Robert Walters: Singapore employees feel less motivated after a performance review

Robert Walters research on professionals in Singapore has found pressure is growing on employers to balance workforce engagement, progression expectations and cost control. 

Source: Robert Walters Salary Survey Singapore 2026 landing page. Key salary and compensation insights for Singapore. In contrast, 100% of businesses in the Philippines are giving pay rises in 2026 vs 84% expecting a raise this year. Filipino professionals are staying an average of 2.3 years with 71% of professionals looking for a new job this year, and 69% are confident about job opportunities. 

Only 10% of professionals say they feel more positive about their roles after their latest performance review, according to new research from global talent solutions partner Robert Walters. The process also left more than one in four (27%) professionals feeling less positive about their roles instead.

The findings are part of a global mid-year survey of professionals, which included close to 200 respondents from Singapore. Conducted in April 2026, they show that businesses are facing growing pressure to maintain workforce confidence and engagement heading into the second half of the year. 

Andrew Powell, Chief Commercial Officer at Robert Walters said: “Performance reviews are becoming increasingly important management moments, particularly as organisations look to balance worker needs while continuing to manage budgets. Employees want to know how their skills are valued, where they can progress and whether the business is investing in their long-term development.”

Among the respondents, 42% of professionals shared that they received a pay increase for 202. One in three of these respondents (15%) saw it as an inflationary increase. 

When asked if their current salary situation is influencing their likelihood of looking for a new job, 79% of the respondents shared that they are either actively looking for a new role or now open to new opportunities. This is an increase compared to the findings of the Robert Walters Salary Survey 2026, where 26% of professionals in Singapore said in late 2025 that they did not have the intention to change or look for jobs for at least the next year or more.

“Most professionals understand the economic pressures businesses are operating under and recognise that significant salary increases may not always be realistic,” Powell said.

“But it can be challenging for organisations to keep employees motivated when they aren’t having regular open conversations around progression, future earning potential or how compensation decisions are made.”

Kirsty Poltock, Country Manager for Robert Walters Singapore said: “Performance reviews are a two-way conversation and an important opportunity for professionals to understand how their individual goals align with the organisation's priorities. Even if salary increases are modest, employees can use these discussions to identify the skills, experiences and responsibilities that will position them for future progression. 

"Over the coming months, professionals who continue to build in-demand capabilities, embrace new technologies including the partnership of AI integration, and demonstrate adaptability will be better placed to seize opportunities as hiring activity picks up.” 

The findings suggest that performance and salary reviews are carrying greater significance in today’s market. “We are seeing many organisations take a more strategic and measured approach to compensation management. Market data can play an important role in helping to understand where they are competitive, where progression gaps might exist and how salary expectations are evolving,” commented Powell.

“As the world of work continues to evolve, professionals are placing greater emphasis on long-term career value and future opportunities. Organisations that understand how workforce expectations are shifting will be better positioned to build engagement, develop critical skills and remain competitive over the longer term.” 

Other highlights from the survey for Singapore include:

Talent snapshot

- Beyond compensation and benefits, talent value having flexible work arrangements, job security and stability, and inspiring colleagues and culture from an employer 

- An expectation gap exists: 27% of employers are likely to give new hires a pay rise of above 10%. However 83% of talent looking to move jobs expect more than a 10% pay rise, with 23% of them likely to request over 20% more in salary

Employer snapshot 

- More than a third (37%) of employers plan to increase their headcount, with most of them looking to increase it by 5-10% 

- Nearly seven in 10 (69%) employers are looking to give a salary increment of at least 3% in 2026 for current employees, and 56% are likely to give a salary increment of at least 6% to new hires 

- Lack of candidates with the right skills/experience, gap in salary and benefit expectations, and talent staying put (job hugging), are among the challenges faced by companies in attracting talent 

- Soft skills: 65% of employers value interpersonal, communication and collaboration skills, and 59% value problem-solving and critical thinking among their employees 

- Contract hiring: 55% of companies will start or continue to hire contractors in 2026 

- Roughly three quarters (74%) of companies hiring contractors do so for project or short-term needs. Other reasons include headcount limitations, and a “wait to try” attitude

AI-driven workplace 

- Almost eight in 10 (78%) businesses expect up to half of their workforce to need reskilling due to AI advancements 

- Employers are looking for talent with skillsets in critical thinking and fact-checking, data analysis, and are highly adaptable

- Top concerns by professionals over AI adoption at the workplace include having their jobs displaced due to automation, bias or unfair treatment due to algorithms, and the lack of relevant training

In Australia, the research found that professionals remain mobile, with career development, fair pay, and strong leadership driving decisions. Salary movement through 2026 is expected to be moderate and targeted rather than broad-based, with increases focused on in-demand roles as employers balance cost control with retention, Robert Walters said. At the same time, AI is reshaping roles and accelerating demand for specialised expertise, while workforce expectations continue to evolve - flexibility, wellbeing, and purpose now sit alongside salary as key drivers of engagement, the company added.

When it comes to Indonesia, the hiring landscape in 2026 will continue to be shaped by disciplined growth, operational efficiency, and heightened risk awareness. As a result, employers are becoming more selective, prioritising roles that deliver clear business impact and support long-term capability building, particularly across digital maturity, governance, and workforce sustainability.

This is reinforcing demand for talent who can translate digital and AI capabilities into tangible productivity gains, especially within finance, supply chain, risk, and operations. In parallel, regulatory and environmental, sustainability and governance (ESG) considerations are increasingly embedded in core business decision-making, sustaining demand for compliance, risk, and ESG-aligned professionals.

From a talent perspective, professionals remain cautious and value-driven. Stability, leadership quality, and meaningful development opportunities are taking precedence over short-term compensation gains. To compete effectively, employers will need to articulate a credible employee value proposition, underpinned by clear career pathways and targeted, market-aligned remuneration.

Malaysia’s hiring landscape will be shaped by its focus on digitalisation, green growth, and energy transition. Key sectors such as data centres, renewable energy, electric vehicles, cybersecurity, AI, and financial technology will see strong demand for adaptable talent with data literacy and digital fluency. Contract hiring will remain prevalent following the 2025 Gig Worker Bill, while AI-driven tools will streamline recruitment processes and enhance workforce planning. Talent attraction and retention will be challenging due to limited hybrid-skilled candidates and rising expectations for flexibility, work-life balance, and purpose-driven workplaces. Employers must offer competitive salaries, career growth opportunities, and flexible arrangements while effectively managing diverse workforce models, Robert Walters advised.

Job mobility remains steady in New Zealand, but professionals are making more considered moves, seeking fair pay, meaningful career progression, flexibility, and strong organisational culture, Robert Walters said. Skills shortages across key sectors continue to shape hiring strategies, placing pressure on employers to compete on more than salary alone. Salary growth in 2026 is expected to be moderate and targeted, focused on in-demand roles as organisations balance retention with budget control.

Thailand’s hiring market in 2026 is likely to continue navigating cautious business sentiment. Employers are expected to maintain careful hiring approaches, prioritising C-suite leaders who can steer organisations through ongoing challenges. Demand for B2B sales & marketing roles will remain high as companies focus on expanding market share and driving revenue growth. Skills-based hiring will gain traction, with reskilling initiatives becoming central to workforce strategies. Salary increases for job movers with in-demand skills are projected at significant levels, while existing employees may see modest adjustments.

Attracting and retaining talent will remain challenging due to supply-demand imbalances, prompting employers to adopt human-centric leadership approaches and invest in continuous learning and development to foster loyalty and resilience within their teams, Robert Walters added.

As for Vietnam, Robert Walters said the hiring market is thriving as the country's economy makes a strong recovery. While the hiring market is gaining momentum, both employers and employees remain cautious and risk-averse. Hiring timelines are expected to be prolonged, and companies are increasingly relying on hiring based on potential rather than experience.

To attract and retain talent, employers in Vietnam are advised to offer competitive compensation and benefits packages, employee appreciation programmes, and growth opportunities. Creating a positive and inclusive company culture that emphasises work-life balance and teamwork is also crucial in building a strong employer brand.

