The current trends in compensation and benefits in Singapore

Article

The current trends in compensation and benefits in Singapore

Keeping your finger on the pulse
Singapore hiring trends
Singapore perks and benefits

About four in ten (39%) Singaporean employees plan on moving roles in 2024. This is a sobering reality for employers, emphasising that attracting and retaining top talent is crucial for organisations to thrive.

At the same time, the Singaporean workplace is undergoing major transformations this year aimed at enhancing the quality of life of employees. From 1 December 2024, all employers in Singapore must fairly consider formal requests from employees for flexible work arrangements (FWAs) under the new mandatory Tripartite Guidelines on Flexible Work Arrangements (Guidelines). Additionally, parents-to-be will get another 10 weeks of shared leave on top of their current leave entitlement, bringing the total amount of government-paid parental leave to 30 weeks by April 1, 2026.

According to a survey by data provider WTW, 85% of employees are more likely to remain with their organisations when their benefits package meets their needs. This insight offers some hope to employers, reaffirming that when balanced effectively, compensation and benefits could be the gateway to winning the war on talent.

In this blog we will step you through the trends shaping the way employers attract and retain skilled professionals while also adjusting to the changes implemented from a government level.

The second half of 2024 is shaping up to be a consequential time for employment rules in Singapore in two main areas, flexible working and parental leave.

As of April 2024, employers across Singapore have been mandated to start considering formal requests for flexible work arrangements from employees starting in December. This comes after the government accepted all the recommendations made by the Tripartite Workgroup on the Tripartite Guidelines on Flexible Work Arrangement (FWA) Requests.

The guidelines set out the minimum requirements that all employers in Singapore are required to abide by in relation to fairly considering requests from employees on flexible work arrangements (FWAs). These requests for FWAs may include flexi-place (work location), flexi-time (working time/duration), and flexi-load (work scope), according to the guidelines.

At the same time, during his National Day Rally speech on Sunday (Aug 18), Prime Minister Lawrence Wong announced that parents will get an additional 10 weeks of shared leave to care for their babies when a new scheme is fully implemented on Apr 1, 2026. The new scheme will be implemented gradually to minimise the impact on employers and provide them with ample time to adapt their operations and workforce planning. Additionally, Mr Wong declared that new fathers will now receive four weeks of government-paid paternity leave, doubling the existing two weeks' mandatory leave.

This change to parental leave also caters to working parents with irregular employment arrangements, such as short-term contract workers. Eligible parents in this group will be able to claim reimbursement from the Government for time taken off work to care for their infants, under a new Shared Parental Leave Benefit scheme.

You might be thinking, why do I need to know this?

These mandated changes can have a tangible impact on the way a business operates, most evidently on the number of people who are off or out of the office at any given time. There are a myriad of benefits to come from both FWA and extended parental leave including reduced stress and improved mental health, great flexibility and autonomy plus equality but is it essential to be aware of how these changes could impact operations and plan ahead to plug any gaps that arise.

Parental leave for babies born from April 2026

Three categories for flexible work arrangements Singapore

While juggling these changes, LinkedIn cites that 93% of organisations are concerned about employee retention. It goes without saying that employers are desperate to sharpen their competitive edge while staying abreast of trends in compensation and benefits to create an optimal employee experience.

The Robert Half Salary Guide is a trusted employer resource combining extensive research, data and market observations. It offers comprehensive insights into specialisation-specific market salaries, hiring trends, perks and benefits trends, corporate culture and flexible work arrangements. This information is fundamental in understanding how your organisation and your offerings fit within the context of the wider market so that you can optimise talent retention and acquisition strategies.

While your workforce can be a primary vehicle for business growth, it can also be a huge obstacle if your employees are not satisfied. Therefore, it is pivotal that you as the employer identify and prioritise employee needs and expectations so that you can shape your compensation and benefits in a way that leaves them feeling understood, valued and supported.

The Robert Half Salary Guide paints a positive picture of the post pandemic landscape, with 52% of employers saying that hiring plans are back to pre-pandemic levels.

As one of the most prosperous economies in Southeast Asia, Singapore offers a vibrant job market with diverse opportunities across industries. Most Singapore businesses are in a growth mindset which has seen steady salary growth across various sectors.

