Despite a forecast hiring slowdown in 2024, according to ManpowerGroup Singapore’s latest quarterly employment outlook study, more than 80% of employers in Singapore are committed to offering bonuses of at least one month’s salary.
According to the study of 525 businesses, 84% expect to offer incentives, a little decrease from 87% the previous year. The financial and real estate sectors are the most likely to pay bonuses in excess of 1.5 months’ income, with 11% planning to do so.
Top among the examined industries is transportation, logistics, and automotive, where 97% of employers intend of at least one month’s pay. The energy and utilities industry (96%) is closely followed by the healthcare and life sciences sector (91%).
The poll also discovered a link between organisational size and bonus generosity. Larger businesses with more than 1,000 workers are more likely to offer substantial incentives, with 43% of very large businesses. Furthermore, 44% of large businesses are expecting to pay bonuses worth more than one month’s salary.
In terms of wage hikes, the survey discovered that more than half of businesses want to raise wages by 3% to 5%. This is a fall from 60% the previous year. However, up from 17% last year, 19% of businesses aim to boost wages by 5% to 7%. According to The Straits Times, the energy and utilities industries, as well as healthcare and life sciences, are projected to lead bonus salary increases.
“Despite the poor economic conditions, many organisations continue to award bonuses to reward employees for their contributions for the year,” said Linda Teo, Country Manager at ManpowerGroup Singapore. Given the GST (goods and services tax) increase and rising living costs, organisations are increasingly paying incentives and raising remuneration as a tactic to retain and recruit personnel.”
