As hybrid arrangements gain popularity across the country, organisations can utilise the trend to enhance productivity, work-life balance, and retention, according to research from Reeracoen.
By Maggie Mancini
In Singapore, the implementation of new flexible work arrangement (FWA) guidelines is standardising hybrid work and creating new challenges and opportunities, according to Reeracoen’s latest report, Unlocking Success in 2025: Navigating Pay Structures and Flexible Work Arrangements.
Most employees (62.8%) anticipate merit-based salary increases and most also expect performance-driven bonuses after last year, across both managers and individual contributors. Additionally, as hybrid work gains prominence, with 57% of companies adopting this model and 97.8% of employees aware of FWA policies, it’s important for businesses to embrace structured FWA implementation to enhance productivity, work-life balance, and employee retention.
Despite economic challenges, 30.3% of companies plan to expand their workforce in 2025, reflecting a stable and optimistic hiring landscape. Average bonuses for non-managerial roles are at 2.2 months and managerial roles at 2.3 months, the report finds.
The report identifies key employee concerns across markets, such as team collaboration, work-life balance, and career progression challenges in hybrid setups, while emphasising the need for transparent and fair pay processes. These trends offer opportunities for companies to enhance job satisfaction, retention, and engagement.
“As businesses in Singapore navigate the dynamic challenges of 2025, our latest research reaffirms the critical importance of aligning compensation strategies with employee expectations,” says Kenji Naito, group CEO of Reeracoen Group. “By embracing flexible work arrangements and transparent pay structures, companies can attract and retain top talent, ensuring resilience and competitiveness in a rapidly evolving market.”
