Wages in Singapore are expected to rise by an average of 4.3% this year, an increase over last year's rise of 3.9%. Industries with the highest projected increases are broadcasting (4.6%), health care (4.5%), and the property sector (4.4%).

HR managers in Singapore note that while salary is an important factor in retaining employees, most Singaporeans quit their jobs due to strained relationships with their superiors. Lack of career development opportunities is yet another reason for employees to look to greener pastures.

To retain employees, many companies have, apart from monetary incentives, turned to flexible employee benefits programs. These programs allow employees to choose benefits beyond the traditional life insurance and health care coverage. These new benefits include lifestyle-related perks such as membership at health clubs and childcare subsidies.

Even as wages increase, the Singapore government is on the lookout for ways to increase the island state's competitiveness. It recently initiated a scheme to offer funding to help employers increase the employability of older workers. Spearheaded by the Workforce Development Agency (WDA), the scheme will allow employees to work beyond the age of 62. Older employees will still work with the same companies, but not necessarily within the same jobs.