HR News & Trends: Aug Week 2

HR News & Trends: Aug Week 2

HR News & Trends: Aug Week 2

1. Market

i. Johor Minister Proposes Special Border Passes for Business Use

The Johor Chief Minister proposed special border passes to streamline the movement of senior management officials between Singapore and Johor as part of the upcoming Johor-Singapore Special Economic Zone (SEZ). Proposed measures include tax breaks, smoother immigration procedures and infrastructural improvements, such as highway expansions and public transport integration. Discussions between Malaysian and Singaporean officials are ongoing, with the final SEZ agreement expected by the end of 2024.

Takeaway: The SEZ is expected to improve cross-border mobility to address labour challenges that concern businesses, especially given that over 300,000 people cross the Johor-Singapore Causeway daily. Meanwhile, it will also alleviate congestion, facilitating smoother business operations and investment between Singapore and Johor to foster deeper economic cooperation.

Read the full article about the JSSEZ.

 

ii. Refinements Proposed for Hong Kong’s Top Talent Scheme 

Hong Kong is expanding its Top Talent Pass Scheme (TTPS) to attract more global talent as it addresses its shrinking workforce due to an ageing population and a talent exodus driven by political events and the pandemic. The government plans to include universities from mainland China, broadening eligibility beyond the top 100 global universities currently listed. While this opens the door to more applicants, particularly from mainland China, concerns have been raised about preserving Hong Kong’s status as a global hub and ensuring the diversity and quality of talent. Lawmakers suggest that the scheme should prioritise younger and more specialised professionals and address gaps in critical sectors like energy and automotive.

Takeaway: For sustainable talent attraction and retention, Hong Kong’s strategy must balance broadening access with targeted measures prioritising high-impact sectors and younger professionals while maintaining global diversity. Should lawmakers’ suggestions be adapted, companies, particularly those in key growth sectors, are expected to be better equipped to ease challenges pertaining to talent acquisition.

Read the full article about Hong Kong’s TTPS.

 

iii. UAE to Impose Fines for Fake Recruitment, Labour Law Violations

The UAE’s Ministry of Human Resources and Emiratisation (MOHRE) introduced severe criminal penalties as part of new amendments to the UAE labour law.

Takeaway: The penalties, which aim to enhance the integrity of the labour market, include significant fines of up to AED 1 million for violations like:

  • Engaging in any circumvention of labour laws, including fictitious recruitment practices such as fake Emiratisation.
  • Employing workers without proper permits.
  • Failing to settle workers’ rights when shutting down a business.
  • Employing a minor in violation of the law.

Additionally, the decree strengthens the legal process for handling labour disputes, with cases now being directed to the Court of First Instance instead of the Court of Appeal. The changes highlight the increasing importance for HR teams operating within the UAE market to be vigilant in their recruitment processes to ensure compliance.

Read the full article about the UAE’s labour law amendments.

 

2. Trends

i. Branding: The Generational Divide on LinkedIn

Interviews of Gen X entrepreneurs shed light on the challenges individuals face as LinkedIn’s content types shift towards performative, AI-generated posts and personal updates. The trend comes as Gen Zs enter the workforce, bringing a more casual, Facebook-like approach to LinkedIn, contrasting with the business-centric style preferred by older generations. At the same time, a dormant or inactive profile can cause recruiters to hesitate to reach out with opportunities. These trends are leading many professionals to reconsider their strategy on the platform.

Takeaway: The generational content divide can also reflect different expectations that may possibly extend to the workplace culture. Against this backdrop, organisations may benefit from revisiting their outreach strategies to build an employer brand that resonates with their intended audience.

Food for thought is how organisations can balance incorporating a more human and relatable approach in communications versus the traditional corporate messaging style. While personalised content often drives valuable engagement, the focus should be on posting strategically to connect with the right audience and drive meaningful business outcomes.

Read the full article about the generational divide on LinkedIn.

 

ii. Further Education Boosts Singaporeans’ Employment Prospects: MTI

A study by the Ministry of Trade and Industry (MTI) in Singapore found that employees who pursued continuing education and training (CET) through post-graduate diplomas were more likely to be employed and earned higher salaries than those who did not. The study showed:

  • A significant employment rate increase of up to eight percentage points for CET graduates.
  • A 4.6% to 10.8% wage boost that translates to an extra $300 to $540 monthly.
  • Enrolment in polytechnic graduate diploma programs significantly increased from 79 in 2011 to 3,847 in 2019. The trend is particularly prominent in fields like medicine, IT, engineering, and business management.

Takeaway: The surge in enrolments for CET programmes in fields such as medicine, IT, engineering, and business management suggests that these industries are experiencing higher demand for talent. The data also highlights the effectiveness of CET programmes in enhancing workforce competitiveness and a country committed to developing an adaptive labour market.

Read the full article about the MTI’s findings about CET.

 

iii. FTSE 100 CEOs Paid 120 More than the Average Employee

A study of executive compensation in the UK’s 100 largest companies reflected a growing disparity in salaries of different tiers of employees. Despite a cost-of-living crisis impacting millions, the average FTSE 100 CEO now earns over 120 times more than the median full-time worker, with average pay increasing from £4.1m to £4.19m between 2022 and 2023.

Takeaway: This record-high compensation is driven by arguments that high pay is necessary to attract and retain top talent, particularly in competitive industries like life sciences. However, this trend has sparked public frustration due to the widening income gap and stagnant wages for most workers. The developments also reflect deeper issues, such as declining trade unions and employee participation in decision-making and business models prioritising shareholder interests over that of other stakeholders.

In terms of talent acquisition, potential implications include:

  • Candidate Expectations: The visibility of executive pay hikes could drive higher salary for expectations candidates across different tiers of seniority.
  • Employer Branding: Companies with extreme pay disparities may face challenges attracting talent due to potential reputational damage and negative perceptions of workplace equity.
  • Internal Culture and Retention: The widening pay gap may negatively affect overall employee morale, potentially affecting retention if workers feel undervalued relative to top executives.

In an environment where executive compensation is under intense scrutiny, talent acquisition strategies should balance attracting top-tier leaders with promoting fairness and equity across all employee levels to maintain a strong employer brand and foster internal cohesion.

Read the full article about the salaries of FTSE 100 chief executives.

 

iv. Mass Exodus of Bankers in India as Thousands Leave Their Jobs

India’s booming financial sector’s attrition rate is nearly double the global average, particularly among junior banking staff. Factors driving the trend include:

  • The pay for entry-level staff continues to stay notably low, and it is easy for entry-level bankers to obtain pay bumps by jumping between firms.
  • Insufficient mentorship and training opportunities.
  • Slow career progression and an “invisible ceiling” for females or individuals from certain castes and lineages.
  • Banks’ expansion into new markets and push for growth often creates unrealistic performance expectations that place excessive pressure on younger employees, resulting in greater friction between staff and firms as well as burnout.

Meanwhile, the salaries for senior banking roles in India have surged significantly, nearing levels in Hong Kong and Singapore.

Takeaway: Efforts by top banks to improve retention through targeted initiatives have shown some progress, but there is still a long way to go. Without addressing inequitable compensation, training gaps, and a lack of meaningful growth pathways, strong support systems for junior employees and diversity, banks risk continued high turnover and a potential loss of valuable talent.

Read the full article about the high attrition in India’s finance sector.

 

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Image Sources:

  • CNA
  • Reuters
  • Yahoo news
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