Bigger talent crunch ahead for firms: Hays

SINGAPORE - Worse is yet to come for employers already feeling the pain of tighter foreign-worker rules, as the work pass for foreign workers will be shortened from five to three years and eligibility criteria toughened from January.

"Companies who contravene the laws can be prosecuted, fined or barred from hiring foreign workers," warned recruitment consultancy Hays Group yesterday as it predicted the top 10 talent trends for next year.

To soothe rising local discontent over the influx of foreign workers, the government has taken steps this year to slow the inflow of these workers, it noted.

New rules make it harder for "top-tier" foreign workers, who make up a third of the workforce, to get the necessary approval to work.

With greater restrictions on the recruitment of foreign workers, Hays sees the war for talent intensifying, especially in the manufacturing, oil & gas, information technology, accountancy, sales and marketing and the services sectors, where the skills shortage is acute.

Such shortfalls could cripple financial services and diminish Singapore's attraction as a financial hub, it warned. And as job-hopping becomes more rampant, staff retention will be a priority.

"Skill shortages and restrictions on hiring from overseas make it harder to replace those who move jobs," it said.

"Using a range of strategies to retain staff will be vital in 2013."

A more subdued outlook for the economy, given worries over the "fiscal cliff" in the United States and the eurozone debt crisis, will prolong labour pains in key sectors.

Employers can do something about this.

"A focus on staff retention and labour market flexibility is needed in 2013 as well as an openness to inward migration so that employers can react swiftly to signs of stress in the labour market," advised Chris Mead, Hays' regional director in Singapore and Malaysia.

"Training and development, Hays said, will be key to recruiting workers "who are a good match for the culture of the organisation, even though they may not meet the hiring criteria 100 per cent".

A new focus on nurturing new hires in 2013 is necessary, since this could make a difference between "an ultimately successful hire and one that is destined to fail", Hays noted.

"There will be plenty of challenges for Singapore in 2013, including the impact of restrictions on hiring overseas candidates, managing skill shortages in key areas and the need to create innovative strategies to achieve greater staff retention," it said.

Fanned by inflation, wage pressures are expected to increase, especially for high-skill industries and high-skill jobs.

Because of the tough business environment, employers will be on the lookout for ways to rein in wage costs.

However, given the fastest inflation growth among developed economies and a tight labour market, Hays reckons employers' hands may be tied.