Many workers happy to receive one-off bonus in lieu of salary increase
Nearly half of employees in Singapore feel underpaid, according to a new report, raising engagement and turnover concerns as workers place more importance on salaries.
ADP's People at Work 2024 report revealed that 48% of employees aren't satisfied with their salary, while 71% are putting more premium on wages this year.
"Given the high importance employees place on salary in a job, an alarmingly high percentage of workers feel unsatisfied with their salary," said Yvonne Teo, Vice President of HR APAC at ADP, in a statement.
"Unhappy employees can result in a less engaged workforce and high turnover, negatively impacting business performances."
Unsatisfaction over wages is highest in Singapore when compared to other Asia-Pacific nations such as India (41%), Australia (42%), Japan (36%), and China (31%).
It comes despite nominal wage growth was at 5.2% in 2023, with real wages growth at 0.4%, according to recent Ministry of Manpower (MOM) data.
By sector, ADP revealed that industries where many employees feel underpaid include the Arts and Culture (67%), Professional Services (55%), as well as Architecture, Engineering, and Building (50%).
What can employers do?
Teo said employers need to manage their employees' "changing, sometimes lofty," expectations on wages.
"Employers must clearly communicate corporate initiatives and how they will address the issues that are most important to employees," she said.
"It is essential to provide clarity on organisational objectives, the criteria for measuring success, and the ways employees contribute to achieving these goals. This is crucial for keeping employees engaged and motivated."
Nearly half (44%) of employees in the report added that they would be happy to receive a one-off bonus if their employers cannot provide a salary increase. They are also willing to accept:
- Additional days of annual leave/paid time off (38%)
- One-off payment to help with cost of living (34%)
- Shorter work weeks (33%)
- Grocery/shopping vouchers (31%)
