Next generation talent?

Singapore is facing one of the world’s worst “baby droughts” at present, and it’s not just the (relatively) unpopular Year of the Tiger to blame. Last year, only 8.82 new children were born for every 1000 people residing in the city-state. That’s down from a rate of 9.17 in 2007 and a seemingly healthy 12.75 in 2003. According to the US Central Intelligence Agency’s World Fact Book, Singapore is ranked 214th on a list of 221 countries with reliable birth data. In this region, only Japan (220th with 7.64 births per 1000 residents) and Hong Kong (221st with a rate of 7.42) rank lower.

That may be good short-term news for businesses and HR leaders working to get the most out of their staff during the economic recovery. But it should spell big, long-term trouble for those same employers in a generation’s time.

Singapore’s Government has foreseen the trouble ahead, and has been working on a number of programmes to inspire more couples down the maternity track. For instance, it has introduced the Baby Bonus Scheme, which helps to lighten the financial costs of raising children. Initiated in 2001 (and further enhanced in August 2004 and August 2008), the scheme offers cash benefits for the citizen parents of newborns. They now receive $4000 for each of their first and second children; and $6000 for their third and fourth.

Children are also enjoying Government contributions to any savings their parents add to their individual Children’s Development Accounts. The public purse matches parent contributions at a one-to-one ratio, up until the cap of $6000 for the first and second child (when born before 16 August, 2008), $12,000 for the third and fourth child, and (for those families really heeding the call for a stronger Singapore birth rate) $15,000 for all subsequent children.

Not yet enough?

Logically, this should provide plenty of motivation for an upward movement in Singapore’s population chart. But, as the above statistics show, that expected up-tick still hasn’t arrived. Rather, the local birth rate is still falling, albeit at a slower pace than previously. It’s prompted many observers to look elsewhere for change, with the majority of eyes falling on the role of employers.

Singapore’s working environment has been described as unsupportive of working families. Late hours are par-for-the-course of many professional positions, and anecdotal reports suggest some workers are discouraged from taking time off for maternity and parental leave. This has been changing slowly in recent years, but experts say a more economy-wide shift is required. A better support structure, and a change of mindset for organisations are both essential.

Getting the mindset on track

Qualitative research into employee wants and needs has shown a distinct lack of family-friendly work cultures in Singapore. Robert Half’s first quarter, 2010 Workplace Survey, for example, found that many finance and accounting professionals in Singapore are forced to sacrifice personal time for their set work objectives. 52% of the survey’s respondents claimed they had been unable to take all of their allotted annual leave in the last year – due to heavy workloads and the fear of losing their jobs if things are missed. The respondents also complained they experienced more stress at work (42%), took on heavier workloads with little or no extra pay (39%) and worked longer hours (38%) than their roles should normally demand.

All these figures only corroborate that whilst the government may be pushing for island-wide population increase, in reality very few employers are backing that objective up. Tim Hird, Managing Director, Robert Half Singapore, says more direct action is needed, and organisations should be looking to follow up on Government initiatives and give more importance to work-life balance and family leave issues. He observes that the provision of non-monetary incentives, such as unpaid maternity leave, flexi-time and personal awards, will assist employees with achieving this balance and, hopefully, give them the financial and career space to consider starting or building families.

“A successful implementation of flexi-work arrangements which include flexi-time, permanent part-time, (and) compressed work weeks contributes to a conducive and supportive work environment with employees being able to meet their personal responsibilities and family commitments,” he tells HRM. “With the (2008) Government’s initiative of an extended paid maternity leave scheme to 16 weeks which also allows for flexibility during the extended weeks, it is imperative that organisations fully support these practices to ensure employees feel valued and motivated.”

By developing that family-friendly culture, organisations aren’t just helping the country and economy – they are also helping themselves. These factors are fast becoming an essential part of a positive employer brand. Those organisations that are first-in with the changes can look forward to attracting stronger new blood, and higher retention rates among their top talent.

Doing it right

While they may be in relative minority, several organisations are happily getting on board the push for a baby-friendly work culture in Singapore. Liu Fang Joo, Chief HR Officer and Senior Vice President of Corporate Communications, NatSteel, says her organisation is proudly on the front foot in this department. “At NatSteel, we have put in place a holistic solution that gives our staff peace of mind should they intend to have children,” she tells HRM. She says this solution includes 12 weeks’ paid maternity leave for the first two children (this is above the statutory requirement), paternity leave of two days for the first three children, and an in-house clinic which provides pre- and post-natal counselling for staff. In addition, the company sponsors a bursary and merit awards for employees’ school-age children and unpaid infant care leave of up to six days per year.

Furthermore, NatSteel’s Occupational Health Unit works in collaboration with a national outreach programme encouraging new mothers to breastfeed. Liu says the Association for Breastfeeding Advocacy has held talks and sharing sessions with new and expecting mothers working for NatSteel.

Liu says such systems help the company to attract working mothers and retain married female staff in the workforce. “The benefits will allow working mothers time to attend to their child’s needs in their formative years,” she says. “It will also relieve financial burdens and provide assurance to motivate employees to be happy and productive.”

Hird agrees, noting the important connections between staff culture, talent, and organisational success. “In today’s highly competitive economic environment, the success of any business is largely due to its people,” he says. “So organisations need to look carefully at their corporate culture, management policies and what they are offering their employees to ensure that top talent is brought into the organisation and, importantly, retained.”