Unlocking Success: Navigating 2024 Job Market Trends and Compensation Strategies

Singapore’s hiring landscape has been on an uptick in the past few years. Despite drastic conditions, such as the pandemic and the subsequent recession, data suggests that the country has maintained a relatively healthy labour market.

Singapore's continued GDP growth only contributes to the rapid evolution of the employment sector.

So, what should hirers expect from this robust economic environment? Job market trends for 2024 predict a competitive labour market where various hiring strategies, such as appealing working arrangements and mental health support, could impact the recruitment and retention of top talent.

Is your company ready to take on the dealmakers of top talent this year and navigate Singapore’s dynamic job market? Jobstreet by SEEK’s Hiring, Compensation & Benefits Report 2024 teaches employers how to attract, motivate, and retain job seekers. This intensive roadmap uses data gathered from 673 Singapore-based firms across diverse industries and job roles to aid human resources teams in building the ideal workforce.

Current events shaped many of 2024's job market trends. For instance, in December 2023, Chew Siew Mee, managing director of Jobstreet by SEEK, noted that the government’s $3.3 billion investment in Information and Communications Technology demonstrates that the tech industry will continue to dominate the labour market.

Despite reports of layoffs in these segments, Singapore is still capitalising heavily on tech, with hiring and growing tech talent in both tech and non-tech areas still relatively high.

Chew added that other industries that have increased their job postings include the banking and finance sectors. But while it’s safe to say that talent acquisition for tech and finance roles will stay tight, other hiring trends are shaping the recruitment landscape.

The continued demand from job seekers for flexible working arrangements stems from the aftermath of the pandemic. That said, job seekers are not the only ones seeking adaptability. A general atmosphere of caution from uncertain market conditions has prompted enterprises to explore intermittent talent.

According to Jobstreet by SEEK’s hiring and compensation report, though permanent full-time employees accounted for the largest portion of new employees hired in 2023 (82%), more companies are looking into part-timers or contractual or project-based hires for the following reasons:

• Enhance scheduling flexibility

• Save on benefits costs

• Manage inconsistent workloads

• Study specialised skills

• Conduct trial periods

• Attract job seekers aiming for work-life balance

Reduction seems to be a recurring job market insight. The latter half of 2023 may have seen an expansion in the labour market, but retrenchments in Singapore also rose. The Ministry of Manpower and Jobstreet by SEEK attributed these layoffs to budget-cutting restructuring measures, particularly in bigger industries.

While only 15% of companies in Singapore trimmed down their workforce in 2023, the roles reduced are similar to 2022, which could spill over to this year. Here are some of the job functions that were downsized.

• Admin and HR

• Accounting

• Sales / Business Development

• Customer Service

• Information Technology

While bigger businesses are scaling back, small to medium enterprises are initiating growth by expanding their workforce. Forty-nine per cent of the SMEs surveyed by Jobstreet by SEEK want to increase their manpower. However, three out of 10 recruiters plan to employ part-time staff.

Quite consistently, payroll and benefits remain a plum factor for swaying talent to your company. However, revising the numbers on the offer sheet is hardly that simple. According to Jobstreet by SEEK’s Compensation & Benefits Report, the economy largely influences compensation strategies. If you want to offer competitive rates, study the tactics adopted by top companies to ensure they attract and retain talent.

This is a popular technique among recruiters and human resources personnel to ensure they stay competitive when it comes to compensation for the same roles in the same industry or region. Knowing salary benchmarks helps organisations decide how much to pay their employees to draw in and maintain talent and stay in tune with industry standards.

With salaries within the same range, a hirer's edge might be in the benefits package. What do other companies offer in terms of health insurance, retirement plans, days off, and other perks? Employee benefits benchmarking guides you in producing a well-rounded, competitive contract for potential and current staff. Staying updated with market standards can boost your chances of securing the right talent.

Industry standards change, especially when compensation depends on the economic climate. If you're an HR manager, regularly reviewing your pay policies and ensuring they’re up to Singapore’s standard keeps you in the hiring game, reinforces a positive employer brand, and improves employee satisfaction.

Twenty-six per cent of hirers use inflation as a guide when calculating pay increments. Meanwhile, 23% claim their pay increase is in line with or exceeds the inflation rate. When you adjust salaries to account for inflation, you ensure that your people can afford the same level of goods and services despite the rising cost of living.

