Watson Wyatt Survey: Singapore employees might see salary increases next year
After the economic gloom of 2009, employees in Singapore can expect to take home an average projected pay increment at 3.2% next year.
From the data Watson Wyatt collected in July 2009 from 100 companies across a broad range of industries, the projected average salary increment budget for 2010 is at 3.2%. This is a slight jump from the overall salary increment figure estimated at 2.5% by the same companies three months ago. David Yong, Watson Wyatt’s human capital group’s director of strategic reward, says employers who can afford to give pay raises in this economical climate would be continuing to do so, albeit at a reasonable amount. “At the end of the day, companies want to keep their employees reasonably happy and if they don’t have to take drastic measures, they won’t.”
Currently, the sector that is “almost head and shoulders above” the other industries in terms of projected pay raises is the pharmaceutical, medical instruments and medical technology side. Its employees can expect to take home an average salary raise of 3.6%.
Similarly, employees in the manufacturing sector can expect to receive salary increments at 3.1% next year, which is a turnaround from the forecast made earlier this year that pay raise is unlikely. It’s “a corrective action”, says Yong, as manufacturers are starting to see green shoots in the economy. “Companies will need their people, one of the key drivers of their productivity so they need to make sure they pay appropriately.” Otherwise they might fall behind their competitors, he adds.
Bonuses projections for 2010 on the other hand haven’t changed “dramatically” even in the recession, says Yong, with figures projected at one to four months. According to the poll, 46% will also halt reduction in travel or restrictions in travel policy while 42% and 40% of companies plan to unfreeze wages and headcount respectively. Slightly less than a quarter will resume welfare activities and 30% will start hiring.
Sources and references: Sandbox Advisors, Watson Wyatt, HRO