Explore 

Tap on insights into pay levels and hiring trends with the Robert Walters Salary Survey 2026 for: 

- Australia at www.robertwalters.com.au/our-services/salary-survey.html

- Indonesia at https://www.robertwalters.co.id/our-services/salary-survey.html

- Malaysia at https://www.robertwalters.com.my/our-services/salary-survey.html, 

- New Zealand at https://www.robertwalters.co.nz/our-services/salary-survey.html, 

- Philippines at https://www.robertwalters.com.ph/our-services/salary-survey.html, 

- Singapore at https://www.robertwalters.com.sg/our-services/salary-survey.html, 

- Thailand at https://www.robertwalters.co.th/our-services/salary-survey.html, and for 

- Vietnam at https://www.robertwalters.com.vn/our-services/salary-survey.html

The Japanese edition (in Japanese) is available at https://www.robertwalters.co.jp/our-services/salary-survey.html while the Korean edition (in Korean) is at https://www.robertwalters.co.kr/our-services/salary-survey.html

Robert Walters: AI, wages, and flexibility: What Singapore hires want

Concept artwork for a workplace
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Global talent solutions business Robert Walters’ Salary Survey 2026, a benchmark of salary trends, forecasts a challenging 2026 for Singapore. The market will continue to see volatility, combined with cost pressures and the lack of skilled talent, the company said.

Demand for talent in AI, data and cloud skills continues to outstrip supply, resulting in a skills mismatch. At the same time, firms are cautious in pay planning due to economic and sectoral uncertainty. On the talent front, candidates are expecting job offers to go beyond higher pay, and include areas such as flexibility, learning opportunities and purpose, Robert Walters said.

Companies are therefore tapping on flexible resource models, which include contract roles and project-based hiring, as a valuable tool to help them stay agile.

Key findings include: 

- Industries such as banking and finance are starting to see AI applications go from pilot phases to actual implementation, and various industries across the board are seeing AI usage increase. A third of companies said that they have already introduced AI with the objective of optimising headcount, while 30% are planning to do so. 

- Functions that companies see are most at risk with the integration of AI are administration and business support (50%), IT and digital transformation (29%), as well as accounting and finance (28%). 

- Nearly eight in 10 (78%) businesses expect up to 50% of their workforce to need reskilling/upskilling due to advancements in AI over the next 5 years. To prepare themselves for AI-driven changes in the workplace, one in two (46%) of professionals surveyed said they have started to research or pursue AI-related training.

- Top skills that employers are looking for in an AI-driven workplace are critical thinking and fact-checking (71%), data analysis (59%), adaptability (44%) and ethical decision-making (41%). 

- Professionals using AI at the workplace tend to mostly use AI tools for research and information gathering (50%), chatbots or virtual assistants for communication and support (43%), as well as copywriting, content creation and editing (42%). 

- Top concerns over AI adoption at the workplace include having their jobs displaced due to automation (48%), bias or unfair treatment due to algorithms (such as in hiring or promotions) (42%), and the lack of training to keep up with AI skills (41%).  

Flexible workforce models

When asked about their hiring plans for 2026, 37% of employers are looking to increase their headcount, with most of them (30%) looking to increase it by 5-10%. 55% of companies will start or continue to hire contractors in 2026. The top reasons for hiring contractors include hiring for project or short-term needs (74%), limited headcount (36%), and a desire to not commit to a permanent headcount yet (33%).

Companies continue to need to explore employee value proposition (EVP) offerings to attract and retain talent. Among the benefits offered to employees currently, the top initiatives were giving a bonus scheme (80%), parental leave (71%), flexi/remote working (65%), commercial medical insurance (65%) and dental cover (58%).

Modest wage increments

Talent moving between jobs can expect increments of 5 to 15%, or up to 20% for niche areas such as AI or cybersecurity. Employees staying with their current companies will see their salaries increase by 3-6% to align with inflation, Robert Walters predicted.

Most employers shared that they are likely to give a modest salary increment in 2026 to current employees. Nearly seven in 10 (69%) of Singapore employers who responded said they would be giving at least 3%. Within this segment, 7% said it would be more than 6%. 

Around a quarter (27%) are likely to give a pay rise of under 3%, while 4% said that they will not be increasing salaries. On the other hand, 57% of professionals expect at least a 3% increment from their current employer, with 14% expecting more than a 6% increment.

New hires can expect a pay rise of at least 6% from 56% of employers. Over a quarter (27%) of this segment expect to give pay rises of above 10%. On the other hand, professionals looking to move jobs are more ambitious; 83% expect more than a 10% pay rise, with 23% of them likely to request a more than 20% increase in salary. 

One of the challenges when sourcing for staff is that salary and benefit expectations are too high (53%), with other top challenges being: 

- Lack of quality candidates with the right skills/experience (72%) 

- Qualified professionals are hesitant to move (25%) 

- High competition for candidates (counteroffers and buy-backs) (25%)

Beyond compensation and benefits (62%), professionals shared that flexible work arrangements (42%), job security and stability (39%), and inspiring colleagues and culture (34%) are what they would value in an employer.

Talent snapshot 

Beyond compensation and benefits, talent value having flexible work arrangements, job security and stability, and inspiring colleagues and culture from an employer. But there is an expectation gap: 27% of employers are likely to give new hires a pay rise of above 10%. However 83% of talent looking to move jobs expect more than a 10% pay rise, with 23% of them likely to request a more than 20% increase in salary. 

Employer snapshot 

Nearly four in 10 (37%) employers plan to increase their headcount, with most of them looking to increase it by 5-10%. 

- Roughly seven in 10 (69%) employers are looking to give a salary increment of at least 3% in 2026 for current employees 

- Over half (56%) are likely to give a salary increment of at least 6% to new hires 

Lack of candidates with the right skills/experience, gap in salary and benefit expectations, and talent staying put, are among the challenges faced by companies in attracting talent. Other trends include:

- Soft skills: 65% of employers value Interpersonal, communication and collaboration skills, and 59% value problem-solving and critical thinking among their employees.

- Contract hiring: 55% of companies will start or continue to hire contractors in 2026, with 74% of companies hiring contractors do so for project or short-term needs. Other reasons include headcount limitations, and a “wait to try” attitude. 

- AI-driven workplace: 78% of the businesses expect up to half of their workforce to need reskilling due to AI advancements.

- Employers are looking for talent with skillsets in critical thinking and fact-checking, data analysis, and who are highly adaptable.

- Top concerns by professionals over AI adoption at the workplace include having their jobs displaced due to automation, bias or unfair treatment due to algorithms, and the lack of relevant training.

The rapid growth in demand for AI and data skills plus the automation of transactional roles dominated the job market in 2025. Employers focused on a skills-based workforce planning approach, invested in targeted upskilling/reskilling (AI, cloud, data), and used AI to automate screening and candidate engagement. 

At the same time, talent with skills in AI, data and cloud were more mobile, while mid-career professionals saw stronger incentives to reskill. Increased competition for AI-savvy candidates led to more selective hiring and higher packages in those niche areas. 

Companies took a cautious approach to pay reviews and pay planning, with talent with in-demand skillsets benefitting from stronger pay adjustments. Some companies had stagnant salary growth, however. Companies have had to balance the cost of living and the pressure of retaining talent in terms of increments and benefits. 

Contract or gig roles continued to be made available to support business needs, while those in slower sectors faced slower hiring and more contract roles.

2026 industry predictions for Singapore

2026 will see the prevalence of AI usage, sustained careful wage management to persist, and a stronger demand for flexible workforce models. There will be continued demand for AI, data and cloud skilled talent. Companies will continue to focus on skills-based hiring, instead of looking at traditional qualifications, as well as internal mobility and talent development programmes to retain and nurture talent. 

As Singapore companies respond to the volatility and agility required in the market, the workforce will see traditional permanent roles matched with an increasing number of contract positions and project-based hiring, forecast Robert Walters.

