINGAPORE — A general level of conservatism and cautiousness across industries has led to more than a third of employees receiving no salary increment or bonus this year, according to a survey of 1,400 local respondents.

SINGAPORE — A general level of conservatism and cautiousness across industries has led to more than a third of employees receiving no salary increment or bonus this year, according to a survey of 1,400 local respondents.

This cautiousness is present as companies look to ensure that costs — particularly those relating to employment — are in line with company revenues, said Mr Paul Endacott, Managing Director (South-east Asia) of Ambition, the recruitment firm which performed this half-yearly market and salary trends report.

“These assessments and adjustments are unlikely to end soon,” he added.

The bleak assessment showed that 39.5 per cent of employees surveyed saw no salary increment this year, even though 12.3 per cent previously polled in December said they expected none.

This year’s bonus pay-outs also fell short of the expectations of 63.2 per cent of employees surveyed. In fact, 35.8 per cent of respondents did not get any bonus.

“It is unsurprising that bonus levels and increments were low, given the scrutiny that surrounds these, particularly within the banking sector,” said Mr Endacott.

The half-yearly survey represented employees across multiple job functions, with 31.5 per cent of respondents in finance and accounting roles, 12.1 per cent in marketing and 17.1 per cent in banking.

Over half of employers surveyed believe that their company remuneration levels are in line with the market and 49.5 per cent of employers had their bonus expectations met.

Bosses also received higher bonus percentages as compared to rank-and-file-staff. While 20.4 per cent of employees received bonuses of more than 20 per cent, 36.3 per cent of bosses received bonuses of that range.

Employees and bosses differed in their views when it comes to the top four staff attraction factors. Bosses thought that salary was the most important factor, followed by bonus, company culture and company brand; whereas employees’ priorities begin with salary, followed by manager relations, career advancement and benefits.

Unlike in a previous survey in December, company culture no longer figures in the top four attraction factors for employees. This marks a clear difference between what bosses think as compared to what employees really want, said Ambition.

Employees and bosses do agree on one thing: Both are keeping a positive attitude on possible business growth for the remainder of this year. Only 21.7 per cent of employees surveyed expect business to contract, down from the 23.2 per cent who thought so at the beginning of the year.

While 55.5 per cent of employers polled expect business growth for the rest of this year, most still think it will be competitive or difficult to find a job in the current market with only 8.7 per cent stating that it will be easy.

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