Singapore Technology

Q1 2024 Salary Index

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Singapore continues to be a dynamic and exciting hub for talent where the demand for skilled professionals is shaped by a myriad of factors. From Singapore's rise as a hub for expatriates and corporate talent, to the strategic shifts in multinational corporations investing in advanced technologies, the landscape is constantly evolving.

Companies are now exploring offshore centers and contingent staffing to navigate headcount limitations, while also focusing on retaining top talent through compelling incentives. As we explore Q1 2024, the trends indicate a resurgence in demand for technology experts in the financial services industry. Explore our latest quarterly analysis to understand what drives demand and how to stay ahead in this competitive market.

What is driving demand?

Increased international mobility is becoming increasingly common, with Singapore emerging as a top destination for both expatriates and companies seeking fresh talent within the region. However, constraints on headcount have prompted clients to consider establishing offshore centers in cost-effective locations or hiring contingent workers for specific projects.

Moreover, there's a prevalent trend of technology modernization, particularly among multinational corporations (MNCs) in the industrial sector. These companies continue to invest in cutting-edge technologies such as cloud computing, artificial intelligence, data analytics, and cybersecurity. Consequently, there's a heightened focus on upgrading systems, leading to a tendency for MNCs to insource work from their vendors.

To attract and retain top talent, it's essential for companies to offer significant pull factors. High performers are seeking environments where they feel valued and well-cared for, whether through attractive bonuses, non-monetary perks like remote work opportunities, or recognition and advancement opportunities, with or without salary increments.

There was a decrease in demand for technology talent across the Financial Services industries, mainly due to the bonus period and / or new financial year for some banks. Most local banks were not able to match their FY2022 bonuses, with a lot of the US / European banks unable to do the same. Japanese banks were amongst the top performers with their bonuses above market average.

With the new financial year for most banks and projects being approved, we do anticipate an uptick in demand for FSI’s technology professionals moving into Q2.

Anticipated Drivers of the Q1 Talent Market

In a fiercely competitive job market where positions are limited, clients are actively seeking out passive candidates, leading to a streamlined interview process lasting just 1-2 weeks before roles are officially approved. With attrition rates at a low, there is a decreased demand for replacement hires, suggesting a stable workforce environment.

The significance of COMpass in the hiring process remains pronounced, underscoring the preference for local candidates with 80% of our placements in Q1 locals. The extension in the length of the EP (Employment Pass) application process, attributed to the necessity for education verification, which adds an extra 2-4 weeks to the standard 2-3 week timeline. Moreover, the limited number of approved vendors by the Ministry of Manpower (MOM), particularly in certain regions with fewer options, exacerbates this delay.

Additionally, there has been heightened scrutiny among IT services providers, prompting many to temporarily offshore headcounts as a short-term solution to navigate through these challenges.

Throughout Q1, there has been a notable emphasis on DEI, with many of our clients specifically requesting equal representation across gender and nationality in their placements. This was reflected in our data with 40% of our Q1 placements matching our clients’ DEI criteria.

Insights by Area of Specialism

Infrastructure

As expected Infrastructure hiring bounced back in Q1 to an average of 16.94%.

Software Engineering

There is an upwards trend for Software Engineering increments. We saw average increments increase from 17.07% in Q4 to 24.28% in Q1.

Data

Data came back into the picture with a modest 13.16%.

Cyber Security

Cyber security was the top performer in Q1 and saw average increments at 31.06%. We are seeing steady demand for this skillset with clients creating headcounts in this space.

Overall

With both Cyber Security and Software Engineering increments coming in above 20%, we saw an average of 24.14% across the market, which is a good start for 2024.

Average Increments

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Placements

Local Talent

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