Eight in 10 employers plan to give bonuses averaging one month or more: survey

AROUND 84 per cent of employers plan to award bonuses averaging one month or more in the 2023-2024 period, a survey released on Tuesday (Dec 12) found.

This number, however, is slightly lower than the 87 per cent recorded in the same period a year ago, said ManpowerGroup, which polled 525 employers in Singapore.

“Given the GST (goods and services tax) hike and escalating costs of living, companies are also awarding bonuses and increasing compensation as a strategy to maintain competitiveness in talent retention and attraction,” said ManpowerGroup Singapore country manager Linda Teo.

Half of employers intend to award bonuses averaging one month’s salary in the 2023 to 2024 period, while 27 per cent of companies plan to give bonuses which exceed one month and up to 1.5 months. Those planning to give bonuses that average more than 1.5 months comprise 7 per cent of those surveyed.

Most workers should expect salary raises of between 3 and 5 per cent, based on the poll.

Some 79 per cent of employers plan to increase pay by at least 3 per cent, while more than half (57 per cent) intend to introduce increments of more than 3 per cent but less than 5 per cent. Meanwhile, 19 per cent of employers plan to raise salaries by 5 per cent to less than 7 per cent.

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The recruitment company reported a net employment outlook (NEO) of 29 per cent after seasonal adjustments, its lowest level since post-Covid-19. The NEO was down seven percentage points from the previous quarter and four percentage points from the same period last year.

Despite the weakening outlook, 44 per cent of employers surveyed expect headcount to grow in the next quarter. Around 15 per cent project a decrease, while 39 per cent reported no plans to change their headcount.

“Many companies are taking a prudent approach to hiring as they manage their bottom lines. While companies are still hiring, there is less urgency to fill vacancies as companies exercise more diligence in assessing candidates,” Teo noted.

The transport, logistics and automotive sectors continue to account for the most hiring demand despite a dip on the quarter, supported by strong demand for airline travel and logistics services.

Skills related to environmental, social and corporate governance and the green economy were also found to be in high demand, collectively accounting for 42 per cent of top skills employers find difficulty in hiring.

Across the Asia-Pacific, hiring expectations fell slightly by two percentage points to 30 per cent, weighed down by China’s weaker economy amid low demand, falling exports and a deepening property crisis.

That being said, the regional NEO is still up five percentage points from one year ago at 25 per cent, supported by India’s continued high levels of employment expectations. ManpowerGroup predicts Australia and Hong Kong to have the next strongest hiring expectations after China and India.