SINGAPORE — Being average is not going to cut it any more in Singapore’s financial sector, where firms are dividing the bonus pool more ruthlessly than they did in the past, prioritising rewards for top performers, a survey showed yesterday.

Despite the average bonus at financial institutions falling by 4 per cent last year, 42 per cent of respondents reported receiving higher payouts, the survey by financial recruitment website eFinancialCareers showed.

The figures do not mean the sector is tightening bonuses; instead, it reflects a greater resolve to retain the best people, said the website’s Regional Managing Director, Mr George McFerran.

“I believe it’s more about firms managing performance more effectively now and trying to retain top-performing staff,” he told TODAY.

Steps taken to keep top talent are particularly important in areas where expertise is in short supply, he added.

“In areas where global talent is lacking, such as risk management, organisations have to fight to hold on to people. Offering a higher bonus is a way of doing so,” he said.

The findings of eFinancialCareers’ global survey, which polled about 600 financial professionals here, mirrored the results of recruitment firm Robert Half’s annual salary guide, which was also released yesterday.

Robert Half’s survey, which polled 150 chief financial officers in Singapore, revealed that 91 per cent are worried about losing their top staff to competitors.

As a result, 49 per cent of companies will raise salaries and 37 per cent will increase bonuses for financial and accounting professionals this year. At the same time, 45 per cent of respondents are planning to expand headcount for finance and accounting, making Singapore the fourth-most-active hiring market globally, behind China, Brazil and Hong Kong.

This is not surprising due to Singapore’s status as a business and financial centre, said Dr Ernest Kan, President of the Institute of Singapore Chartered Accountants (ISCA).

“ISCA has witnessed consecutive growth in our membership base over the years, which attests to the robust demand for accountants. This demand will only increase with Singapore’s development into a global accountancy hub,” he added.

However, as it grows, Singapore will face competition from Hong Kong, which ranked ahead of the Republic in terms of average bonus size last year, the eFinancialCareers survey showed.

“For now it’s more of a structural factor. Hong Kong is much more of a front-office location, with more listings and mergers happening. That typically means bigger bonuses. Singapore is more of an operational centre,” said Mr McFerran.

“That said, as the financial services sector here evolves, I expect the structural factor to change and the changing dynamic will continue to attract new activities and talent to Singapore,” he added.