SINGAPORE: A striking new survey highlights a growing wave of discontent over salaries among Singaporean employees, raising alarms about workplace morale and retention strategies.

According to recent findings from foundit, only 25% of workers feel satisfied with their paycheck, indicating a startling increase in concerns regarding salary fairness and professional growth.

The Discontent Deepens with Experience

The findings reveal a troubling trend: as professionals gain experience, their satisfaction with salary tends to decline.

While a modest 28% of workers express contentment with their salary progression, that figure drops to almost 40% among senior executives who feel shortchanged despite their experience and expertise.

This disparity underscores a widening chasm between employee expectations and the compensation they receive.

Adding to the sense of frustration, a staggering 53% of employees suspect their industry peers earn more, while only 36% believe their salary is above average.

The lack of transparency is alarming, with 11% of respondents unsure about how their pay stacks up against market rates.

Stagnation in Salary Growth: A Worrisome Reality

Many employees have faced a bleak landscape of pay growth, with 41% reporting no raises in the past three years and 28% experiencing pay cuts.

Of those who did see increases, only 32% reported any bump in pay, and merely 15.3% enjoyed significant salary raises.

Looking ahead, employee expectations remain modest at best.

Nearly half of the respondents (49.4%) anticipate stagnant wages or only minimal increases of 10% or less in their next reviews.

A smaller portion (24.5%) hopes for raises between 6% and 10%, while 16% are optimistic about substantial hikes exceeding 30%.

Interestingly, entry-level employees generally expressed higher expectations for pay growth, contrasting with the relatively pessimistic outlook of executives.

The Urgent Demand for Transparency and Fair Practices

V Suresh, CEO of foundit, voices a critical plea for greater transparency in compensation structures.

He advocates for companies to adopt skills-based pay models and clear career progression pathways to ensure that salary increases reflect employee performance and industry standards.

“Fostering fairness and structured salary growth can significantly enhance retention and reinforce Singapore’s status as a leading talent hub in Asia,” Suresh stressed, highlighting the imperative for companies to take proactive measures in addressing these pressing issues.

The Singapore government’s recent data suggests a potential shift in the business landscape, revealing that the number of companies intending to raise wages is on the rise, jumping from 15.6% in September 2024 to 31.6% by December 2024.

This upward trend signals that companies might be waking up to the urgent need to respond to employee compensation grievances.

As Singapore navigates an increasingly competitive job market, it is evident that businesses must swiftly reevaluate their compensation practices to ensure they are fair, competitive, and transparent.

Failing to do so could lead to growing dissatisfaction and a notable increase in employee turnover—issues that could prove detrimental to the long-term health of the organization and the broader economy.

Could salary reforms be on the horizon for Singapore’s workforce? Stay tuned, as the ripple effects of this growing dissatisfaction could transform the employment landscape in unexpected ways!