According to a recently released report by the global management consultancy Hay Group, employers in Singapore are becoming increasingly concerned about their employees’ level of engagement and commitment to the company.
According to their research, 52% of employees in Singapore plan to leave their current employment within 5 years. This rate is 8% higher than that of the global average of 44%. Whether employers are jittery because of the local mobility trend or a general global trend remains a debate.
In addition, a separate survey conducted by Hudson shows, that 80% of the Asian employers are worried about losing their best employees and performers this year. We shall discuss how this indicates that the salary issues have led most of the employees to leave old jobs and find similar or more challenging jobs on a better package.
International enterprises which are interested in investing in this region or are considering Singapore company formation should be aware of this phenomenon. Although the talent and skills of Singapore’s workforce are esteemed in the region, the international businesses, SME and other companies are looking for employees that would develop their business but on a minimal budget. This situation is creating high job mobility in the service sector and is propelling sentiments of discouragement among the workers regarding their jobs.
Mr. Greenwood of Berkley Recruitment Group Asia stated, “Job sentiment in Singapore is lower than that of some of its less developed neighbors such as Indonesia and the Philippines.” This suggests that like in many knowledge-based economies, labor engagement in jobs in Singapore has declined in the past few years. Although mobility may be a reason behind switching jobs, it is driven by the need for better incentives, environments, flexibility and salary packages.
The financial services sector is going through a rough time, as the high performance and skilled employees are becoming more difficult to afford. People that desire the Singapore employment pass are more inclined towards short term contracts, simply because they have plans to leave their jobs within five years for a job with better employee incentives.