Are Singapore companies in the mood for hiring?

Local headhunters reveal interesting hiring behaviour of companies in Singapore amid the current global economic downturn.

James Mendes, Managing Director Asia, Futurestep

There is a natural caution when hiring due to the current economic uncertainty and this means companies are more considered with their hiring decisions. However, on the whole, time to hire has not extended significantly because the positions that are currently being recruited remain of key importance to the business and the need to execute the hire quickly remains high. With cost pressure and increased business pressure the importance of the right hire has increased and we see hiring managers looking for candidates who can make immediate and first year impact.

The overall volume of positions has reduced from one year ago with the largest decline in hiring volumes being in the banking sector. Key skill sets remain in short supply however and competition for future leaders and high impact talent has increased.

In most countries there has been a short term slowdown in hiring volumes. Having said that, hiring needs remain high in India, China and Indonesia. The overall talent supply of highly qualified, high impact talent remains lower than the demand.

Many industries continue to hire to support longer term business growth plans for example retail and luxury, pharmaceutical and life sciences. In addition sales positions remain in demand across many industries. However the most significant slowdown in hiring has been across the banking sector.

Hiring behaviour remains cautious; critical skills remain in short supply and the competition for niche skills continues to intensify.

Pan Zaixian, General Manager, Kerry Consulting Pte Ltd

In tandem with the uncertain uneconomic climate in Europe, US and now China, the market has started softening as of mid of last year.

Hiring demand is soft at the mature experience end (ie. >15+ years of work experience) of the market. In comparison there is more hiring at the 4-7 years’ experience mark in particular in B2C industries such as FMCG and consumer IT .

Salary premiums for switching employers are now in the low teens as compared to the 20-30% range during the boom years. Replacement hires dominate the hiring landscapte as opposed to hirings due to growth.

Regulatory related new hirings have persisted in the financial services and trading sectors. Some new headcount have resulted from limited onshoring of roles into Singapore but they are largely offset by headcount moving in the opposite direction offshore away from Singapore.

Hiring mood has gone from being cautiously optimistic in the last 2 years to being cautious. Companies are in a generally cautious mood for hiring.

On the business end, well capitalised companies see this market as an opportunity for consolidation where weaker players are weeded out. While business development areas are still busy for the companies albeit in an increasingly competitive market place, the corresponding translation to on-the-ground headcount hires is not as evident.

We continue to see hiring in the outreaches of Indonesia and China, away from the major cities.

Jaime Lim, Consulting Director of PeopleSearch

Singapore has been seeing a tight employment market these last few years and at the executive level and above, companies in Singapore tend to favour hiring Singaporeans or foreigners with work experience in Singapore.

When it comes to specific projects or skill-sets, companies are open to hiring foreign talents on a fixed-term contract basis to meet the short-term need while they keep a look out for a longer term solution.

In spite of a tight employment market and government’s promotion of hiring on merits, women returning to the workforce as well as mature candidates are not getting the opportunities to present themselves at interviews. While the reason may be because of the lack of relevant skill-sets, it strongly suggests that employers are willing and able to wait out for the right talents while having the work done by a staff on fixed-term contract.

The more strategic companies have growth plans and succession plans in place and work closely with us to identify and woo the talents, while some companies are more reactive in contacting a headhunter when someone resigns.

The most significant change from a year ago is MOM tightening on the number of foreigners working in Singapore and the government re-focusing on improving productivity of workers in Singapore. With this, employers are re-designing the job, incorporating technology or machines into the work process wherever possible, thereby reducing reliance on foreign talents. And at the executive level, companies are still cautious in ensuring they make the right hiring decisions through recommendations of headhunters, careful interviews as well as informal reference checks.

Singapore and Hong Kong are quite similar in terms of economy, market sophistication and talents in the executive levels. While the rest of South East Asia, Taiwan, Japan, Korea and the various cities of China are in varying stages of market development.

The hiring patterns in Hong Kong and Singapore are therefore quite similar, while Taiwan has fewer foreign talents due to policies and salary. The various countries in South East Asia has a good sized domestic market therefore their hiring remains largely local.

An issue that challenges the Malaysian and Taiwanese economies more than Singapore and Hong Kong would be the issue of brain drain. Young Malaysians and Taiwanese tend to seek better education and secure jobs overseas, rather than stay in the local economy.

We’re not aware of any industries not hiring as we are seeing clients from a diverse industry requiring various job positions to be filled.

Economic cycles are shortening and markets are getting more sophisticated and shifting across the globe, companies have to become change agents or better anticipate these changes to remain relevant in a highly discerning market. Therefore the leaders needed to build good companies are highly visionary, creative and adaptable.

With our in-depth specialisation in specific industries and meeting with key talents within these industries, we have a clear view of changes and trends in the industry and clients have come to rely on us to identify and acquire the talents that will bring them better business results.

Companies cannot afford to hire and layoff a workforce in the changing and shifting markets, therefore they are favouring fixed-term employment contracts as it gives them some form of flexibility in expanding and contracting their workforce specific to the skill-sets/experience that they need.