Seven in ten finance executives foresee receiving a bonus increase this year with 11% anticipating a significant 31%-50% increase in their annual bonus payout.
With a total of 69% of 1,583 finance executives surveyed in Singapore expecting a bonus increase this year, 23% from this group are looking forward to taking home an increase of 11%-30% in bonus payout. According to the eFinancialCareers Global Bonus Expectation survey conducted in September, Singapore finance professionals attribute their optimism about a higher bonus payout to both personal performance (35%) and company performance (40%). The optimism has led to half of respondents citing confidence that their bonus would increase over the next three years.
Only 12% think their bonus would decrease this year because of their company’s performance. In fact, 63% of this group claim that they would look for a new job if they do get a smaller bonus payout as expected. Even though more banks are attempting to limit cash payments for bonuses to less than 50% of the entire sum, there has been little effect on the industry. The survey reveals that 32% of Singapore finance professionals who expect the cash component of their bonus to be immediately available also anticipate this change to be substantially higher in 2010 than in 2009. A further 38% predict that their cash component for bonuses to be slightly higher than the previous year.
Escalating bonus expectation for finance jobs/professionals, is a tell-tale sign of a candidate-led market
George McFerran, head of eFinancialCareers in Asia Pacific, said, “Escalating bonus expectation is a tell-tale sign of a candidate-led market which has inevitable retention consequences.” Significantly, 72% of finance professionals in Singapore expect to receive this year’s bonus in 2011. Only 18% think their bonus this year will be fully paid on or before end of 2010. McFerran added, “Companies who fail to meet their staff’s growing expectations may find them leaving after bonus payout in the New Year.”
Singapore finance professionals perceive local and global market conditions to be the two major factors that could affect their total financial services compensation/bonus.
Sources and references: eFinancial Careers, HRO
