Employers told to brace for 'intense competition for talent'
Employers across Singapore are being told to prepare for an "intense competition for talent" as more than half of professionals in the country are actively seeking new jobs.
Findings from Morgan McKinley's 2025 Salary Guide revealed that 55% of Singaporeans plan to actively search for a new job in the next six months.
This comes as 50% of hiring managers surveyed also said they plan to recruit talent in the same period.
The strong hiring intentions come as 85% of organisations in Singapore described hiring as "very" or "quite" competitive in 2024. Among their reasons are:
"The Singapore job market is currently experiencing a period of intense competition for talent," said Andrew Evans, Chief Operating Officer, Morgan McKinley, Asia Pacific, in a statement.
"Our research clearly shows that a significant portion of the workforce is actively seeking new opportunities, and employers are facing considerable challenges in attracting and securing the right candidates."
Among the challenges faced by organisations in recruiting and retaining talent is the disconnect in expectations in pay and flexibility, the report revealed.
Despite flexibility remaining high on employees' expectations, the report found that 62% of organisations are already asking staff to be in the office more regularly.
Compensation is also a crucial factor in recruiting talent. Half of employees in Singapore said they are optimistic that they will receive an increase in 2025.
This cautious optimism comes despite 60% of employers keeping their salary bandings level over the second half of 2024. In fact, only 56% of employers plan to increase salary offers for hard-to-fill roles.
"A failure to offer competitive salary and benefits packages, coupled with a lack of desired flexibility, will inevitably lead to missed hiring opportunities," Evans warned.
"We anticipate that companies that strategically adapt their compensation and workplace policies to align with employee demands for transparency, flexibility, and career growth will be best positioned to thrive in this dynamic market."
