SInGaporE 2014 Salary & EmploymEnt ForEcaSt

Transcription

1 SINGAPORE 2014 Salary & Employment Forecast

2 welcome Welcome 3 Market Overview 4 Accounting & Finance 11 Engineering & Manufacturing 23 Financial Services 31 Healthcare & Life Sciences 45 Human Resources 57 Legal 66 Procurement & Supply Chain 74 Property & Construction 84 Sales & Marketing 93 Technology 110 Contact Us 125 2

3 welcome Welcome to the 2014 Michael Page Salary & Employment Forecast report for Singapore. Consistent with previous years, this report provides senior executives and professionals with useful insights into salary forecasts and expectations, hiring intentions and recruitment challenges over the next 12 months. Our national annual salary survey, completed by over 300 employers this year, covers a range of issues and trends relevant to today s corporate sector and establishes the Salary & Employment Forecast as a highly reputable market leading report, based on in-depth national research. Whilst there are a number of current industry surveys that provide qualitative insight on hiring intentions and salary levels, the Michael Page Salary & Employment Forecast combines quantitative and qualitative research with our extensive involvement in the senior executive and professional employment market. Our clients come from all major industry sectors and range from market leading multinationals to local, small and medium sized enterprises. Consistent with our specialist approach to recruitment where we have dedicated teams of specialists servicing each discipline, market or industry sector, the report provides detailed salary guides for each discipline and industry. Salary tables divide job types by years of experience or size of organisation in order to obtain accurate and concise salary ranges. The results of our survey to employers are represented visually through the use of infographics. Featured is a range of employer insights on everything from workplace benefits and working hours to attraction and retention strategies. The market observations that accompany these are based on the extensive knowledge of our senior leadership team at Michael Page. It forms part of a suite of salary advice and information available to the market from Michael Page. These features can be found at I wish to thank everyone who contributed to this year s Salary & Employment Forecast and trust you will find it helpful and informative. We welcome your feedback and encourage you to contact us for further information or market specific advice at enquiries@michaelpage.com.sg Best regards, Jerome Bouin Managing Director Singapore Our areas of specialisation are: Accounting & Finance Engineering & Manufacturing Financial Services Healthcare & Life Sciences Human Resources Legal Procurement & Supply Chain Property & Construction Sales & Marketing Technology 3

4 market OVERVIEW The Singapore recruitment market remains strong, but employers are indicating that the general hiring atmosphere is no longer as buoyant as it once was. There is still an array of opportunities for professionals across all industries, and those with local knowledge and experience are in extremely high demand. The main difference in the recruitment landscape between now and 12 months ago stems from employers beginning to exercise more caution. As Singapore leans towards global influences such as the United States, Europe and Australia, companies will now start to introduce tighter regulation into the recruitment process. Approvals are now often required from all levels of management, and companies are looking for a perfect fit in terms a prospective employee s skills and experience in line with the responsibilities of the role. With more focus on compliance, there is less room for compromise. In general, the market is currently quite averse to risk. There is strong preference for local talent, which is in part driven by the local regulatory bodies enforcing tighter conditions on working visas, and also by companies looking to ensure employees have the local knowledge needed to step into a new role with confidence. A significant percentage of employers (48% of those surveyed) have indicated that they are expecting skills shortages over the next 12 months which represents the prevailing caution on display. In a competitive hiring market, it is of the highest importance to attract and maintain the top talent. Some 53% of survey respondents expect to see staff turnover within the next 12 months, with most employees leaving their jobs to seek a higher salary. As companies compete to attract and hire from the fixed talent pool, this has resulted in role rotations across higher-end talent. When it comes to retention, companies are offering competitive packages encompassing both salary increases and worklife balance initiatives in addition to training and career progression opportunities (90% of survey respondents expect to award staff bonuses this year). An emerging trend is the growing popularity of graduate programs as a strategy to attract the strongest candidates early and to expose and familiarise them with the company s culture. In 2014 s employment market, businesses will need to find a balance between meeting compliance requirements and seizing the opportunity in order to attract the right professionals that will help them develop a stronger proposition in an already thriving market. As South East Asia continues to grow, Singapore is well positioned to benefit from the continued influx of businesses looking to establish themselves regionally. Main areas of growth include business services, healthcare and biomedical sciences, and high level industries. Engineering also looks set to continue as a key growth area throughout In addition, as organisations continue to set up headquarters locally, this produces sustained demand for workers in the corporate space. Professionals from a range of backgrounds are required to manage all departments, from human resources, to finance, sales and marketing and IT support. Niche roles in oil and gas as well as healthcare and life sciences are expected to attract offshore candidates as companies in these industries face a shortage of local talent that have the required experience to operate in top technical and upper managerial roles. This results in companies being forced to look outside the local market as they seek to sustain local operations. 4

