http://www.todayonline.com/Singapore/EDC121003-0000067/8-in-10-SMEs-having-trouble-hiring--Survey
8 in 10 SMEs having trouble hiring: Survey
Association of Small and Medium Enterprises finds that 3 in 10 are considering moving overseas to stay viable
by Ng Jing Yng
04:46 AM Oct 03, 2012
SINGAPORE - In a concerted cry for help, an Association of Small and Medium Enterprises (ASME) survey of some 200 companies found that eight in 10 of these companies currently face manpower shortages, following the tightening of regulations on foreign labour.
And the crunch is not just in jobs traditionally shunned by Singaporeans: The companies face difficulty in hiring across a range of job openings, including customer service officers, nutritionists, researchers, store managers, R&D engineers, and chefs.
They also lament that they are unable to expand or take on more business as a result. "Some are even considering folding. Many have the capability to employ and need to employ in order to meet the demand. However they are restricted by quota and this restricts business growth," the survey said.
About 30 per cent of SMEs said they are looking to relocate overseas to stay viable, given the current manpower crunch.
The ASME survey findings were backed by a separate survey by employment portal JobsCentral, which found that many SMEs have new vacancies they want to fill as they expand their business, but there's a high level of concern about whether they will be able to find suitable candidates.
The JobsCentral survey of about 400 HR professionals and hiring managers showed that two-thirds of the respondents will be hiring till the end of the year to fill newly-created positions - and the majority of those with new vacancies are SMEs.
Noting the SMEs' traditional reliance on foreign manpower, JobsCentral Group CEO Lim Der Shing said: "The situation is especially bad for SMEs, who may not have the resources and ability to compete with multi-national corporations or the Government in terms of compensation, benefits and career development."
The lifeblood of the economy, SMEs contribute to half of Singapore's gross domestic product and employ 7 in 10 of the workforce here.
As Singapore seeks to reduce its reliance on foreign labour, Members of Parliament (MPs) TODAY spoke to reiterated the need for better support to help SMEs cope. Acknowledging the vital role that SMEs play here, they expressed concern over the potential loss of jobs and business opportunities if more SMEs find their operations unsustainable.
Ang Mo Kio GRC MP Inderjit Singh noted that SMEs had gotten used to liberal policies on imported labour in the past. As a result, they did not invest in efforts to boost productivity levels and attract Singaporeans to work for them. Now, they could struggle to adjust, Mr Singh noted.
Concurring, ASME President Chan Chong Beng told TODAY that "some of the pay that SMEs are offering are just too low". He said: "They have been spoiled by the influx of cheap foreign workers."
NOT JUST ABOUT SINGAPOREANS BEING PICKY
The ASME survey also found that 63 per cent of respondents had difficulty seeking Singaporeans for low- to middle-skilled jobs. More than half (57 per cent) said they were not able to hire Singaporeans for professional and managerial roles.
On the range of jobs that SMEs face difficulty in hiring, MPs noted that it was not just about Singaporeans being picky.
Other factors include the greater allure of working for an MNC, compared to an SME.
Chua Chu Kang GRC MP Zaqy Mohamed, who sits on the Government Parliamentary Committee for Manpower, said: "In a tight labour market where there are a lot of choices for job applicants, smaller companies may also not be as attractive as compared to bigger ones."
Mr Singh also noted that for some of industries, the shortage could be due to the perception that they are dominated by foreigners. Citing the healthcare sector, he said that over time, less Singaporeans took up courses in those fields, leading to the shortage today.
While the Government has put in place a raft of measures to help companies raise productivity, Mr Zaqy suggested more outreach efforts to help companies get onboard the schemes available. Relooking operations to boost productivity could be challenging for smaller and less established firms which are already trying to deal with day-to-day issues, he noted.
On Sunday, Acting Minister for Manpower Tan Chuan-Jin wrote in his blog about the need to calibrate the foreign workers number. His comments came after concerns over population statistics released last week that showed continued growth in foreign workforce numbers.
Despite adopting aggressive marketing strategies, responses to job openings for the SMEs were dismal, the survey said.
Pine Garden's Cake had advertised on job portals and newspapers at least three times a week for position such as bakers and drivers but applications are "just a trickle coming in", said its business development director Wei Chan. These jobs offered salaries between S$1,600 and S$1,800 a month, said Mr Chan.
Seng Hua Hng Foodstuff HR and administrative manager Damien Tong said that young graduates may prefer established companies while SMEs may also not have the means to offer attractive career packages for job seekers. Mr Tong said that the company has invested in machines to raise productivity and tapped on government funding to hire a consultant to streamline their work processes.
However, automating processes may not work across the board for SMEs. Mr Chan cited the example of a tunnel oven which can make 1,000 cakes in an hour but would be unsuitable for a small bakery, for instance.
To help them cope with the manpower crunch, the respondents in the ASME survey suggested, among other things, that the Government further differentiate between foreign labour categories and to apply separate regulations to each group. They also proposed that the Government tighten the foreign inflow of groups such as spouses, dependents and professionals, instead of groups such as low- to mid-skilled workers.
