Singapore hiringmarketupdatefinaldec10
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Singapore hiring market trends for 2011

Singapore hiring market trends for 2011

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Singapore hiringmarketupdatefinaldec10 Document Transcript

  • 1. Morgan McKinley | SingaporeHiring Market Update - December 2010 morganmckinley.com
  • 2. Hiring Market Update, Singapore December 2010 INTRODUCTION The global financial crisis resulted in Singapore entering its deepest recession since independence in 1965. However, an unprecedented expansion of 17.9% growth during the first half of 2010, saw the country come back fighting as one of the fastest growing economies of the year worldwide.1 This was then expected to continue at a slower rate for the rest of 2010 in line with the Government’s forecast of a 13%-15% growth rate, and to carry on through 2011 at a similar pace, according to the recent Macroeconomic Review from the Monetary Authority of Singapore.2 The financial services sector in Singapore is set to play a key part in this steady growth over the next 12 months. Non-bank lending is expected to continue while the fund-management market is projected to grow further due to rising wealth levels in Asia and an anticipated rise in assets under management of 11% p.a. on average. Niche areas within financial services are also expected to grow, with more hedge funds setting up in Singapore and more private banking assets to manage.3 This is all good news, however a real measure of recovery will be the impact this has on growth projections for the hiring market. As part of our ongoing commitment to keep our clients and candidates up to date with the latest trends in the recruitment sector, global professional recruiter Morgan McKinley recently conducted research into what the next 12 months will bring for the professional hiring market in Singapore. We surveyed over 700 senior level operational and HR managers within financial services and commerce & industry organisations across Asia Pacific and asked about recruitment plans for 2011 and the challenges employers expect to face in the Singapore marketplace over the coming year. In this Hiring Market Update, you will find a summary of Morgan McKinley’s findings. The results have been separated into two sections; financial services and commerce & industry. We trust that you will find this information useful and welcome your feedback. Chris Jay | Managing Director | Morgan McKinley Singapore T: +65 6557 4655 | E: cjay@morganmckinley.com.sg 1 : Bloomberg http://bit.ly/c3SV2q 2 MAS: http://www.mas.gov.sg/publications/macro_review/index.html 3 AsiaOne Business: http://bit.ly/c5fbxpAustralia | Dubai | Hong Kong | Ireland | Japan | Netherlands | Singapore | UK morganmckinley.com
  • 3. Hiring Market Update, Singapore December 2010 KEY RESEARCH FINDINGS Financial Services • Almost all (99%) of Singapore’s financial services employers are definitely (77%) or possibly (22%) planning to hire new staff over the next 6 to 12 months, almost exclusively (97%) on a permanent basis. However, over half (51%) confirm this as only the same, if not a decrease, on 2010’s hiring, which indicates that replacement hiring is the key focus over the next year. • 86% of financial services employers expect basic salaries to rise over the next 12 months, chiefly to address talent retention. Similarly 86% of respondents expect bonuses to be paid this year, with only 8% anticipating that they will be significantly lower than last year. • The main personnel challenge facing financial services companies in the next 12 months is seen to be talent retention: 61% see this as their main focus, with 47% of these intending to use improved rewards and remuneration as well as better training and development to keep key staff. • In the financial services sector, of those employers who said they would be recruiting, replacement hiring was the driving factor for 72%. • To attract this additional talent, 62% of financial services businesses would be turning to external recruitment firms. Commerce & Industry • This hiring mood was also reflected by Singapore’s employers across commerce & industry with 97% either definitely (89%) or maybe (8%) hiring over the next 12 months, again almost exclusively (96%) for permanent positions. • Although 81% of commercial businesses said that this hiring would be to replace personnel in industry sectors that have suffered in the last two years, a positive 63% said that hiring would be for additional headcount, showing growth is still prevalent in some industry sectors. • In addition, 46% of those in commercial businesses said they planned to re-evaluate their strategies for investing in people.Australia | Dubai | Hong Kong | Ireland | Japan | Netherlands | Singapore | UK morganmckinley.com
