Alternatives to pay rises 

According to the Singapore Business Review, 67% of Singaporean employees are planning to change jobs in 2025, with higher pay being a key reason. Naturally, employers are keen to  prevent this exodus due to the costs involved in recruiting and training replacement staff, not to mention the upheaval and productivity impacts of embedding new staff into the business. If the company is not in a position to offer pay rises, however, other tactics are needed. 

In this article, we look at alternatives to pay rises. While salary is, of course, a major factor in employee attraction and retention, there are other options that could position your business as a great place to work, and make employees think twice about leaving. 

Happy, fulfilled employees are less likely to quit, so how can your business meet the demands of the modern workforce? From the obvious (bonuses!) to the innovative (outplacement!), Careerminds has explored every alternative so that you’re not losing top staff. 

The workplace is no longer a one-size-fits-all environment. Different generations and different personalities expect different benefits, so there’s no one right answer here. The option you select will depend on the expectations of your workforce, balanced against the needs of your business. 

Viable options worth considering include: 

If budgets don’t stretch to pay rises, a one-off bonus is an alternative that gives employees the direct financial benefit they’re looking for. There’s really no replacement for having that cash on hand to spend as they please. 

There are risks associated with bonus payments however, including employee dissatisfaction if bonuses aren’t as large as anticipated, the expectation that bonuses will be paid regardless of business performance, and potential discrimination claims if not every worker receives the bonus. For those reasons, other options may be preferable. 

With the majority of companies now pushing a return-to-office agenda, businesses that offer truly flexible working are in demand. The Straits Times cites a LinkedIn study showing that “Eight out of 10 professionals in Singapore consider flexibility as one of their top priorities at work.” In terms of employee retention, that means businesses can stand out as great employers if they’re able to offer flexibility as an alternative to pay rises. 

Flexible working can take many shapes, including remote or hybrid work options, a shortened working week, compressed hours, job sharing, flexible clocking-in times, and much more. The options are almost endless, so any offer will require careful forethought and planning. 

Offering additional paid leave, either as a one-off or as a long-term alternative to pay rises, could sit well with some employees. Work-life balance has become a buzz phrase in recent times, and for good reason. Well-rested employees are more productive, so there’s a benefit for the business here as well as for the staff. 

Employees, particularly Gen Z, understand that the job market is evolving rapidly, and that, to survive and progress, they need to be constantly evolving too. Consider offering upskilling and professional training opportunities as an alternative to pay rises. When employees realise that the business is investing in their future, they’re more likely to stay. 

Artificial intelligence and other emerging technologies are a key focus area, as are “green skills.” Providing training in these in-demand areas will support the career growth of employees, whilst also supporting the future of the business. As an alternative to pay rises, this is a win for both the company and individual employees. 

A study by Insurance Asia found that nine in 10 Singaporean SME employees want medical benefits from their employers, with 60% saying they’d be more willing to join a company and 40% more likely to stay with a company providing such a benefit. 

Providing healthcare insurance and wellbeing benefits to employees is a double-win for the business – it can be a more cost-effective alternative to pay rises, and it can also reduce absenteeism due to illness and poor mental health. 

If the company can’t put more cash in employees’ pockets in the form of pay rises, it could do it in the form of discounts. Helping employees to save money can come in many forms, from money off company products to childcare subsidies, free coffees, and gift cards for major brands – there’s really no limit here. 

It’s possible to negotiate packages with suppliers, and to choose the perks that sit best within your budget, so this could prove a lower-cost option than anticipated. 

While a good salary with regular pay rises is the gold standard, never underestimate the value of simply recognising the great work your employees do. When employees feel appreciated and rewarded, they’re more likely to be loyal, productive members of the team. 

As with flexible working, there are many options available when considering employee recognition. From informal chats through to huge awards ceremonies or peer-to-peer recognition schemes, once again the key is finding the right balance between what employees want and what the business can offer. 

The modern workforce doesn’t just want a pay cheque, they want a sense of purpose, fulfillment, and the chance to make a difference. Businesses can support employees in this mission by clearly communicating their values, building a culture where individual input is valued, and offering mentoring. 

Job security is non-negotiable for many Singaporeans, with one study by HRM Asia even suggesting that “Singapore workers now value stability and job security (53%) over salary (40%) when it comes to choosing the company they work for.” 

While businesses can’t predict the future, they can help their employees feel stable and secure in their roles. One way they can do this is by providing outplacement services as an alternative to pay rises. If the worst does happen, and the company finds itself having to retrench employees, they’ll be secure in the knowledge that they will be fully supported in finding new, meaningful work. 

Outplacement services offer support with CV writing, LinkedIn profile optimisation, job search strategies, interview coaching, and more. This safety net provides your employees with the confidence that their career is in safe hands.

The business benefits too – outplacement protects the company brand and reputation at a challenging time, proves that it truly values its employees, and enhances its ability to attract and retain staff. 

Why not contact Careerminds today to discuss whether their outplacement services could support employee retention within your business and provide a viable, cost-effective alternative to pay rises?

Jen David

Jen is a careers writer and CV specialist, with many years’ experience writing for leading careers platforms and her own business, CV Shed. She loves to support job seekers in progressing their careers, whether they’re looking to step up the ladder, take a sideways move, or change career entirely. She writes attention-grabbing CVs that show off her clients’ expertise and their value to a business, helping them to secure new roles quickly.

Jen also writes SEO blog content on a wide range of careers topics, for clients in the UK, US, Singapore and Australia. She has produced over 300 articles to date and also edits the work of other writers. She maintains her own blog to support job-seekers with up-to-date, best practice information on CVs, LinkedIn profiles and other related topics, and has a book available on Amazon Kindle, How to write a CV for the modern job market.