Some industries are more reliant on the state of the economy in 2020 more than others. Companies in industries that are very much driven by growth and consumption such as retail, manufacturing and services are likely to take a more cautious outlook, especially if there is a profit warning.
However, other industries like fintech, life sciences and fast-moving consumer goods (FMCG) are likely to remain strong in 2020, with some even looking to expand.
Companies in these high-growth industries continue to provide attractive growth opportunities for employees, with roles being re-engineered to focus on future expansion and growth in the ASEAN region.
optimising investments in talent
Investments to grow headcount will likely continue in 2020, but justifications on the returns will play a bigger part in the decision-making process.
Hiring of replacement headcount due to attrition is likely to slow down. Job functions and roles are expected to be absorbed into existing teams to keep manpower costs low and drive higher efficiencies. Large investments will be reserved for critical roles and digital transformation initiatives, particularly for projects that can account for immediate cost savings and generate revenue.
In 2020, companies are expected to tighten their salary budgets, and be less receptive to salary negotiation efforts. Employers are likely to only offer a slight salary increment of between 5% and 10% for new hires.
download the digital copy of the singapore market outlook 2020 in various key industries
key highlights in this year’s labour market outlook
- anticipated in-demand jobs and skills in fintech, consumer goods, manufacturing and supply chain
- industry trends that would impact talent demands and hiring activities in 2020
- factors contributing to the increasing appetite for professional contractors