Employees better not cry: 91% of Singapore companies won't lay off staff until Christmas

Less than a tenth of employers will be reducing their staff numbers in 4Q10, but the number is still higher than the comparative 4Q figure for China (2%) and Hong Kong (5%).

A new survey from Michael Page International revealed that the vast majority of staff cuts in companies will be limited to between 0-5% of headcount. The most common reason for headcount reduction is natural attrition without replacement, followed by corporate restructures to facilitate outsourcing. Redundancy programs will account for 16% of staff cuts in the fourth quarter.

Of the employers surveyed for the report, 30% are planning to increase their staff numbers in the fourth quarter. Hiring activity will be evenly spread across the core business functions, with operational roles receiving 44% of the recruitment focus, followed by front line positions at 29% and back office functions at 23%.

The fourth quarter hiring focus will also be reasonably equally spread from the junior through to the senior levels. “This demonstrates that employers are reinvesting in staff across all areas of their company as they replenish business functions that were cut back during the global financial crisis,” the recruitment consultancy firm said.

The survey also revealed that a majority of employers are satisfied with their business performance through the first three quarters of 2010. Some 30% of respondents believe performance levels have exceeded expectations, with a further 51% satisfied that activity levels have matched expectations. The remaining 19% of respondents feel their company has underperformed this year.

The economic uncertainties in the US and Europe, however, have had an influence on business conditions in Singapore this year. Of the employers surveyed, 26% report the impact as being significant, 59% say the effect has been slight and the remaining 15% say there has been no impact so far this year.

Still, employers in Singapore are remaining positive about the business environment as the year draws to a close. Some 32% think that business conditions will improve in the fourth quarter, with a further 64% expecting conditions to remain stable. Only 4% of respondents anticipate the business environment will weaken.