“Gone are the days of market-wide increments. Attracting and retaining talent has become more challenging due to the volatility and pace the market is working to, combined with cost pressures and lack of skilled talent in all areas. Companies will need to stay flexible, explore employee value proposition (EVP) offerings to draw talent, and tap on analytics for market intelligence and workforce planning.

"Employers can also look into tapping on executive recruitment firms to source for leadership talent, and use leadership assessment and coaching to retain and evolve talent. They can invest in contractors to meet the pace and project-based work requirements, and look into outsourcing and managed services to support business scale and control costs,” said Kirsty Poltock, Country Manager at Robert Walters Singapore.

Other Singapore-based insights from the Salary Survey include:

Soft skills valued by employers include interpersonal, communication and collaboration skills (65%), problem-solving and critical thinking (59%), and having a positive attitude, emotional intelligence and empathy (44%). 

The functions that are likely to see the highest attrition (defined as the number of respondents who will be looking to change jobs in 2026): 

- Supply chain & procurement (82%)

- Accounting & finance (79%)

- Tech & transformation (78%)

- Sales & marketing (78%)

Top functions which can expect pay rises in 2026: 

- Accounting and finance (98%)

- Supply chain & procurement (98%)

- Sales & marketing (97%)

- Human resources & business support (97%)

The top in-demand professions for 2026 are:

- Accounting & finance: financial analysts, finance business partners, finance managers 

- Banking & financial services: fintech & quantitative specialists, risk & compliance specialists, wealth & portfolio managers 

- Human resources & business support: HR business partners, HR generalists, transformation specialists 

- Sales & marketing: Head of growth, GM, marketing automation specialist 

- Supply chain, procurement & logistics: supply & demand planners, supply chain project managers, analysts 

- Technology & transformation: cybersecurity specialists, data/AI engineers, cloud engineers

By industry:

Tech & Transformation

● Demand for talent: very high 

● In 2025: With strong interest in AI adoption, there is a sharp rise in demand for skillsets related to AI, cloud and data. New data centre projects and capacities boosted hiring volumes in infrastructure, engineering and operations. Cost pressures kept headcount growth for permanent positions to the minimum, while driving contract hiring and offshoring. 

Professionals were more open towards contracting. Hybrid work stayed the norm, but has created new challenges around employee engagement and productivity.

● In 2026: Cost pressures will see companies maintain a flexible mix of permanent and contract employees. Employers will need to show stronger local representation in their workforce.

Key trends

● Employers are moving towards a skills-first approach, with a heavier focus on practical assessments, real project experiences and proof of skills. 

● Evolving talent strategy with roles that were once offered permanently increasingly filled by contract talent, in particular for project-based and transformation-heavy work, such as in cloud, data, AI and cybersecurity. 

● While global talent will remain important, regulatory scrutiny around Employment Passes will see local talent have an advantage during the hiring process. 

Sought-after professionals

● Permanent roles: Commercial roles such as sales and presales talent, AI/machine learning (ML) and data engineers, cybersecurity specialists especially in cloud and data centre security.

● Contracting: Cloud engineers, DevOps, cybersecurity specialists, data and AI engineers.

● Nearly eight in 10 (78%) professionals are looking for a new job, and 37% are confident about job opportunities in the sector. 

● What talent value most: excellent compensation & benefits, flexible work arrangements, and job security. 

● Valuable soft skills include change management, critical thinking and problem solving, collaboration in hybrid cross-functional teams, and the ability to influence and communicate with business leaders. Adaptability and learning agility are also prized, especially for contractors.

Robert Walters says:

● Talent are advised to develop adaptability across tools and platforms, deepen their domain knowledge and carve out specialisations in niche technologies.

● Companies that are looking to attract and retain talent should be competitive (move quickly on offers, competitive salaries on scarce roles), be efficient (streamline the recruitment process, build an alumni pool of contractors), and showcase clear career value (help professionals see how they can grow in a role).

Salaries 

Permanent roles are expected to see their pay rise at a stable rate, while skills such as AI, cloud and cybersecurity continue to seek high premiums. Similarly, contract roles for domains like cloud, data and cybersecurity are expected to see increases in rates. 

● More than nine in 10 (93%) of businesses are giving pay rises, while 85% of professionals are expecting a pay rise in 2026.

Future-proofing against AI

Roles with repetitive and standardised tasks, such as entry-level data reporting, low-level programming, and first-line IT support are most vulnerable to automation. Professionals need to show a strong grasp of their domain expertise, understanding of AI governance, and an ability to harness AI in daily work. In- demand skills include stakeholder management and business storytelling as well. 

Banking & financial services

● Demand for talent: very high 

● In 2025: Firms kept a closer eye on costs and hired more selectively, focusing on skills that directly supported business priorities. 2025 saw AI move from pilot to practice in the industry, particularly in risk and operations. 

On the contract front, demand reduced for manual operations while new roles in AI implementation and oversight were created. Stricter compliance requirements saw an increased demand for risk management and regulatory reporting skills. 

● In 2026: A growing preference for contract positions and an emphasis in skills and agility in terms of hiring. They will take a skills-based approach and prioritise a candidate’s abilities. Contract and project-based hiring, as well as cross- border hiring will increase, particularly for niche talents in areas such as quant, fintech, private equity and private wealth. 

With tightened regulations in areas like digital assets, environment, sustainability and governance (ESG) disclosures and anti-money laundering (AML) and know your customer (KYC), there will be a surge in hiring for compliance and risk projects.

Key trends

● A rise in contract and project-based roles, offering flexibility under hiring freezes or headcount caps. However, contracts for transformation or regulatory projects will be shorter-term (six to 12 months).

● Hybrid and 'contract-to-perm' are becoming the norm. While remote work is accepted for certain roles, most roles will be hybrid. According to Robert Walters, there is an increasing trend to convert contract staff to permanent positions when headcount frees up.

Sought-after professionals

● There is consistent demand for roles that sit at the intersection of strategy, regulation and technology - fintech professionals, quantitative (quant) specialists, wealth and portfolio managers and risk and regulatory experts with strong technical depth. 

● Demand has increased for contract roles for risk and compliance specialists, internal auditors that specialise in financial services, and treasury operations specialists. 

● What talent value most: Excellent compensation and benefits, flexible work arrangements, and job security 

Soft skills including adaptability, clear communication, and the ability to influence will help talent advance in their careers. Stakeholder management and problem-solving skills will also be valued among contract roles. 

Robert Walters says:

● Schedule flexibility has become a baseline expectation to attract and retain talent. Companies can also appeal to contract talent by focusing on the strengths of flexibility and autonomy, exposure to cutting-edge projects, and offering clear career progression pathways.

Salaries

Base salaries to hold steady, with selective premiums for scarce skills and domain expertise in AI, risk and ESG. Bonuses will be linked to individual performance.

● Nine in 10 (91%) of businesses are giving pay rises, while 92% of professionals expect a pay rise in 2026. 

● Seven in 10 (69%) of professionals are looking for a new job, and 46% are confident about job opportunities in this sector. 

Future-proofing against AI

Positions that centre around repetitive and manual tasks like transaction processing, basic compliance checks and data reconciliation are vulnerable to automation. Professionals need to build data fluency, sharpen their judgement and communication, stay updated on AI-related regulations, and step into roles where human insight complements technology, Robert Walters advised.

Accounting & finance

● Demand for talent: very high 

● In 2025: AI, automation and data analytics were adopted, while businesses battled cost pressures stemming from US trade tariffs and other geopolitical shocks. Demand rose for talent with the rare combination of finance and IT skills, as well as contract roles for tech-savvy, data-fluent candidates who can improve automated processes.

Companies managed costs by outsourcing roles that were transactional in nature to countries with lower labour costs, or moved more to contractors. Back-office and repetitive accounting roles, such as accounts payable and accounts receivable (AP/AR), were offshored or filled by local contract talent.

● In 2026: AI is now common in many workflows, prompting a shift in hiring and role expectations. Technical skillsets such as data analytics will be a key feature in the hiring market. A skill-based approach will be taken in hiring talent with these in-demand skillsets. 

