Agile hiring beats permanent roles on shift to project-based AI teams

Permanent hiring has stabilised but remains largely replacement-led.

Success in this year’s hiring market will hinge on how effectively organisations use talent as a strategic differentiator, as competition for specialist skills intensifies.

“That means prioritising skills over credentials, combining permanent and flexible workforce models, and investing meaningfully in upskilling,” said Ken Ong, Managing Director of Morgan McKinley Singapore.

A Morgan McKinley report found that permanent hiring has stabilised but remains largely replacement-led, with roles assessed for strategic impact.

Firms are maintaining lean permanent teams whilst increasing reliance on contract and project-based staff for transformation, system migration, and artificial intelligence (AI)-related initiatives.

“At the same time, demand for contract and project-based talent has risen sharply as companies look for agility and cost efficiency without compromising capability,” the report said.

Demand remained strong in areas such as AI, data and analytics, cybersecurity and cloud.

Separately, a ManpowerGroup report revealed that AI-related skillsets rank as Singapore’s most scarce talent for the first time, as seven in 10 employers report hiring difficulty. Skills in AI model & application development and AI literacy are the hardest to find, respectively.

The National Trades Union Congress has recently proposed a three-pronged approach to address the impact of AI on entry-level jobs in parliament. Moreover, the government is set to launch a new set of national AI missions across different key sectors.

On the other hand, risk and compliance, regulatory reporting, ESG and sustainability, financial crime, and HR technology and people analytics roles also continue to see steady demand, according to Morgan McKinley.

In Accounting & Finance and Human Resources, average salary growth is projected at around 4% in 2026, with retention bonuses and mid-cycle adjustments becoming common tools to secure critical skill sets.

In Banking & Financial Services, niche roles such as MAS regulatory reporting, financial crime, model risk, digital assets and fund finance are likely to see increases in the 3–6% range, whilst business-as-usual roles remain relatively stable.