Most companies intend to freeze hiring: survey
SINGAPORE – A survey of 450 company executives on hiring trends for the second half of this year has found that the majority of respondents (66 per cent) intend to freeze hiring between now to December.
According to the survey done by recruiter and human resources consultancy Achieve Group, 32 per cent plan to hire more staff while 2 per cent plan to reduce headcounts.
Of the 148 companies that reported an intention to hire more staff in the second half of the year, 35 per cent plan to increase headcount by less than 5 per cent. A further 18 per cent said they would grow their staff strengths by up to 10 per cent while another 5 per cent are planning to boost headcounts by more than 10 per cent.
The rest declined to divulge specifics.
All the companies that would be increasing headcounts were also polled on the salary increment that they would offer new hires with respect to the candidates’ last drawn salary.
41 per cent of those surveyed said they would be offering increments of less than 5 per cent followed by 14 per cent of respondents who stated that they would offer increments of 5 per cent to 10 per cent.
Only 2 per cent of participants indicated increments of 10 per cent to 15 per cent.
None of the companies said they would offer new hires an increment of more than 15 per cent. The remaining 43 per cent declined to comment.
The report also surveyed companies on how the salaries of current staff are likely to be affected in light of the uncertain economic outlook, compared to the first half of this year.
The majority (58 per cent) of respondents indicated that there would be no change in staff salaries. 22 per cent of companies intend to increase staff salaries by up to 3 per cent while 18 per cent of those surveyed plan to hike wages by 3 per cent to 5 per cent.
Only 2 per cent of companies reported that they would be increasing staff salaries by more than 5 per cent.
A slight majority of 52 per cent of respondents reported that they are currently finding it tough to hire Singaporeans, with some claiming that Singaporeans are too choosy when it comes to the nature of work, working conditions and hours and workplace location.
23 per cent of respondents said Singaporeans are demanding too high salaries while 20 per cent of companies reported that they simply received no response to job advertisements. CHANNEL NEWSASIA
This was due to an increase in the qualifying income ceiling for interim financial assistance, from a household income of S$1,500 a month to S$1,700 a month and/or a maximum per-capita-income criterion of S$550 a month.
It resulted in a rise in interim financial assistance applications from 7,800 in the second quarter of last year to 10,100 in the same quarter this year.
The five career centres, in a joint release yesterday, noted that “a stronger inflation and, hence, higher cost of living could have contributed to some of the increase in the number of social assistance applications”.
Compared with the first quarter of this year, however, social assistance applications fell by 12.3 per cent as childcare and kindergarten-fee assistance applications decreased.
The CDC also helped place 3,300 job-seekers between April and June, a 14-per-cent increase compared with the first quarter of this year and a 23-per-cent increase on-year.
Yet, the CDC cautioned that hiring may slow down in the coming months as the global economic outlook remains uncertain.
In total, the centres registered about 7,400 applicants for training and/or employment assistance, a 9-per-cent increase from the first quarter of this year and a 7-per-cent fall on-year.
South-West District Mayor Amy Khor said the CDC will continue to run programmes to help low-income, low-skilled and older workers be more resilient during a recession “given the unsettling global economic outlook”.
South-East District Mayor Maliki Osman noted that residents’ needs “may not always be financial in nature” and that the CDC “strengthens and mobilises our community to address issues on the ground”.