Singapore banks stick to hiring plans even as UOB freezes wages

Singapore

SINGAPORE banks have stuck to staffing plans made earlier in the year, including their commitments to retain jobs through to the end of 2020. But they are actively managing staff costs as Singapore remains in the throes of its worst recession.

It comes as UOB has instituted a wage freeze at this point. The bank said that it is keeping salaries "at their current levels for now", though it can revise its stance as the external environment improves.

UOB is taking a "disciplined and selective" approach to any new increases in headcount, but said it will continue hiring for roles essential for the bank's strategic priorities, the bank told The Business Times.

These new appointments will be approved at the most senior levels of the bank, said Dean Tong, head of group human resources at UOB. "Our priority is to protect the jobs of our people in these very uncertain times."

A DBS spokesperson told BT the bank remains committed to not cutting jobs through the course of the year. OCBC's head of HR planning Jacinta Low said there will not be any layoffs at the bank in the midst of the Covid-19 crisis.

Asked if DBS would institute a wage freeze, the spokesperson replied while the lender has been prudent on expenses - which involved prioritising investments and cutting back on variable staff compensation - these measures "may not be sufficient".

"We will calibrate any further responses in the next few months," said the spokesperson, adding that the external environment remains challenging, with the bank facing "significant income and credit cost headwinds".

On the question of a wage freeze, OCBC's Ms Low said the bank will review staff compensation and rewards at a later date, as the financial year has not come to an end.

"Despite the unprecedented impact on the way we work arising from the pandemic, our colleagues have continued to work hard to ensure our customers and other stakeholders are well-supported during this difficult time. We will want to continue to recognise their efforts," she noted. "Given the uncertain economic outlook, our employees also understand the need to be prudent in managing expenses and cutting costs."

Contrary to a Bloomberg report that said UOB has frozen hiring, the bank has clarified that selective hiring for strategic roles continues.

UOB has not put out a hiring target this year. Still, checks by BT showed that the bank, like its peers in Singapore, are advertising for full-time roles via LinkedIn. These roles are in departments ranging from group technology, group strategy and transformation, to both wholesale and retail banking. UOB is also offering 320 traineeships, in more than 10 business and support units at the lender.

UOB's Mr Tong said: "Given the transformational times we are in, we remain committed to seeing our people through to better times and will continue to invest in their reskilling and upskilling."

DBS told BT it remains on track to hiring 2,000 people - as earlier pledged - by the end of the year. Of these, 1,000 are new roles which include a mix of traineeships for fresh graduates as well as specialised roles for seasoned professionals.

"The traineeships will enable Singaporeans to develop their skills and gain valuable working experience, giving them a firmer foothold in the job market when the economy recovers," the spokesperson said.

OCBC said in June it plans to hire more than 3,000 people in Singapore this year. These include 500 traineeships offered to university and polytechnic graduates in areas such as corporate banking, data and technology. Another 400 internships out of these 3,000 roles will be offered to varsity and polytechnic students.

Out of the remaining bulk of 2,100 positions, roughly seven in 10 of these new jobs - that is, about 1,470 - are full-time roles. These roles are across various entities of the banking group, in areas such as wealth management, corporate banking, risk management, data analytics, operations and technology.

The bank told BT on Tuesday that to date, it has filled about 90 per cent of these 3,000-odd positions.

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