MORE than two-thirds of local respondents to a recent survey said they expect a pay rise and an annual bonus soon.

 

Recruitment firm Ambition said yesterday that of the 489 Singapore-based hiring managers and human resources professionals polled in October, 68 per cent expect their companies to pay higher salaries in 2010, as well as annual bonuses for 2009.

 

This is a 'healthy turnaround' from its previous survey in the first quarter of this year, when 85 per cent of respondents saw pay stagnating or declining.

 

Paul Endacott, director of Ambition's Singapore office, said: 'We will undoubtedly see more movement in the market after the annual bonus payout periods around Chinese New Year. It is becoming more evident that employer and employee expectations about bonus levels are not aligned, which will result in some dissatisfaction among staff.'

 

Most respondents expect a pay rise of between one and 3 per cent, but bonus expectations vary more.

About a fifth expect a bonus of 5 to 10 per cent of annual salary, while more than a tenth expect a higher 11 to 15 per cent bonus.

 

Bonuses in the banking and financial sector will be higher than those in the commercial sector, Ambition's report said.

 

The survey also pointed to greater optimism in the recruitment market, spurred by a more positive outlook on business performance. More than 70 per cent of survey respondents expect their companies to grow in 2010, and 96 per cent expect headcount to rise next year.

 

Forty-two per cent of respondents are already hiring, and a further 30 per cent expect to begin hiring before mid-2010. But Mr Endacott thinks that 'over-hiring is unlikely to happen and it will take some time to return to the hiring levels of 2007'.

 

As companies are likely to invest more in direct revenue-producing roles, 66 per cent of respondents expect headcount growth mainly in the areas of sales and business development.

 

More than half also expect their companies to use contract or temporary staff in the coming year.

 

The survey highlighted budget constraints, obtaining headcount approval, uncertainty over the business outlook and a lack of qualified candidates as the top four hiring challenges companies will face.

'Employers are once again concerned with the lack of qualified and suitably experienced candidates in the local market,' Mr Endacott said. 'We feel this will become a real problem as we move through 2010.'