Tackling the talent conundrum

Businesses in Singapore are still taking on employees, even though the economic outlook is not as bright as last year. According to the Regus Business Confidence Index, more than half (68%) of Singapore companies report that they plan to increase headcount in the next two years. This is despite a downturn in the Regus Business Confidence Index, in which Singapore has slipped 29 points from April 2011, to 117 in September this year.

“The report finds that, six months on from a rosy start to 2011, the global outlook has suffered a clear reverse,” comments Filippo Sarti, CEO, Regus Asia-Pacific. “However, national business sentiment and activity does not seem to be unduly affected, with businesses actively investing in their most valuable asset: people power.”

Adecco also sees 2011 as a year of job growth, with companies continuing to be optimistic about adding to their workforce – although ensuring that their employee base remains as flexible as possible. “It’s the flexibility of the workforce going forwards that will be very important for most organisations,” says Lynne Ng, regional director, Adecco SEA.

Josh Goh, assistant director, Corporate Services, The GMP Group, is more cautious, saying the uncertain global economic outlook coupled with Singapore’s declining exports will affect the job market for 2012 and many companies will still take the cautious approach to hiring. “Companies will use their bottom lines to determine hiring activities for the year.”

Industry highlights

Goh says that with integrated resorts flourishing and a surge of hotels and retail establishments, companies in the service sector such as retail and hospitality will be first and foremost in ramping up headcount to keep up with the demands of the industry. Ng agrees, adding that she expects to see growth in IT, telecommunications and also the pharmaceutical and biotechnology sectors.

Leigh Berryman, CEO for Maccine Pte Ltd, a Singapore-based preclinical research organisation, says, “in the pharmaceutical industry, despite the low general business confidence, the movement is towards a leaner, smarter development process and Singapore is positioning itself as a global player in the increasingly pivotal field of translational research.

“Thus, we see a boom within this segment as Singapore continues to build increasing scientific mass and competence through the recruitment of appropriately qualified people. We see that a critical level of local expertise has already been passed and that having a strong community of these types of experts ensures a relatively smooth recruitment of other, like-minded experts,” notes Berryman.

Alternative employment options

As an indicator of the changing structure of employment, hiring intentions show a particular emphasis on freelancers, graduates and remote workers – as firms now seek competitive advantage and growth in the months to come. Signalling a clear move towards more flexible working practices, 50% of Singapore companies surveyed for the Regus report say they plan to hire more freelance staff, and 32% will employ more remote workers in 2011/12.

Sarti points out, “in Singapore, where unemployment was reported to be 2.1% in June (according to the Ministry of Manpower’s Labour Market Report for Q2), freelance and remote working are becoming an increasingly popular solution to boost headcount while remaining flexible and rapidly scalable.

“In addition to this, by taking advantage of solutions already available on the market, it is possible for even very small operations to establish a low-risk presence in their target markets without making lengthy premises or equipment commitments and allowing them to expand or withdraw depending on volatile market conditions,” he adds.

Ng also believes that companies will continue to explore temporary and contract staffing options, especially when skill sets are in short supply in Singapore’s tight labour market. “It’s also likely that more companies will look at staffing outsourcing solutions that not only produce savings, but also allow for added workforce flexibility.”

With the recent changes to the labour laws, employers will have to think twice about the notion that foreign labour is cheap, and reassess the local talent pool before directing their recruitment needs towards foreigners, says Goh.

He says that employers might even consider offering job opportunities to stay-at-home mothers and older workers, or review their work processes to encourage more from this pool of candidates to join or return to the workforce – a problem where part-time, temporary and contract employment terms may be the solution.

As for industries that will employ more part-time and temporary workers, Goh says the retail and service sector will lead, as “this sector usually sees high turnover”. The financial services and the IT industry will encounter more contract positions.

Old is gold

Along with the different types of employment terms that will become more commonplace next year, another development that all, if not most, employers are aware of is the Re-employment of Older Workers legislation, which is coming into force in 2012. The Ministry of Manpower says that the legislation will enable more people to continue working beyond the current statutory retirement age of 62, up to 65 in the first instance and, later, up to 67.

Many employers have already started preparing employees for re-employment, bearing in mind the competitive business advantage they have if they retain talent and expertise by way of re-employing mature workers. “If the tight labour market conditions prevail, then those companies that accept and promote workplace diversity – especially for older workers – will be better able to meet their headcount needs,” says Ng.

Some strategies that are being used by companies looking to capitalise on the skills and knowledge of older employees include redesigning jobs to attract mature workers and redeploying existing older staff to less labour intensive positions, says Goh. “They would also revise their HR policies to accommodate the needs of their older workforce, such as by offering flexible benefits or flexible work arrangements.”

Overall, on the recruitment front, HR has its work cut out for it. “HR managers will likely continue to be challenged by how they can attract the best talent to their organisations and retain them. Of importance is the quality and availability of talent – rather than who it is and where it is from,” Goh says.