Find out the real deal behind the gap in Singapore's pay expectations

BY CHRIS MEAD

Good communication will be the key to closing the salary expectation gap between candidates and employers in Singapore In a recent web poll by Hays, 47 per cent of the 286 Singaporean candidates that responded to the survey expect to receive a salary increase of more than 6 per cent. This contrasts with the results of the Hays Salary Guide for 2013 where just 15 per cent of employers in Singapore plan to offer such an increase. TheHays Salary Guide asked more than 1,200 employers about their salary intentions. Overall, 52 per cent plan to award salary increases of 3 to 6 per cent while 33 per cent intend to award pay increases of nil to 3 per cent. The fact that salaries in Singapore continue to rise shows the country is weathering the economic storm which has affected other parts of the world. According to the Hays Salary Guide, the amount of employers who raised salaries by 3 to 6 per cent in 2012 increased by 8 per cent from the previous year showing a steady climb in remuneration for Singapore workers. Singapore is benefitting from its status as a business hub in Asia where three quarters of employers across the continent, or 72 per cent, believe the economy is likely to remain stable or strengthen. 65 per cent of employers in Asia also say their business activity increased in the past 12 months and 66 per cent envisage it will increase in the next year. This is expected to put greater pressure on not only sourcing the right skills to manage increased business but also potentially the package on offer to prospective employees. Our Hays Salary Guide revealed 93 per cent of employers in Asia believe skills shortages will hamper their business operations. Despite the relatively healthy economic outlook for Singapore, employers are looking to maintain costs where possible. For candidates this means looking at the opportunity for professional growth offered by a potential employer and not just the salary. Employers meanwhile need to tread carefully in this market and ensure you are selling the full range of the benefits you offer employees when you interview job candidates. Importantly, open and honest communication with existing and potential employees regarding salaries and benefits will help bridge the gap in pay expectations.
The views expressed in this column are the author's own and do not necessarily reflect this publication's view, and this article is not edited by Singapore Business Review. The author was not remunerated for this article.