Press Releases

SINGAPORE: August 1, 2007 - Flexi-work arrangements are an effective method in retaining talent, according to a survey by Watson Wyatt, a leading global consulting firm.

One third of the companies in Watson Wyatt’s recent survey report that they have flexi-work arrangements. Most of those say that they are well received by employees and they also see this as an effective tool in talent retention. Flexi-work arrangements are flexible work programmes that allow employees to work on an agreed schedule / arrangement other than the traditional work hours / location. Types of these arrangements companies adopting are flexible work hours, part-time work (works less than 5 days a week), remote working (either from home or another location), compressed work week and part-time work (works only at the request of the company when there is a need).

Managing Director Watson Wyatt Singapore and Malaysia Chris Bennett commented, “Flexi-work arrangements and flexible benefits extends the principle that firms offer a range of benefits that individual employees can pick and choose from to meet their own needs. Flexible benefits are a flexible menu of benefits for employees to tailor to their own needs. Providing choice to employees enables companies to address the needs to individuals more closely and this, in turn, helps them to attract and retain employees by providing benefits that are valued by the employees. It’s worth noting that more than 70 % of the companies providing flexi-work arrangements have found them beneficial to the company. ”

Mr. Bennett said, “We receive many requests from multinationals and large local companies which are thinking about introducing a greater level of employee choice to for their staff. The level of enquiries increased last year and we think that the number will continue to grow, as companies continue to look at innovative ways of responding to the “war for talent” in Singapore”.

Salary Increase
On the salary front, the survey also shows that companies in Singapore are projecting paying an average salary increase of 4.3% this year, which is almost the same as last year’s actual average of 4.2%. But, there is significant differentiation between the increases in different industry sectors. The highest increases are anticipated in construction and property sectors, the financial services sector and consumer products and fast moving consumer goods (FMCG) sectors; where average increases up to 1.5% higher are expected. Lower increases are anticipated in the manufacturing – electronics sectors and semiconductor sector, with increments running at 3.6%.

The average variable bonus projected for this year is 2.4 months, which is similar to last year’s projection but we would expect this to increase in response to continuing economic growth.

Staff Turnover
Staff turnover was also surveyed. “The high rate of staff turnover has been a feature of the Singapore employment scene for some time. It reinforces the fact that attraction and retention of high performing employees will be ever more challenging going forward, as companies compete even more fiercely for talent”, said Chris Bennett. “Most companies are currently experiencing high staff turnover rates ranging between 15 to 25%, high staff turnover is becoming a significant issue for many companies in Singapore, especially in the IT & Financial Services sectors.”

Watson Wyatt’s HR Trends Survey Singapore tracks the movement in the market in terms of salary increases, bonuses and staff turnover in Singapore. This survey was conducted between 8 May and 23 May this year and 97 local and foreign companies representing 20 industry sectors participated.

About Watson Wyatt Worldwide
Watson Wyatt (NYSE: WW) is the trusted business partner to the world’s leading organizations on people and financial issues. The firm’s global services include: managing the cost and effectiveness of employee benefit programs; developing attraction, retention and reward strategies; advising pension plan sponsors and other institutions on optimal investment strategies; providing strategic and financial advice to insurance and financial services companies; and delivering related technology, outsourcing and data services. Watson Wyatt has 6,700 associates in 31 countries and is located on the Web at www.watsonwyatt.com.