<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published November 7, 2009
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Pay increase of 2.6% seen for next year: Hewitt poll
By CHUANG PECK MING
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THE year is coming to a close with the biggest tumble in pay rises in a decade, with wage increases in Singapore tipped to average just 1.8 per cent for 2009, down from 5.3 per cent last year.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>PAY DAY
The biggest pay increase projected for 2010 is for junior managers, professionals and supervisors</TD></TR></TBODY></TABLE>
But a recent poll of almost 100 companies by human resource consultancy Hewitt Associates, which provided the pay figures, points to brighter days ahead.
There won't be a return to pre-recession pay rises, but the increase projected for 2010 is a respectable 2.6 per cent, according to Hewitt. This is not far from a rise of about 3 per cent forecast by other HR consultancy and recruitment firms.
"Organisations were challenged by the economic circumstances and had to make tough decisions with respect to managing talent and salaries," says Samir Bedi, Hewitt's South-east Asia solution leader for performance consulting.
"But today, compensation sentiment is more positive, with organisations ready to take on 2010 with fresh energised outlook to manage talent."
Hewitt's poll shows that the number of companies imposing wage cuts is likely to come down to 2 per cent next year, from 11.5 per cent in 2009. And the number imposing a pay freeze is likely to decline from 60 per cent to about 13 per cent.
While "recruitment only for replacement" has gone up significantly, hiring freezes are also declining.
"This is a signal that more companies are on track to resuming recruitment activities," Hewitt says in its report.
Other highlights of the poll: The biggest pay increase projected for 2010 is for junior managers, professionals and supervisors - 2.6 per cent. The lowest, 2.4 per cent, is for senior managers and top executives.
28 per cent of respondent companies are cutting back the 2009 year-end variable bonus payout, and 44 of these indicated that the cut will be more than 20 per cent.
Over 30 per cent of respondent companies are reducing funding for variable pay or variable payout targets.
56.5 per cent of respondent companies are confident that their staff are somewhat more likely to remain when the economy recovers because of the way they managed policy changes and employee morale during the downturn.
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Pay increase of 2.6% seen for next year: Hewitt poll
By CHUANG PECK MING
<TABLE class=storyLinks border=0 cellSpacing=4 cellPadding=1 width=136 align=right><TBODY><TR class=font10><TD width=20 align=right>
</TD><TD>Email this article</TD></TR><TR class=font10><TD width=20 align=right>
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</TD><TD>Feedback</TD></TR><TR class=font10><TD colSpan=2><!-- AddThis Button BEGIN -->
<SCRIPT type=text/javascript src="http://s7.addthis.com/js/250/addthis_widget.js#pub=xa-4ae026ba0e05c08d"></SCRIPT><SCRIPT type=text/javascript> var addthis_config = { username: "xa-4ae026ba0e05c08d", services_compact: 'facebook, twitter, favorites, myspace, google, digg, live, delicious, stumbleupon, more', services_exclude: 'print', data_use_flash: false } </SCRIPT> <!-- AddThis Button END --></TD></TR></TBODY></TABLE>THE year is coming to a close with the biggest tumble in pay rises in a decade, with wage increases in Singapore tipped to average just 1.8 per cent for 2009, down from 5.3 per cent last year.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>PAY DAYThe biggest pay increase projected for 2010 is for junior managers, professionals and supervisors</TD></TR></TBODY></TABLE>
But a recent poll of almost 100 companies by human resource consultancy Hewitt Associates, which provided the pay figures, points to brighter days ahead.
There won't be a return to pre-recession pay rises, but the increase projected for 2010 is a respectable 2.6 per cent, according to Hewitt. This is not far from a rise of about 3 per cent forecast by other HR consultancy and recruitment firms.
"Organisations were challenged by the economic circumstances and had to make tough decisions with respect to managing talent and salaries," says Samir Bedi, Hewitt's South-east Asia solution leader for performance consulting.
"But today, compensation sentiment is more positive, with organisations ready to take on 2010 with fresh energised outlook to manage talent."
Hewitt's poll shows that the number of companies imposing wage cuts is likely to come down to 2 per cent next year, from 11.5 per cent in 2009. And the number imposing a pay freeze is likely to decline from 60 per cent to about 13 per cent.
While "recruitment only for replacement" has gone up significantly, hiring freezes are also declining.
"This is a signal that more companies are on track to resuming recruitment activities," Hewitt says in its report.
Other highlights of the poll: The biggest pay increase projected for 2010 is for junior managers, professionals and supervisors - 2.6 per cent. The lowest, 2.4 per cent, is for senior managers and top executives.
28 per cent of respondent companies are cutting back the 2009 year-end variable bonus payout, and 44 of these indicated that the cut will be more than 20 per cent.
Over 30 per cent of respondent companies are reducing funding for variable pay or variable payout targets.
56.5 per cent of respondent companies are confident that their staff are somewhat more likely to remain when the economy recovers because of the way they managed policy changes and employee morale during the downturn.
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