8 in 10 SMEs having trouble hiring: Survey
Association of Small and Medium Enterprises finds that 3 in 10 are considering moving overseas to stay viable
by Ng Jing Yng
04:46 AM Oct 03, 2012
SINGAPORE - In a concerted cry for help, an Association of Small and Medium Enterprises (ASME) survey of some 200 companies found that eight in 10 of these companies currently face manpower shortages, following the tightening of regulations on foreign labour.
And the crunch is not just in jobs traditionally shunned by Singaporeans: The companies face difficulty in hiring across a range of job openings, including customer service officers, nutritionists, researchers, store managers, R&D engineers, and chefs.
They also lament that they are unable to expand or take on more business as a result. "Some are even considering folding. Many have the capability to employ and need to employ in order to meet the demand. However they are restricted by quota and this restricts business growth," the survey said.
About 30 per cent of SMEs said they are looking to relocate overseas to stay viable, given the current manpower crunch.
The ASME survey findings were backed by a separate survey by employment portal JobsCentral, which found that many SMEs have new vacancies they want to fill as they expand their business, but there's a high level of concern about whether they will be able to find suitable candidates.
The JobsCentral survey of about 400 HR professionals and hiring managers showed that two-thirds of the respondents will be hiring till the end of the year to fill newly-created positions - and the majority of those with new vacancies are SMEs.
Noting the SMEs' traditional reliance on foreign manpower, JobsCentral Group CEO Lim Der Shing said: "The situation is especially bad for SMEs, who may not have the resources and ability to compete with multi-national corporations or the Government in terms of compensation, benefits and career development."
The lifeblood of the economy, SMEs contribute to half of Singapore's gross domestic product and employ 7 in 10 of the workforce here.
As Singapore seeks to reduce its reliance on foreign labour, Members of Parliament (MPs) TODAY spoke to reiterated the need for better support to help SMEs cope. Acknowledging the vital role that SMEs play here, they expressed concern over the potential loss of jobs and business opportunities if more SMEs find their operations unsustainable.
Ang Mo Kio GRC MP Inderjit Singh noted that SMEs had gotten used to liberal policies on imported labour in the past. As a result, they did not invest in efforts to boost productivity levels and attract Singaporeans to work for them. Now, they could struggle to adjust, Mr Singh noted.
Concurring, ASME President Chan Chong Beng told TODAY that "some of the pay that SMEs are offering are just too low". He said: "They have been spoiled by the influx of cheap foreign workers."
NOT JUST ABOUT SINGAPOREANS BEING PICKY
The ASME survey also found that 63 per cent of respondents had difficulty seeking Singaporeans for low- to middle-skilled jobs. More than half (57 per cent) said they were not able to hire Singaporeans for professional and managerial roles.
On the range of jobs that SMEs face difficulty in hiring, MPs noted that it was not just about Singaporeans being picky.
Other factors include the greater allure of working for an MNC, compared to an SME.
Chua Chu Kang GRC MP Zaqy Mohamed, who sits on the Government Parliamentary Committee for Manpower, said: "In a tight labour market where there are a lot of choices for job applicants, smaller companies may also not be as attractive as compared to bigger ones."
Mr Singh also noted that for some of industries, the shortage could be due to the perception that they are dominated by foreigners. Citing the healthcare sector, he said that over time, less Singaporeans took up courses in those fields, leading to the shortage today.
While the Government has put in place a raft of measures to help companies raise productivity, Mr Zaqy suggested more outreach efforts to help companies get onboard the schemes available. Relooking operations to boost productivity could be challenging for smaller and less established firms which are already trying to deal with day-to-day issues, he noted.
On Sunday, Acting Minister for Manpower Tan Chuan-Jin wrote in his blog about the need to calibrate the foreign workers number. His comments came after concerns over population statistics released last week that showed continued growth in foreign workforce numbers.
Despite adopting aggressive marketing strategies, responses to job openings for the SMEs were dismal, the survey said.
Pine Garden's Cake had advertised on job portals and newspapers at least three times a week for position such as bakers and drivers but applications are "just a trickle coming in", said its business development director Wei Chan. These jobs offered salaries between S$1,600 and S$1,800 a month, said Mr Chan.
Seng Hua Hng Foodstuff HR and administrative manager Damien Tong said that young graduates may prefer established companies while SMEs may also not have the means to offer attractive career packages for job seekers. Mr Tong said that the company has invested in machines to raise productivity and tapped on government funding to hire a consultant to streamline their work processes.
However, automating processes may not work across the board for SMEs. Mr Chan cited the example of a tunnel oven which can make 1,000 cakes in an hour but would be unsuitable for a small bakery, for instance.
To help them cope with the manpower crunch, the respondents in the ASME survey suggested, among other things, that the Government further differentiate between foreign labour categories and to apply separate regulations to each group. They also proposed that the Government tighten the foreign inflow of groups such as spouses, dependents and professionals, instead of groups such as low- to mid-skilled workers.
