Singapore firms to cut hirings while increasing training, flexi-work arrangements: poll

CLOSE to half of 232 firms in Singapore polled last month planned to reduce spending on hiring, while some (12 and 13 per cent respectively) increase budgets for training and flexible work arrangements to cope with the fallout of the coronavirus outbreak.

Only 1 per cent of the firms polled were thinking of retrenching staff, according to consulting firm Mercer's Pay & Bonus Pulse Survey done between March 9 and 15.

A third of the firms polled have cut or are considering cutting pay increment, while 11 per cent have revised their variable bonus budget.

Real estate, construction and engineering sectors - the hardest hit by fallout of Covid-19 - have indicated the biggest cut in salary increment - by 0.8 per cent, from an average of 4.1 to 3.3 per cent. This is followed by the transportation equipment (0.5 per cent) and retail and wholesale (0.4 per cent) and logistics (0.4 per cent) sectors.

"With the impact of Covid-19 outbreak on the economy, it is not surprising that manpower costs can be a key target for cuts when companies are heading into a downturn," says Kulapalee Tobing, Mercer Singapore's career products leader.

"Our survey has shown that while recruitment budgets are set to reduce, companies remain committed to protecting the livelihood of their employees," she noted.

Ms Tobing said this is a reflection of the government's "stringent standards for responsible retrenchment" and the impact of its job support measures.

Over half - 59 per cent - of the firms polled have already given out salary increments. Of the remaining that have not, 8 per cent were going to delay while 7 per cent were planning to freeze salary.

The rest of the firms polled were adopting a wait and see approach as they have payout cycles later in the year.