A Pay Rise Alone Does Not Guarantee That Good Employees Will Stay

Almost 90% of employees surveyed by Hudson expect their base salary to increase at their next review with their manager, but only 2 in 5 said that a pay rise would be enough for them to stay with their organization for another 12 months.

Hudson surveyed almost 3,500 employers and employees across Asia to canvass their views on talent trends.

The research found that in a competitive hiring market – with 88% of Singaporean employers either increasing headcount or replacing staff who leave – most professionals are keeping an eye on the market in case there are better opportunities elsewhere.

In Singapore, only 16% of employees surveyed said they were planning to stay in their current job, while 29% were actively seeking a new role and the remaining 55% were open to new opportunities.

“Professionals want to keep their options open, especially those who have niche skill sets or technical skills, as they know they are in high demand,” said Alena Salakhova, Hudson Regional Director, Singapore.

“Professionals are managing their digital profiles and maintaining relationships with specialist recruiters so they can be alerted to good opportunities when they come up – even if they’re happy in their current organization or indeed even if they receive a pay rise.”

When asked what outcome they expect from their next pay review with their manager, 25% of employees expected their base salary to increase by 0-5%, 45% expected an increase of 6-10% and 17% expected an increase of more than 10%. Only 13% expected their pay to remain the same, and less than 1% expected a decrease.

However, a pay rise alone does not guarantee that good employees will stay. When asked ‘If your salary increased, would you stay with your organization for another 12 months?’, 42% of employees said yes, while 44% were not sure and 14% said no.

Hiring challenges

When it comes to hiring new staff, the top three hiring challenges identified by employers were:

  • Finding candidates with the relevant technical skills for the roles
  • Finding candidates with the relevant soft skills for the roles
  • Finding candidates with the right cultural fit for your team

“Employers are increasingly looking for candidates who not only have the right technical skills and experience, but who have the right soft skills and cultural fit,” Salakhova said.

She said employers were looking for candidates who can influence effectively, as well as characteristics such as adaptability and resilience, as organizations respond to changing markets and new digital technologies.

For employers to ensure they can source the best candidates, they need access to pre-qualified talent pools of professionals in specialist job functions who already have established relationships with recruiters.

During the selection process, behavioral-based interview techniques and psychometric testing can provide clarity and confidence about a candidate’s behaviors, motivations and values.

“There’s definitely been a shift in the way organizations approach recruitment. In the past, clients demanded transactional recruitment: find someone who can do the job, as quickly as possible, and negotiate the pay. Now it’s much more about matching the right talent to the right organizations,” Salakhova said.

“Our clients require us to be partners in the package negotiation process. It’s about engaging the candidate with the organization’s benefits and culture, to ensure a good ‘professional marriage’ for the employee and employer.”

Top three in-demand job functions

Accounting & Finance

Financial Planning and Analysis

Corporate Finance

Financial Reporting

 

Financial Services

Financial crime compliance

KYC

Internal audit

 

Human Resources

HR business partnering

Talent management

Compensation and benefits

 

Sales & Marketing

Sales

Digital sales

Pre-sales

 

Technology

IT business partnering

Cyber security management

Software development manager

 

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