Singapore businesses are unable to meet salary expectations and this is causing tension between businesses and employees, according to Hudson's Salary and Employment Insights 2012 series of reports.
Organisations in the nation are searching for highly performing candidates who can help take businesses forward, but not at any cost.
The challenge for these businesses is to hire the best talent even though they are not able to pay according to the expectations of the candidates.
"Hiring managers now have to do more with less, which is especially difficult when salary is the top driver for 27 percent of candidates and many employees believe it's easy to find a similar package elsewhere," said Andrew Tomich, executive general manager, Hudson Singapore.
Advising companies to adjust their approach to recruiting to ensure they get the best performers, Hudson says that organisations should identify high achievers and understand their priorities in terms of the harder-to-fill strategic roles and the 'critical' and 'core' roles.
Positive recruiting intentions
Forty-two percent of employers plan to increase permanent staff levels in 2012. Seven out of 10 employees said they are considering moving jobs and about eight out of 10 employees feel they deserve a pay rise this year.
About two-thirds of employers are worried about losing their high performers and recruitment managers across all sectors are searching for candidates with business acumen, a cross-functional knowledge and an ability to contribute to the organisation's overall strategic direction.
Forty-eight percent of hiring managers have decided to increase their budget to secure the best candidate, and 61 percent are finding it harder to secure the right candidates particularly for senior strategic and managerial roles.
"Recruitment is cost-driven and much is compromised by time constraints, yet poor hires can cause untold damage in terms of culture, morale, productivity and profits," said Tomich.
"There's an opportunity for smart employers to think beyond just the salary and tailor remuneration packages to suit individual employees. No organisation wants to be represented by employees who are driven solely by salary."