5 Market OVERVIEW Recruitment Activity Strength of current hiring activity compared to the last 12 months Expectation of a professional skills shortage in the next 12 months Stronger (15%) Slightly stronger (19%) Steady (54%) Slightly weaker (8%) Weaker (4%) 48% 38%? 14% Skills shortage placing upwards pressure on salaries Impact of skills shortage on business in Singapore over the next 12 months Yes, it will cause salaries to rise above the inflation rate (47%) Yes, salaries will increase but only at the rate of inflation (40%) No, the skills shortage will not impact salary levels (13%) 42% Need to develop more targeted attraction strategies 27% Source talent from overseas 16% It will be difficult to maintain headcount 13% None 2% Other Note: All infographics in this report are based on the views of survey participants. The accompanying market commentary is based on the experience and observations of the Michael Page team. Finance 5

6 Market OVERVIEW Salary and Remuneration Salary increases over the next 12 months Average percentage salary increases over the next 12 months 9% All my employees will receive the same percentage increase 74% 1% - 5% 6% - 10% 11% - 15% 70% 23% 5% All my employees will receive an increase, but it will vary according to performance 12% 16% - 20% 1% 21% - 30% 1% Only my best-performing employees will receive an increase 5% No one in my team will receive an increase Combination of factors likely to impact salary levels in the next 12 months* 56 % Global economic conditions 52 % 45 % 9 % 6 % 5 % Domestic economic conditions Competition with other companies Other (company performance, individual performance, inflation, etc.) Not sure Don t expect any factors to particularly impact salaries * More than one option could be selected. Finance 6

7 Market OVERVIEW Salary and Remuneration Flexible salary packaging or fringe benefits offered to employees Companies providing bonus as part of the remuneration package 60% 40% 90% 10% Basis for bonuses over the next 12 months Average percentage bonus of gross salary Other Team performance 1 % 3 % 16 % 14 % Individual performance Company performance 1% - 5% 6% - 10% 20% 28% 11% - 15% 16% - 20% 25% 15% 21% - 30% 8% 31 40% 2% Above 40% 2% 66 % Combination of all Finance 7

8 Market OVERVIEW Attraction and retention Employer expectations for staff turnover in the next 12 months 53% 24% Key reasons employees are likely to leave $ 54% 23%? 23% 9% 6% 6% 1% 1% Higher salary Broaden experience/ opportunity to learn Promotion Achieve better work/life balance Other (company relocation, company culture, job security, etc.) Greater training & development Overseas opportunities Most popular tools for attraction and retention Recognition and rewards Structured career progression Training and mentoring partnerships Strong company culture Work-life balance initiatives Company branding International opportunities 29% 28% 13% 9% 9% 8% 4% * More than one option could be selected. Finance 8

9 Market OVERVIEW Attraction and retention Most popular options offered to support employees work-life balance* 18% 24% 46% Sabbatical leave 63% Flexible working arrangements Team building/offsite activities Increased maternity/paternity leave Other strategies companies implement to attract and retain staff Open communication Salary reviews Bonus allocation Promotions Rotational job opportunities Individual development plan for top talent Employee engagement initiatives Flexible working arrangements 18% Alternative leave options (e.g. volunteering) 12% Other (no overtime, leave, etc.) Combination of benefits offered to employees* 82 % 65 % 46 % 42 % 34 % 16 % 12 % 9 % 6 % 6 % 6 % 4 % 4 % Parking Stock options Company car Education loan Personal loan Housing loan Mobile phone Transport allowance Personal laptop Medical and dental benefits Other (travel allowance, meal allowance, clothing allowance, gym membership, additional leave, etc.) None Travel pass * More than one option could be selected. Finance 9

10 Market OVERVIEW Working hours Average weekly working hours Less than 37.5 hours hours hours hours 50 hours or more 1 % 16 % 56 % 20 % 7 % Change in average weekly working hours over the last 12 months Significantly increase (15+%) (4%) Increased (0-15%) (21%) Stayed the same (71%) Reduced (0-15%) (3%) Significantly decrease (15+%) (1%) Main reason for increased working hours 60% 22% 12% 3% 3% Business growth Staff leaving and not replaced Fewer headcount Promotion Other (restructure, increased business activity, etc.) Finance 10

11 Salary & Employment Forecast SINGAPORE 2014 Accounting & Finance Accounting & Finance

12 Accounting & Finance Market Analysis Recruitment Activity Strength of current hiring activity compared to the last 12 months Expectation of a professional skills shortage in the next 12 months Stronger (13%) Slightly stronger (21%) Steady (52%) Slightly weaker (10%) Weaker (4%) 50% 40%? 10% Market observations: Overall, hiring activity of finance and accounting professionals in Singapore has been steady and this sentiment is expected to remain for the next 12 months A relatively stable economy in Singapore and a slight improvement in European and American economies have helped to maintain hiring activity of finance and accounting professionals in Singapore. The growing economies of countries throughout South East Asia is also creating a healthy outlook for the recruitment of finance and accounting professionals. Demand for finance and accounting professionals is expected to be highest within the aviation, healthcare, oil and gas and professional service sector. While demand could be higher in these sectors, there is a stable demand across other industry sectors as Singapore continues to be seen as a regional hub of Asia. There is a growing trend for companies to invest in these positions while looking for candidates who can business partner effectively with the objective in mind to improve overall business performance and profitability. As the trend to outsource shared services centres to lower cost neighbouring countries like Malaysia, India, China and Philippines continues, an increased demand for finance and accounting professionals to support more regional and complex operational setups is still likely to come out of Singapore and be based in Singapore. Companies continue to expand or build their regional hubs in Singapore as not only is Singapore an ideal place from a location and tax efficient standpoint, it is also a location where talent is most likely to be based. Among finance and accounting professionals in Singapore, roles in highest demand include those specialising in tax, business analysis, financial control and internal audit. Note: All infographics in this report are based on the views of survey participants. The accompanying market commentary is based on the experience and observations of the Michael Page team. Accounting & Finance 12

