Don’t bank on bonus, warn consultants

HRM 11 Dec 2012

Bankers in Singapore should not be expecting sky-high bonuses or a pay rise this year as salary adjustments are unlikely to outpace inflation, say experts.

While local banks may have done well financially this year and are expected to be more generous in their employee rewards, most will be prudent rather than lavish.

“We’re in an environment where people are very conservative about pay rises,” said Pan Zaixian, general manager at Kerry Consulting, in a report by The Business Times.

“For non-front-office roles at the general level, bonus is expected to be closer to one-plus month instead of four months during the better years,” he said. “For senior management and for general front-office roles, where in good years they can expect 10-plus months bonus, this will no longer be commonplace.”

According to Stanley Teo, director at Profile Asia, employees’ bonus would depend on their performance. “Very good performers should be happy if they get the same as last year, which could be six months, (because) many will get nothing,” he was quoted as saying.

Another trend in banks is that more are moving jobs out of Singapore to countries like the Philippines and India because costs are considered too high.

For some back-office positions that cost $100,000 a year for a Singapore employee, they can hire two for $50,000 in the Philippines, say experts. 



Leave your comment
Start a new discussion

HRM Asia forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Post a Comment
HRM Asia welcomes your contribution. Your IP address is recorded in the event of a complaint.
Name *
Email *
(required, but will not display)
Comment *
Please enter in the numbers in the box left.
You are about to submit your comment. Is it:
  • Professional
  • In your own name or pseudonym, not impersonating someone else
  • Free from rude language
  • Free from advertising
  • If you prefer not to post but are still keen to get your viewpoint across, you can always e-mail the editor.
  • 30 Sep | DN & Associates Executive Search | Singapore
    27 Sep | Kerry Consulting | Not Specified
    27 Sep | Kerry Consulting | Singapore
    MSD: Building a case for sustainable leadership development
    Lisa Yeo, Managing Director, Singapore, MSD, shares how organisations should carefully utilise resources so as not to deprive the next generation of future leaders
    UBS: Journey towards becoming Employer of Choice
    Gamification and story-telling at Sabre Holdings
    TTSH: HR leading the health drive
    Performance Leadership Pte Ltd | info@performance.sg
    Lunch, Learn and Bond with your teams, all within 1 hour! Choose from a variety of light-hearted, interesting or thought-provoking topics that appeal ...
    Performance Recognition Pte Ltd | info@performance.sg
    A monthly business incubator where leaders grow their skills, exchange ideas and share best practices.
    Nanyang Tecnological University - Nanyang Business School, Open Enrolment Programmes | amyflin@ntu.edu.sg
    The Management Development Programme @ Nanyang is designed to offer problem solving toolkits for all function areas such as marketing, finance, operat ...