For the average Singaporean. Stingier employers adopt lean manpower mindset SALARY SURVEY 2016

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1 Stingier employers adopt lean manpower mindset Negotiating a big salary increase and getting a permanent post will be tricky this year as Singaporean companies err on the side of caution. For the average Singaporean employee evaluating the job market in 2016, two words will come to mind: lean and mean. Lean because most employers will be hesitant to hire more regular staff and instead resort to temporary or contract hires, and mean because salary increases will likely be small or even be shelved this year. There are a few bright spots worth mentioning such as more generous bonuses and better work-life balance measures, but on the whole, Singapore will be a tougher place to find and keep a job this year in the face of increased economic uncertainty. Modest salary increases Singaporean salaries will nudge up but only by a little bit, according to analysts and employer outlook surveys. Most industries may still see a salary increase but at a lower rate, depending on the sector and the individual s performance. The Michael Page 2016 South East Asia Salary & Employment Outlook, for example, says expectations of salary increases are modest with 71% predicting increases of 1-5%, while 11% of employers surveyed expect no increase at all. The same report reveals expectations for bonuses are more positive with 88% of respondents expecting to provide bonuses as part of employee remuneration, while 53% of respondents predict providing bonuses between 6-15%. The regional economic uncertainty is casting a shadow over certain industries in Singapore, with recruitment and salary increases growing in a steady rather than an accelerated fashion, says Sebastien Hampartzoumian, senior managing director, Singapore & India at PageGroup. Aside from the tougher competitive environment and slower global growth which have put pressure on Singaporean companies, inflation rates in the country will likely remain flat, which further dampens the possibility of large salary spikes, says Toby Fowlston, managing director at Robert Walters Southeast Asia. But Fowlston reckons that niche areas like cyber security may be able to offer significantly higher salary increases, possibly by 10-20%, although this will mostly for job movers rather than as a result of salary reviews. Staff positions for risk audit and compliance functions in banks and financial services will also be offered with more generous pay increments, says Hampartzoumian, due to the strict regulatory environment set by the Singapore government that that makes such skills highly valuable. Beyond the salary bump This does not mean that Singaporean employers no longer reward great performance. Star performers can make a stronger case for a plump salary bump, in addition to more flexible work arrangements. Competitive remuneration in terms of salary increases and bonuses are still important for firms to stay competitive. Despite the uncertain economic situation this year, most industries may still see a salary increase but at a lower rate, depending on the sector and the individual s performance, says Foo See Yang, vice president and country general manager at Kelly Services in Singapore. However, to attract and retain the best talent, employers must also do more than offer traditional inducements such as competitive salaries and linear career paths, and adopt a more holistic attraction and retention strategy, he adds. Foo cites the latest Kelly Services Global Workforce Index survey which found work-life balance is increasingly important to talent. Singaporeans identified 30 SINGAPORE BUSINESS REVIEW MAY 2016

