Singapore’s hiring outlook dips for Q12024, bonuses and pay hikes still eyed: survey

Despite tough economic conditions, most firms dangle rewards to attract and retain talent. 

Recruiting sentiment in Singapore has softened for the next quarter, although most employers are still looking at raising salaries and offering bonuses as the war for talent continues, according to a report from global workforce solutions company ManpowerGroup.

Of the 525 employers surveyed, 44% are expecting an increase in hiring, 15% are anticipating the opposite and 39% have no intentions of changing – resulting in a 29% net employment outlook for the first quarter of 2024. Sentiment is highest in the transportation, logistics and automotive industry.

The net employment outlook for the first quarter of 2024 was 7 percentage points lower than the previous quarter and 4 percentage points less than the same period last year.

Around eight in ten employers plan to increase employee salaries by at least 3%, while 84% plan to award bonuses averaging one month or more in 2023 and 2024, according to ManpowerGroup.

“Many companies are taking a prudent approach to hiring as they manage their bottom lines. While companies are still hiring, there is less urgency to fill vacancies as companies exercise more diligence in assessing candidates,” said Linda Teo, country manager of the recruitment firm.

Teo said external factors such as inflation and global conflicts that hampered the local labour market last year will remain the trend through the first quarter of 2024.

According to the report, employees with skills in the environmental, social, and governance (ESG) space are still in high demand for employers as firms transition to a green economy. 

Employers also cite training, redefining roles and shifting the workplace infrastructure as the biggest challenges to overcome with the emergence of artificial intelligence (AI).