Skilled professionals in demand

The competition for finance talent will remain fierce in ASEAN in 2024. According to the Robert Walters 2024 salary guide, 57% of businesses in Singapore will be giving pay rises this year, 80% of professionals will be looking for a new role and 54% are expecting a pay rise. The figures are similar for Malaysia and Australia, while in New Zealand, where the talent squeeze is particularly fierce, 89% of businesses are expected to raise pay.

Technology adoption and digital transformation, particularly the automation of tasks and services, is quickly reshaping the landscape across the region. Zen Soh, manager at Robert Walters Singapore, says: ‘Many technical roles where the job scope covers routine work with basic digital tools have now been made obsolete by automation. The accelerated pace at which the sector is integrating new technologies and tools will be the key driver behind hiring decisions in 2024.’

Kelly Wee, senior manager at Hays Singapore, agrees. ‘Professionals with proficiency in areas like data analytics, AI, cloud computing and cybersecurity will have a competitive edge and are more likely to secure better opportunities and higher salaries,’ she says.

In South-East Asia, many businesses are turning to the region as an HQ hub. ‘Several companies have chosen to relocate their regional headquarters from China to Singapore to mitigate geopolitical risks,’ Wee says. ‘Notably, Chinese groups are actively establishing holding companies to future-proof their businesses amid evolving perceptions of corporate China. Singapore is leveraging its status as a global financial centre with substantial capital flows.’

New Zealand will experience continued demand for senior finance, financial accountants and finance managers across all industries as organisations settle into the new normal of continued rapid change, says David Cawley, regional director at Hays in Australia and New Zealand. ‘The professional practices remain extremely candidate-short, so competition remains high.’

Salary movements

In Singapore, most companies will offer standard increments to their employees, with a premium of up to 20% for in-demand niche skillsets such as data analytics.

‘Junior salaries have been increasing at a much faster pace over the last two years and we expect this to continue in 2024,’ says Eugenia Ng, director at Michael Page Singapore. ‘Employers are willing to invest in talent as part of talent attraction strategies.’

At the mid to senior levels, salaries will remain very competitive as the talent pool continues to upskill and upgrade, she adds. ‘Salaries for specialist roles, such as tax, internal audit, risk and compliance, will see the highest spikes – at least 20%.’

For contract positions, hiring slowed in 2023 and is expected to pick up again only in the second half of 2024, Soh says. ‘Salaries are therefore likely to remain flat, with standard increments of around 10%–15% for candidates moving jobs. Those who remain in the same jobs can expect an increment of 3%–5%.’

In Australia, Simon Faircloth, regional director of Page Executive Australia, expects to see more modest salary rises across all levels. ‘Many of our clients are under significant cost pressure, so while securing talent is a continued challenge, the reality is the appetite for paying above market salaries to secure it has diminished. Our clients are more likely to look to reduce costs through automation and, in some cases, offshoring and then reinvesting those funds into absolutely critical roles.’

Nevertheless, companies serious about retaining staff will likely keep salaries in line with inflation, says Nicole Gorton, director at Robert Half. ‘For junior roles, it’s unlikely salaries will increase higher than that due to more available candidates and economic uncertainty. She also warns young finance professionals that high starter salaries can set high expectations, which may exceed their experience and abilities.

She adds: ‘Mid-level and senior professionals with greater experience and skillsets could be in a position to demand higher salaries but companies are only willing to grant those requests if the candidates can bring high value to their team. Focusing on developing in-demand skills, acquiring relevant qualifications and showcasing leadership potential can maximise salary growth opportunities.

‘In New Zealand there will be less movement at the senior level, though middle management candidates are in demand and employers are determined to hold onto their best talent, particularly in business analysis.’

Benefits packages

Remote, hybrid and flexible work arrangements have become prevalent in accounting and finance across the region. Businesses that do not offer such arrangements put themselves at a disadvantage in the hunt for top talent.

‘While there are now far more employers wanting their employees to spend a minimum of 50% of their time in the office, very few are insisting on 100%, and those that do have found it challenging to retain and attract talent,’ Faircloth says. ‘The majority of employees still expect a hybrid model, and most employers remain willing to offer this.’

Companies increasingly understand the importance of being creative with their benefits packages, says Gorton. ‘With flexible working benefits highly adopted already, businesses are increasing their focus on employee wellbeing and lifestyle benefits, including offering financial, mental and physical health benefits. Flex days to attend medical appointments are highly requested by Singaporean staff.’

In New Zealand, professionals are overwhelmingly looking for career development benefits, she adds. ‘Top-tier talent is scarce and interested in roles that offer a blend of company culture and career progression.’

Also popular are finance allowances to work from home, insurance, fuel assistance, meal vouchers and 13th-month pay.