2 flexible work arrangements (70%) and having wellness programs (40%) as two elements that they consider important. Slow hiring For job hunters, analysts reckon there might be slim pickings as recruitment will remain slow in the first half of Employers are cautious due to prevailing economic uncertainty in China and the rest of the region, but standout candidates with indemand skill sets and close-toperfect job fit can expect to be hired faster. With the recent Chinese Yuan devaluation, stock market volatility and fall in oil prices, many are taking a cautious approach when rewarding employees and hiring new and replacement headcounts, says Hampartzoumian. Across sectors, candidates with very specific skill sets tend to be employed much faster. Employers are now more risk-averse and will only hire candidates who they feel will be the right fit for the job. For senior level jobs, it has to be a 99% perfect fit employers focus on candidates that are within the industry and are able to hit the ground running from day one, he adds. Job seekers might have better luck applying to European and Chinese companies that have set up in Singapore as a base to expand in Asia Pacific. But potential hires must bring skills suitable for the technology-driven start-up environment. These companies have tended to hire in fairly large Job vacancies decline Source: Labour Market Survey, Ministry of Manpower volumes as they need a certain amount of scale to enter the market here. This has and will create opportunities for people looking to work in a start-up and expansion environment for foreign companies. The companies, whilst varied, tend to occupy the tech space and typically their requirements are for Sales and Information Technology staff, says Andrew Evans, chief operating officer, at Morgan McKinley in Singapore. Even outside these hot hiring sectors, higher skills training is becoming a necessity to secure a job. Evans says the offshoring trend has led Singaporean firms to move lower skilled roles in Finance, Operations and Technology as well as call centre and client services to cheaper and emerging market locations like India, Malaysia and the Philippines. Retaining top talent Although hiring is expected to slow in 2016, Foo cautions that the domestic job market will remain tight, thus making it necessary for employers to re-think their talent retention strategies. In 2016, talent retention will become increasingly challenging across the board, particularly for SMEs who will find it difficult as they compete with global brands and MNCs. Employers should do more than offer traditional inducements. By focusing on employee retention strategies, companies can achieve greater value from their existing talent pool and reduce re-hiring and retraining costs, Foo says. SALARY SURVEY 2016 Contracting now in vogue Contracting used to be an unattractive career path for many professionals in Singapore and Hong Kong, but short-term job assignments are becoming an increasingly valuable recruitment tool for many companies in both territories. We are very positive about the contract market in 2016, and expect companies to offer growing numbers of contract roles, says Toby Fowlston, managing director, Robert Walters Southeast Asia. Whilst historically, contracting has not been seen as a viable career option, Fowlston says that the two regional financial centres are now seeing highly talented and qualified professionals becoming career contractors in search of a better work-life balance and greater flexibility. Apart from providing greater flexibility for employees, contract positions also allow companies to effectively manage higher workloads despite slowing economic growth. Contract staffing allows the flexibility for an organisation to manage their talent pool more effectively and efficiently. Despite the slowdown in permanent hires, this strategy allows the company to pursue its business goals and objectives during this uncertain time, says Foo See Yang, vice president and country general manager at Kelly Services in Singapore. As a result of Singapore s flat economy, we expect more companies to hire more contractors to help supplement their workforce during this period, notes Sebastien Hampartzoumian, senior managing director, Singapore & India, PageGroup. He adds that contracting is fast becoming popular in the financial services industry, as contract workers offer the opportunity to quickly hire someone with specialist skills, or to bolster a department in the interim. Popularity surge in Hong Kong In Hong Kong, contracting is growing in popularity because temporary assignments help employers to counter either cost management challenges or headcount issues, says Sharmini Wainwright, managing director, Michael Page Hong Kong. Back office roles, such as operations within banks, have the least growth in new permanent headcount therefore resulting in the growth of their contracting workforce, Wainwright says. He adds that contracting opportunities available in Hong Kong also allow candidates with less experience to enter the field. Contracting will also continue to be a popular recruitment solution for financial institutions during busy seasons such as year-end closings, systems implementation and mergers and acquisition (M&A) projects, Wainwright notes. Dean Stallard, regional director, Hays Hong Kong, says that there is now a wider variety of contract positions available including senior contract roles. He says that contract hiring will remain strong throughout 2016 as ongoing projects from several major players in the market require flexible hiring solutions. Hiring in the service contracting space will continue to grow, rather than dispatch contracting and this will eventually become the mainstream, Stallard notes. SINGAPORE BUSINESS REVIEW MAY

3 ACCOUNTING AND FINANCE GENERAL Accounts Payable Executive N/A N/A N/A N/A Accounts Payable Accountant N/A N/A Accounts Payable Manager N/A N/A Credit Controller N/A N/A Financial Accountant N/A N/A Group Accountant Consolidation N/A Cost Accountant N/A N/A Credit Analyst N/A N/A Financial/Business Analyst N/A N/A Finance Manager (Small/Medium Organisation) N/A Finance Manager (Shared Services Centre) N/A Finance Manager (Large Organisation) N/A Credit Manager N/A Costing Manager N/A Financial & Planning Analysis Manager Financial Controller (Small/Medium Organisation) N/A Financial Controller (Large Organisation) N/A Credit Director Finance Director (Shared Services Centre) N/A CFO/Finance Director (Large Organisation) SPECIALIST Credit Analyst N/A N/A Pricing Analyst N/A N/A Treasury Analyst N/A N/A Tax Analyst N/A N/A Internal Auditor N/A N/A Pricing Manager N/A Revenue Recognition N/A Corporate Finance Manager N/A Treasury Manager N/A Internal Audit Manager N/A Tax Manager N/A Corporate Finance Director Treasury Director Internal Audit Director Tax Director PROFESSIONAL SERVICES & PUBLIC ACCOUNTING External Audit N/A Tax N/A Management Consultancy N/A Corporate Finance N/A Risk & Compliance N/A 32 SINGAPORE BUSINESS REVIEW MAY 2016

