WORKERS are gaining the upper hand in the booming Singapore economy, as companies fight to retain talent with offers of higher pay.
Employers, who gave an average pay rise of 4.1 per cent this year, are expected to give 4.2 per cent next year.
These figures, released yesterday, are derived from a survey done last month by the Singapore Human Resource Institute (SHRI) and wages consulting firm Remuneration Data Specialists (RDS).
A total of 210 companies from all sectors were polled, and their upbeat view of business in the next six months means an abundance of jobs awaits the Singapore worker.
Latest official figures show there were 32,200 job vacancies in March, 30 per cent more than a year ago.
The buoyant situation is set to soar further, with the economy racing ahead by 8.2 per cent in the second quarter this year.
Poll snapshot
Business prospects
Satisfactory or very good currently: 95 per cent of companies
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According to the report, the services sector gave the best pay rise this year, of up to 5.5 per cent on average.
Next year, it is expected to give up to 4.6 per cent.
The marine and shipping sector will top it next year, when it is projected to give up to 5.9 per cent.
This year, it gave up to 5.1 per cent.
Said RDS's managing consultant Peter Lee: 'Now that it's an employee market, companies are looking at their wage structure to make sure they are competitive.'
Companies that worry most about having competitive wages are those in health care and pharmaceuticals, aviation, information technology and trading, said the report.
Information technology professionals are also being wooed with fatter pay packets, said manager Irene Yeo of Singapore Communications Equipment.
It is hard to stem the outflow because their skills are portable across the industry, she added. 'Once you have trained them, they will jump ship in 11/2 to two years.'
With many economists predicting this year's growth to be close to last year's 7.9 per cent, the report said staff turnover, retention and resignations are chief concerns of most companies.
Almost all the companies surveyed had employees who left in the past year. The average turnover rate was 10 per cent for managers, 18 per cent for executives and 21 per cent for non-executives.
To retain staff, companies are adopting several measures, said SHRI executive director David Ang. They include flexible work arrangements, better communication with employees and improving training.
Singapore Computer Systems, an IT company, recently introduced a programme to create a 'happy company' culture.
Besides subsidising gym memberships, it springs such surprises as inviting an ice-cream man into the office. One day is also set aside for children to come to the office to see their parents at work.
Said its human resource vice-president, Ms Lilian
