Many in Singapore are sticking with other cost-cutting measures — with some even cutting 'hazard pay'
About three in four employers in Singapore said they have refrained from layoffs for now, according to a new survey.
They have, however, taken steps to contain costs by changing their rewards programs — often by holding off salary increases.
As more businesses open, employers are also pulling back on hazard pay, a special allowance to employees working in a higher-risk environment. In June, a mere 9% of employers were providing the allowance. This is compared with 12% in May.
READ MORE: More turning to layoffs amid recession
In June, Aon found that almost one in three employers have chosen to delay salary increments to cope with the economic impact of the pandemic.
Three-fourths of employers also continue to report “zero downsizing efforts”. Despite this, the percentage of firms implementing layoffs have risen slightly through the months: 15% in June, compared with 13% in May, and just 4% in April.
In addition, more businesses are moving toward cautious hiring from a complete hiring freeze. The percentage of employers that reported a hiring freeze fell almost by half, from 30% in April to 18% in June. Those in a cautious hiring state rose from 46% to 60% during the same period.
“Our latest survey results show a stabilization in businesses in Singapore,” said Alexander Krasavin, partner, Radford, and regional commercial head, APAC & MEA at Aon. “While layoffs are slightly on the rise, more businesses are moving to cautious hiring practices while adjustments to rewards have averted widespread downsizing efforts.
“We hear from clients that they are looking beyond the immediate economic impact of COVID-19 and planning for longer-term structural changes to operations and workforce strategies. They are seeing opportunity within a very difficult situation.”
