Within Singapore’s construction, property and engineering (CPE) industries, the job market demand during the pandemic has far surpassed supply due to delayed projects, acute manpower shortage, lower operating activities, the surge in materials and transportation costs as well as digital transformation.
In today’s current employment trends and labour market, employers within the CPE segment will be actively hiring talent for both new and replacement roles to speed up production to fulfil output expectations and meet tight deadlines. We expect higher employment rates and job opportunities for talent, driven by the rising demand for talent from companies in CPE industries, which is positive news for job seekers and fresh graduates. However, this may bring about more competition for talent and the recruitment process could prove challenging as finding qualified candidates will not be easy.
Even though the number of career opportunities has increased in these sectors, employers are facing recruitment challenges due to the lack of skilled talent and reducing work pass quotas. Companies in the construction, property and engineering industries are facing significant workforce changes and HR challenges, such as rapid digital transformation, an ageing workforce as well as fewer STEM graduates to fulfil workforce needs. Many companies have also started to invest in digitalisation to digitise their internal processes to gain more efficiencies.
Despite having more job opportunities, it is still evident that Singapore is still facing talent shortage in the CPE segment. The lack of qualified candidates with relevant skill sets will only pose a challenge to hiring managers through the recruitment process.
Companies in these industries will be looking to strengthen their employer brand value to drive talent attraction and improve employee retention in order to close the workforce gap and meet production requirements. In some cases, employers will be offering higher bonuses and pay raises as the competition for skilled talent intensifies.
bonus payouts, recruitment and industry trends 2022
1. construction industry
The annual bonus for employees working in construction firms increased from 0 to 0.5 months in 2021 to 1 to 3 months in 2022. The higher bonus payout for 2022 accounts for the additional workload undertaken by employees and construction workers to meet tight deadlines due to project delays, as well as to retain their workforce.
When operations slowed down due to restrictions on the number of employees allowed on-site, it has fueled a pandemic-induced foreigners’ exodus. The reducing number of work quotas has also hindered the organisation’s ability to hire foreign talent to fill their workforce gaps.
To resolve the headcount shortage, many employers are hiring experienced talent directly from competing firms, often offering better employee benefits and a higher salary range in a bid to attract them.
2. property industry
The average annual bonus for employees working in property firms will increase from 1 month in 2021 to 2 to 3 months in 2022. The higher bonus payout this year reflects the industry’s positive performance and accounts for the increasing talent demand.
There has been an increase in talent demand for data centre fittings and roles in facilities management. As the construction industry rushes to meet project deadlines, we can expect to see more new properties and data centres start to operate this coming year. Employers are actively hiring new employees who are skilled and experienced in property and real estate to develop or improve standard operating procedures and maintain operations.
Leasing is another area of steady talent growth within the property industry. During the pandemic, many companies have either downsized their office space or moved to co-working spaces. As more retailers shift their operations online, leases for commercial shops and office spaces have been reduced by 10%. With empty spaces needing to be leased, employers are looking for experienced leasing managers with an extensive network to recruit new commercial tenants for both retail and office spaces.
3. logistics industry
The average annual bonus for employees working in the supply chain and logistics sector will increase from 0.5 to 1 month in 2021 to a minimum of 1 to 2 months in 2022. The higher bonus payout this year not only reflects the industry’s resumption of its full operations, but also the positive performance driven by increasing e-commerce activities, as well as food and delivery services.
Driven by the growth in the e-commerce industry, the demand for supply chain and logistics has increased significantly. Companies are also looking for digitally-savvy talent to design and operate automated supply chain management systems to optimise inventory levels and speed up efficiencies within the supply chain network.
In 2022, experienced professionals such as supply chain planners, logistics analysts as well as procurement specialists are highly sought-after.
4. industrial sales industry
As the industrial sales sector recovers quickly from the pandemic, many job seekers are looking for companies that offer higher base salaries to compensate for any cap on commissions and bonuses.
The talent demand for industrial sales professionals within mechanical - which includes machinery and rotating equipment - has increased significantly. Companies in oil & gas, offshore and manufacturing are procuring equipment to speed up operations and meet increasing global demand.
Demand from the energy sector has also surged as projects resumed and employees are able to travel via the Vaccinated Travel Lanes to bid for and negotiate business deals. Many employees are maximising their growth opportunities after two years of low activities and are seen to be bidding on high volume projects to expand their portfolios.
5. manufacturing industry
The average annual bonus for employees working in the manufacturing sector will increase from 0.5 to 1 month in 2021 to a minimum of 1 to 3 months in 2022. The higher bonus payout this year reflects the industry’s positive performance, as well as employers’ bid to retain the workforce to meet the increasing workload and address the labour shortage.
Even as Europe invests to double their semiconductor market, the Asian markets remain deep-rooted in a highly resilient and connected ecosystem, mainly through back-end processes such as assembly, testing and packaging. However, the global chip shortage continues to put a tremendous amount of pressure on chip manufacturers. Many manufacturing firms are expanding their workforce to clear the backlogs that were accumulated during the pandemic as well as meet increasing demands.
Unfortunately, the industry is similarly plagued by a reducing workforce due to a limit in work quotas and pandemic-induced talent exodus. In the past, companies had much more latitude to augment their workforce by hiring skilled talent from regional countries. In addition to the decreasing number of STEM graduates, many job seekers with relevant degrees are pursuing careers in Singapore’s more attractive industries like professional services, consultancy and financial services. As it has become increasingly difficult to hire from overseas, companies have to tap into the shrinking local talent pool. Employers are hence more likely to offer higher salaries and attractive bonuses to entice talent from other companies.
Employers in the manufacturing sector are actively hiring talent in electrical engineering, electric design as well as QA/QC.
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