Contract hiring will increase for all roles. Hiring processes have lengthened, especially for contract roles that may be converted to a permanent one. Singapore continues to struggle with a shortage of talent with technical skills.

Key trends 

● Soft skills such as storytelling and communication will become more important, especially for accountants, positions in accounts payable and accounts receivable, and financial analysts (reporting). 

● Demand for hybrid talent who combine domain knowhow (e.g. audit, regulatory, financial planning and analysis) with technology, analytics or sustainability literacy.

● Hiring processes to lengthen for both permanent and contract non-transactional roles, which will continue to stay in Singapore. Companies will consider case studies, cultural assessments, up to three more rounds of interviews.

Robert Walters says:

● Professionals should also learn how to collaborate with AI in their daily work, using these tools to their advantage. Professionals in less transactional roles can hone their soft skills in data storytelling, presenting findings and collaboration with other business units. 

● Companies look at shortening/condensing interview processes, and define critical skillsets clearly. They should also look to foster a great workplace culture to better attract and retain talent. Flexible work arrangements and competitive compensation remain baseline expectations for most job seekers.

Salaries

Expected to stay flat for permanent roles, with a slight increase (2-5%) for contract roles. However, niche and strategic roles that are in demand, as well as candidates with strong technical capabilities, will see higher increases.

Future-proofing against AI

Task-heavy and transactional roles (junior accountant, account executive and AP/AR) are most prone to automation via AI, robotic process automation (RPA) and intelligent document processing. 

Job seekers should look at upskilling themselves with technical skillsets in data, Power BI, enterprise resource planning (ERP), and consider career pathways in finance analyst, financial planning and analysis (FP&A), or business partnering. 

Sought-after professionals

- Financial analysts

- Finance business partners 

- Finance managers 

● What talent value most: Excellent compensation and benefits, Job security, and Flexible work arrangements.  

Salaries 

● Almost all (98%) businesses are giving pay rises in 2025, while 86% of professionals expect a pay rise in 2026. 

● Nearly eight in 10 (79%) of professionals are looking for a new job, and 50% are confident about job opportunities in this sector. 

Human resources & business support

● Demand for talent: very high 

● In 2025: A conservative approach to hiring, with a focus on redesigning the HR function to meet new business objectives, and roles offshored to lower-cost countries. The introduction of the Tripartite Guidelines on Flexible Work Arrangements in 2024 saw HR departments design frameworks to balance flexibility and productivity. 

Contract and interim hiring grew in momentum with an increased demand for experienced contract professionals in areas such as human resources information systems (HRIS) implementations, restructuring projects, compensation benchmarking and employee wellbeing.

● In 2026, businesses will expect more from HR professionals as team sizes shrink and AI integration happens. HR skillsets in business partnering and total rewards will be the key focus. HR teams will also need to drive workforce agility, implement digital HR solutions, and ensure both flexibility and performance. 

Trends 

Blended workforce models remain a key focus. Demand is expected to go up for HR transformation or fractional HR leadership roles.

Sought-after professionals 

● Experienced HR business partners who can balance strategic and operational responsibilities. There is strong demand as well for roles within total rewards, and compensation and benefits. 

● HR project managers and transformation specialists. Professionals with a proven ability to lead change initiatives will have an advantage. 

HR generalists are also in demand. 

● What talent value most: Excellent compensation and benefits, job security, and inspiring colleagues and culture.  

● Soft skills include compassion, firmness and fairness to support a workforce in transition. Professionals who can build trust, inspire teams and communicate clearly will stand out.

Robert Walters recommends: 

● Companies are encouraged to put a robust talent management programme in place. Opportunities for lateral or internal moves will help keep top talent motivated. They can also take a holistic approach to talent attraction and retention, from regular benchmarking of compensation and benefits, blended workforce strategies, to promoting transparency in areas such as hybrid work decisions and performance evaluation.

Salaries

Salaries may dip for some roles in HR, while increments will remain flat for permanent roles. Contract roles are expected to see salaries increase at usual rates (5-10%), as well as through the introduction of completion bonuses, flexible leave policies and extended benefits. Increments will depend on roles, with steady increases for HR business partners with regional exposure and stakeholder management experience.

● The vast majority (97%) of businesses are giving pay rises, while 90% of professionals expect a pay rise in 2026.

● Nearly three quarters (73%) of professionals are looking for a new job, and 47% are confident about job opportunities in this sector.

Sales & marketing

● Difficulty in hiring talent: very high 

● In 2025, lower B2C sector consumer spend saw companies flatten workplace structures, with roles at junior and senior levels being made redundant, and mid-level management employees stretched to cover operational and strategic tasks. On the contract front, roles are often offshored and have a shorter term (e.g.: from 12 months down to 6 months). AI adoption has also led to companies being able to function with smaller teams. 

In 2026: AI-skilled workers will be prioritised, while there will be reduced demand for entry-level executional roles. Senior digital specialists will be more in demand.

Trends 

● On the B2B front, companies are looking to hire revenue-generating roles to help achieve their sales targets, with a reduced focus on marketing roles. 

● Due to cost-cutting measures, companies are merging roles and responsibilities. Employers value candidates with more generalist experience and hybrid experience to cover a wider scope of responsibilities.

● Companies are moving their regional hubs and talents to lower-cost markets like Thailand or Malaysia. Compared to 2025, there will be significantly fewer senior leadership roles based in Singapore.

Robert Walters recommends: 

● Companies should have a strong employer brand. They should think about succession planning, be transparent and communicate career outlooks. identifying talents to groom for succession, offering skills-based career mobility, inventing in AI and marketing tech training budgets will help employees evolve. 

● Companies are increasingly valuing candidates with more generalist experience, and using automation to cut costs and increase productivity, hence replacing roles in content writing and basic design. Thus, professionals need to have the willingness to take on an expanded portfolio to remain relevant and in demand in today’s workplace.

● Professionals are also advised to maintain a healthy and robust network, creativity rooted in culture and emotion, and have good commercial judgement.

Sought-after professionals

● Revenue-generating roles such as sales directors, GMs, and heads of growth. Contract roles for customer relationship management (CRM) and marketing automation specialists, and AI-enabled specialists (performance and growth marketers, content strategists) are also required.

● What talent value most: Excellent compensation and benefits, job security, and inspiring colleagues and culture.

● Soft skills in demand include leadership experience, adaptability, ability to collaborate across functions, being a strong communicator who can articulate and drive compelling outcomes.

Salaries

Permanent roles may see salaries stagnate, with some executional roles likely to regress. For contract roles, employers may use bonus/incentive pay, stock options, and non-monetary benefits (such as flexible work and upskilling allowances) more aggressively than large fixed salary increases. Niche and talent-scarce sectors (healthcare, life sciences & diagnostics) may see better increases. 

● The large majority (97%) of businesses are giving pay rises, while 92% of professionals expect a pay rise in 2026. 

● Seventy-eight percent of professionals are looking for a new job, and 61% are confident about job opportunities in this sector.

Future-proofing against AI

Roles related to content creation, as well as contract roles that are junior or executional in nature (e.g. in content, social media, performance marketing operations, basic customer relationship management or CRM) are most at risk. 

Professionals should think about growing the pipeline, increasing conversions, and build AI skillsets such as data and analytics, and martech. As AI cannot replace relationships, professionals should maintain a healthy and robust network, creativity rooted in culture and emotion, ideally with commercial judgement.

Supply chain, procurement & logistics

● Difficulty in hiring talent: high 

● In 2025: The sector remained subdued throughout the year as businesses faced mounting challenges - Inflation, geopolitical shocks, and changing immigration controls created significant volatility. It also adopted a cautious “wait-and-see” approach. There was significant offshoring from Singapore to lower costs.

Ongoing expansion of technology and sustainability efforts defined demand for contract positions. Companies sought tech-savvy professionals but struggled to find talent in niche areas such as Blockchain implementation of AI-powered logistics optimisation. Companies also doubled down on efforts to reduce their environmental impact.