  • 4. Hiring Market Update, Singapore December 2010 FINANCIAL SERVICES Market Trends The mood in the financial services sector in Will you be hiring over the next 6-12 months? (Financial Services) Singapore is upbeat after a busy period of rebuilding in 2009. Steady economic growth has been predicted across the board in 2011 22.2% and indicators that financial services may play 0.9% a larger role in this than in previous years have been reinforced by the results of Morgan 76.9% McKinley’s recent survey of senior level operational and HR managers. Almost all (99%) of respondents said they will definitely (77%) or possibly (22%) be hiring in 2011. Yes No Maybe Even more positively, 86% are expecting bonuses to be paid this year, with only 8% foreseeing them to be significantly less than last year. While these statistics can be read with some optimism, the almost blanket positive response was tempered with some realism. Approximately half of respondents claimed that this intention to hire is actually no real increase on 2010 hiring levels proving that there is still some way to go in replacement hiring to reach the level of employment across the sector before the downturn. Of the potential number of new hires in 2011, 72% would be to replace personnel where redundancies were made over the last two years as well as to replace key staff moving to perceived greener pastures. This caution was recently reiterated by Singapore’s central bank which warned of possible rises in inflation in 2011 and subsequent interest rate changes – a solid reason not to become over-optimistic.4Australia | Dubai | Hong Kong | Ireland | Japan | Netherlands | Singapore | UK morganmckinley.com
  • 5. Hiring Market Update, Singapore December 2010 Recruitment Prospects Having established that there will be definite movement on the recruitment front for almost all financial services businesses surveyed, and looking away from replacement hires, the results of our survey show positive signs for the sector in terms of growth. 67% of respondents said they will be hiring additional headcount in 2011, almost exclusively on a permanent basis and predominantly at an experienced middle to senior management level. If the economy continues its recovery, businesses will look to expand and this figure shows these intentions are already in the thoughts of employers. To attract this talent, 62% of employers intend to utilise external recruitment firms. They realise that in a competitive marketplace and with possible restrictions in place on offering inflated remuneration packages, relying on specialist firms, such as Morgan McKinley, will give them the edge over their competitors. What strategies are you planning to put in place to combat talent attraction issues? (Financial Services) 80% 70% 61.9% 60% 57.1% 50.8% 50% 41.3% 41.3% 39.7% 40% 31.7% 30% 23.8% 20% 15.9% 9.5% 10% 6.3% 0% Compensation and External recruitment Corporate social Internal Referral Social media Corporate Branding investment in people Other Career opportunities Work - life balance boards/advertising responsibility development / schemes Training and benefits and PR Job firmsAustralia | Dubai | Hong Kong | Ireland | Japan | Netherlands | Singapore | UK morganmckinley.com
  • 6. Hiring Market Update, Singapore December 2010 Almost half of all planned recruitment, whether replacement, additional or project based (34%) remains very much dependent on market conditions and the global economy at large, stressing some continued uncertainty in the Singapore financial services market. Personnel Challenges Retaining key talent will be What do you think are the main personnel challenges you will face over the next 12 months? (Financial Services) vital for employers, 2% according to Morgan 5% 6% 20% 2% McKinley’s research that 14% shows 61% of respondents agree that talent retention will be the main personnel challenge they will face over 30% 21% the coming year. 46% of the senior managers surveyed Talent attraction Talent retention Remuneration Benefits & rew ards will rely on increased Handling redundancy Change management Diversity & inclusion Other training and development offerings to keep talented staff, with exactly the same percentage intending to tackle ‘reward and remuneration’ in order to compete with other employers. After widespread salary freezes, this could be an area with room for manoeuvre, with 86% expecting basic salaries to rise over the next 12 months and the majority (62%) citing staff retention as the key reason. If the steady growth in the economy does continue and organisations re-start their growth plans, then the competition for highly skilled professionals in the financial services sector will result in a wealth of opportunities for the very best. This in turn means that employers will have to fight harder than ever to retain this sought-after talent. 4 Bloomberg: http://bit.ly/cK3yza 5 Ministry of Manpower: http://bit.ly/df8gviAustralia | Dubai | Hong Kong | Ireland | Japan | Netherlands | Singapore | UK morganmckinley.com
