Companies continue to hire in Q2 2009
The Ambition Report: Job Market Trends
Singapore, 30 June 2009 – Ambition, one of Asia’s leading recruitment groups, today released its findings on its Job Market Trends Survey for mid year 2009.
580 Singapore-based hiring managers and human resources professionals across 9 industry sectors responded to the survey during April and May 2009. The survey mainly focuses on three core areas: business performance and market outlook, hiring trends as well as compensation and benefits.
Significant findings
- Business performance – 45% respondents said their business performance in the first quarter was within their expectation;
- Market outlook – 47.2% were confident and expected business growth in the next two quarters (Q3-Q4 2009);
- Hiring trends – budget constraints, obtaining headcount approval and uncertainty in the business outlook are the top three hiring challenges. However, hiring activities continue and will increase in the next few quarters;
- Contracting staff – 48.5% of respondents expect to use contracting/ temporary staff in the next 12 months;
- Salary increments & annual bonuses – around 40% of staff didn’t receive a salary increment but 85.4% did receive bonuses for 2008;
- Cost control measures – Salary freezes and headcount reductions are the most widely adopted cost control measures.
 Business Performance was within Expectation
In Singapore, 45% of respondents said their business performance was within their expectation. Encouragingly, 38.3% performed better than expected.
Guy Day, Managing Director, Asia, Ambition, commented, “Although the banking & financial services sector’s fortunes appeared to be slowly improving, it is still a reasonably fragile market and hiring is a fraction of what it was 12 to 18 months ago.”
Among those 16.7% respondents whose business performance worsened, most were from travel & hospitality, certain segments of the retail industry and media.
He added, “These sectors are in the firing line: consumers spend has been reigned in and this has flowed through directly to the business world. Anything discretionary in either consumer or business is off the agenda. Travel, non-essential retail and advertising fall firmly in this discretionary category according to many.”
 Market Outlook
When asked about the outlook for business performance, 25.6% of respondents predicted their business would contract during the remainder of 2009. However, 27.2% felt they would maintain 2008 performance levels whereas 47.2% were confident and expected growth in the next two quarters.
Most respondents anticipated there will be an upturn and some form of market recovery in 2010. 25% were confident this would happen in Q4 2009.
Day remarked, “Ambition has found that there is considerably more optimism in the recruitment market at mid-year versus March 2009 and we believe recruitment sentiment has bottomed out. Most of our client organisations are now looking to their people strategies with a view to capitalising on future growth as opposed to grappling with their employment cost base. The general consensus is 2009 will be a very tough year indeed and it won’t be until 2010 that we see any form of recovery.”
Hiring Challenges
The top three hiring challenges that the respondents’ organisations expect to face over the next 12 months are budget constraints, obtaining headcount approval and uncertainty in the business outlook.
According to Ambition’s survey findings, other difficulties include the lack of qualified candidates, increased turnover and too many applicants to screen through. Some respondents cited that high calibre candidates are reluctant to change jobs and others stressed the need to manage candidates’ salary expectations.
 Hiring Trends
Even though the unemployment rate has continued to climb, nearly half of the respondents said they had hired people in Q2 2009. Among those who didn’t hire in Q2 2009, 43% said they will hire again in 2010. 35.5% couldn’t make a forecast due to limited visibility.
Day said, “Despite a challenging recruitment market, we are at, or moving towards, the end of the redundancy phase of the cycle and companies are now looking at up-skilling. Sadly this is replacement recruitment and not new headcount so this is why the unemployment rate will continue to climb. Although there are clearly instances of companies hiring new headcount, it is not the norm and we are probably at least another 6 months away from entering the final phase of the cycle which is the return to more buoyant conditions and a genuine trend of new headcount being created.”
Hiring Overseas Candidates & Contracting Staff
18.1% of respondents wouldn’t consider hiring an overseas candidate even if they can’t identify a suitable one locally. Their main concerns surrounded budget limitations. However 81.9% were receptive to overseas candidates but largely for senior positions only and where candidates were willing to work on local package terms without relocation allowances.
Contracting staff have become a popular alternative to control fixed costs. 48.5% of our respondents were willing to consider hiring contracting staff and 24% even intended to maintain their headcount numbers for contracting/temporary staff.
Salary & Annual Bonus
Overall, nearly 40% of respondents’ companies did not give a salary increase for 2009 but 85.4% still received annual bonuses for the 2008 financial year.
Guy Day commented, “Those who have been lucky enough to command a salary hike will mostly receive lower single digit pay rises. Few companies offered more than a 5% increment but still we found evidence of some bucking the trend. Despite the odd generous company offering better than average pay increases, bonuses have taken a beating with most for the 2008 financial year with the range being down from 20% to 50% lower than for the 2007 financial year. Only a small proportion of respondents received bonuses comparable to last year.”
Salary increments for new staff joining companies falls within the 5% to 15% category.
Cost Control Measures
Most companies introduced cost saving initiatives. 55.7% offered no pay increases and 54.4% reduced headcount. 11.4% offered sabbaticals for employees and either mandatory or voluntary unpaid leave.
Other possible measures, as cited by the rest of respondents, include salary reduction for senior staff, headcount freezes, cost control on travel and entertainment expenses as well as curbs on other operating costs.
Day concluded, “Those who have switched jobs have done so only with the security of an attractive pay rise and candidates who have moved because they fear for their job have taken similar salaries and often less than before. At certain levels, notably more senior roles it is incredibly hard to find the right mix of skills and experience.”
About Ambition
Ambition is a leading recruitment and contracting business with coverage across Singapore, Hong Kong, China, Australia and Britain. Founded and listed on the Australian Stock Exchange in 1999, the company has grown to become one of the leading players within accounting, audit, banking & financial services and sales & marketing recruitment. For more information, please visit www.ambition.com.sg.
For further enquiries, please contact:
Lily Cheng
Marketing & PR Manager
Ambition
Tel: (852) 3101 3066
D.L.: (852) 3103 4316
Mob: (852) 9105 0675
Email: lily.cheng@ambition.com.hk
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