In 2026: The industry will be increasingly focused on risk management, resilience, sustainability, and digital transformation. Automation and AI are reshaping traditional roles, particularly those involving planning, inventory management, operations, and procurement. 

Trends

Demand for roles that can help businesses align operations with ESG mandates - green procurement practices, carbon reduction strategies, circular supply chain design - will be highly sought after. Contract roles will also increase as companies seek greater flexibility amidst headcount restrictions and economic uncertainty.

Sought-after professionals

● Professionals with skills in strategy, analytics, and AI model prompting will be highly sought after as companies implement and stress-test new systems. 

● Trade compliance specialists with expertise in free trade agreements (FTAs) and data analytics, as well as adaptable, technologically-proficient candidates who can effectively manage data tools are prized.

● Supply chain project managers are also in demand. 

● Contract roles related to demand planning, supply planning and supply chain transformation will be in demand. 

● What talent value most: Excellent compensation and benefits, flexible work arrangements, and job security.  

● Soft skills that are good to have include the ability to communicate and collaborate well with others, as well as strategic thinking, problem-solving and resilience to drive innovation and solve complex challenges.

Robert Walters recommends: 

● Companies are encouraged to provide upskilling opportunities, as they can help raise productivity, and help employees develop a healthier relationship and stronger adaptability to change.

● Attractive compensation packages remain necessary for specialised and strategic roles, as these talents remain in short supply. Hybrid and flexible work models will remain key as candidates value work-life balance.

Salaries

Salaries for permanent roles are expected to remain flat, with companies possibly exploring non-monetary benefits. Contract roles can expect a rise of 5-8%, though specialised roles may see increments of up to 10-15%.

● Almost all (98%) businesses are giving pay rises, while 87% of professionals expect a pay rise in 2026.

● Eight in 10 (82%) professionals are looking for a new job, and 56% are confident about job opportunities in this sector.

Future-proofing against AI

Roles heavy on repetitive supply chain work, data entry and inventory management are at risk or being replaced as more companies integrate AI. Professionals are advised to focus on picking up technologies such as data analytics and AI, as well as to improve human-centric attributes that AI cannot replace, such as emotional intelligence and business partnering skills.

Explore

Read the Robert Walters Salary Survey at https://www.robertwalters.com.sg/salarysurvey.html

*Salaries shown in the Robert Walters Salary Survey are based on an analysis of placements made across our network of offices and specialist disciplines during the course of 2025.

Now in its 27th year, the Survey is used by employers, HR managers and employees for benchmarking salary levels within their industries.

Robert Walters surveyed 361 professionals and companies in Singapore in September 2025 to get feedback on their main expectations or concerns for the year to come with regards to salaries, career changes or staff retention.

Consider working in the Middle East to save more

Business Name Generator (BNG) has revealed how much 28 cities around the world pay their employees in four employment sectors – marketing, HR, creative, as well as tech.

Tech

After analysing annual salaries for five job roles* in the tech industry in 28 cities across the globe, BNG has found that Doha is the highest-paying location for tech heads. In Doha, employees in tech receive an average annual salary of £127,888, with the highest earning salary analysed in the study being that of a data scientist - data scientists earn an average of £361,877 per year.

While salaries are all very well, overheads eat into the money, making disposable income a better indicator of quality of life. The annual cost of living in Doha is £26,382 (including rent and utilities), resulting in the highest disposable income for workers in the tech field overall (£101,506 per year, or £8,459 per month).

Abu Dhabi is ranked 3rd, with average annual salaries of £97,231.61, and an annual cost of living pegged at £24,094.32. Hong Kong comes in 6th (average annual salaries of £88,202.61, and an annual cost of living of £33,882.84), while Singapore is 10th (average annual salaries of £78,072.96, and an annual cost of living of £43,009.08).

HR

Hong Kong is paying HR professionals the most**, with an average salary of £83,818. The highest paying job role analysed in the study is for a Recruitment Manager, who can expect to earn £163,568 per year on average. Average annual salaries were calculated to be £83,818.09, and disposable incomes.

Ranked No. 2 was Abu Dhabi, with annual average salaries of £80,923.03 and average annual disposable incomes of £56,828.71. Singapore was in 4th place, with annual average salaries of £66,229.17 and disposable incomes of £23,220.09. Beijing is 5th (annual average salary £63,844.04, and corresponding disposable income of £48,538.40). Dubai is 7th and Doha is 10th for HR (annual average salaries of £59,426.20 and £56,290.56 respectively, with disposable incomes of £30,004.96 and £29,908.68 respectively).

Seoul, on the other hand, took 2nd place in the list of lowest-paying cities for HR professionals. In Seoul, HR professionals can expect to take home £28,793 per year on average.

Marketing

Dubai marketers have the best life of all, with salaries*** reaching £107,352 on average. BNG suggested that the high salaries are due to the city trying to attract international talent. Product Marketing Managers are at the marketing pinnacle, earning £224,200 on average per year. Average annual disposable income comes up to £77,930.

The top three cities for marketers are all in the APME region. In No. 2 place is Hong Kong (average annual salary £79,155.27, average annual disposable income £45,272.43), followed by Abu Dhabi (average annual salary £78,997.55, average annual disposable income £54,903.23). Singapore is ranked 6th (average annual salary £70,223.04, average annual disposable income £27,213.96).

Creative

When it comes to creatives, APME cities only make 8th, 9th and 10th in the top 10 list. In Dubai, average annual salaries amount to £49,488.86, followed by £47,676.25 in Hong Kong and £47,355.26 in Singapore. Disposable income for Dubai came to £20,067.62, then £13,793.41 for Hong Kong. With annual cost of living pegged at £43,009.08, Singapore creatives were left with £4,346.18 per year for disposable income.

Despite coming in 11th overall with an average annual creative salary of £46,027, Beijing is where creatives can expect to enjoy the highest disposable income. Beijing has a fairly affordable cost of living of £15,306 per year, leaving creatives with a disposable income of £30,721 on average.

Another Asian city is in the top three for disposable income. Tokyo comes in third with an annual disposable income of £26,773. The yearly cost of living there is estimated to be £17,485.

Bangkok tops the list of lowest paying cities for creatives. Residents take home £17,531 on average per year against a fairly low cost of living of £13,110 a year, including rent and utilities. This leaves creatives in Bangkok with an average disposable income of £4,420.

BNG suggests entrepreneurs and digital nomads who are thinking of relocating to:

Do the groundwork

Every country will have its own rules and regulations around things like business tax, import and export costs, and visa requirements.

Consider demand

Make sure to look at the competitiveness of your offerings in your target market, and undertake a feasibility study to understand if this is the right place for your company and whether it makes commercial sense to set up there.

Expand your network

Once you’ve established the right location for your business, it could be beneficial to meet with other businesses which have already set up in your target market. They may be able to provide you with some practical advice, and it’s always good to have a support network around you.

Hire the right experts

Work with local lawyers, accountants, and banks to understand the legal and financial regulations in your chosen country before setting up your business.

If you plan on expanding the company, you’ll also need to think about what kind of staff you’ll need. Surrounding yourself with a local team of specialists is going to be really important for the success of your business. When it comes to the hiring process, it’s important to be aware of any cultural differences that might be in play.

Start on your checklist

To prevent a backlog on your checklist, start with the easier items first, thinking of your new business name for example. BNG's AI-powered business name generator can to help you come up with ideas.

Be patient

Success doesn’t happen overnight, but believing in yourself and your business is the first step to achieving it. By researching, planning, networking, and persevering, you’ll be able to lay a solid foundation on which your business can grow.

*The salaries analysed for tech professionals were data scientist, software developer, information security analyst, computer systems analyst and web developer.

**For HR, the five positions analysed were recruiter, recruitment manager, HR assistant, HR coordinator and HR specialist.

***Marketing assistant, brand ambassador, marketing manager, product marketing manager and PR specialists were polled for the research.