13 Accounting & Finance Recruitment Activity Skills shortage placing upwards pressure on salaries Impact of skills shortage on business in Singapore over the next 12 months Yes, it will cause salaries to rise above the inflation rate (61%) Yes, salaries will increase but only at the rate of inflation (35%) 52% 22% 17% 9% No, the skills shortage will not impact salary levels (4%) Need to develop more targeted attraction strategies Source talent from overseas It will be difficult to maintain headcount None Accounting & Finance 13

14 Accounting & Finance Salary & remuneration Salary increases over the next 12 months Average percentage salary increases over the next 12 months 10% All my employees will receive the same percentage increase 67% 1% - 5% 6% - 10% 11% - 15% 76% 19% 2% All my employees will receive an increase, but it will vary according to performance 18% 16% - 20% 1% 21% - 30% 2% Only my best-performing employees will receive an increase 5% No one in my team will receive an increase Combination of factors likely to impact salary levels in the next 12 months* Market observations: The average salaries of finance and accounting professionals in Singapore have increased in the last 12 months by 1% to 10%. 57 % 50 % 35 % 9 % 9 % 4 % Global economic conditions Domestic economic conditions Competition with other companies Other (company performance, individual performance, inflation, etc.) Don t expect any factors to particularly impact salaries Not sure Finance and accounting professionals who specialise in tax and business planning and analysis are more likely to be awarded above average increases as companies compete to attract and retain talent in what is a shallow talent pool. * More than one option could be selected. Accounting & Finance 14

15 Accounting & Finance Salary & remuneration Flexible salary packaging or fringe benefits offered to employees Companies providing bonus as part of the remuneration package 63% 37% 84% 16% Basis for bonuses over the next 12 months Average percentage bonus of gross salary Individual performance 1% - 5% 26% 21 % 12 % Company performance 6% - 10% 26% 11% - 15% 24% 16% - 20% 17% 21% - 30% 7% 67 % Combination individual, team and company performance Accounting & Finance 15

16 Accounting & Finance Attraction & retention Employer expectations for staff turnover in the next 12 months 57% Key reasons employees are likely to leave $ 30% 13%? 54% 21% 18% 4% 3% Higher salary Broaden experience / opportunity to learn Promotion Achieve better work-life balance Other (reorganisation, etc.) Most popular tools for attraction and retention Most popular options offered to support employees work-life balance* Recognition and rewards Structured career progression Work-life balance initiatives Strong company culture International opportunities Company branding 34% 34% 16% 10% 4% 2% 69% Flexible working arrangements 44% Team building/offsite activities 23% Increased maternity/paternity leave 17% Sabbatical leave 17% Alternative leave options (e.g. volunteering) Market observation: Most finance and accounting professionals in Singapore prefer to receive financial rewards such as transport allowances, mobile allowances, performance bonuses or any other form of cash allowances from their employer as opposed to non-financial rewards. 17% Other (no overtime, EAP program - counselling, etc.) * More than one option could be selected. Accounting & Finance 16

17 Accounting & Finance Attraction & retention Combination of benefits offered to employees* 71 % 60 % 52 % 45 % 29 % 19 % 15 % 10 % 8 % 6 % 4 % 4 % 2 % Parking Education loan Stock options Company car Housing loan Mobile phone Personal laptop Transport allowance Medical and dental benefits Other (travel allowance, petrol allowance, gym membership, etc.) Personal loan None Travel pass Working hours Average weekly working hours Less than 37.5 hours hours hours hours 50 hours or more 1 % 28 % 33 % 31 % 7 % * More than one option could be selected. Accounting & Finance 17

18 Accounting & Finance Salary Tables GENERAL Role Salary SG$ 000 Accounts Payable Accountant 3 5 years years Financial Accountant 3 5 years years Cost Accountant 3 5 years years Credit Analyst 3 5 years years Group Accountant - Consolidation 3 5 years years Financial/Business Analyst 3 5 years years Accounts Payable Manager 3 5 years years Finance Manager (Small/Medium Organisation) 3 5 years years years 120+ Finance Manager (Shared Services Centre) 3 5 years years years 120+ Finance Manager (Large Organisation) 3 5 years years years 180+ Please note: 1. Salaries indicated are based on an annual basic salary, excluding bonus/incentive schemes. 2. Market rates are becoming much less uniform. While we have taken great care, these salary ranges can only be approximate guides, as there are often specific circumstances relating to individual companies. Please call us for additional information. Accounting & Finance 18

