- 53% of employers surveyed are placing a major focus on staff retention
- Professional development and performance incentives are the preferred retention strategies
- 25% of respondents predict their staff turnover will increase in the second quarter
- Wages inflation and talent retention are regarded as the primary business challenges
Growing demand for skilled professionals in Singapore is forcing employers to offer additional incentives in order to attract and retain top performers, according to the latest Michael Page Employment Index.
Of the companies surveyed for this report, 53% are already placing a major focus on staff retention with strategies that include professional development and performance based incentives. This illustrates the challenges companies in Singapore are facing in relation to professional skills shortages and the competition for talent. As a regional comparison, 47% of employers in China are placing a major focus on retention, followed by 43% in Australia and 35% in Hong Kong.
“The demand for skilled professionals is already outweighing supply across the majority of sectors we serve. Employers are offering more to attract and retain people with skills that are in short supply. Financial reward is always important but this should be complemented with the opportunity for career progression and the training to support it,” said Mr. Andrew Norton, Regional Managing Director of Michael Page, South East Asia.
The business outlook for the second quarter is positive, with 47% of respondents saying it will remain stable and a further 34% expecting an improvement. This level of optimism and business confidence is a continuing trend from our first quarter report.
“Multinational companies are investing heavily in Singapore as a logical business hub for expansion through South East Asia. This will continue to drive demand for professional workers and intensify skills shortages,” said Mr. Norton.