****BNG researched salaries for illustrators, architects, copywriters, graphic designers and web designers.

Southeast Asia to see salary growth with IT skillsets in high demand across key sectors

● 2018 will see high demand in IT skillsets and contracting opportunities especially in fintech, healthcare and technology sectors in Singapore

● The accounting and finance, human resources, sales and marketing, and technology sectors seek professionals with specialised skillsets in 2018

Source: Robert Walters. Fowlston.

Specialist professional recruitment firm Robert Walters has released the 2018 edition of its annual Salary Survey*. The survey shared optimistic predictions for next year, suggesting a strong economic outlook, and said that ongoing digitalisation as well as steady market expansion poised to drive salary growth next year in the Southeast Asian region. Local market candidates with strong technical skills, particularly in information technology (IT), and with international experience will be highly sought after.

The overall job market in Southeast Asia has remained active throughout 2017, despite variable economic conditions. This was largely attributed to the region attracting new market entrants and supporting the expansion of existing businesses. Despite varied country settings, digitalisation continued to be a key priority across most markets. The survey noted that this is mainly driven by a rapidly growing younger population and increased consumerism.

Toby Fowlston, MD, Southeast Asia, Robert Walters said, “The digitalisation trend that is sweeping the region has spurred many businesses to create online or mobile platforms as companies seek to enhance their competitiveness and increase market share with the consumers. As a result of these transformations, many companies were looking to hire professionals with digital expertise, across both marketing and IT, especially those who are proficient in running back office digital infrastructure or with niche technology skills.

Wall showcasing the Robert Walters branding.

“In addition, IT professionals in the areas of cloud computing, cyber security and big data were also in demand as these IT subsectors became key growth areas, and this trend is expected to continue in 2018.”

The focus on business transformation also helped trigger a demand for human resource (HR) professionals with experience in change management experience and especially those with a proven ability in cultural transformation.

However, the region faced challenges in terms of talent attraction and retention due to talent shortages and high staff turnover rates. Hiring managers are advised to look at simplifying and streamlining their recruitment processes to ensure timely hires, and be flexible in hiring candidates with learning potential instead of purely for their technical skills.

Despite the economic slowdown last year, Singapore remained an attractive proposition for companies looking to establish local and regional hubs. This led to key pockets of hiring activity in a number of growing sectors, supported by shifts in consumer behaviour and rising government investment in the local business ecosystem.

In line with the government’s drive to strengthen technology infrastructure and build a Smart Nation, businesses are expected to continue to improve their digital processes, generating permanent and temporary opportunities for people with both traditional and new technology skills. The survey indicates that the e-commerce, insurance and logistics will be some of the key sectors driving digital transformation.

Following this year’s trend, the IT job market will remain active in 2018 as digital transformation continues to be a hot topic, with all sectors investing heavily in modernising their customer-facing e-channels. While robust activity is predicted in various industry verticals this year - fast moving consumer goods (FMCG), retail, luxury and healthcare - for sales and marketing professionals proficient in specialised areas such as commercial excellence, digital marketing and e-commerce and professionals in general who are up-to-date with digital trends, and have strong analytical skills.

Sales and marketing professionals can expect an average increment of 10-15%, similar to the increments enjoyed in 2016 and 2017.

For HR professionals, continuing on trends from this year, 2018 is set to remain client-driven. There will still be a high demand in HR experts who are business-savvy and have change management experience as a trend towards restructuring continues. As firms increasingly recognise the importance of offering their employees solid training opportunities, there will also be demand for senior regional learning and development professionals, especially those skilled in leadership development and organisational design. In Singapore, candidates looking to switch jobs are expected to receive salary increments of between 10-15% in 2018.

Whilst inflation rates in Singapore are likely to remain flat and in general, minimal salary increments are anticipated in 2018, Robert Walters said. In Singapore, increments for 2018 should be between 5% and 15%, the company forecasts. The demand remains for candidates with skills in digital marketing and cyber security in particular. These candidates can expect to see increments in their annual salary reviews, especially those with local market knowledge.

Survey highlights for 2018 include:

● The accounting and finance sector will see increased consolidation in the market generating a high demand for candidates with broad skillsets – proficiency in financial reporting and systems implementation, or financial planning and analysis (FP&A) and treasury. Tax compliance, advisory, transfer pricing and FP&A business partnering skills are of particular interest. Those who can double up as business partners and add value from a finance perspective will be highly sought after. Robert Walters forecasts that 10-15% salary rises are likely for accounting and finance experts when moving jobs.

● In the IT sector, there will be a high demand for business/consumer-facing professionals who have deep learning and machine learning skills. User experience/user interface (UX/UI) professionals, specifically front-end developers who have a strong instinct for design, were in demand in 2017 and will continue to be be in demand in 2018. This is because attractive interfaces remain a differentiating factor in user acquisition. Companies are also looking for cloud architects.

● As regulatory requirements remain a core issue in the banking sector and increased digitalisation in companies looking to secure their systems, tech professionals with cybersecurity skills will also continue to be in demand, as they were in 2017. However, with a currently limited talent pool, hiring managers will find it a challenge finding techno-commercial digital professionals, local developers and solution architects.

● Robert Walters says a 3-5% rise in salary is likely for banking and financial services professionals who change jobs. Fowlston noted that firms continue curbing new hires and increasing offshoring to less expensive countries such as the Philippines. Infrastructure in other countries is getting better as well. According to Fowlston, Thailand is becoming a regional hub, and is seen as a potential entry point into frontier markets. He also said that banks continue to strengthen their anti-money laundering (AML)/combating the financing of terrorist (CFT), know your customer (KYC) and customer due diligence (CDD) functions.

● It is anticipated that the HR sector will also see a great demand for professionals who are strategic talent acquisition leaders, able to head regional teams and design and develop solid recruitment strategies and talent management initiatives. The survey recommends that hiring managers simplify and streamline the recruitment process to ensure timely hires and to also consider taking on candidates based on potential and learning ability rather than technical skills.

● Other in-demand skillsets include multitasking abilities, resilience to change, and proficiency in multiple languages spoken in ASEAN.

● Key industries that will drive digital transformation in 2018:

• E-commerce
• Insurance
• Logistics

● Banking and financial services sectors will see demand in these qualities for IT professionals:

• Workspace transformation
• Cloud infrastructure and virtualisation
• Project and programme management
• Business analytics with strong regulatory understanding

The 2018 Salary Survey indicates that contract work is a viable option to overcome the skills gaps required across various sectors, with candidates becoming more open to contracting opportunities to broaden their corporate exposure.

While this year saw employers hiring more mid-level professionals for interim positions, particularly for projects that require niche skill sets, there was also a rise in short-term contract legal roles, triggered by a limited talent pool and tighter budget constraints. This trend is likely to continue in 2018 as employers recognise the value contractors can bring to a business, particularly for legal professionals in the fintech, healthcare and technology sectors. Companies are looking for people with experience in International Swaps and Derivatives Association (ISDA) negotiations and who are multilingual in ASEAN languages. Robert Walters notes that the legal sector has seen year-on-year salary increments on average of 3-7%.

The Balik Kampung campaign.

The company introduced the Balik Kampung campaign in 2015 to attract and connect with overseas Singaporeans who want to return home to work in Singapore. The company said it currently has access to 3,000 untapped overseas candidates, and suggests that the Balik Kampung candidates could contribute to a long-term local permanent or contract talent pipeline, especially as demand for domestic talent continues to rise, Robert Walters said. "There's still nobody else that we're aware of that actually plays (in this space)," Fowlston said.

Robert Walters operates in Singapore, Malaysia, Indonesia, Thailand, Vietnam and, since last year, the Philippines. It has had a presence in Southeast Asia for nearly 20 years. While some recruitment consultancies have consultants which work with one client and cover hiring for all disciplines, Robert Walters consultants focus on one core discipline.

Explore:

Request a copy of the Salary Survey

Read the WorkSmart Asia blog posts on the 2017 Salary Survey and the launch of the Balik Kampung campaign

*Compiled by Robert Walters' dedicated research division, the Salary Survey is based on an analysis of placements made across its network of offices and specialist disciplines during the course of 2017. Now in its 19th year, the survey is used by employers, HR managers and employees for benchmarking salary levels within their industry.

