Risk, compliance and audit professionals in Singapore feeling underpaid: perceptions vs reality

Introduction: the pay bar is lowering

Only 38% of risk, compliance and audit professionals in Singapore feel they are paid fairly. 29% feel they are underpaid compared to market rates. The large increments of 20-30% they could once expect when changing roles have given way to more modest salary increases of 11-20%. Candidates’ impression that they are underpaid has not been helped by many jobs being ‘juniorised,’ offering a lower salary but the same level of responsibility. At the same time, Singapore is frequently ranked as the most expensive city in the world. So how can employers give themselves the best chance of attracting strong professionals and in the process, maintaining their relationship with the Monetary Authority of Singapore (MAS)?

1. Reframing risk, compliance and audit

These teams are too often seen as cost centres; back-office functions focused on an organisation’s day to day running. But businesses have the power to change perceptions of risk, compliance and audit so that they are viewed as drivers of business success.

Identifying, analysing and managing uncertainties, risk can be a crucial advisor that helps the business take calculated risks. By ensuring legal and regulatory standards are met, compliance can create a stable foundation for expansion and enhance the business’s brand reputation. Providing independent, objective assessment, audit can help the organisation identify streamlining and growth opportunities, and provide accurate data for strategic decision-making. All of these functions have a substantial commercial value.

Businesses can reinforce the idea that risk, compliance and audit are key business enablers by measuring these teams’ performances according to how they support organisational growth, and publicly recognising the importance of their work. In the process, these teams will see that what they do is valued and that they are not just there to keep the lights on – they are there to contribute to the business’s success.

2. Managing expectations on salary

Some candidates do not seem to know what constitutes a good salary in the current market. 33% of risk, compliance and audit professionals neither agree nor disagree that they are paid fairly. There is no doubt that it has been a challenging year or so, with economic uncertainty and geopolitical factors making many organisations cautious about hiring, and many professionals reluctant to move. But rather than using this as an opportunity to save on salary costs, it is important that hiring companies, with help from recruiters, bridge that gap between candidate expectations and the reality of the recruitment market.

At the risk of getting existential, what does it mean to be underpaid? In the case of the financial services industry in Singapore, many candidates have been paid so well for so long that any downward movement would always be keenly felt. That means candidates are having to adjust to a new normal. Attitudes are changing – we are already seeing signs that expectations are becoming more grounded, particularly in our conversations with candidates – but the results of our survey clearly show that more work needs to be done.

3. Making bonuses a part of your package

Against a challenging financial backdrop, bonuses are becoming an increasingly important part of the overall package. 69% view the total compensation package as the most important number when considering job offers. Employers are often using bonuses to make up for the shortfall in salary – so candidates can earn as much as they did a couple of years ago, but will have to hit several performance metrics before they do. Indeed, 39% received a generous payout of 3-5 months’ salary as their last bonus payment and 37% received 1-2 months – so although salary increases are not currently at the level of previous years, the rewards are out there for talented and driven professionals who show they can contribute to business growth.

Conclusion: adjusting to a new normal

It is only natural that candidates are concerned about receiving lower salary increments, often for more responsibilities, when changing jobs. Hiring companies can offset the impact of this challenging market on their people’s remuneration by viewing risk, audit and compliance as strategic enablers that drive organisational growth, operational efficiency and long-term resilience, and rewarding these teams accordingly.

It is also important that they work with recruiters to educate candidates on the reality of the current hiring market. For risk, compliance and audit professionals, however, that does not mean the good times are over. Bonuses are proving an effective way of helping them make up for the shortfall in salary, and if they can demonstrate their ability to help the business grow, then the rewards are still potentially great.

These insights are derived from our report Focus on Financial Services: Risk, Compliance and Audit in Singapore, for which our corporate functions team surveyed more than 200 experienced risk, compliance and audit professionals on salaries, motivations to move, working arrangements and current trends in the insurance sector. You can request a download of our report here.

If you are an employer looking for more advice on offering your people the right compensation package, or a professional looking for your next corporate functions role, get in touch with me now.