42% Singapore employers to expand their permanent headcount in H12025, with more focus on non-monetary perks

SINGAPORE: Amid global economic uncertainty, 42% of Singapore employers are planning to expand their permanent headcount in the first half of 2025 (H1 2025), according to Jobstreet by SEEK’s Hiring, Compensation and Benefits 2025 report. This is a jump from 32% in the second half of 2024.

The report, which gathered responses from 887 employers and HR professionals, found that business growth (76%), new roles or skills (46%), and staff turnover (41%) still drive hiring. Meanwhile, more than one in three (31%) of employers say they’ll be relying more on contract, part-time, or flexible hires, compared to just 15% in 2024.

In terms of skills, 54% of companies now consider AI knowledge in hiring, while 19% see it as a primary requirement. Still, only 15% of businesses have used AI tools in recruitment over concerns about losing the human touch and personalisation (44%) and lack of knowledge or access to AI applications (40%).

As for benefits, while 76% of businesses awarded bonuses and 79% raised salaries in 2024, businesses are now providing more non-monetary perks like flexible work arrangements, mental health days, and family care. Additional paternity leave (16%), family care leave (14%), and maternity leave (12%) also became more common last year, in line with Singapore’s efforts to support working parents.

This year, companies plan to invest more in their employees’ long-term career development by expanding access to training or self-learning programmes (8%), apprenticeships or mentoring (9%), and job rotation opportunities (9%).

Notably, diversity, equity, and inclusion (DEI) remain inconsistent in the city-state. Only 40% of companies have adopted formal DEI initiatives, while 25% say they have no plans to, citing a lack of regulatory push (42%), unclear return on investment (39%), and limited access to effective strategies or best practices (31%).

According to the report, DEI has become a decisive factor among Gen Z employees, with 62% of them turning down a job offer if a company is not making efforts to promote DEI. In contrast, Gen X respondents were the least likely to let DEI affect their job choices. /TISG 

Read also: Singapore office workers’ weekly ‘inefficiency’ of over 5 hours could cost the country S$85B annually: Notion report

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