19 Accounting & Finance GENERAL Role Salary SG$ 000 Credit Manager 3 5 years years years Costing Manager 3 5 years years years 150+ Financial & Planning Analysis Manager 3 5 years years years More than 15 years 200+ Financial Controller (Small/Medium Organisation) 3 5 years years years 180+ Financial Controller (Large Organisation) 3 5 years years years 250+ Credit Director 3 5 years years years More than 15 years 220+ Finance Director (Shared Services Centre) 3 5 years years years 250+ More than 15 years N/A CFO/Finance Director (Large Organisation) 3 5 years years years More than 15 years 350+ Please note: 1. Salaries indicated are based on an annual basic salary, excluding bonus/incentive schemes. 2. Market rates are becoming much less uniform. While we have taken great care, these salary ranges can only be approximate guides, as there are often specific circumstances relating to individual companies. Please call us for additional information. Accounting & Finance 19

20 Accounting & Finance SPECIALIST Role Salary SG$ 000 Pricing Analyst 3 5 years years Treasury Analyst 3 5 years years Tax Analyst 3 5 years years Internal Auditor 3 5 years years Pricing Manager 3 5 years years years 150+ Revenue Recognition 3 5 years years years Corporate Finance Manager 3 5 years years years 160+ Treasury Manager 3 5 years years years 180+ Please note: 1. Salaries indicated are based on an annual basic salary, excluding bonus/incentive schemes. 2. Market rates are becoming much less uniform. While we have taken great care, these salary ranges can only be approximate guides, as there are often specific circumstances relating to individual companies. Please call us for additional information. Accounting & Finance 20

21 Accounting & Finance SPECIALIST Role Salary SG$ 000 Internal Audit Manager 3 5 years years years Tax Manager 3 5 years years years 200+ Corporate Finance Director 3 5 years years years More than 15 years 300+ Treasury Director 3 5 years years years More than 15 years 300+ Internal Audit Director 3 5 years years years More than 15 years 300+ Tax Director 3 5 years years years More than 15 years 300+ Please note: 1. Salaries indicated are based on an annual basic salary, excluding bonus/incentive schemes. 2. Market rates are becoming much less uniform. While we have taken great care, these salary ranges can only be approximate guides, as there are often specific circumstances relating to individual companies. Please call us for additional information. Accounting & Finance 21

22 Accounting & Finance PROFESSIONAL SERVICES & PUBLIC ACCOUNTING Role Salary SG$ 000 External Audit 3 5 years years years 120+ Tax 3 5 years years years 130+ Management consultancy 3 5 years years years 180+ Corporate Finance 3 5 years years years 180+ Risk & Compliance 3 5 years years years 180+ Please note: 1. Salaries indicated are based on an annual basic salary, excluding bonus/incentive schemes. 2. Market rates are becoming much less uniform. While we have taken great care, these salary ranges can only be approximate guides, as there are often specific circumstances relating to individual companies. Please call us for additional information. Accounting & Finance 22

23 Salary & Employment Forecast SINGAPORE 2014 ENGINEERING & MANUFACTURING Engineering & Manufacturing

24 ENGINEERING & MANUFACTURING Market Analysis Recruitment Activity Strength of current hiring activity compared to the last 12 months Expectation of a professional skills shortage in the next 12 months Stronger (11%) Slightly stronger (16%) Steady (55%) Slightly weaker (16%) 40% 34%? 26% Weaker (2%) Market observations: Current recruitment activity for engineering and manufacturing professionals in Singapore is steady and is expected to remain so over the coming 12 months. The majority of hiring activity is in the areas of oil and gas, chemical, petrochemical, semiconductor and aerospace and is mostly for replacement roles. Some companies have created new roles, particularly in instances where they transfer their manufacturing operations from overseas to Singapore. The areas of engineering, product support and quality control have experienced the strongest hiring activity, as Singapore moves towards a higher technology engineering centre and manufacturing site for high-end products. Multinationals in Singapore are currently transferring new technology and manufacturing to existing sites, creating a demand for highly skilled Design Engineers, Product Support and Process Improvement Specialists to ensure a smooth transition. High-tech industries such as the semiconductor industry will experience increased demand for Electrical Design Engineers for locally established regional design centres. Lower-end manufacturing sites are moving out of Singapore due to the higher costs of manufacturing compared to other regions such as Vietnam, Indonesia, Thailand and China. This is driving a shift towards higher-end manufacturing products in Singapore such as aerospace components, high-end chemicals and oil and gas equipment. Engineering and manufacturing professionals in Singapore with skills in Six Sigma Black Belt and Lean Expert will be in high demand as companies look to increase cost savings and efficiency through the implementation of lean methodologies, as well as Six Sigma. Mechanical and Electrical Engineers, Quality Managers, as well as Application Support and Field Service roles will be the most demanded job types. As companies set up their South East Asia or Asia Pacific regional office in Singapore, there is an increased requirement for regional field service or quality roles based in Singapore. Manufacturing sites in Singapore are also upgrading their machinery and facilities, generating a demand for experienced mechanical engineers. Note: All infographics in this report are based on the views of survey participants. The accompanying market commentary is based on the experience and observations of the Michael Page team. Engineering & Manufacturing 24