Employee surveys help clarify employee perceptions and preferences, including their views on money and compensation. Industry benchmarks are good for staying competitive. However, if you're an employer, listening to your team can give you a more comprehensive picture of your employees’ needs.

Don’t be afraid to modify your pay scales, wage levels, and general compensation system to align with your organisation’s goals, industry standards, or job market shifts. Apart from competitive reasons, you can also revise your structure to address issues related to fairness and equity within the company.

While the base pay is a massive motivator, job seekers in Singapore look for more than just the wages. Leading organisations in Singapore tend to offer packages with holistic benefits to sign and sustain talent.

Employee benefits usually include the obvious, such as paid leave and health insurance, but top talent usually takes the long view when it comes to workplace perks. Is the culture conducive to learning and upskilling? How flexible is it? Does it offer career development opportunities?

Offering a well-rounded pay packet can contribute to a positive and supportive work environment. It aligns with the evolving expectations of employees and plays a crucial role in attracting, retaining, and promoting the well-being of a talented and diverse workforce.

These days, talent retention strategies include unique incentives, such as the ones below.

According to Jobstreet by SEEK’s hiring and compensation report, birthday leave, which enjoyed a 4% spike in 2023, will continue to be highly prioritised, along with family care leave. These initiatives fall in line with the emphasis on employee well-being.

Health checks and medical screenings were the top compensation benefits supplied by employers, while medical insurance and dental coverage were also common incentives. Hirers and human resources can expect these benefits to be a standard in the employment contract.

While not many firms offer housing or lodging perks in Singapore, more employers have begun reimbursing accommodation rental fees. However, over 50% of organisations already provide transportation allowance, with 7% more aiming to do so in 2024.

With the digital economy constantly requiring employees to upskill, many job seekers are now looking at training opportunities within their companies. Jobstreet by SEEK reports that 9% of companies have opportunities to provide training and self-learning programmes as well as mentorship systems.

The pandemic accelerated remote working systems, which are now here to stay. But apart from flexible hours, many institutions now provide customisable and varied financial perks to suit individual employees’ needs and preferences.

Companies also show interest in organising more activities that cater to mental health and wellness, such as counselling or mental health days.

With the rise of inclusive work environments, many companies have begun offering extended paternity and maternity leave, with more organisations following suit. Plans are also underway for family-friendly facilities, such as a nursing room, and family-oriented activities.

Compensations may vary depending on geography, especially now with global talent involved. Geographical salary differences may depend on the job seeker’s living costs, industry demand in the area, and other local market conditions. Adapting to the diverse economic landscapes and addressing regional compensation trends in Singapore not only attracts and retains talent but also promotes fairness.

• Malaysia ⁠⁠Malaysian hirers rely heavily on salary benchmarking when figuring out appropriate compensation. In fact, 23% of the companies surveyed reveal they take inflation rates into account to stay competitive in the compensation game. Other Malaysian companies, on the other hand, padded their benefits with incentives like paternity, maternity, and birthday leave. ⁠ ⁠Malaysia has also seen a rise in improved health-related perks, such as medical insurance, health checks, and mental health coverage.

• Philippines ⁠Salary benchmarking guides over 50% of Philippine companies as far as compensation and benefits are concerned. However, the country has a long way to go in terms of offering more creative perks. Only 34% of organisations study their pay guidelines, while 26% adjust for the inflation rate. Fortunately, in 2013, 89% of companies offered a pay rise higher than the 6% inflation rate. ⁠ ⁠Philippine employers also equip their staff with generous performance bonuses, medical coverage, and personal loans. The majority also prioritise training and self-learning programmes.

• Thailand ⁠Thailand takes great measures to enhance its compensation packages, with over 50% of institutions following payroll benchmarks and expanding their benefits. However, more companies could study their pay structure and adapt according to the inflation rate. That said, the number of employers who gave out bonuses and provided a pay rise grew from 2022 to 2023. ⁠ ⁠Thailand is quite creative when offering leave. Despite only 36% of companies conducting employee benefits benchmarking, 66% provide compassionate leave – with 8% more planning to do so in the next 12 months. The majority of organisations also offer medical coverage, health checks, life insurance, and contributions to social benefits. Many employers also put a premium on work-life balance, offering interest-based activities and flexible working arrangements, as well as allowing casual wear.

