SINGAPORE: A recent survey featured in the latest HRD Asia article revealed troubling insights into the state of compensation in Singapore, with a large number of employees expressing dissatisfaction with their current salaries.
According to findings from foundit, only one in four workers are content with their pay, signalling increasing concerns around salary fairness, growth, and overall retention. As compensation becomes a pivotal issue in the workforce, these results underscore the need for businesses to reconsider their salary strategies.
Dissatisfaction grows with experience: Senior employees leading the discontent
The survey paints a concerning picture of declining salary satisfaction as professionals advance in their careers. While only 28% of respondents are satisfied with their salary progression, this number drops significantly among senior-level employees. Nearly 40% of executives report being unhappy with their salary growth, highlighting a growing gap between expectations and what is being offered in the workplace.
Adding to the concern, more than half of workers (53%) believe their peers in the industry are earning more, while only 36% feel that their salary is above average. The lack of clarity is further exacerbated by 11% of respondents unsure how their pay compares to market rates, reflecting a broader issue of transparency in compensation practices.
Stagnant pay growth: Employees struggling with limited salary increases
A significant portion of employees have seen little to no increase in their pay over recent years. Forty-one per cent reported no salary raise in the last three years, while 28% experienced salary reductions, ranging from modest to significant. Just 32% enjoyed salary increases, with only 15.3% reporting substantial raises.
Employee expectations for pay hikes remain subdued. Nearly half of employees (49.4%) expect either no salary growth or only a modest increase of 10% or less in their next review. A smaller group (24.5%) anticipates a slightly higher raise, ranging from 6-10%, while 16% are hopeful for substantial raises exceeding 30%. Interestingly, entry-level employees are generally more optimistic, with higher expectations for pay growth, while executives hold the most hope for major salary increases.
A call for transparency and fairness
V Suresh, CEO of foundit, emphasised the importance of transparency in addressing employee dissatisfaction with compensation. He advocated for the implementation of skills-based pay models and career progression frameworks, ensuring salary increases are aligned with employee performance and industry standards.
“Companies that prioritise fair and structured salary growth will not only improve retention but also strengthen Singapore’s position as a premier talent hub in Asia,” Suresh stated.
The Singapore government’s recent data shows that businesses are beginning to take note. The proportion of companies planning to raise wages has significantly increased, from 15.6% in September 2024 to 31.6% by December 2024. This shift suggests that businesses may finally be recognising the urgency of addressing compensation concerns.
As Singapore’s job market grapples with challenges in retaining talent, it is clear that companies must act swiftly to ensure that their compensation practices are competitive, transparent and fair. Failure to do so could lead to greater dissatisfaction and increased turnover in the future.