25 ENGINEERING & MANUFACTURING Recruitment Activity Skills shortage placing upwards pressure on salaries Impact of skills shortage on business in Singapore over the next 12 months 47% Yes, it will cause salaries to rise above the inflation rate (60%) Yes, salaries will increase but only at the rate of inflation (33%) 20% 20% 13% No, the skills shortage will not impact salary levels (7%) Source talent from overseas Need to develop more targeted attraction strategies None It will be difficult to maintain headcount Engineering & Manufacturing 25

26 ENGINEERING & MANUFACTURING Salary & remuneration Salary increases over the next 12 months Average percentage salary increases over the next 12 months 7% All my employees will receive the same percentage increase 1% - 5% 6% - 10% 85% 15% 83% All my employees will receive an increase, but it will vary according to performance 8% Only my best-performing employees will receive an increase 2% No one in my team will receive an increase Market observations: Average salaries for engineering and manufacturing professionals in Singapore increased over the last 12 months by between 1% and 10%. Operational Directors, Plant Managers and Engineering Specialists will be awarded above average salary increases due to the limited talent pool available and as employers look to them to drive improvements, processes or build new teams and disciplines. Combination of factors likely to impact salary levels in the next 12 months* 72 % Global economic conditions 54 % 26 % 8 % 5 % Domestic economic conditions Competition with other companies Other (company performance, financial status of company, type and number of projects etc.) Not sure * More than one option could be selected. Engineering & Manufacturing 26

27 ENGINEERING & MANUFACTURING Salary & remuneration Flexible salary packaging or fringe benefits offered to employees Companies providing bonus as part of the remuneration package 53% 47% 90% 10% Basis for bonuses over the next 12 months Average percentage bonus of gross salary Individual performance 1% - 5% 22% 8 % Company performance 6% - 10% 11% - 15% 31% 6% 22 % 16% - 20% 19% 21% - 30% 15% 31% - 40% 1% Above 40% 6% 70 % Combination individual, team and company performance Engineering & Manufacturing 27

28 ENGINEERING & MANUFACTURING Attraction & retention Employer expectations for staff turnover in the next 12 months Key reasons employees are likely to leave 51% 21% $ 28%? 65% 20% 10% 5% Higher salary Broaden experience / opportunity to learn Other (job security, etc.) Promotion Most popular tools for attraction and retention Most popular options offered to support employees work-life balance* Recognition and rewards Structured career progression Strong company culture Training and mentoring partnerships Work-life balance initiatives Company branding International opportunities 43% 30% 10% 5% 5% 5% 2% 68% Flexible working arrangements 45% Team building/offsite activities 21% Increased maternity/paternity leave 16% 13% Alternative leave options (e.g. volunteering) Sabbatical leave Market observations: Most engineering and manufacturing professionals in Singapore prefer to receive a mix of financial and non-financial rewards from their employer. 8% Other (no overtime, leave, etc.) * More than one option could be selected. Engineering & Manufacturing 28

29 ENGINEERING & MANUFACTURING Attraction & retention Combination of benefits offered to employees* 76 % 53 % 50 % 37 % 37 % 24 % 16 % 16 % 13 % 13 % 11 % 8 % 5 % Parking Mobile phone Personal laptop Transport allowance Stock options Company car Housing loan Personal loan Medical and dental benefits Other (education sponsor, renovation loans, computer loans, work live leave, company shares, etc.) Education loan Travel pass None Working hours Average weekly working hours Less than 37.5 hours hours hours hours 50 hours or more 5 % 10 % 77 % 5 % 3 % * More than one option could be selected. Engineering & Manufacturing 29

30 ENGINEERING & MANUFACTURING Salary Tables Role Experience Salary SG$ 000 R&D ENGINEERING/R&D Design Engineer 2 5 years Application Engineer 2 5 years Senior Design Engineer 5 10 years Senior Application Engineer 5 10 years Engineering Manager 8+ years Engineering Director 15+ years PRODUCTION/MANUFACTURING ENGINEERING Production Engineer 2 5 years Production Engineering Manager 8+ years QUALITY CONTROL/ASSURANCE Quality Engineer 2 5 years Senior Quality Engineer 5 10 years Quality Manager 10+ years Quality Director 15+ years SALES ENGINEERING Sales Engineer 2 5 years Senior Sales Engineer 5 8 years Sales Engineering Manager 8+ years PROJECT/PROGRAM MANAGEMENT Project Manager 2 5 years Senior Project Manager 5 10 years Project/Program Director 10+ years Please note: 1. Salaries indicated are based on an annual basic salary, excluding bonus/incentive schemes. 2. Market rates are becoming much less uniform. While we have taken great care, these salary ranges can only be approximate guides, as there are often specific circumstances relating to individual companies. Please call us for additional information. Engineering & Manufacturing 30

