Around 51% of employees in Singapore are expecting higher salaries in 2023, while 65% are expecting a larger bonus.
This is according to the 2023 Salary Guide by international talent services firm Morgan McKinley.
On the employer side, around 61% said they had already had to increase salaries in order to retain their existing staff from last year.
Moreover, 75% of employers were anticipating a demand for salary increases in their sector.
“We anticipate that, as companies watch their headcount and costs, short-term contract hiring will be more prevalent – we are already seeing a rise of flexible and contract resources,” Gurj Sandhu, managing director of Morgan McKinley Singapore, said. “As a result, there will be a slight recalibration of salaries. Whilst professionals will receive an uplift when moving externally, the increases are broadly not likely to be as significant as they were in 2022.”
This is supported by how 65% of businesses plan to hire new permanent or contractual employees in the first half of 2023, while 64% of Singapore employees are looking to shift jobs during the same time period.
“Employers need to ensure what they are offering is aligned to expectations, encompassing both salaries and benefits. This is even more crucial considering the skills shortage that remains across many industries. Top talent with specific or specialist technical skills will always be in demand, and 2023 will be no different in that regard,” Sandhu added.