SINGAPORE: A startling new survey detailed in the latest HRD Asia report has unveiled alarming trends regarding salary satisfaction in Singapore, with a significant majority of employees expressing discontent with their earnings.

The findings from the employment platform foundit reveal that a mere 25% of workers are satisfied with their pay, highlighting an urgent need for businesses to reassess their compensation strategies in an increasingly competitive job market. This growing dissatisfaction raises questions around fairness and the sustainability of employee retention efforts.

Senior Staff Feeling the Pinch

The survey indicates that dissatisfaction with salary tends to worsen as employees climb the corporate ladder. While 28% of respondents reported being satisfied with their salary growth, the figure diminishes sharply among senior staff, with close to 40% of executives expressing grievances over their pay progression. This widening disconnect between what senior professionals expect and what they receive is cause for concern.

Moreover, a staggering 53% of employees suspect their industry peers are earning more, with only 36% believing their salary is above average. The situation is compounded by 11% of respondents who are unclear about how their pay stacks up against market standards, signaling a significant gap in transparency regarding salary practices.

Stagnation in Pay Raises

Many employees have found themselves facing stagnation in their earnings, with 41% reporting no salary increase over the past three years and 28% experiencing cuts in pay to varying degrees. Only 32% of participants received salary hikes, and a mere 15.3% reported substantial raises, typical of the rising cost of living situation in Singapore.

Despite their grievances, employee expectations for future raises are surprisingly subdued. Nearly half of the workforce (49.4%) anticipates salary growth to be either negligible or modest (10% or less). Only a portion (24.5%) anticipates raises between 6-10%, while 16% hold out hope for increases beyond 30%. Interestingly, those at the entry-level remain somewhat optimistic, whereas executives are the most vocal about their desire for significant increases.

The Urgent Need for Transparency

V. Suresh, CEO of foundit, stressed the criticality of transparent compensation structures in alleviating workforce discontent. He championed the implementation of skills-based pay systems and defined career advancement frameworks to ensure alignment between salary increases, employee performance, and industry standards.

“Organizations that commit to transparent and equitable salary growth will not only enhance retention rates but also bolster Singapore's reputation as a top talent destination in Asia,” declared Suresh.

Recent government data shows a shift among businesses, with the percentage of companies planning to raise wages rising dramatically from 15.6% in September 2024 to 31.6% by December 2024, suggesting that employers may finally be acknowledging the pressing need to address compensation issues.

As Singapore’s job market confronts challenges in talent retention, it is imperative for companies to act swiftly. A failure to adopt competitive, transparent, and fair compensation practices could result in escalating dissatisfaction and a potential spike in employee turnover.

In a landscape where skilled professionals have options, a company’s ability to attract and retain talent hinges significantly on its response to these warning signs regarding salary dissatisfaction. Will your company adapt or fall behind?