Singapore’s Salary Shuffle: A Pre‑Pandemic Payback?
Word on the street is that the Great Resignation is about to rock Singapore’s workforce harder than a bad Wi‑Fi connection. Employers are pulling back their salary hikes, setting payroll budgets back to almost what they were before COVID, and hoping to keep their team intact while filling the gap left by those who are quitting.
Mercer’s 2021 Survey Says…
Mercer Singapore released its 2021 Total Remuneration Survey on Nov 17. According to the data:
- Average pay rise in 2022: 3.5 % (just a smidge below the 3.6 % from 2019).
- Overall payout budget (salary increments, promotions, market adjustments): 4.4 % increase next year—slightly more than the 4.3 % bump in 2019.
These numbers come from 961 companies, 800 of which are multinational, across 18 industries in Singapore. The pattern? Companies are poised to feel the same squeeze people have already felt.
Quit? Quit? Quit!
Another angle: Employment Hero conducted a survey this month with 1,005 Singapore workers. A whopping 59 % said they’re already scouting new gigs. And the key reasons? 77 % had a pay cut during the pandemic, while career stagnation and no raise rank high.
Other complaints: toxic bosses, a culture that burns out, no training opportunities, or a “rigid” corporate structure.
Dylan’s Story
Mr Dylan Wong, 36, was a real‑estate pro until his employer froze salaries and promotions. He pivoted to becoming a self‑employed financial services adviser in April, and says he won full control of his schedule and a meaningful impact on clients. “It’s about more than just a paycheck,” he told us.
Experts Step In
Mansi Sabharwal, Mercer’s reward product lead, thinks Singapore faces more than a resignation crisis—it’s a talent shortage. With borders tight and work-permit filters still in place, gaps between vacancies and good candidates are only widening.
The consumer goods, tech and life sciences sectors are most hit. Yet, Lam Yi Young from the Singapore Business Federation notes that reopening borders will bring in foreign talent—yet the manpower crunch will likely be tight through 2022. He urges companies to boost productivity, upskill, and embed new talent.
Numbers You Should Know
- Projected attrition rate 2022: 11.2 % ( 12 % in 2019).
- Real wage growth could be ~1 % if inflation stays pegged at 2.5 %.
Sabharwal warns that throwing cash at candidates or offering tiny bonuses feels like a short‑term bandage. “Workers are planning for the next decade, rethinking their work life strategy,” she said.
Bottom Line
In a world where pay rise antresses, only employers who invest in career development, engaging work culture, flexible working options and skilling programs will keep their crew. The Great Resignation is real, and the talent gap is real—time to turn the page and write a better future together.
