Employee retention has always been a concern for many employers. In today’s competitive job market, where talented candidates are sought after by multiple companies, employers need to offer more than just job security to keep their employees satisfied. According to a recent survey by Morgan McKinley, more than 60% of employees are still looking to transfer to other jobs in the first half of 2023, and one of the top reasons for this is a higher salary (43%).
Higher Salary is Key for Retention
Employees are increasingly expecting higher salaries in 2023, with over half (51%) of Singaporean workers anticipating a salary increase, and 65% expecting a bonus. To retain employees, more than six in 10 employers are willing to offer higher than expected salaries. The survey also showed that seven in 10 (75%) employers think that salaries in their specific sector will increase this year.
Career Growth Opportunities Matter Too
In addition to a higher salary, employees are also looking for better career growth and development opportunities. About 18% of respondents cited career growth and development as their top reason for wanting to switch jobs. Companies are more likely to keep their employees if they can show them clear ways to move up in their careers and improve their skills.
Hiring and Retention in 2023
The survey showed that almost two thirds (65%) of businesses are looking to hire new contract or permanent employees in the next six months. This means that employers need to put more effort into their retention strategy to keep their current employees. Offering a competitive salary and career growth opportunities are two key ways to improve retention.
Key Takeaways
- 51% of Singaporean workers think their pay will go up in 2023, and 65% think they will get a bonus.
- More than 6 in 10 (64%) employees are on the lookout to transfer to other jobs in the first half of 2023, and a higher salary is the top reason for this.
- Companies are more likely to keep their employees if they give them clear ways to grow and develop in their jobs.
- More than six in 10 (75%) employers think that salaries in their area of expertise will increase this year.
- Almost two thirds (65%) of businesses are looking to hire new contract or permanent employees in the next six months.
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Retaining employees is becoming more challenging in today’s job market. Offering competitive salaries and clear opportunities for career growth and development are two key ways to improve retention rates. With more than six in 10 employees expecting bonuses in 2023, employers need to focus on their retention strategies to keep their best talent. By doing so, they can not only improve job satisfaction among their employees, but also ensure the long-term success of their business.