4 FINANCIAL SERVICES Associate SALARY SURVEY 2016 Associate Vice President Vice president AUDIT Internal Audit IT Audit COMPLIANCE AML (Audit Money Laundering) MAS Compliance Regulatory Insurance RISK Market Risk Credit Risk Operational Risk OPERATIONS Project Management MIDDLE OFFICE Client Servicing BACK OFFICE Settlement Collateral Management Fund Management Valuations Quantitative FINANCE PROJECTS Business Analyst Product Control Director/MD HEALTHCARE & LIFE SCIENCE CLINICAL RESEARCH Drug Safety/Pharmacovigilence N/A Data Management N/A N/A 150+ Clinical Operations N/A BioStatistician N/A N/A SAS Programmer N/A N/A Medical Affairs OPERATIONS Manufacturing Process Engineering Mechanical Engineering Electrical Engineering Controls/Automation EHS Validation SINGAPORE BUSINESS REVIEW MAY

5 HUMAN RESOURCES BANKING & FINANCE Payroll Specialist Mobility Specialist HRIS Specialist Learning and Development Specialist Recruitment Specialist HR Generalist/Business Partner Organisational Development Compensation and Benefits Specialist Head of Human Resources N/A N/A COMMERCE & INDUSTRY Payroll Specialist Mobility Specialist HRIS Specialist Learning and Development Specialist Recruitment Specialist HR Generalist/Business Partner Organisational Development Compensation and Benefits Specialist Head of Human Resources N/A N/A LAWYERS years of experience 3-5 PQE 5-10 PQE PQE 15+ years PQE Private Practice (Local Firms) N/A Private Practice (International Firms) N/A Please note: The above table includes salary data collected from leading and international law firms. In-House Corporate (MNC) Please note: The above table includes salary data collected from Singapore private and listed companies, and multinational corporations. Financial Services Please note: The above table includes salary data collected from international/investment banks, local banks, insurance companies and fund/private equity/security houses. PARALEGALS Paralegals N/A N/A Please note: The above table includes salary data collected from international/investment banks, local banks, insurance companies and fund/private equity/security houses. corporate secretariat Corporate Secretariat (Non ICSA-Certified) N/A N/A Corporate Secretariat (ICSA-Certified) N/A Please note: The above table includes salary data collected from international/investment banks, local banks, insurance companies and fund/private equity/security houses. PROPERTY & CONSTRUCTION Asset Management Portfolio Management Investment Management SINGAPORE BUSINESS REVIEW MAY 2016

6 Procurement & Supply Chain years of experience OIL & GAS/PHARMACEUTICALS Quality Direct Logistics/3PL Supply Chain Distribution/Warehousing Planning Indirect LEAN/Six Sigma FMCG/RETAIL Quality Direct Logistics/3PL Supply Chain Distribution/Warehousing Planning Indirect LEAN/Six Sigma TECHNOLOGY Quality Direct Logistics/3PL Supply Chain Distribution/Warehousing Planning Indirect LEAN/Six Sigma FINANCIAL & PROFESSIONAL SERVICES Purchasing/Procurement Officer Procurement Specialist Procurement Analyst Procurement Manager Vendor/Supplier Relationship Manager Strategic Sourcing Leader/Manager N/A Category/Commodity Manager GM/Head of Procurement N/A N/A CPO/Director N/A N/A ENGINEERING & MANUFACTURING years of experience Engineer/Senior Eng. Principal Manager Director R&D (Hardware/Embedded) Manufacturing/Production N/A Quality N/A Service N/A SINGAPORE BUSINESS REVIEW MAY