Singapore’s ongoing digital transformation has seen an influx of new opportunities as businesses attempt to improve operations and better serve their customers. In demand industries such as technology, finance and engineering, have witnessed higher salary growth rates and premium packages off the back of growing demand for specialised skills and expertise.

Read More: 6 interesting reasons to pursue a finance career in Singapore

As businesses vie for top talent, trends in compensation and benefits are ever-evolving. The Robert Half Salary Guide identifies the hiring trends that are impacting employer attempts to onboard the right talent.

The strong job market remains

Despite talks of a recession and other uncertainties, hiring plans in Singapore remain relatively unaffected. While employees are cautious in the face of volatility, companies are focusing on maintaining headcount to fill vacant roles and support workloads. Team restructures and a re-evaluation of critical roles may eventuate if required in the changing market.

The demand for flexibility remains

With 72% of Singaporean professionals preferring hybrid working, employers need to strike a balance between return-to-office policies and flexible work arrangements. With employees accustomed to work-life balance and cost and time benefits, employers must remain mindful when increasing in-office days. There is a significant risk of losing employees to other organisations who offer more appealing hybrid work arrangements.

Contract work – an immediate solution

Businesses are turning to contractors to quickly fill niche skill gaps and resource short-term projects, alongside a core team of permanent employees. This offers more agility and allows for efficient cost management.

Retention is more crucial than ever

In the face of a tight labour market and competitor headhunting, businesses are turning their focus to retention and upskilling existing employees. Market appropriate salaries and benefits are key to reducing the rate of turnover.

The Robert Half Salary Guide offers a wide snapshot of average market salaries by specialisation and job category so that you can ascertain how much you should be paying if you want to become an employer of choice.

Read More: 4 ways to offer a competitive salary and benefits this year

Robert Half Singapore managing director, Andrea Wong says the current trends in compensation and benefits are indicative of Singapore’s tight talent pool. She says, “employee expectations post-pandemic have shifted considerably. In our skills short market, businesses need to re-engineer their approach to hiring in a way that combines the reward, flexibility, culture, opportunity and meaningful experience that employees have come to expect.”

While competitive salaries are an important factor in attracting and retaining talent, other perks and benefits are becoming increasingly important to candidates.

The Robert Half Salary Guide affirms that benefits and perks are crucial components of an attractive salary package in the midst of rising skills shortages. When it comes to trends in compensation and benefits, it’s clear that Singapore businesses are looking beyond salary to improve talent acquisition and retention efforts in 2024.

In an effort to differentiate themselves and improve their employee value proposition, businesses are harnessing a number of perks and benefits that are becoming increasingly important to their employees.

The most popular benefits in 2024 include:

Remote work options

Wellness programs

Flexible work options

Extra paid leave

Training allowance

Career development opportunities

While such benefits are important considerations for any organisation, they provide substantial leverage for smaller businesses that may not be able to match the starting salaries of their larger competitors.

Data shows that of all the benefits Singaporeans want from their employers, they want flexible work the most. Therefore, the future of work demands heightened consideration from employers. It’s critical that they identify the benefits that will meet candidate expectations to keep them engaged and satisfied.

Read More: 7 benefits of flexible working hours in Singapore

Andrea Wong believes employers need to adopt a holistic approach to stay competitive. “Employee needs are more important than ever - an emphasis on flexibility, workplace culture, total rewards and well-being is the key to meeting their needs in 2024”, she says.

The Robert Half Salary Guide is updated on an annual basis so employers can better understand the changing needs of employees. This provides an advanced opportunity to shape initiatives that align with the evolving needs and expectations of your workforce to enhance engagement, productivity, and overall satisfaction.

The current trends in compensation and benefits demonstrate that modern employees expect more than just a salary when it comes to work. Paying more won’t always satisfy them but, how you reward them requires deep review and holistic focus.

In 2024, organisations are embracing numerous hiring trends and flexibility with a focus on perks, benefits and corporate culture, all the while juggling the workforce-wide changes in flexible work arrangements and parental leave.

If you’re looking for your next candidate, our experienced team of talent specialists are here to help. Contact us today.

If you’re seeking advice on any workplace issues within your business, our experienced team of management specialists can help.

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