INSEAD study finds shareholder votes on CEO accountability raise company returns

Do shareholder votes improve CEO accountability and reduce corporate excesses? A new paper, Say Pays! Shareholder Voice and Firm Performance, published in the Review of Finance by Maria Guadalupe, Associate Professor of Economics and Political Science at INSEAD, shows that they do.

Prior to Guadalupe's research, there had been a lack of evidence on the consequences of adopting say-on-pay beyond the short-term market reaction. Existing research has generally examined the effect of say-on-pay after it has been legislated, which has produced mixed results.

Guadalupe’s research takes a different approach to isolate a causal estimate of the effects of say-on-pay. She examined 250 cases of proposals to adopt the say-on-pay policy from shareholders of S&P1500 firms between 2006 and 2010, which was before say-on-pay votes were mandatory.

Her conclusion is that say-on-pay has a positive impact on firms’ accounting and operational performance in the years following the vote to adopt say-on-pay. Firms that adopt say-on-pay in her sample have a higher return on assets and operating assets one year after the vote was introduced. The firms also saw a reduction in overheads and capital expenditure growth.

While she discovered no systematic change in the level or structure of CEO compensation itself or the probability of the CEO leaving the firm after a say-on-pay vote, she did find that say-on-pay increases shareholder value by about 5%.

“The say-on-pay changes CEO behaviour through two main mechanisms. First, by giving shareholders a channel to express their opinions, it intensifies board monitoring and pressure on the CEO to improve performance, especially as a negative vote could have consequences on the level of support the CEO receives within the firm. The prospect of a negative vote is also not one the CEO wants to face for the sake of his or her own career. The second is that the say-on-pay can affect the current level and structure of executive pay making it more closely tied with performance,” said Guadalupe.

Her study also finds that when shareholders in her sample put forward proposals to adopt say-on-pay, boards recommended a vote against it at shareholder meetings in 99% of cases. This, Guadalupe said, represents a misalignment of objectives between management and shareholders that mandatory say-on-pay votes can address.

“While the debate has moved on to whether to make say-on-pay votes binding, for which we have no evidence to support or dispute, it is clear that legislative intervention has addressed a market failure on two dimensions; first, aligning management closer to shareholders and second, giving all shareholders an equal voice,” she added.

Digital or tech skills? Your salary is probably higher than average

Source: Willis Towers Watson. Report cover.

There is demand for tech talent in the financial sector, which is helping salary budgets for talent in digital roles hold steady amid broader weakness across other industries, particularly the banking sector, according to global advisory, broking and solutions company Willis Towers Watson.

Business in all its forms is becoming more data- and technology-driven, and banking is no exception. In the competition for talent, it is technology rather than finance that increasingly holds sway. Survey findings released today by Willis Towers Watson, drawn from its 2016 Asia Pacific Salary Budget Planning Report, show banking salary budget increases for 2017 are set to be well below those in the tech sector, and also below those of the financial services sector as a whole.

The findings show that salaries in Asia Pacific's banking sector are set to grow by 4.8% in 2017, the second slowest rate of salary growth among industry sectors in the survey. Eleven of the markets in the region have banking pay increases ranked among the bottom three in cross-industry comparison.

"The data, allied with what we're hearing on-the-ground, shows that as traditional banks move services online in the hope of staying competitive by better meeting customers' evolving demands via digital transformation, they are competing for the same pool of skills as the traditional high-tech sector," said Sambhav Rakyan, Data Services Practice Leader, Asia Pacific, at Willis Towers Watson.

Banking salaries in the financial hubs of mainland China, Hong Kong and Singapore are projected to grow by 6.3%, 3.6% and 3% respectively in 2017, well below the expected high-tech salary growth rates of 7.5% for China and 4% for both Hong Kong and Singapore.

"What the data is telling us is that, amid a general slowdown in the banking sector and more broadly across the financial services sector, salaries for digital roles within the financial sector are holding steady," Rakyan said. "It doesn't mean tech talent will necessarily get more in a monetary sense, but it does in percentage terms."

Unlike in pre-financial crisis times, banking no longer stands alone as the industry of choice amongst top-tier university graduates, according to Greg Kuczaj, Asia Pacific Head of Willis Towers Watson's Global Financial Services practice. "There is continued attraction and retention pressure from non-financial services firms, such as those in high tech or fintech, as the pay premium in financial services has decreased to where it is no longer a major attraction," said Kuczaj.

Even at mid- and senior-level positions, technology firms are increasingly attracting key talent away from the financial services industry due to less regulation and scrutiny in the high tech industry, more innovative and entrepreneurial work environments, and highly competitive total rewards packages.

Demand for tech and digital talent is evident elsewhere in the region across many industries, Willis Towers Watson said. As banks move online and adopt mobile solutions, insurance companies are also adopting wearable devices and data analytics technology to tailor policies, pushing insurtech salaries higher. Other areas competing for digital talent include fintech, online-to-offline (O2O) and e-commerce.

"In China, Beijing has been pushing entrepreneurship as a cornerstone of its economic restructuring. Digitalisation plays a significant role in this as a key element of an effective entrepreneurship ecosystem," said Kuczaj. "It's similar in India with the government-backed 'Make-in-India' campaign. India is also home to a huge e-commerce and taxi-hailing market, creating very high demand for talent in mobile payment technology and data analytics."

Digital transformation means there's a need to review and redefine the talent strategy to identify key skills and differentiate compensation for talent in key roles.

"In Silicon Valley, for example, top talent is often rewarded with equity in addition to a competitive base salary and annual bonus. It's very compelling," said Kuczaj. "To truly compete, financial services firms will need to think beyond merely using pay to attract and retain talent. Career opportunities, organisational reputation, security and manager/leadership effectiveness are all critical drivers of attraction and retention."



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*The 2016 Asia Pacific Salary Budget Planning Report is a bi-annual survey compiled by Willis Towers Watson's Data Services Practice. The survey, timed to coincide with companies' compensation planning for 2017, looks at a range of industry sectors and job grades from factory shop floor to executive suite, and focuses on salary movement and review practices.

The survey was conducted in July 2016. Approximately 4,000 responses were received from companies across 22 markets in Asia Pacific.

Kuwait Finance House introduces Al Rabeh salary account

Kuwait Finance House (KFH) has launched the Al-Rabeh salary account, which offers clients the opportunity to win two 2016 Range Rovers and 3 kg of gold every quarter. Al-Rabeh is also an investment savings account that gives clients annual dividends.

The account is offered for clients wishing to transfer their salaries and manage their personal accounts with the ability to save and invest. Al-Rabeh account is available for individuals in KD, and it requires salary transfers to enter the draw. KFH invests 100% of the sum available in the account according to mudarabah principles, where profits are calculated according to the minimum monthly balance invested.

Interested?

Clients can open this account at any of KFH 64 branches around Kuwait. The draws are held in January, April, July, and October, provided that three rounds of salaries have been deposited in the three months prior to the draw, and a minimum monthly balance of KD50 by the end of each month is maintained. Every additional KD 50 in the account entitles clients to additional chances in the draw.

Asian financial institutions to average 4% pay increments for 2016

• Ratio caps driving more guaranteed fixed pay
• Asia and Latin America average 4.3% for projected 2016 base pay increases, against 2% to 2.7% in Europe and North America
• Overall, 2016 pay to be static: lower variable pay matched by fixed pay increases

Source: Mercer.

The 11th edition of Mercer's Global Financial Services Executive Compensation Snapshot Survey highlights that 2015 saw the world’s financial services organisations continue to respond to regulatory developments by increasing fixed pay, decreasing variable pay (bonuses) and increasing the emphasis on non-financial performance. While processes to penalise misconduct and non-compliance are widespread, rewarding positive risk behaviours continues to be a challenge, says the consultancy.

The survey, which was conducted in October and November 2015, reviews the pay practices of 71 global financial services companies — banks, insurers, and other financial services — based in 20 countries in Asia, Europe, North America, and South America.