31 Salary & Employment Forecast SINGAPORE 2014 FINANCial services Financial Services

32 Financial Services Market Analysis Recruitment Activity Strength of current hiring activity compared to the last 12 months Expectation of a professional skills shortage in the next 12 months Stronger (14%) Slightly stronger (21%) Steady (45%) Slightly weaker (7%) Weaker (13%) 31% 52%? 17% Market observations: The current strength of hiring activity for financial services professionals in Singapore is steady as banks have faced serious cost pressures and made redundancies across the board and at all levels. With cost and regulatory pressures still in place, the majority of banking employers have indicated they will not expand teams in However, hiring activity is expected to strengthen with any pick-up in economic activity, due to banking teams being fairly lightly staffed and the need to strengthen teams to contend with increased work flow. Hiring activity for financial services professionals in the areas of compliance and risk is strongest as increased global regulatory pressures have meant banks have had to increase the size of their governance teams. As banks and financial institutions remain on cost cutting measures, hiring activity will be largely restricted to roles in highest demand such as Analysts, Associates and AVPs, with few openings for senior roles. Financial services professionals in Singapore with skills in financial modelling are in demand as private equity firms and corporate finance teams require this as a primary skill set. Increased regulatory pressures across private banking and corporate investment banking is creating demand for financial services professionals familiar with anti money laundering and know your customer (KYC) practices. As Japanese banks move their operations to Singapore, financial services professionals with language proficiency in Japanese will be sought-after by these companies. Note: All infographics in this report are based on the views of survey participants. The accompanying market commentary is based on the experience and observations of the Michael Page team. Financial Services 32

33 Financial Services Recruitment Activity Skills shortage placing upwards pressure on salaries Impact of skills shortage on business in Singapore over the next 12 months 45% Yes, it will cause salaries to rise above the inflation rate (44%) Yes, salaries will increase but only at the rate of inflation (44%) 22% 22% 11% No, the skills shortage will not impact salary levels (12%) Need to develop more targeted attraction strategies Source talent from overseas None Other (Will not hire unless it is the right candidate) Financial Services 33

34 Financial Services Salary & remuneration Salary increases over the next 12 months Average percentage salary increases over the next 12 months 65% All my employees will receive an increase, but it will vary according to performance 26% 1% - 5% 6% - 10% 11% - 15% 71% 23% 6% Only my best performing employees will receive an increase 9% No one in my team will receive an increase Combination of factors likely to impact salary levels in the next 12 months* 77 % Global economic conditions 58 % 48 % 9 % 9 % 3 % Domestic economic conditions Competition with other companies Other (company performance, growth potential, increase in experience, etc.) Not sure Don t expect any factors to particularly impact salaries Market observations: Average salaries for financial services professionals in Singapore over the last 12 months have remained steady. In 2014, financial services professionals in compliance are likely to be awarded above average increases as companies look to attract and retain talent with these skills as there is a limited supply pool. * More than one option could be selected. Financial Services 34

35 Financial Services Salary & remuneration Flexible salary packaging or fringe benefits offered to employees Companies providing bonus as part of the remuneration package 55% 45% 94% 6% Basis for bonuses over the next 12 months Average percentage bonus of gross salary Other 1% - 5% 30% 3 % Individual performance 6% - 10% 11% - 15% 10% 20% Team performance 6 % 16% 10 % Company performance 16% - 20% 10% 21% - 30% 17% 31% - 40% 10% Above 40% 3% 65 % Combination of all Financial Services 35

36 Financial Services Attraction & retention Employer expectations for staff turnover in the next 12 months Key reasons employees are likely to leave 47% $ 31% 22%? 47% 40% 7% 6% Higher salary Broaden experience / opportunity to learn Promotion Other (combination of the reasons listed) Most popular tools for attraction and retention Most popular options offered to support employees work-life balance* 53% Recognition and rewards Structured career progression Strong company culture Company branding Training and mentoring partnerships Work-life balance initiatives 17% 10% 10% 7% 3% 24% 24% 21% 72% Flexible working arrangements Team building/offsite activities Alternative leave options (e.g. volunteering) Sabbatical leave 17% Increased maternity/paternity leave Market observations: Financial services employers are looking at a range of attraction and retention strategies including staggered and flexible shifts in back office roles and offering global mobility to existing employees. The majority of financial services professionals in Singapore would prefer to receive financial rewards from their employer. 13% Other (working from home) * More than one option could be selected. Financial Services 36

37 Financial Services Attraction & retention Combination of benefits offered to employees* 90 % 72 % 41 % 38 % 34 % 14 % 10 % 10 % 7 % 7 % 3 % 3 % Personal laptop Transport allowance Parking Mobile phone Other (optical benefits, travel insurance, meal allowance, flexi benefits and additional leave) Housing loan Stock options Personal loan Education loan Company car None Medical and dental benefits Working hours Average weekly working hours Less than 37.5 hours hours hours hours 50 hours or more 1 % 18 % 44 % 25 % 12 % * More than one option could be selected. Financial Services 37

38 Financial Services Salary Tables FINANCE Role Salary SG$ 000 CENTRAL FINANCE Management Reporting/Business Finance Associate Associate Vice President Vice President Director/MD 270+ Costing Controls/Analytics Associate Associate Vice President Vice President Director/MD 270+ Financial Reporting Associate Associate Vice President Vice President Director/MD 270+ Tax Accountant Associate Associate Vice President Vice President Director/MD 300+ VALUATIONS Quantitative Associate Associate Vice President Vice President Director/MD 260+ Price Testing Associate Associate Vice President Vice President Director/MD 260+ Please note: 1. Salaries indicated are based on an annual basic salary, excluding bonus/incentive schemes. 2. Market rates are becoming much less uniform. While we have taken great care, these salary ranges can only be approximate guides, as there are often specific circumstances relating to individual companies. Please call us for additional information. Financial Services 38

