- 37% of those who switched employers in the past 12 months received a 20% increase in salary
- Only 42% of respondents said that they have received a salary increase from their employers at the point when the survey was conducted
- 22% of respondents have been told by their employers that they will not be receiving a bonus for their work contributions in 2022
According to a recent survey conducted by Randstad Singapore, 53% of Singaporeans feel that their current salary does not fairly reflect their work contributions.
The 2023 Salary and Bonus Expectations report in Singapore aims to help employers understand employee expectations of their annual bonuses and salary increments in light of the rising cost of living and imbalanced supply and demand in the labour market. The report offers valuable insights and recommendations on how to attract and retain top talent.
As companies make their post-COVID recoveries, a volatile global economic landscape and inflation have pressured them into saving costs where they can. However, with the rising global talent shortage today, compensating talent is certainly not an area they can afford to tighten their belts any longer.
If employers do not prioritise revising their internal salary bands to meet today’s talent expectations on salaries, they may run a very real risk of losing top talent.
20% as the magic number when negotiating a new salary
Of the 35% of respondents who said that they had changed employers between March 2022 and February 2023, 37% of them said that they have received an average salary increase of more than 20%. Close to 1 in 5 respondents accepted a new job in the past 12 months with less than a 5% salary increment.
Many job seekers we interacted with this year are asking for a 20% increase because it is a reasonable starting point for salary negotiations. However, they are also willing to lower their expectations if their other demands, such as flexible work arrangements, medical insurance, career development and advancement opportunities and a positive work environment can be fulfilled.
To attract and secure top talent, employers that are making new hires this year should review and revise their internal salary bands and employee benefits. It’s important to communicate these changes to their prospective employees during job interviews to secure top talent.
When asked if they have received a salary increment in the past three months, 31% of respondents said that they have been told that their salary will not increase until a later date. Of the 42% of respondents who received a salary raise, half of them received less than a 5% wage increase.
There is a notable mismatch in salary expectations between employers and workers. When the annual salary increment does not align with the cost difference on goods and services, employees would feel motivated to search for a job that pays higher so that they can cover their expenses and achieve their financial goals.
Similarly, when companies fail to offer a salary that meets the candidate’s expectations, they may potentially risk losing the talent they want and have to restart the entire recruitment process.
1 in 5 employees did not receive a bonus for work contributions in 2022
According to the survey, 22% of respondents also said they were told they will not be receiving a bonus for their work contributions in 2022.
For many employees, bonus is a critical job motivator, especially for those who have accepted lower base salaries. Without a bonus, it can be challenging for individuals to fulfil their financial objectives and live the lifestyle they desire, like travelling or buying a new home.
Of the 55% of local respondents who said that they had received their bonus at the point when the survey was conducted. Out of them, 37% received one or less than a one-month bonus, and 45% received a two to three-month bonus.
Bonuses serve as a reward for employees who perform well in their roles and motivate them to work towards achieving their next goal. This financial boost can improve employee morale and create a more positive and supportive work environment.
Beyond that, bonuses can be particularly effective in talent attraction and retention, as job seekers are always seeking employers who offer competitive compensation packages.
download the 2023 salary and bonus expectations report
Fill in the form to get a copy of the Randstad Singapore 2023 Salary and Bonus Expectations Report:
connect with randstad for the latest, accurate salary benchmarks
Salaries and bonuses have been on the rise for the past few years. However, not everyone is benefiting from this trend. What can employers do to keep up with the rising salary expectations to attract and retain skilled talent in a tight labour market?
Connect with our specialised recruiters to find out the latest salary expectations for talent in your industry so that you can make the right and attractive salary offer to secure your candidates.
If you are a job seeker who is curious to know how much you should be paid for your experience and skills, reach out to our recruiters or use our salary calculator that tracks real-time data in Singapore. Alternatively, you can explore your career options by checking out our latest job listings and apply for new jobs that match your skills and expectations.