Nearly four in five workers will leave if their raise falls short of inflation
In Singapore, the ancient tension between labor and capital is finding a new expression: as inflation erodes purchasing power and recession clouds gather, professionals are quietly drawing a line, prepared to walk away if their employers cannot meet the rising cost of simply living. The negotiation unfolding across the island is not merely about percentages, but about whether institutions can make people feel that their work still carries meaning and reward. What emerges from this moment will likely set the terms of employment across the region for years to come.
- Eight in ten Singapore employees plan to request a pay raise in 2023, with nearly four in five ready to switch jobs if their increase fails to keep pace with inflation.
- Job switchers can command 15–20% salary jumps — and up to 40% in technology roles — creating a stark divide between those who stay and those who move.
- Employers face a painful contradiction: 92% name talent acquisition as their top concern, yet 61% believe candidates are already asking for too much money.
- Companies are scrambling to respond with inflation-linked raises, bonuses, hybrid work policies, wellness programs, and pay reviews outside normal annual cycles.
- Demand is sharpest for AI, data science, cybersecurity, and ESG specialists, as digital transformation and regional headquarters relocations intensify the competition for skilled professionals.
Singapore's labor market is entering a period of renegotiation. With inflation averaging 4% and recession fears mounting, professionals across the island are preparing to ask for more — and most are willing to leave if the answer falls short. Nearly three-quarters of workers expect employers to factor the rising cost of living into salary decisions, and more than six in ten are seeking raises of 6% or higher.
The real leverage lies with those willing to move. Job switchers can expect increases of 15–20%, reaching as high as 40% in talent-scarce fields like technology. Almost four in five employees say they'll consider changing employers if their raise doesn't match inflation — a figure that signals just how much the balance of power has shifted.
Employers are caught in a bind. Ninety-two percent identify finding the right talent as their primary concern, particularly at senior and managerial levels. Yet 61% feel candidates are demanding too much, and more than half report too few applicants with the industry experience they need. In response, companies are moving quickly: 82% say they'll issue inflation-linked raises, 72% plan bonuses, and two-thirds have introduced retention measures ranging from hybrid work arrangements to expanded benefits and off-cycle pay reviews. Some are even exploring fully remote models to draw talent from beyond Singapore's borders.
The most sought-after skills span artificial intelligence, data science, software development, cybersecurity, and the emerging field of ESG expertise. As multinationals relocate regional headquarters to Singapore, demand is also rising across sales, finance, supply chain, and human resources.
Not every worker feels empowered to push back. A quarter fear that negotiating could cost them their job, and nearly one in five simply doesn't know how to ask. Still, more than half say economic uncertainty won't change their plans to move. As Robert Walters' country manager Monty Sujanani observed, the companies that will win in 2023 are those that make employees feel heard, connected to a larger purpose, and able to see the impact of their work. Those that don't risk watching their best people quietly walk away.
Singapore's job market is tightening in ways that will reshape how companies and workers negotiate over the next year. As inflation climbs and recession fears settle in, professionals across the island are preparing to ask for more money—and they're prepared to leave if they don't get it.
The pressure is real and measurable. Eight in ten employees say they're likely to request a pay raise in 2023, and nearly three-quarters expect their employers to factor the rising cost of living into salary decisions. With Singapore's inflation averaging 4%, more than six in ten workers are looking for raises of 6% or higher. But the real leverage belongs to those willing to move. Nearly four in five employees say they'll consider switching jobs if their raise falls short of the inflation rate. For those who do jump, the numbers are striking: job switchers can expect salary increases between 15% and 20%, climbing as high as 40% in fields where talent is scarce—particularly technology.
Employers are caught between two pressures. They desperately need people, especially at senior and managerial levels where the shortage bites hardest. Ninety-two percent of companies surveyed identified finding the right talent as their top concern. Yet they're also struggling with what they see as unrealistic salary expectations. Six in ten employers say candidates are asking for too much money. Fifty-three percent report they're simply not getting enough applications, and nearly half say candidates lack the industry experience they need.
The response from companies has been swift and multifaceted. Eighty-two percent say they're more likely to give raises to acknowledge inflation, and 72% plan to issue bonuses in 2023. But money alone isn't enough. Two-thirds of companies have put retention measures in place. The most common moves are hybrid work policies, adopted by three-quarters of firms, followed by expanded wellness programs, improved benefits packages, better training and development, and pay reviews outside the normal annual cycle. One in two companies is even considering a fully remote workforce to expand their talent pool beyond Singapore's borders.
The talent shortage is sharpest in specific domains. Professionals with skills in artificial intelligence, data science, software development, and cybersecurity remain in high demand. E-commerce specialists are sought after. As companies relocate regional headquarters to Singapore, they're hiring across sales, marketing, supply chain, procurement, finance, and human resources. Looking ahead to 2023, tech skills will be valuable across industries—not just in tech companies themselves, but in roles where professionals can help other businesses navigate digital transformation. Environmental, social, and governance expertise is emerging as a new priority, as are HR professionals who specialize in keeping people from leaving.
Yet not all workers feel empowered to negotiate. A quarter of employees worry that asking for more money will jeopardize their job security. Eighteen percent simply don't know how to negotiate. Fourteen percent hesitate because their company was hit hard by the pandemic. And while some workers are pulling back from job hunting due to economic uncertainty, more than half say their plans to move won't change regardless of the challenging climate.
Monty Sujanani, country manager at Robert Walters Singapore, framed the challenge as one of engagement and purpose. When employees feel burned out or stalled in their learning, they look elsewhere. Companies that want to keep their people need to make them feel heard, he said, and should build a culture where workers understand how their efforts connect to the organization's mission and can see themselves making an impact. The firms that do this well will have an edge in 2023. Those that don't will watch their talent walk out the door.
Citas Notables
When employees feel burnt out or bored because they are not learning anymore, this compels them to look for other opportunities. Companies should make employees feel heard and keep them engaged.— Monty Sujanani, country manager at Robert Walters Singapore
La Conversación del Hearth Otra perspectiva de la historia
Why are Singapore workers suddenly so confident about asking for raises?
It's not sudden, really. Inflation is hitting their wallets every day—groceries, rent, transport. When the cost of living jumps 4% and your salary stays flat, you're losing ground. Workers know that too.
But couldn't a recession scare people into staying quiet?
You'd think so. And some are scared—a quarter worry about job security. But most aren't waiting. They see that companies are desperate for talent, especially in tech and senior roles. That's leverage. Why stay quiet when you know your employer needs you more than you need them?
The 40% raises in tech—is that real or just outlier talk?
It's real, but it's the extreme. Those are the roles where talent is so scarce that companies will pay whatever it takes. Most people switching jobs see 15 to 20%. Still substantial, but the 40% cases are the ones that make headlines and embolden everyone else.
What about the companies? They sound trapped.
They are, in a way. They need people but think candidates are asking for too much. They're not wrong that expectations have shifted. But they're also the ones who created this by underpaying for years. Now they're scrambling with hybrid work, wellness programs, bonuses—anything but admitting wages were too low to begin with.
Is remote work actually solving the talent problem?
It helps at the margins. Half of companies are considering it. But it's not a magic fix. You still need the right skills, and those people know their worth. Remote work is just another retention tool, like the others.
What happens if companies can't afford to match what workers are asking for?
Then they lose people. Seventy-eight percent of workers say they'll leave if their raise doesn't keep pace with inflation. Companies know this. That's why 82% are planning to give raises anyway. They're betting that paying up now is cheaper than replacing someone later.