Singapore Technology

Q4 2024 Salary Index

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Explore our latest quarterly insights report to learn more about the ever-evolving dynamics of the recruitment landscapes in Singapore and Southeast Asia.  This report leverages our real-time Salary Index data, alongside an in-depth analysis of actual placements since 2020, to provide you with actionable insights that you can use to stay ahead of the curve.

Our report covers:

  • Market pulse.  We explore the key trends driving demand across various industries in Singapore while highlighting the growing cost-efficiency considerations leading companies to explore Southeast Asian talent pools.
  • Demand drivers: Gain a deeper understanding of the factors currently shaping the market, including the increased demand for contingent workers, focus on data centers, cybersecurity, and networking, and the potential impact of changes in the US administration.
  • Looking ahead: Our report also explores the continued importance of COMpass compliance and the strategic use of offshore resources.

What is driving demand?

Focus on Data centers, Cybersecurity, and Networking.  Since Singapore government agencies awarded contracts to four data center operators through a pilot exercise in 2023, the demand for professionals in data center operations, networking, and cybersecurity has increased significantly.  There is also a significant investment being made into the SEA data centers market.

Uncertain outlook on China: The election of Donal Trump as president raises concerns about potential tariffs and trade restrictions, which could negatively affect Singapore's economic ties with China.  While the Chinese economy is still sluggish, we are already seeing Chines companies setting up new production centers across Asia.

Impact of Trump Administration:  With the upcoming inauguration of the Trump administration, there is uncertainty around the policies that will be implemented.  Early expectations suggest that Trump will promote investment, which should have positive spillover effects for Singapore.

Senior Hiring and Decision-Making in Singapore:  A significant portion of senior-level hiring and decision-making for the region is being centralized in Singapore.  At the same time, businesses are also investing in cost-efficient offshore centers in countries like China, Malaysia, and India.  We are already seeing companies stand up new locations in Johar Bahru within the Singapore Economic Zone, as well as Batam.

Stricter Hiring Approvals:  Local banks are facing a stricter approval process for permanent headcounts.  In response, hiring managers are securing funding to hire contingent workers for critical projects, helping to meet deadlines while maintaining flexibility.

Anticipated Drivers of the Q4 Talent Market

Year-End Bonuses: The timing of year-end bonuses is currently influencing candidate availability, as many professionals prefer to wait until after receiving their bonuses before exploring new job opportunities.  This has led to a shift in the hiring timeline, with some companies already planning their 2025 hiring strategies in anticipation of this pattern.

Work-from-home Flexibility: While candidates still appreciate the option to work from home one day a week, it is no longer a dealbreaker for most.  Many clients are embracing flexibility, allowing 1-2 remote workdays without strict policies, signalling a broader acceptance of hybrid work models.  However, companies like AWS, JP Morgan, Grab, Shopee, and Bytedance are bucking the trend by requiring employees to be in the office five days a week.  Some enforce this policy strictly, while others offer limited flexibility based on individual circumstances.

Increased Demand for Contractors: As the fiscal year comes to a close for many companies, there is a noticeable uptick in demand for short-term contractors up to 12 months.  With 2025 budgets still being finalized, businesses are looking to bring in temporary support to manage workloads and ensure continuity.  This trend is expected to continue throughout 2025.

Importance of COMpass: The hiring process continues to be heavily influenced by COMpass framework, with many companies prioritzing local candidates for their openings.  However, when suitable local talent is not available, organizations are increasingly open to considering candidates from other regions or nationalities.  Currently, 71% of our placements are local candidates, but the flexibility to tap into international talent pools remains a key strategy for employers.

Relocation: As the demand for specialized skills increases, many clients are now more open to relocating candidates from overseas.  This trend is particularly prevalent in sectors where niche skill sets are in short supply, and relocation offers a viable solution for securing the right talent.

Offshore Shared Services: Many clients are seeking to reduce their local footprint by exploring the option of offshore/ nearshore shared services in neighbouring countries.  This shift allows businesses to maintain operational efficiency while managing costs, and it's becoming an increasingly attractive option for companies looking to scale without expanding their physical presence in high-cost regions.

Average Increments

Q4 Average Increments

Placements - Local Talent

Q4 Talent Placements

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