Hays survey: More salary and bonus for employees in Singapore

Singapore employees can expect a 1.8 month bonus salary for year-end 2009, according to the latest poll conducted by Hay Group.

After surveying 265 Singapore-based companies, the poll found that the actual median salary increase companies intend to give out to be at 2.3%. This figure is slightly higher than the 1.5% salary increase provided by companies in March earlier this year.

However, the projected salary increase for 2010 is expected to be at 3.0%, as companies predict expect staff attrition to be higher and use this as a retention strategy.

“By boosting their salary increase to 3.0% and thus taking an immediate hit on their 2010 bottom-line, companies are signalling their willingness to invest to keep their staff,” says Christian Vo Phuoc, country manager for reward information services of Hay Group Singapore.

As for bonuses, the median variable bonus cited for year-end 2009 is 1.8 months. For 2010 forecasts, companies say they are looking to tighten the bonus payouts to 1.5 months instead.

“As bonuses are usually calculated based on a formula of individual and company performance, companies are choosing to be conservative when forecasting business targets next year,” explains Vo Phuoc.

The poll also found that only 18% companies in October 2009 were still cutting or freezing pay, down from 58% in March. The top three sectors doling out the highest salary increases are oil & gas, chemicals and insurance.

Sources and references: Sandbox Advisors, Hays, HRO