Is Delaying Pay Rises Leading to Staff Turnover or Disengagement? 93% of Employers Say Yes

• 45% of employers surveyed reduced or postponed pay rises, while 17% did not give pay rises this year
• 64% of employers noticed that some employees were disengaged following a delay in pay rises, while 29% of employers noticed higher turnover rates
• 72% of professionals indicate that they are actively hunting for jobs after not receiving their expected pay raise
• 58% of professionals who received pay rises, shared that the pay rise received was lower than what they expected
• 92% of professionals perceive that they are either significantly or somewhat underpaid for their current roles, in relation to the market rate

Business leaders in Singapore are aware of the impact of monetary compensation to engage or retain talent. Nine out of ten of them have seen an increase in employee turnover or disengagement after delaying pay rises to professionals. This is among the findings from a new poll of close to 200 professionals and employers in Singapore from global talent solutions business Robert Walters.

With an evolving economic landscape, many employers are facing difficult financial decisions. Controlling overheads has become a priority – and in many cases, that has meant deferring or scaling back salary reviews. While this approach may offer short-term savings, the research shows that over time, this could have wider implications for morale, employee retention, and company culture.

“Businesses are under immense pressure to keep costs down, and for many, salary increases just haven’t been feasible this year. In fact, one in three business leaders (34%) said business performance was the top reason for delaying or reducing pay rises, followed by budget constraints (23%) and market uncertainty (23%),” says Kirsty Poltock, Country Manager at Robert Walters Singapore. “Our research shows that these decisions, while understandable, are not without consequence. Whether it’s higher turnover or a gradual drop in motivation, companies are starting to feel the effects.”

The survey also reveals a widening disconnect between employer decisions and employee expectations. Among employees who didn’t receive a pay rise this year, 72% said they are now actively looking for a new job. Even among those who did receive an increase, 58% said it was lower than expected.

“There’s a clear message here: even if employees understand the business pressures, unmet expectations are still pushing them to reconsider their options. And with AI tools streamlining the job application process, employees have more opportunities than ever to explore new roles,” adds Kirsty. “This is where salary benchmarking and market insights become so important. Professionals who have not seen a pay rise may show signs of disengagement or raise their expectations in their next review, and employers will need market data to communicate credibly, demonstrate fairness, and manage expectations.”

“We’re seeing more employers ask how they can retain their best people when pay increases aren’t on the table. I would advise employers to think creatively about what they can offer, beyond pay, to consider perks such as meaningful career development, flexible working arrangements, and internal mobility pathways,” concludes Kirsty.

When salaries are constrained, culture and communication matter more than ever. The organisations that succeed will be those that balance cost control with a thoughtful, market-informed approach to employee engagement.”

To help business leaders make more informed decisions, the Robert Walters 2025 Salary Survey provides up-to-date insights into pay levels and hiring trends. The guide is designed to help leaders have transparent, evidence-based conversations with their teams about compensation and expectations. To find out more about salary benchmarking, click here.