39 Financial Services FINANCE Role Salary SG$ 000 FINANCE PROJECTS Business Analyst Associate Associate Vice President Vice President Director/MD 260+ PRODUCT CONTROL Cash Associate Associate Vice President Vice President Director/MD 260+ Equities & Finance Associate Associate Vice President Vice President Director/MD 260+ Commodities & Derivatives Associate Associate Vice President Vice President Director/MD 260+ Please note: 1. Salaries indicated are based on an annual basic salary, excluding bonus/incentive schemes. 2. Market rates are becoming much less uniform. While we have taken great care, these salary ranges can only be approximate guides, as there are often specific circumstances relating to individual companies. Please call us for additional information. Financial Services 39

40 Financial Services AUDIT, COMPLIANCE & RISK Role Salary SG$ 000 AUDIT Internal Audit Associate Associate Vice President Vice President Director/MD 250+ IT Audit Associate Associate Vice President Vice President Director/MD 250+ COMPLIANCE AML (Audit Money Laundering) Associate Associate Vice President Vice President Director/MD 250+ MAS Compliance Associate Associate Vice President Vice President Director/MD 250+ TTM (Transaction Trend Monitoring) Associate Associate Vice President Vice President Director/MD 250+ Front Office Advisory Associate Associate Vice President Vice President Director/MD 300+ Please note: 1. Salaries indicated are based on an annual basic salary, excluding bonus/incentive schemes. 2. Market rates are becoming much less uniform. While we have taken great care, these salary ranges can only be approximate guides, as there are often specific circumstances relating to individual companies. Please call us for additional information. Financial Services 40

41 Financial Services AUDIT, COMPLIANCE & RISK Role Salary SG$ 000 RISK Market Risk Associate Associate Vice President Vice President Director/MD 250+ Credit Risk Associate Associate Vice President Vice President Director/MD 250+ Operational Risk Associate Associate Vice President Vice President Director/MD 250+ Please note: 1. Salaries indicated are based on an annual basic salary, excluding bonus/incentive schemes. 2. Market rates are becoming much less uniform. While we have taken great care, these salary ranges can only be approximate guides, as there are often specific circumstances relating to individual companies. Please call us for additional information. Financial Services 41

42 Financial Services OPERATIONS Role Salary SG$ 000 OPERATIONS Project Management Associate Associate Vice President Vice President Director/MD 220+ MIDDLE OFFICE Client Servicing Associate Associate Vice President Vice President Director/MD 200+ BACK OFFICE Settlement Associate Associate Vice President Vice President Director/MD 200+ Corporate Actions Associate Associate Vice President Vice President Director/MD 200+ Reconciliation Associate Associate Vice President Vice President Director/MD 200+ Collateral Management Associate Associate Vice President Vice President Director/MD 190+ Fund Administration Associate Associate Vice President Vice President Director/MD 190+ Documentation Associate Associate Vice President Vice President Director/MD 200+ Please note: 1. Salaries indicated are based on an annual basic salary, excluding bonus/incentive schemes. 2. Market rates are becoming much less uniform. While we have taken great care, these salary ranges can only be approximate guides, as there are often specific circumstances relating to individual companies. Please call us for additional information. Financial Services 42

43 Financial Services FRONT OFFICE Role Salary SG$ 000 INVESTMENT BANKING Debt Capital Markets Associate Associate Vice President Vice President Director/MD 280+ Equity Capital Markets Associate Associate Vice President Vice President Director/MD 280+ Private Equity Associate Associate Vice President Vice President Director/MD 250+ Investment Banking Associate Associate Vice President Vice President Director/MD 280+ CORPORATE /INSTITUTIONAL BANKING Credit Analysis Corporate Bankers Associate Associate Vice President Vice President Director/MD 140+ Transaction Banking Sales Associate Associate Vice President Vice President Director/MD 160+ Transaction Banking Product Management Associate Associate Vice President Vice President Director/MD 150+ Corporate Banking Relationship Manager Associate Associate Vice President Vice President Director/MD 180+ Please note: 1. Salaries indicated are based on an annual basic salary, excluding bonus/incentive schemes. 2. Market rates are becoming much less uniform. While we have taken great care, these salary ranges can only be approximate guides, as there are often specific circumstances relating to individual companies. Please call us for additional information. Financial Services 43

44 Financial Services FRONT OFFICE Role Salary SG$ 000 FUND MANAGEMENT Institutional Sales & Marketing Associate Associate Vice President Vice President Director/MD 170+ Portfolio Managers Associate Associate Vice President Vice President Director/MD 220+ Research Associate Associate Vice President Vice President Director/MD 220+ Financial Services 44