• Indonesia ⁠Forty-four per cent of Indonesian businesses factor in interest rates in how they compute compensation. However, 42% claim their pay rise is in line with or exceeds the aforementioned rate – the highest among Asian countries surveyed. ⁠ ⁠Moreover, many Indonesian employees saw real wage growth in the past year, with many employers offering an increased average of 7.57%, more than the 5.51% inflation rate. Indonesian organisations are also geared towards family and personal matters, with many providing marriage, compassionate, extra maternity leave, and even menstrual leave. Seventy-eight per cent of those surveyed also commit to their staff’s social contributions, retirement plans, and personal loans on top of the usual medical coverage. Over half the surveyed enterprises also provide mental health insurance.

• Proximity ⁠Is your office near an industry hub? Does your employee reside close to a central business district? How accessible is the workplace to your staff? Higher payroll or additional allowances should account for these variables.

• Economic development zones ⁠Singapore has designated economic development zones that focus on industrial and economic growth. Companies in these areas may offer additional incentives to attract skilled professionals to contribute to the success of these projects.

• Cost of living differences ⁠Talent who live in Singapore, particularly in commercial districts, would likely have higher daily expenses, so it’s necessary to adjust compensation to account for these.

• Talent availability ⁠If there is a higher demand for particular skills in one region, you might need to modify your compensation benefits to entice and retain talent in that particular area.

As remote work becomes more widespread, Singapore-based enterprises must reassess and adapt their compensation strategies according to the broader talent pool and even global market standards.

As a hirer, you must be more flexible in creating salary structures based on skills and experience rather than worrying about the implications of a physical setting. Compensation packages must also cater to location-independent setups, such as providing internet access or laptops.

Remote work may be the most well-known effect of the pandemic. However, after it disrupted the workspace norm, many firms in Singapore promised to return to an office setting by 2023. Figures confirmed this, with 55% of businesses coming back to a full office arrangement and a significant percentage practising hybrid work models. However, Jobstreet by SEEK’s Hiring & Compensation analysis predicts it won’t hold since remote work trends in 2024 predict more job seekers preferring flexible setups.

With the workplace of the future imagined to be less location-dependent, hirers and human resources understand that provisions must be given to address this shift. The majority of employers are already supplying employees with laptops and virtual meeting support, with others also offering cloud access, remote-access solutions, and work mobile phones.

Another priority in the post-pandemic work landscape is mental health. The Ministry of Health’s National Population Health Survey 2022 shows that poor mental health jumped from 13.4% in 2020 to 17% in 2022. This is unsurprising as Singapore has consistently ranked in lists of overworked countries.

Enterprises considered high-stress zones – in which 16% ranked – must implement measures to improve their workforce’s well-being. Jobstreet by SEEK reports the following as the biggest causes of employee stress:

• Heavy workload

• Insufficient resources

• Lack of career opportunities

• High pressure from management

• Low pay

That said, 38% of firms believe they are already doing their part in providing stress-coping structures. Meanwhile, 34% have started mental health initiatives for their employees. This means there’s so much more opportunity for companies in Singapore to step up when it comes to employee well-being.

The best talent acquisition practices aren’t always about the money. But if you want to maximise your manpower and stay ahead of the labour market, put yourself in the position of the employee and look at the total rewards. Review your compensation benefits regularly, study hiring and salary benchmarks, develop holistic packages, and identify dealbreakers.

Stay abreast of the latest compensation strategies insights in Southeast Asia by downloading Jobstreet by SEEK’s Hiring, Compensation & Benefits Report 2024. Find out if you’re doing enough to attract and retain talent when it comes to remunerations.

You can also learn to create the kind of job alert that will have job seekers interested by using Jobstreet’s proprietary tools, such as Talent Search, Guaranteed Hire, and ads, to send the most suitable job seekers your way.

Study your current compensation benefits and check them against industry standards. Apart from base salary, see if you're offering a well-rounded package covering general economic conditions, such as inflation, and their personal circumstances, such as your office address or their residence and cost of living. Your human resources team or benefits manager might also want to conduct regular employee surveys to see if you address their needs.

Remote work offers flexibility for the talent, but it also requires your organisation to be more flexible in compensating staff. Compensation benefits must include support for working from home and computing salaries must take into account geographic variances.

Look beyond money. An employee will choose the organisation that gives them total rewards. Do you have family-friendly activities? Do you offer flexible working arrangements? Do you provide mental health support, especially if the role comes with high pressure? Do you offer training programmes? Ask your HR manager to analyse your workforce and see what they need. This way, you can take action with better compensation benefits accordingly.