A THIRD of the companies here have flexi-work arrangements, and most also see this as an effective tool in talent retention, a survey has found.

Indeed, more than 70 per cent of the companies providing flexi-work arrangements have found them beneficial to the company, said Watson Wyatt which conducted the study.

Some of the flexi-work arrangements adopted include flexible work hours, compressed work week and part-time work.

Said regional managing director Chris Bennet: 'We receive many requests from multinationals and large local companies which are thinking about introducing a greater level of employee choice to for their staff.

'The level of inquiries increased last year, and we think that the number will continue to grow, as companies continue to look at innovative ways of responding to the 'war for talent' in Singapore.'

On the salary front, the study also found that Singapore firms have projected an average salary increase of 4.3 per cent this year - almost the same as last year's actual average of 4.2 per cent.

However, there is significant differentiation between the increases in different industry sectors.

The average variable bonus projected for this year is 2.4 months, which is similar to last year's projection but 'we would expect this to increase in response to continuing economic growth', said the firm.

The survey noted the high rate of staff turnover here, adding that this reinforces the fact that attracting and retaining high-performing employees will be ever more challenging going forward, as companies compete even more fiercely for talent.

Said Mr Bennett: 'Most companies are experiencing high staff turnover rates ranging between 15 and 25 per cent. High staff turnover is becoming a significant issue for many companies in Singapore, especially in the IT & financial services sectors.'

Watson Wyatt tracks the movement in the market in terms of salary increases, bonuses, and staff turnover in Singapore.

The survey was done between May 8 and May 23 this year involving 97 local and foreign companies representing 20 industry sectors.