Over half, or 54%, of employers in Hong Kong have had to increase salaries in order to retain existing employees over the last 12 months. At the same time, 61% of employers in Singapore have had to increase salaries to retain existing staff in the last year. This is according to research from Morgan McKinley.

Across Hong Kong, 60% of employees in Hong Kong are looking to move jobs in the first half of the year, with 45% selecting ‘higher salary’ as the primary reason, followed by ‘better career growth and development opportunities’ (17%). The survey showed that over almost two thirds, or 65%, of employees in Hong Kong are expecting their salaries to increase this year, with 71% also expecting some form of bonus payout.

Meanwhile, 69% of employers in Hong Kong think that salaries in their specific sector will rise in 2023, with 40% planning on increasing base salaries across all teams. Over half, or 60%, of businesses plan to hire new permanent or contract employees in the first half of the year.

“Throughout 2022, salaries in most sectors saw significant growth,” Robert Sheffield, Managing Director of Morgan McKinley Hong Kong & Greater China. “The continued reduction of overseas talent arriving into Hong Kong and increased levels of professionals leaving, alongside the offshoring of numerous functions, heavily contributed to a shortage of talent and therefore increases in salaries for those remaining. Notably, those hiring across Technology and IT, Banking and Operations have had to increase remuneration in order to compete for talent.”

Over in Singapore, 75% of employers think that salaries in their specific sector will rise in 2023, with 33% planning on increasing base salaries across all teams, despite a sharp focus on costs.

Just over half, or 51%, of Singaporean employees are expecting their salaries to increase this year, with 65% also expecting some form of bonus. At the same time, 64% of employees in Singapore are looking to move jobs in the first half of the year with 43% selecting ‘higher salary’ as the primary reason for wanting to move, followed by ‘better career growth and development opportunities’ (18%).

Almost two thirds, or 65%, of businesses in Singapore plan to hire new permanent or contract employees in the next six months.

Gurj Sandhu, Managing Director of Morgan McKinley Singapore, said, “Singapore’s hiring market was bullish throughout 2022 due to an appetite for growth. This came as the economy opened up post-Covid-19, and companies sought to meet pent up demand to hire. With a level of economic uncertainty impacting global markets, recruitment is likely to be more subdued this year, with companies and professionals focusing more on stability as opposed to growth. We anticipate that, as companies watch their headcount and costs, short-term contract hiring will be more prevalent, we are already seeing a rise of flexible and contract resources.”