  • 7. Hiring Market Update, Singapore December 2010 COMMERCE & INDUSTRY Market Trends Staff retention is also high on the priority list for employers in the commercial sector. With the economy improving, qualified and experienced professionals who have potentially remained in their current roles due to job uncertainty in 2009, are now more confident about “jumping ship” in order to secure new positions. This means employers have to think about reward and remuneration, salary increases and even talent planning and fast tracking in order to keep their best people. As organisations continue to gear up their growth plans as a result of the sustained growth in the economy, the demand for highly skilled professionals in the commercial sector will result in an abundance of opportunities for the best talent. This in turn means that employers will be more challenged than ever to compete over exceptional talent with both experience and specialist skills on offer. What strategies are you planning to put in place to combat talent retention issues? (Commerce & Industry) 50% 44.3% 45% 42.6% 40% 34.4% 34.4% 35% 32.8% 30% 27.9% 27.9% 24.6% 25% 20% 15% 13.1% 10% 6.6% 4.9% 5% 0% Implementing management Increase in Increase in Performance remuneration engagement development deployment fast tracking planning and Attraction Other Resource new benefits and cross Employee Increasing bonuses salaries training & Reward & & rewards training offerings brand TalentAustralia | Dubai | Hong Kong | Ireland | Japan | Netherlands | Singapore | UK morganmckinley.com
  • 8. Hiring Market Update, Singapore December 2010 Recruitment Prospects According to Morgan McKinley’s recent survey, 97% of senior-level operational and HR managers working across a variety of commerce & industry businesses in Singapore said they would definitely (89%) or maybe (8%) recruit over the next 6-12 months, predominantly (96%) for permanent positions. Two thirds (66%) said that this would be an increase on the past year’s hiring volume. While a large percentage (81%) cited replacement hiring as a reason, organic growth in businesses is still prevalent, with 63% of those surveyed planning on adding to headcount in 2011. A healthy 45% said that this internal growth would be due to expansion and new business plans which are clearly forging ahead despite concerns over staff turnover mentioned earlier. COMMERCE & INDUSTRY Personnel Challenges 81% of participants from the commercial sector mirrored their counterparts in financial services by stating that replacement hiring would be driving any recruitment plans over the next 6-12 months. To attract this additional talent, 46% will be re-evaluating their strategies for investing in people. What do you think are the main personnel challenges you will face over the A greater challenge than next 12 months? (Commerce & Industry) replacing staff was seen to 2.5% 3.1% 3.1% be keeping existing key 2.5% 27.3% 11.2% individuals. Talent retention was cited as the main focus by 72% of those surveyed. To address this, a variety of strategies look like being 18.0% implemented: with 32.3% performance management (44%); increased salaries Talent attraction Talent retention Remuneration Benefits & rew ards (43%); increased bonuses Handling redundancy Change management Diversity & inclusion Other (34%); and talent planning and fast tracking (34%) being the most preferred options.Australia | Dubai | Hong Kong | Ireland | Japan | Netherlands | Singapore | UK morganmckinley.com
  • 9. Hiring Market Update, Singapore December 2010 In the ‘new economy’, employers in Singapore may also have to consider even further measures to retain employees. Aligning themselves with the popular theories of flexible working arrangements and creating a positive work/life balance, seen more in cultures outside of Asia, could also be on the agenda for 2011 as a tool for staff retention.6 We hope this research has provided some interesting insight into future trends within the professional jobs market in Singapore. To discuss any of the points raised or your recruitment requirements, please contact Morgan McKinley on +65 6557 4655. 6 Alternative News Asia: http://bit.ly/cQRCIzAustralia | Dubai | Hong Kong | Ireland | Japan | Netherlands | Singapore | UK morganmckinley.com
  • 10. 30 Cecil Street#18-05 Prudential Tower Singapore 049712 Tel: +65 6557 4655 morganmckinley.com