Hiring expectations at 11-year high

Singapore is seeing its highest level of hiring expectations in 11 years, said recruitment firm Hudson.

Sixty-two per cent of companies surveyed for its latest quarterly report said they plan to increase headcount in the first three months of this year.

Employers in the manufacturing and industrial sector are the most bullish, reporting the fastest growth in hiring expectations, with 61 per cent in the sector planning to increase hiring.

The report said this was partly due to pre-emptive hiring as they expect to lose some key employees after bonuses were paid this quarter.

But hiring expectations may be more cautious for the rest of the year.

Hudson Singapore executive general manager Georgie Chong said: "At 62 per cent, it's really at a historical high.

"And given that we still have some uncertainties in the economy in terms of what's happening in Europe, in terms of fear of inflation coming back (and) because of all those uncertainties, I'd say let's be cautious.

"(In the) first quarter, people are hiring to position for growth in 2011, but going into Q2, Q3, Q4, it's anybody's guess and in terms of business planning, we'd go for cautious growth and not irrational exuberance".

Given the tight market for talent, more firms are adopting measures to retain valued employees.

The most widely used options are employee recognition programmes and monetary incentives.

Offering work-life balance benefits have also become a key retention strategy for employers.

Recruitment firms say retaining workers in an economy which is still expected to do well this year will be a key challenge for HR managers and directors.

In fact, implementation of good retention strategies is expected to intensify as companies attempt to enhance loyalty and keep good workers.

Employees can also expect better bonuses paid out as more companies did well last year.

In a survey by Singapore Human Resource Institute, variable bonus averaged 2.3 months in 2010.

This is higher than 1.7 months the previous year.

Singapore Human Resources Institute executive director David Ang said: "Some of them would be expecting this before Chinese New Year, but there are also some companies (which) will stretch out the bonuses and incentive payments as a form of retention strategy, and I think this is a good strategy in terms of arresting some turnover of staff and so on.

"But if an employee is already looking forward to not staying in the organisation, then I think it's a disappointment if it's spaced out".

With inflation and rising salaries continuing to worry companies, HR practitioners say restraint on wage increase and bonuses this year will be evident.

- Channel News Asia