Navigating the talent landscape: Insights and predictions for Singapore's job market in 2024

While the demand for top talent will remain strong across all industries in 2024, the increased use of digital and generative AI in companies, as well as a growing focus on sustainability and ESG, will see companies look aggressively for talents with expertise to support these functions. 

As per a recent survey conducted by recruiter Robert Walters Singapore, most employees surveyed consider a new job within the next 12 months, talent will more likely be attracted to companies with benefits including bonus packages, flexible work arrangements, and health-related support.

There are gaps between perceptions of employers and employees in terms of salary and benefits, as well as work-life balance initiatives such as flexible work arrangements, and the concept of a four-day work week. To retain talent, companies will find counter-offers effective, with close to 1 in 2 employees willing to consider it, especially if salaries are reviewed and career progression opportunities are presented.

Pay rise expected in talent-tight areas

A 10-15% pay rise is expected for talent moving between jobs in talent-short areas such as tech. The survey noted that the increment will be dependent on the scarcity of the skillsets required. Those staying with their current companies will see their salaries pegged to market standards. 

Looking for a new job, but also open to staying on

The survey showed that 79% of employees are looking for a new role in the next 12 months, citing the desire for career progression (37%) as the biggest factor. Benefits such as a good bonus scheme (87%), followed by a flexible/remote work arrangement (70%), and having private healthcare insurance (60%) will affect their decision to accept a new job offer.

Around 43% of those surveyed are willing to consider a counter offer even after they have accepted a new job offer. However, an increased salary (94%) followed by an opportunity for promotion (50%), and a retention bonus (46%) are the top reasons that can make them stay in the current organisation. Among the respondents who have accepted counter-offers before, 52% stayed on for 2-3 years, while an additional 16% stayed on in the company for 5 years.

Key hiring trends and challenges

AI, technology, sustainability, and ESG grow in importance in companies, and the need for talent to support these functions will continue to intensify in 2024. Employers surveyed shared that 24% are currently using AI models as a solution to replace routine tasks or administrative work, and an additional 33% are exploring these implementations within the next 12 months. However, employees have yet to catch on, with 39% of employees being somewhat concerned about these technological changes in their companies.

While there remains a shortage of top talent across all industries, especially for tech and transformation, top challenges when sourcing for staff include:

• Salary and benefit expectations perceived to be too high (65%)
• Lack of industry experience (53%)
• Lack of technical qualifications (36%)

In the area of employee retention, top measures that have been put in place include increased well-being initiatives (74%), improved learning and development (66%), and hybrid work policies (68%). 

Catching up with changing employee expectations

Due to a shortage of qualified professionals, companies are finding it challenging to hire talent. When asked what areas employees would like their current or future employers to take more seriously, they cited Work-life Balance initiatives (86%) such as having a four-day work week, Well-being related services (37%) such as access to counsellors, as well as initiatives that support Diversity and Inclusion (35%).

With work-life balance of top priority, the survey revealed some differences in expectations. While employees shared that they are willing to spend two (25%) to three days (39%) in office, 47% of employers surveyed expect their staff to be in office for at least 4 to 5 days each week. Only 9% of employers are likely to consider trying out a 4-day work week model as well.

“We see a shift in employee expectations, as they are expecting more in terms of flexible work arrangements and having their desired level of work-life balance. Companies who wish to appeal to more talent should adopt a proactive and adaptable approach to address the evolving dynamics in the job market. From focusing more on employee benefits and wellbeing, communicate a clear career and advancement path to manage employee expectations, and strengthen the company culture to be more inclusive," said Monty Sujanani, Country Manager at Robert Walters Singapore.

Monty also suggested companies regularly review compensation benefits to stay competitive and put in place processes to keep employees engaged with open channels of feedback.

Industry predictions for Singapore in 2024

In 2024, Digital, Tech and Transformation, and Generative AI will continue to dominate the hiring agenda for companies. Talent with ESG skillsets in areas such as sustainable energy, environmental management, and green tech, will continue to be sought after. Key trends that will impact hiring decisions in the coming year are the demand for flexible work arrangements, boomerang employees, and increased hiring of contract roles/employees.

Tech & Transformation (93%), Banking & Finance (87%), Supply Chain & Procurement (80%), and Accounting & Finance (80%) are likely to see the highest attrition in 2024.

Tech & Transformation (63%), Supply Chain & Procurement (63%), Sales & Marketing (63%), and Human Resources (63%) are among the top industries that can expect pay raises in 2024.