45 Salary & Employment Forecast SINGAPORE 2014 Healthcare & Life Sciences Healthcare & Life Sciences

46 Healthcare & Life Sciences Market Analysis Recruitment Activity Strength of current hiring activity compared to the last 12 months Expectation of a professional skills shortage in the next 12 months Stronger (14%) Slightly stronger (14%) Steady (58%) 72% Slightly weaker (14%)? 14% 14% Market observations: Overall hiring activity for healthcare and life sciences professionals in Singapore is currently steady and is expected to remain at this level over the next 12 months. Technical markets are maturing and there is more emphasis on investing in local talent. Companies are also setting up new plants in Singapore and this is expected to create a healthy demand for new roles in the sector in addition to the usual replacement roles caused by natural attrition and turnover. Research & Development (R&D), Quality Assurance and Engineering and Operations are expected to be the strongest areas of hiring activity for healthcare and life sciences professionals, as Singapore differentiates itself as a high quality and high value market with highly skilled employees. Within the healthcare and life sciences sector, professionals with a specialisation in quality assurance or regulatory affairs will be in demand as new plants and corporate offices set up operations in Singapore. An increase in collaborations between government and industry players is leading to the establishment and expansion of plants in Singapore as organisations ramp up their operations, and is creating demand for healthcare and life sciences professionals. Healthcare and life sciences professionals specialising in ISO13485 standards for medical devices, as well as those with expertise in Lean and Six Sigma are in demand. Companies are aware that these specialisations are hard to come by due to the need for upfront investment from employers to train and develop healthcare professionals with these skills. R&D across the medical device and fast-moving consumer goods (FMCG) sectors is picking up in Singapore with new start-ups receiving strong support from the government. This is leading to a demand for skilled R&D professionals, in particular scientific experts in the areas of biology and chemistry. Project and mechanical engineers are also expected to be in demand as engineering and operations remain a core component of manufacturing companies and plants. This will create a constant demand for talented healthcare and life sciences professionals in Singapore. Note: All infographics in this report are based on the views of survey participants. The accompanying market commentary is based on the experience and observations of the Michael Page team. Healthcare & Life Sciences 46

47 Healthcare & Life Sciences Recruitment Activity Skills shortage placing upwards pressure on salaries Impact of skills shortage on business in Singapore over the next 12 months Yes, it will cause salaries to rise above the inflation rate (60%) Yes, salaries will increase but only at the rate of inflation (40%) 60% 20% 20% Need to develop more targeted attraction strategies It will be difficult to maintain headcount Other Healthcare & Life Sciences 47

48 Healthcare & Life Sciences Salary & remuneration Salary increases over the next 12 months Average percentage salary increases over the next 12 months All my employees will receive an increase, but it will vary according to performance 12% 88% 1% - 5% 6% - 10% 11% - 15% 75% 13% 1% Only my best performing employees will receive an increase 16% - 20% 11% Combination of factors likely to impact salary levels in the next 12 months* Market observations: The average salaries of healthcare and life sciences professionals in Singapore increased over the last 12 months by 1% to 10%. 88 % 88 % 63 % 13 % Not sure Competition with other companies Domestic economic conditions Global economic conditions Healthcare and life sciences professionals specialising in regulatory affairs, engineering and operations, as well as scientific experts, are expected to be awarded above average salary increases in the coming year. Companies will also award above average salary increase to secure professionals with the ability to drive improvements, processes or build a new team and discipline, given the limited talent pool and competitive market. * More than one option could be selected. Healthcare & Life Sciences 48

49 Healthcare & Life Sciences Salary & remuneration Flexible salary packaging or fringe benefits offered to employees Companies providing bonus as part of the remuneration package 50% 50% 86% 14% Basis for bonuses over the next 12 months Average percentage bonus of gross salary 17 % Individual performance 33 % Company performance 11% - 15% 16% - 20% 60% 40% 50 % Combination of individual, team and company performance Healthcare & Life Sciences 49

50 Healthcare & Life Sciences Attraction & retention Employer expectations for staff turnover in the next 12 months Key reasons employees are likely to leave 72% $ 14% 14%? 40% 40% 20% Higher salary Broaden experience / opportunity to learn Greater training & development Most popular tools for attraction and retention Most popular options offered to support employees work-life balance* 43% Company branding Structured career progression Work-life balance initiatives 43% 14% 71% 71% Flexible working arrangements Increased maternity/paternity leave 24% Team building/offsite activities Market observations: International opportunities Some companies have adopted new attraction and retention strategies, such as retention bonuses spread over several years, as well as a lump sum payment after a fixed number of years of employee service. Most healthcare and life sciences professionals in Singapore prefer to receive a mix of financial and non-financial rewards from their employer. 14% 14% Sabbatical leave Alternative leave options (e.g. volunteering) * More than one option could be selected. Healthcare & Life Sciences 50

51 Healthcare & Life Sciences Attraction & retention Combination of benefits offered to employees* 86 % 71 % 57 % 57 % 43 % 14 % 14 % Medical and dental benefits Mobile phone Parking Transport allowance Personal laptop Education loan Stock options Working hours Average weekly working hours Less than 37.5 hours hours hours hours 50 hours or more 1 % 1 % 57 % 29 % 12 % * More than one option could be selected. Healthcare & Life Sciences 51