Employers in Singapore believe a competitive remuneration package is the most effective way to increase staff retention.
According to a recent JobStreet.com survey, local bosses are raising income levels in order to discourage employees from leaving their companies.
Out of the 125 local employers polled in the survey, 62% acknowledged salary increments and bonuses are the most effective retention tool.
Close to one in five (22%) employers also stated they intend to give their employees a higher increment in 2014.
While the average bonus this year is expected to be that of one month’s salary, 14% of employers will pay out a two-month bonus and 5% will pay a three-month bonuses. These bonus figures exclude the annual wage supplement.
While the average salary increment is likely to be 4.5%, “18% of employers plan to give salary increments of above 7%,” the report said.
“The main beneficiaries of these increments are managers as employers indicated they are allocating the biggest slice of the pie to this group.”
These surges in salaries are in line with what employees themselves are expecting this year, according to the survey.
“Over 80% of workers indicated that they had high expectations for their increment and bonus pay-out this year. They felt that they deserved to be paid more in return for their contributions to the company,” the report added.
However, it remains to be seen whether increasing salary and bonus packages will work in increasing employee retention rates.
JobStreet.com found 45% of the 850 Singaporean employees polled indicated they will still explore better career opportunities outside of their company, despite receiving bonuses and increments that meet their expectations.
“Decision for a job change is largely driven by factors such as better remuneration packages, staff benefits, work-life balance and career advancements,” the report stated.