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Singapore: Logistics to see highest pay rises thanks to e-commerce and talent shortage
Salaries in logistics are likely to increase more than those in any other sector, according to a survey in Singapore.
Mercer’s Total Remuneration Survey for the island state found logistics sector pay rises were likely to rise by 4.40% from 2022 to 2023 – surpassing pre-pandemic levels.
This compared to rises in banking and finance of 4.27%, 4.06% in high tech, 3.52% in aerospace and 3.25% in real estate.
Mansi Sabharwal, reward products leader at Mercer in Singapore, said: “Logistics has taken the lead in salary increments primarily due to the return of international trade flows and supply chains post-pandemic and the accelerated growth of e-commerce activities, which boosted the demand for shipping and delivery.”
Companies in Singapore are also seeing a talent shortage, with higher levels of voluntary attrition, she added. The projected voluntary turnover rate in the country is 15.2% by the end of 2022 – up on pre-pandemic levels of 12%.
Logistics had the third highest voluntary attrition rate of 18.7%, behind lifestyle retail and aerospace.
The most common reasons for voluntary turnover in all sectors included a lack of a clear career path and opportunities to grow, low pay competitiveness and high stress levels.
The continued rise of e-commerce and the development of a mega port are likely to continue to lead to the transformation of supply chain jobs in Singapore, according to another salary report from the island.
Persolkelly’s Singapore Salary Guide 2022-23 said government figures indicated that more than half of supply chain jobs in Singapore are expected to either disappear or be transformed within the next three to five years.
The report said monthly salaries for supply chain directors or assistant directors ranged from US$8,000 to US$13,000.
Key trends, including the continued rise of e-commerce and the development of logistics infrastructure – including at what is anticipated to be the world’s largest automated port by 2040, will drive growth in the sector, the report said.
“Amid the pandemic, Singapore’s status as a global logistics hub has grown due to its competitive advantages, including the efficiency, reliability, and resilience of its network,” the report said.
It added that out of 56 job roles studied in the Singapore government’s Jobs Transformation Map for the sector, around 54% of jobs – accounting for 36,000 workers – will require redesign or be displaced.
Heavily manual, labour-intensive and repetitive tasks are most likely to become automated. “New roles such as data analysis, software development and digitalisation and automation job roles are also expected to emerge and accelerate change. Singapore’s e-commerce boom and prolonged border closures during the pandemic have increased the demand for manpower in the logistics space,” added the report.
Source: https://www.cips.org/supply-management/news/2022/november/logistics-to-see-highest-pay-rises-thanks-to-e-commerce-and-talent-shortage-/