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By: CHUANG PECK MING
Publication: The Business Times 14/02/2011

More than 53% of employers polled in Singapore will step up hiring in Q1

ANTICIPATING a tight labour market and higher staff turnover in a booming economy, employers here are drawing up bigger budgets in the first three months of the year to attract and retain staff, especially those in white-collar jobs.

Two in three of 350 recruitment managers polled recently were beefing up headcount budgets for 2011 – a figure higher than in China (65 per cent), Australia (54 per cent) and Hong Kong (53 per cent)

Nearly three in four – 72 per cent – of the employers were also planning bigger budgets for pay increases, according to the poll taken for headhunting firm Michael Page's quarterly employment index.

"This indicates that many companies are now in the position to offer financial rewards to their top performing employees," its report said.

"To help retain those employees who cannot be rewarded financially, many companies will be offering other incentives like training and development."

This means that rising payroll cost will become an issue for many employers, as the pressure to hire new talent and keep existing ones happy increases.

"For most of the employers surveyed, wage growth is the primary business concern for the first quarter," the report said.

Most – 56 per cent of those polled – will be dangling performance-based pay hikes to retain their most valuable staff. Another 27 per cent planned to provide training and development opportunities for employees as an incentive to stay.

Retention of key talent is a critical challenge, with 42 per cent of the employers polled scratching their heads for an answer to the problem.

But despite the strong focus on staff retention in the current quarter, 58 per cent – against 48 per cent in China, 46 per cent in Hong Kong and 32 per cent in Australia – of employers here expected job-hopping to jump during this period.

The poll shows that more than half – 53 per cent – of the employers will step up hiring in the first quarter, up from 23 per cent in the previous quarter.

"Most companies (39 per cent) will be hiring in operational areas to help support increasing levels of business activity," the report said.

"An additional 35 per cent of respondents will be focusing recruitment on front-line, revenue-generating roles in areas like sales and business development in an effort to further boost revenue lines and increase market share."

The biggest chunk – 37 per cent – of the recruitment will zoom in on mid-level positions.

The bulk – 60 per cent – of those planning to hire intend to grow their headcount by up to 5 per cent, and 27 per cent by 5-10 per cent.

Only 6 per cent – against 12 per cent in Australia, 8 per cent in Hong Kong and 2 per cent in China – of the employers polled are likely to reduce staff in the first quarter of this year.

"Most businesses reducing staff in Singapore are only making a headcount reduction in the 0-5 per cent range," the report said. "For the majority of these companies, natural attrition without replacement is the most common reason for staff cuts, followed closely by corporate restructures."

Nearly three in four – 72 per cent – of Singapore employers polled are planning bigger budgets for pay increases.

– A poll taken for headhunting firm Michael Page's quarterly employment index