HIGH turnover rates here have driven up staff costs at several firms, according to a recent survey.

Accounting firm Grant Thornton International's latest International Business Report (IBR) found a balance of 78 per cent of privately held businesses in Singapore reporting higher staff costs, due to factors like job hopping and poaching.

The statistic indicates the proportion of firms that reported higher staff cost than a year ago.

According to Grant Thornton, Singapore is ranked 9th in this aspect, after countries like China (91 per cent), India (85 per cent) and New Zealand (79 per cent), among others.

Malaysia and Hong Kong ranked lower with scores of 74 per cent and 68 per cent respectively.

The survey of 7,800 businesses in 34 economies worldwide found an average score of 63 per cent.

Said Wong Kian Kok, staff partner with Foo Kon Tan Grant Thornton - a member of Grant Thornton International: 'With a tight market for talent, companies are developing a full portfolio of interventions to attract and retain staff.

'While organisations have to offer competitive packages, people rarely exit a company solely because of pay. Often it is because they lose the connection with the work they are doing and/or the people for whom they are working.'

The study also found that 59 per cent of privately held businesses worldwide are now more focused on finding and retaining employees than they were a year ago.

This is measured by the percentage of respondents who stated they are more focused less those who reported less.

Vietnam topped the list at 84 per cent followed by China (81 per cent), Botswana (79 per cent), India (79 per cent) and Mexico (79 per cent).

Even though Singapore's score of 30 per cent is below the global average, Mr Wong explained that the city-state 'has already been making progress in attracting and retaining key staff prior to the 2008 IBR survey'.

'This can be seen by the fact that 66 per cent of businesses in Singapore reported being as focused in attracting staff and retaining them as the previous year, he added.

The study also found that 74 per cent of companies here are working to improve retention by ensuring that employees understand their core values - higher than the global average of 64 per cent.

Businesses are also looking into long term-strategies such as succession management to retain internal talent.

In line with the global average, 57 per cent of businesses in Singapore report providing training and mentoring opportunities.

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