Talent shortages derail business goals for 7 in 10 Singapore firms

Complex payrolls push 45% of firms to halt international hiring and rethink HR strategy.

Over the past year, 71% of Singapore businesses failed to meet a key business objective because they were unable to hire the right talent, according to Remote’s Global Workforce Report.

In response, companies in Singapore are expanding their use of international hiring.

On average, white-collar firms based in Singapore now employ staff across at least three countries, and HR leaders expect that number to rise further in 2026 as firms push into new markets.

Retention remains a challenge. Only 56% of HR and business leaders in Singapore say their performance and development systems are effective in supporting employee retention, below the global average of 62%.

Pay pressure is also rising alongside cost-of-living concerns. Around 80% of HR leaders report increased employee demands for higher pay over the past year.

Whilst salary increases and bonuses depend on company performance, some leaders point to pay transparency as a way to build trust and reduce turnover.

The report notes that 81% of Singapore business leaders believe greater transparency around pay can improve fairness and workplace culture.

At the same time, complex payroll operations can slow international growth.

Payroll setup problems have led 45% of Singapore companies to cancel or delay overseas hires, and 25% say their current payroll systems pose an active risk to the business.

Other challenges include compliance and systems complexity: 41% of firms cite strict security and data protection requirements, 36% struggle with multi-country compliance rules, and 35% report difficulties managing fragmented tools and vendors.

The findings are based on a survey of more than 3,600 business leaders across 10 countries, including Singapore, the US, the UK, Germany, France, the Netherlands, Sweden, Spain, Australia, Japan, and South Korea.