SHRI/RDS 2013 Survey on Business Prospects/Wage Increase/Bonus,
Recruitment & HR Career Attractiveness.
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1.0
Introduction SHRI/RDS surveyed 141
companies in September 2012 to find out whether the impending economic slowdown
have affected their business prospects, wage, bonus and recruitment plans
since our previous survey findings 3 months ago. Companies were also asked for their views on the
attractiveness and potential earnings of HR professionals. 2.0
Summary of Key Findings Sentiment
only slightly less optimistic despite expectation of slowdown. 2.1 Many
companies have moderated their expectations somewhat compared to 3 months
ago. Consequently, wage increases, bonus and recruitment plans have been
moderated slightly. Unfortunately, due to increased uncertainty, slightly
more companies have frozen wages. The companies that have retrenched or are
planning to retrench staff have also increased slightly. 2.2
The basic wage increase in 2012 will average 4.0% for the full year, slightly lower than the 4.1% reported 3 months ago. For next year 2013,
the basic wage increase is expected to remain at 4.0%. 2.3
Variable bonuses (excluding AWS) are expected to
average 1.6 to 2.0 months this year, unchanged from 3
months ago. For 2013, they are
expected to drop slightly to 1.5 to 1.8 months, slightly lower than that
projected earlier. 2.4
The lower wage increase and bonus this year means
a total wage increase of only 1.1% and with the consumer price index expected
to be around 4.5%; there will be a drop
in real wages of around 3.4%. For 2013, the total wage
increase is expected to be 2.6% and with inflation expected to be around 3.5%
to 4.5%, real wages are likely to drop by 0.9% to 1.9%. 2.5
On recruitment, 78% of companies hired or planned
to hire staff this year (lower than the 83%; reported 3 months ago), and for
2013, only 56% are expected to hire. 2.6
This year, 12% of companies retrenched or plan to
retrench staff (more than the 8% of 3 months ago). For 2013, due to economic
uncertainty, most companies are not able to make any projection on
retrenchment. 2.7
Staff turnover is reported at 5% to 8% this year,
slightly higher than that reported in Jun (4% to 6%). Staff turnover is
expected to decline to 4% to 6% next year. 2.8
Entry-level salaries for Diploma qualification
and above increased by 0.6% to 5.6% compared to 3 months ago; those for GCE
‘N’, PSC (Secretarial), Higher Nitec remained
unchanged; while GCE ‘O’, GCE ‘A’ and Nitec dropped
by 0.1% to 6.7% 2.9
On the issue of HR career attractiveness, almost
all the respondents agree that HR function is as important as Finance or
Marketing, - but
less than half of them think HR salaries are currently as attractive as those
of Finance and Marketing, - however, the chances of salary
and career advancement for HR professionals are rated quite highly. 3.1 Business Prospects Current: 78% of companies reported satisfactory or better business
prospects lower than the 83% three months ago - the Education sector was the most
satisfied sector 21% of companies reported unsatisfactory business
prospects, higher than the 17% three months ago. - the least satisfied sector was
Electronics Components Trading
Asia Pacific, Japanese and local companies were
somewhat less satisfied than 3 months ago while European and US companies
reported slightly better prospects than 3 months ago. Next 6 months: 16% of companies expect prospects to
improve, 74% expect no change while 10% expect prospects to worsen. - F&B/Hospitality
sector is the most optimistic, (was one of the most pessimistic sector in
June, 29% expect prospects to worsen) - Constructions
& Related sector is the most pessimistic.
US companies are most
optimistic over next 6 months, while Japan companies are the least
optimistic. 3.2 Basic Wage Increase The wage increase this year (2012) will average 4.0%, slightly lower than the 4.1%
projected 3 months ago. Highest Paying Sector: Engineering & Related (5.0%) Lowest Paying Sector: Electronics Components Trading (1.6%). European companies will pay the highest increases
(4.3 to 4.7%) while Asia Pacific companies the lowest (3.2 to 3.9%). In terms of size, large companies will pay the
highest (4.3 to 4.7%). This year, 11% of the companies have frozen or
plan to freeze wages, and 1% of the companies has cut or plan
to cut wages. For 2013, the wage
increases are expected to remain the same as this year at 4.0%.
