Despite slower business growth, employees still expect pay raises, bonuses and promotions
Despite a predicted economic slump, 60% of employees in Singapore have high expectations that their companies will perform better in 2020 than in 2019.
Many are thus still looking forward pay raises, bonuses and promotions this year.
Overall, workers are turning to employers to fill any gaps should the business face ‘lower than expected' growth.
And plenty of employees (60%) expect the economic situation to deteriorate in 2020, according to Randstad Workmonitor’s latest survey.
However, the same number of workers are also pinning even higher expectations on employers to perform financially and help them tide through any difficulties.
During yesterday’s Budget 2020 speech, finance minister Heng Swee Keat highlighted that Singapore’s economy experienced the ‘weakest growth’ since the 2008 global financial crisis.
He added that the government ‘downgraded’ growth forecast for 2020 to lower figures — hinting that times may get even tougher, with impact on business growth.
Regardless, 63% of employees expect to receive a pay raise and 69% want to receive a one-time bonus at the end of their year.
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“Mature workers are much more aware of the budget constraints during a slowing economy, as they had experienced it before during the 2009 global financial crisis and are often involved in discussions around tightening budgets,” said Jaya Dass, managing director at Randstad Singapore and Malaysia.
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“Therefore, they are likely to have a more realistic expectation on salary raises and bonuses this year.
“On the other hand, the culture of instant gratification among the younger generations could explain the high expectations they have on salary and bonus.”
The study also found that more than one in four employees had changed employers in the past six months.
Dass said that some employers may find the need to meet the high salary and bonus expectations to retain “good talent”.
However, with the added uncertainties due to the COVID-19 outbreak, he predicted that companies “may not experience the usual attrition rate”.
“Many employers are delaying the interview process or replacing face-to-face interactions with video or phone interviews, which would slow down the recruitment process,” she said.
“Some jobseekers may choose to continue to work in their current workplaces, rather than go for an interview or work in a new office.”