Singapore Companies need to offer more flexibility to attract employees
By Pamela Almeda
SINGAPORE : Companies in Singapore may have to offer more flexibility in order to attract and retain their employees.
According to human resources consultant, Michael Page International, employers will increasingly need to consider a total package. And this includes elements such as compensation, benefits and flexibility.
Employees these days are not only attracted by monetary rewards for their work but are looking to carve a promising career.
Michael Page International believes companies can benefit from the changing employment trends if they offer a more holistic and attractive package to retain talent.
Beyond the obvious money issue, companies should also chart their employees’ training, personal development and career growth.
Florence Ng, MD - Singapore, Michael Page International, says: “Someone could say to you, ‘today, I’m a manager but in two years’ time or three years’ time I want to be a director. Now how do you get this person from being a manager to a director? It also means you have to provide a sensible and a comprehensive learning and development structure so that you can actually get them from point A to point B.”
But Michael Page also points out that financial rewards remain an important strategy in attracting and retaining the right talent.
It says employees who are generally satisfied with their pay cheques and other benefits tend to have higher productivity and help companies raise their bottomlines.
But such a reward scheme must be easily understood, consistent across all business units and, above all, be based on merit and performance.
Ms Ng says: “To get high achievers, to encourage performance, and to encourage meritocracy, you need to move towards one where you know a bigger portion of the total comps (compensation) is pegged to performance. In other words, pay them a lesser base but a much higher potential if they achieve, (or) if they over achieve their targets.”
But experts also point to what appears to be a developing trend when economies are booming. Companies may choose to out-bid their rivals as they compete for talent, possibly to the extent of having wages out-strip productivity.
Ms Ng says: “I think that a price-determined war for talent is going to end in tears for all at the end of the day because it would just keep going up. How much is enough? So I think that the best way to keep your people if you were the employer would be to focus on the reward scheme, the financial rewards scheme but let’s not forget to factor in the learning and development.”
Going forward, experts say companies will need to be more flexible in their remuneration strategies.
One key area to consider is to stagger the payment of bonuses throughout a financial year. For example, instead of paying bonuses once a year, firms could spread them out and have a payout every six months or every quarter.
Consultants say this is one strategy to reduce the possibility of employees leaving in large numbers at the same time, thereby affecting a company’s operations. - CNA/ch
Source : Channel NewsAsia - 07 Jan 2008
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