According to Vicki Elliott, Senior Partner and leader of the Global Financial Services Talent Network at Mercer, "The focus for financial services firms is firmly on trying to set the right tone from the top with strong governance and high involvement of risk management. Overall, total compensation levels remain broadly the same compared to levels prior to regulated bonus caps. However, banks, particularly in Europe, have significantly increased fixed pay levels improving the certainty of pay delivered to key risk-takers."

The report found that 61% of organisations had increased their employees’ fixed pay by more than 5% while 58% had reduced variable pay by more than 5%, marking a shift in pay mix. Total compensation levels are expected to remain relatively unchanged in 2016 — within plus or minus 5% (92%) — and most organisations are not planning further changes to their pay mix. Dr Hans Kothuis, Partner and Executive Rewards Practice Leader, Asia & Middle East at Mercer said, “We are at a tipping point in Asia, as companies prioritise business critical functions and share resources across their businesses to increase overall productivity. Financial institutions in Asia are adopting a cautious outlook towards compensation for 2016.”

Overall, 2016 projected base salary increases for the sector are modest with average forecasts globally expected to be between 2% and 2.7%. The banking industry is generally projecting slightly lower salary increases than the insurance industry. The majority of organisations predict 2016 annual incentive levels to be similar to those in 2015; those expecting change predict that levels will decrease.

“There continues to be a concern that increasing the focus on fixed guaranteed pay breaks the link between pay and performance and may actually be counter-productive for aligning pay with risk,” says Dirk Vink, Mercer principal and Financial Services Project Manager. “We have concluded that the most positive impact on sound risk-taking behaviours and decision-making has come from significantly improved governance and increased involvement of risk management in the performance management and compensation process.”

Fostering a risk culture 

When asked how their organisation is fostering a strong risk culture, the most prevalent response was penalising misconduct and non-compliant behaviours (93%) followed by the role of risk management in performance expectation setting and evaluation (89%). Setting the right tone at the top of the organisation, for example, through top management leadership, communications and real consequences, was also highly cited (88%), as was training and coaching managers on sound risk culture (87%).

Intriguingly, with all parts of the business impacted by these risk management efforts, the report highlights that some organisations, particularly in North America, are finding it more difficult to attract and retain staff in the crucial functions that oversee these processes, the control functions (risk, legal and compliance).

posted from Bloggeroid

Aon Hewitt shares Malaysia perspective for Total Compensation Measurement study

Aon Hewitt, the global talent, retirement and health solutions business of Aon, has released the latest trends and insights from its Total Compensation Measurement (TCM) 2015 Study. Global TCM is Aon Hewitt's comprehensive compensation benchmarking study that covers 25,000 positions across 180 countries.

Salary increase by industry sector in Malaysia

While gross domestic product (GDP) is forecast to increase from 3.1% in 2015 to 3.6% in 2016 globally, the economic climate closer to home is a crucial element when making decisions related to employee rewards. Within Southeast Asia (SEA), Philippines and Vietnam experienced the highest growth in 2015 at 6% and 6.5% respectively and are projected to continue to enjoy the highest growth in 2016. Indonesia witnessed the highest consumer price index (CPI) at 6.8% in SEA year on year whereas Malaysia, the Philippines, Singapore, Thailand and Vietnam show a moderate CPI. Philippines has the highest unemployment rate at 6.3% in 2015¹.

The implementation of the goods and services tax (GST), drastic depreciation in the ringgit, and declining commodity prices were some of the factors affecting Malaysia's economy this year. Malaysia experienced a decline in GDP to 4.7% in 2015 and a projection of 4.5% in 2016, a slightly reduced CPI at 2.4% in 2015 and a projection of 3.8% in 2016, and a slightly increased unemployment rate at 3.0% in 2015 and 2016¹.

In this context, the Aon Hewitt salary survey shows stability with salary increases for 2015 at 5.6% and a projected increment of 5.8% in 2016². Prashant Chadha, Managing Director of Aon Hewitt in Malaysia said: "With a rocky 2015 and shrinking budgets, organisations must make rewards decisions not just with reliable data but also driven by the bigger picture and economic climate. Best Employers pair their rewards decisions with other aspects like performance, careers, culture, diversity, etc. to further strengthen their total rewards approach in line with employee value proposition."

Aon Hewitt Total Compensation Measurement indicates that overall salary increments in 2015 and projected salary increment in 2016 remain relatively consistent across all employee categories whereas variable payouts (performance bonus) increased slightly in 2015 to about two to three months of annual base salary and are projected to remain stable in 2016. The Aon Hewitt 2015-2016 Malaysia Salary Increase Survey shows higher salary increase projections across most industries in 2016³.

Malaysia recorded the second highest involuntary turnover rate at 6% and third highest voluntary turnover rate at 9.5% in SEA this year. The Aon Hewitt TCM 2015 Survey in Malaysia shows the correlation between voluntary attrition reasons and retention measures, the top three being: "better external opportunity", "further studies" and "work life balance" while key measures taken to attract and retain employees are "pay above market", "improved work life balance" and "timely and meaningful feedback from managers"3.

Nur Amani Yusnida, Aon Hewitt Performance, Reward and Talent Practice Lead in Malaysia said: "With salaries and increases remaining stable since 2011 (average increase of 5.7% over the past five years) employers are taking the 'wait and see' cautious approach to budgeting salaries. The consistent theme seems to be 'doing more with less', optimising costs wherever possible. Voluntary turnover is trending down this year at 9.5% from 12.2% in 2014 reflecting the volatility and instability of the market conditions in Malaysia."

In addition, Aon Hewitt's recently launched Hot Topic Survey provides insights on how organisations are reacting to the recent economic environment impacting both employers and employees in Malaysia. The study reveals that the highest impact of the current economic environment on organisations comes from the depreciation of the ringgit followed by the implementation of GST. The recent road toll hike also has a significantly negative impact on employees. However, employees view the minimum wage increment and increased salary cap for Social Security Organisation (SOCSO) eligibility that was proposed in the 2016 Budget as positive.

To cope with higher living costs, 22% of organisations indicated their plans of providing higher salary increases than initially budgeted for and 7% of organisations are providing a one-off salary adjustment. Nearly half (47%) of organisations have revised their benefits programmes in the last two years, particularly the medical limits and mileage claims. About eight in 10 (76%) of organisations reported an increase in medical claims and almost three quarters (72%) indicated an increase in medical leave following the recent haze issue⁴.

Surendran Ramanathan, Aon Hewitt Southeast Asia Retirement and Investment Practice Lead said: "The current economic environment has adversely impacted both employer and employees, companies are facing budget constraints whilst employees are expecting to cope with the increase cost of living. Therefore companies should ensure their rewards dollars are spent more prudently to get the biggest bang for the buck."

Prashant  emphasised: "Based on our Best Employers Research and through numerous CEO and HR directors' interviews we note that, while organisations optimise costs, employees must continue to strive, and high performers will not only benefit from pay for performance but also from other career-linked total rewards to ensure retention and alignment to business goals."

The Aon Hewitt Best Employers - Malaysia 2015 Country Report shows that 78% of Best Employers combine structured, formal recognition programmes with manager-driven recognition as opposed to market average of only 40%. The study also revealed that Best Employers compensate their high performers 21% higher than their average performers. This differentiation results in higher employee perception in terms of recognition and performance impact on pay5.
The Best Employers have also shown their strength across all four pillars of Best Employers, specifically in high employee engagement, compelling employer brand, effective leadership and a high performance culture. The Best Employers enjoy 38% higher income than market average, attain 50% better growth in profits than market average and have filled 38% more job openings internally compared to market average.

Gap between rhetoric and reality in Malaysia organisations

1 International Monetary Fund (IMF)
2 Aon Hewitt 2015-2016 Global Salary Increase Survey
3 Aon Hewitt Total Compensation Measurement
4 Aon Hewitt Hot Topic Survey, November 2015. SOCSO provides social security protection to employees and their dependents through social security schemes to improve the employees' social wellbeing.
5 Aon Hewitt Best Employers -- Malaysia 2015 Country Report