Are SkillsFuture and WorkPro the panacea to Singapore's rising skilled labour woes?

Singapore's employment landscape is presently undergoing seismic changes, but the sectoral transformations exhorted are being driven more by need rather than by design. Against a backdrop of a slowing economy (2.1 percent in 2015 and expected to remain between 1 and 3 percent this year), high retrenchments in the service industries (4,600 redundancies in 1Q16 compared with 3,500 in 1Q15), and falling demand for manufactured goods, Singapore has had no choice but to review, redesign, and restructure its labour market in an attempt to galvanise employment stability in an unpredictable and volatile global market.

Red-flagging these concerns in his May Day speech, Prime Minister Lee Hsien Loong emphasised that "the only way to do that is to transform the economy, create new opportunities and opportunities not just to earn a pay, but to upgrade ourselves so that we can do more challenging jobs. That means restructuring our industries and reshaping our jobs."

While tripartism is being lauded as a key strategy forward, it is not the heralded panacea needed to address the inequalities faced by the workforce. Firstly, there is a mismatch in the supply and demand of skills to meet the needs of the economy.

Secondly, to be productive and competitive, Singapore's workforce needs to be adaptable, resilient to market fluctuations and fickle global demands. It is a constant challenge for any country but the Singapore Government, through its highly visible support programmes like the Career Support Programme, Professional Conversion Programme, and the Place and Train programme, must be admired for attempting to address this imbalance.

Those re-retrenched are being assisted to re-enter the labour market via upskilling training programmes, but these programmes only benefit those in mid-career changes. The question is, "Is this enough?"

In my opinion, Singapore can no longer afford to take a generic view of the situation. It needs to review its specific market demands, highlight niche labour expectations, design training programmes that are fit for purpose, and invest in job matching platforms that will showcase skills for all tiers of workers and not just PMETs. But where do you start?

Side-stepping Singaporeans' obsession with paper qualifications, the Singapore government is urging tertiary educational institutions to restructure their curriculum to incorporate blended learning methods, thereby placing a high emphasis on experiential, lifelong learning. Boosting productivity through upskilling and upgrading its workforce alongside innovation capabilities have led to a cautious calibration of the local workforce needs while questioning its dependence on foreign talent.

The nascent contingent workforce issue is particularly timely given current market and regulatory conditions. With many businesses forced to either downsize, restructure, or relocate, the sourcing of highly skilled professionals is necessary. This trend is said to help reduce labour costs, expenditure, and headcount in the short term.

The challenge to businesses is how to transform this strategy into medium and long term goals when an uncertain future lies ahead. The delicate balancing of Employer Performance Value (EPV) to Employee Skillset Value (ESV) can spell either the success or demise of a business.

In spite of global fears, many Singaporeans remain blasé and continue to hedge their future in high-risk stakes. The Randstad Workmonitor Year- in- Review found that millennials and Generation Z are more confident today, than older counterparts, in finding new jobs within six months with 78 percent self-assured about their career prospects, value, and earning potential.

The rise of a contingent workforce, for all its benefits, is responsible for this confidence but it hides a darker side for employers:
A. Challenges in terms of sourcing and selection (only the most skilled are winners).
B. Retention and development (keeping benefits, training, and upward career migration competitive).
C. Choosy skilled talent (with 94 percent looking at job content and company culture when looking for new jobs).
D. Lack of an integrated workforce management strategy.
E. Ad hoc and at times high-risk managerial behaviour (blurred responsibilities between permanent and contingent workers).
F. Poor data management and information flow.
G. Inadequate technology for day-to-day tasks.

These factors should not be ignored as they can inhibit an organisation's ability to maximise its workforce capabilities. Crucially, quality analytical information both business- and people-led is trending so that employers can make better choices and decisions. Could this be the salvo to help businesses review, design, and mobilise finite human resources to their best potential?

Alarmingly, Organisational Citizenship is now under intense scrutiny. In a culture that prides and values high work ethics, loyalty, and commitment, today's transient culture not only encourages job hopping but perpetuates a carpe diem attitude which does little to instil confidence in employers with projected long-term productivity goals. The true winners are the numerous talent agencies springing up virtually overnight to feed into this frenzy.

Willis Towers Watson (Asia Pacific) postulates that offering globally competitive salaries is crucial to sourcing and retaining the best candidates and practices. Singapore already pays between 28 and 52 percent higher salaries than China (and Hong Kong) for middle, senior, and top level management. Encouraged by this, a higher percentage of PMETs have entered the workforce at the detriment of those less skilled.

SkillsFuture is undeniably a pro-active (albeit long-term) beacon of the government's investment in its populace and economy. However, critics have questioned whether its courses can bridge the chasm between economic needs and workforce supply.

WorkPro and its proposed enhanced programme are designed to augment local manpower by making employment practices more age-friendly. Come July 2017, Singapore is boldly raising its retirement age ceiling from 65 to 67 years, allegedly extending employability and giving more viability to ageing professionals. Employers will be incentivised through grants to either retain ageing staff or offer year-on-year contracts based on competence, value to the firm, and physical fitness.

But not everyone will be a winner in these subjective stakes. Firstly, it is not clear how conformity and consistency will be regulated across sectors. Secondly, is the capped Employment Assistance Payment (EAP) sufficient to support retirees through this senior life change? Many industry pundits consider the latest proposals tokenistic and unrealistic as they are still ageist in concept and ignore the maxim that valuable skills are transferable at any age.

Government agencies like CaliberLink, WDA, Workforce Singapore, SkillsConnect, National Jobs Bank, and others can do more to broaden their remit to link employers to PMTs via job-specific Job Fairs. More pertinently, PMTs are key to instilling a deeper sense of Organisational Citizenship. After all, isn't this what Smart Nation is all about?