Tuesday, November 14, 2006
[IWS] Watson Wyatt: SINGAPORE 4% Salary Increase 2007 Forecast [14 November 2006]
IWS Documented News Service
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Watson Wyatt
Companies in Singapore forecasting a 4% average salary increase in 2007 [14 November 2006]
http://www.watsonwyatt.com/news/press.asp?ID=16720
SINGAPORE: November 14, 2006 Companies in Singapore are paying an average actual salary increase of 3.9% this year while the average variable bonus is 2.1 months, according to the HR Trends Survey Singapore from Watson Wyatt, a leading global consulting firm.
Salaries are anticipated to increase by 4.0% in 2007. We expect the positive trend for salary increases and bonuses to continue into 2007 in light of the buoyant economy, said Kwan Chee Wei, Regional Director for Human Capital Group, Asia Pacific. The overall average actual salary increase for 2006 is 3.9% which is in line with the projections from the previous year. The financial industry sees an average growth of more than 6 % this year. The telecommunications sector and manufacturing sector have the lowest increment at 3.3%.
The recent survey also reported an average staff turnover in the last 12 months in the range of 5.5 to 15.1%. Kwan said, This increasing turnover rate reinforces the fact that attraction and retention of high performing employees will continue to be even more challenging going forward as companies competes for talent.
Critical positions companies are looking to hire in the next 6 months include manufacturing roles (process engineer, manufacturing specialist) sales positions (sales manager and executive) and in finance (accountant and financial executive).
From the amount saved from the CPF cut of 3 % that came into effect in 1st October 2003, 62 % of all survey participants reported using this amount as cost savings to the company. Of the 16% who reported using other measures in reaction to the CPF cut, they channeled the amount saved into rewarding key performers and talents and enhancing their medical program and improving employee welfare benefits.
The surveys also found that only 2% of companies surveyed reported currently having a supplementary retirement plan or are in the process of establishing one. 10% of the companies surveyed see the need to supplement their employees retirement plan. The main reasons why they would want to implement supplement retirement plans are to communicate the position of a choice employer or as a tool to retain employees.
Watson Wyatts HR Trends Survey Singapore tracks the movement in the market in terms of salary increases, bonuses and staff turnover in Singapore. This survey was conducted between September 18 and 29 this year and more than 100 local and foreign companies representing 23 major industry sectors participated.
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
****************************************
_______________________________
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
________________________________________________________________________
Watson Wyatt
Companies in Singapore forecasting a 4% average salary increase in 2007 [14 November 2006]
http://www.watsonwyatt.com/news/press.asp?ID=16720
SINGAPORE: November 14, 2006 Companies in Singapore are paying an average actual salary increase of 3.9% this year while the average variable bonus is 2.1 months, according to the HR Trends Survey Singapore from Watson Wyatt, a leading global consulting firm.
Salaries are anticipated to increase by 4.0% in 2007. We expect the positive trend for salary increases and bonuses to continue into 2007 in light of the buoyant economy, said Kwan Chee Wei, Regional Director for Human Capital Group, Asia Pacific. The overall average actual salary increase for 2006 is 3.9% which is in line with the projections from the previous year. The financial industry sees an average growth of more than 6 % this year. The telecommunications sector and manufacturing sector have the lowest increment at 3.3%.
The recent survey also reported an average staff turnover in the last 12 months in the range of 5.5 to 15.1%. Kwan said, This increasing turnover rate reinforces the fact that attraction and retention of high performing employees will continue to be even more challenging going forward as companies competes for talent.
Critical positions companies are looking to hire in the next 6 months include manufacturing roles (process engineer, manufacturing specialist) sales positions (sales manager and executive) and in finance (accountant and financial executive).
From the amount saved from the CPF cut of 3 % that came into effect in 1st October 2003, 62 % of all survey participants reported using this amount as cost savings to the company. Of the 16% who reported using other measures in reaction to the CPF cut, they channeled the amount saved into rewarding key performers and talents and enhancing their medical program and improving employee welfare benefits.
The surveys also found that only 2% of companies surveyed reported currently having a supplementary retirement plan or are in the process of establishing one. 10% of the companies surveyed see the need to supplement their employees retirement plan. The main reasons why they would want to implement supplement retirement plans are to communicate the position of a choice employer or as a tool to retain employees.
Watson Wyatts HR Trends Survey Singapore tracks the movement in the market in terms of salary increases, bonuses and staff turnover in Singapore. This survey was conducted between September 18 and 29 this year and more than 100 local and foreign companies representing 23 major industry sectors participated.
______________________________
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Stuart Basefsky
Director, IWS News Bureau
Institute for Workplace Studies
Cornell/ILR School
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641
E-mail: smb6@cornell.edu
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# posted by SBasefsky : 10:20 AM
