Employees in Singapore are optimistic about the current employment market and expect job prospects to grow in line with rising market stability. However, this optimism is creating churn in the workforce, and will likely lead to an increase in staff turnover for businesses, according to the 2015 Michael Page Singapore Employee Intentions Report.

Results from the survey show more than a third of respondents view the current employment market with optimism, as 36% of professionals rate the market for available jobs as “good”. This forecasts significant employee movement, with 67% of surveyed professionals either “quite or very likely” to leave their current role in the coming year.

Among the reasons cited for planning to change jobs, a quarter (25%) of the respondents named career progression as their top priority, with 23% naming an increase in salary as the main motivator.

Andrew Norton, Regional Managing Director for PageGroup South East Asia, commented: “Generally there is quite a bit of optimism for Singaporean employees at the moment, but we do forecast churn in the local job market. This optimism reflects Singapore’s employment growth, however, employers will need to implement strong retention strategies; such as succession planning and financial incentives to hold on to their top performers and prevent high staff turnover.”

Attraction and retention strategies offered by companies will need to be competitive, as 73% of employees have indicated they attended job interviews with another company in the past 12 months.

Six-out-of-10 (61%) surveyed employees have not received a promotion within the past two years and 69% of employees indicate they will not ask for a promotion in the next 12 months.

The biggest concern for Singaporean employees is the cost of living, with 51% of respondents expressing concern about their salary against the cost of living. This is a significant increase from the 2013/14 Singapore Employee Intentions report findings where only 38% of surveyed professionals listed the cost of living as their main concern. Aligned with this concern, 31% indicate a salary expectation of a 16% or more increase on salary in a new role.

“Financial rewards are still the most popular attraction and retention tool based on employee responses,” Mr Norton added. “Employers are at risk of losing their best performing staff if they do not offer their employees financial incentives to stay.”

Almost a third of respondents (32%) listed financial rewards as the main reason they would remain in their current job, with 23% listing an increase in salary as the main benefit they are seeking in a new role. More than half (55%) of surveyed professionals revealed they intend to ask for greater compensation within the next 12 months.