Singapore employers report turnover rise with delayed pay hikes

45% of employers surveyed either reduced or postponed pay rises this year, whilst 17% did not issue any salary increases. 

Almost half of employers in Singapore are experiencing increased staff disengagement and turnover after delaying or reducing salary increases, according to recruitment firm Robert Walters.

According to its findings, 45% of employers surveyed either reduced or postponed pay rises this year, whilst 17% did not issue any salary increases. Amongst these employers, 64% observed signs of employee disengagement, and 29% reported higher staff turnover.

The survey, which polled nearly 200 professionals and employers, highlighted the impact that compensation decisions can have on workforce morale and retention. Business performance (34%), budget constraints (23%), and market uncertainty (23%) were cited as the top reasons for adjusting or withholding salary increases.

From the employee perspective, 72% of those who did not receive a raise said they are now actively looking for new job opportunities.

Even amongst those who did receive a raise, 58% said the increase was below their expectations, and 92% believe they are underpaid relative to market standards.

Kirsty Poltock, Country Manager at Robert Walters Singapore, noted that companies may need to consider the longer-term effects of compensation delays.

The report suggested that employers consider using market data to guide compensation discussions and explore non-monetary incentives such as career development, flexible work arrangements, and internal mobility to support employee engagement.