For 2013, Financial/Insurance sector projected
the highest wage increase, which is 4.9% to 5.3%; while Logistics projected
the lowest at 2.6%. 3.3 Variable
Bonus (excluding AWS) For this year 2012, the variables
bonuses, as reported three months ago, will average: 2.0 months for Managers 1.8 months for Executives 1.6 months for
Non-executives. Highest Paying Sector - Finance/Insurance (2.5 to 3.8 months; higher
than the 2.3 to 3.1 months reported 3 months ago) Lowest Paying Sector -
Electronic Components Trading (around 0.7 months; lower than the 1.0 months
projected 3 months ago) Large companies will pay somewhat
higher bonuses (2.0 to 2.6 months) than the medium-sized and small
companies. Local companies will pay slightly
more than Asia Pacific, European, Japanese and US companies and also slightly
more than that reported 3 months ago (2.0 to 2.4 months compared to 1.8 to
2.2 months). For next year 2013, less
companies (75% compared to this year’s 89%) expect to pay some form of bonus
but the bonuses are expected to decrease slightly to an average of: 1.8 months for managers 1.7 months for executives
and 1.5 months for
non-executives.
The highest paying sector will still be
Financial/Insurance which expect to pay an average
of 2.8 months. The lowest paying sector, Logistics, expect to pay only less
than a month (0.97 month) which is lower than the 1.3 to 2.0 months reported
3 months ago. 3.4 AWS In 2012, 86% of companies paid the
AWS of one month while for 2013; only 79% of companies expect to do so. Compared to 3 months ago, fewer
companies expect to pay the AWS.
3.5 Recruitment A total of 78% of the companies hired
or plan to hire staff in 2012, slightly lower than the 83% 3 months ago For next year 2013, less companies
(56%) plan to hire staff and the number to be hired will also be lower. The average numbers recruited per
company in 2012 and the numbers to be recruited next year are:
3.6 Retrenchment Retrenchment, unfortunately, is
expected to rise again this year with 12% of companies having retrenched or
plan to retrench staff, higher than the 8%, reported 3 months ago. For 2013, only 27% of companies do
not expect to retrench while most of the others are not able to make any
projection. 3.7 Staff Turnover 84% of companies experienced staff
turnover in 2012, slightly higher than the 81%, reported earlier. The annual turnover rate for this
year will average: 5% for Managers 8% for Executives and 7% for Non-Executives. For next year, only 40% of companies
are likely to experience staff turnover and the turnover rate is also
expected to be lower. 3.8 Total Accumulated Monthly Variable
Component (MVC) in % 56% of companies currently pay the MVC and the
average accumulated amount is 8.5% (Managers), 8.1% (Executives) and 7.8%
(Non Executives).
3.9
Entry-Level Salaries
Entry-level salaries for diploma
qualification and above increased by 1.1% to 5.6% compared to few months ago;
Those for GCE “N’, PSC (Secretarial),
and Higher Nitec remained unchanged while GCE “O”,
GCE “A” and Nitec entry-level salaries decreased by
0.1% to 6.7%. 3.10 Importance
of HR Function Almost
all the companies (99%) agree that the HR
function is as important as the Finance and Marketing functions with only 1%
stating that they are not sure. However,
less than half of the respondents think HR salaries are as attractive (see
below). 3.11
Attractiveness of HR Salaries 46% of the companies reported that
current HR salaries are as attractive as those of Finance and Marketing while
44% of companies do not think so. 10% of companies are not sure. Interestingly, most respondents in
large and medium-sized companies reported their HR salaries are as attractive
as Finance and Marketing while most of those in small companies do not think
so. 3.12 Chances
of advancing to the top HR position in the organisation Chances of advancing to the top HR
position in their respective organisation were rated good as half of respondents
rated their chances of doing so are 50% or better. The chances of advancement depend on
size of the organisation; not surprisingly, chances are greater in small and
medium-sized than those in large companies. 57% to 59% of respondents in small
and medium-sized companies rate their chances as good while only 25% of those
in large companies rate their chances as good.
3.13 Average
Earnings After 10 years, the average HR professional
can earn $80,000 to $100,000 per annum according to most respondents (77% of
companies). After 15 years, the average earnings
are likely to be between $80,000 to $150,000 p a (85% of companies). After 20 to 25 years, the average
earnings are likely to be between $100,000 to $200,000 p a (65% to 76% of
companies). After 30 or more years, the average
earnings are likely to be between $100,000 to $250,000 p a (74% to 75% of
companies).
3.14 Highest
salary paid to current top HR position The highest salary, not
surprisingly, depends on company size. In small to
medium-sized companies the current top HR salary is around $100,000 to
$150,000 per annum, while in large companies, it could vary from $100,000 to
$300,000 per annum.
3.15
Chances of advancing to Chief HR
Officer in Very Large Organisations The chances of advancing to the
highest possible HR position in Singapore i.e. the Chief HR Officer position
in very large organisations are rated by most respondents as 30% or less. Interestingly, those in small and
medium-sized companies rated their chances somewhat higher than those in
large companies.
3.16 Highest
Salary after 20 Years or More As a reality check, we asked
respondents what would be the highest HR salary after 20 years in the
profession. 76% responded that the highest HR
salary after 20 years would be between $100k to $250,000 p a. Interestingly, the response here is
almost irrespective of company size.
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