Employers in Singapore will “need to stay flexible” in the wake of challenges in hiring and retaining talent due to mismatch in pay expectations, according to a new report.
Kirsty Poltock, country manager at Robert Walters Singapore, said attracting and retaining talent has become more challenging due to the volatility and pace of the market.
These challenges are made worse by cost pressures and lack of skilled talent in all areas, according to Poltock.
“Companies will need to stay flexible, explore Employee Value Proposition (EVP) offerings to draw talent, and tap on analytics for market intelligence and workforce planning,” she said in a statement.
“Employers can also look into tapping on executive recruitment firms to source for leadership talent, and use leadership assessment and coaching to retain and evolve talent.”
Hiring plans in Singapore
More than a third (37%) of employers in Singapore are planning to increase their headcount in 2026, with more of them looking to increase it by five to 10%.
Only 27% of employers said they are likely to give new hires a pay rise of above 10%, way below the 83% of talent who are expecting that rate of increase when they switch roles.
In fact, the report found that employees are looking for more than a 20% increase in salary when they switched jobs.
Some employers are already taking steps to control costs by looking into contractual positions. More than half (55%) of organisations in Singapore will start or continue hiring contractors in 2026.
According to the findings, 74% of employers who are hiring contractors are doing so for project or short-term needs. Others cited headcount limitations (36%) and the desire to not commit to a permanent headcount yet (33%).
“As companies respond to the volatility and agility required in the market, the workforce will see traditional permanent roles matched with an increasing number of contract positions and project-based hiring,” the report read.