Professionals in Singapore who stay on in their current jobs are keeping expectations of higher salaries low, with 53% unsure or pessimistic about getting a salary increase, according to research from Robert Walters Singapore.

The research found that attracting and retaining top talent with in-demand skill sets remains challenging as companies are turning to engage more contract staff to better manage manpower and costs. Professionals who are able to demonstrate in-demand skillsets will be well sought after, even if they may not have sufficient qualifications or years of experience, it added.

Companies are looking into offering contract positions, with 86% of the positions in 2024 being at least six months in duration, as a way to better manage costs.

The survey also showed that 46% of companies have hired contract staff in 2024. Functions where contract staff were deployed include tech & transformation (43%), accounting & finance (38%), HR and business support (21%) and supply chain, procurement and logistics (21%). However, the top difficulty for companies in recruiting contract staff is the ability to source for skilled contractors (70%).

With some companies open to the possibility of converting contract positions to permanent ones with good performance, professionals can find it beneficial to consider these positions to gain experience, or meet their needs. Top benefits offered by companies for contract positions include flexible work arrangements (59%), medical/insurance (49%), and getting a completion bonus (48%).

Meanwhile, the survey found that talent moving between jobs can expect increments of 12% - 15% or up to 20% for sectors such as AI or data. Employees staying with their current companies will see their salaries increase by 2% - 5% to align with inflation.

Further data on what employees want showed that having flexible working hours came top (82%) for professionals surveyed on their preferred ways of working. Other areas include the enhanced use of technology (46%), an increased focus on wellbeing (43%), and more opportunities for cross-department work (32%). In contrast, only 19% said they would prefer to work reduced hours or full-time remote working (23%).

When asked what benefits they would consider “essential”, apart from salary, professionals cited having a bonus scheme (76%) and flexible working hours (70%). Other benefits that mattered to them include remote work arrangements, extended health insurance, and training & development courses.

When asked on the benefits offered to employees, the top initiatives were giving a bonus scheme (83%), training & development courses (66%), flexible working hours (63%) and family/personal leave benefits (63%).

Robert Walters Singapore also found that employers especially valued talent with: problem-solving and critical thinking skills (66%), having a positive attitude and resilience (47%), and initiative and self-motivation (45%).

The top challenges when sourcing for staff include salary and benefit expectations perceived to be too high (58%), lack of industry experience (56%), and lack of applications/candidate supply (33%).

As companies try to retain top talent while balancing business costs, the main challenges include limited advancement & career growth opportunities (42%), difficulty in offering competitive pay and benefits (41%) and high competition for talent (36%).