HR News & Trends: Aug Week 3

1. Regulations

i. SG: New Allowance Under the SkillsFuture Level-Up Programme

A new training allowance under the SkillsFuture Level-Up programme will be introduced in 2025. Announced during Budget 2024, this initiative offers every Singaporean aged 40 and above an allowance of up to $3,000 per month while attending full-time training, capped at 24 months, totalling a maximum of $72,000.

Read the full article about Singapore’s Budget 2024.

ii. SG: HR and Engineers to Benefit from New Skills Recognition Initiatives

Two new initiatives were launched to formally recognise skills gained through training and upskilling in the workforce.

• The Institution of Engineers Singapore partnered with Singapore Polytechnic to enable engineering technologists to earn the Chartered Engineering Technologist certification based on workplace learning. This is in addition to the current training-and-assessment approach.
• The Institute for Human Resource Professionals (IHRP) introduced new role badges for HR professionals that can be earned through formal education and on-the-job pathways.

Takeaway: Given that a professional’s competencies will be acknowledged upon the completion of competency assessments for the certification, the initiatives are expected to benefit those without formal academic qualifications.

Read the full article about Singapore’s skills recognition initiatives.

iii. SG: Parents to Have Extra 10 Weeks of Shared Parental Leave

Starting April 2026, parents in Singapore will benefit from 10 additional weeks of shared parental leave under a new scheme. The initiative allows parents of Singaporean babies (including unwed mothers) to share up to 10 weeks of fully paid leave, with flexibility in how it is distributed between parents. This scheme will be rolled out in two phases to allow businesses time to adjust their operations. From April 2024, paternity leave for fathers was also increased from two to four weeks. These changes differ from other countries, which often offer longer, often unpaid or partially paid, leave periods.

Read the full article about Singapore’s revised parental leave.

iv. JP: Some Local Governments Allow Bringing Kids to Work

Several municipalities in Japan are allowing government employees to bring their children to work when they cannot find suitable childcare. This initiative primarily aims to attract and retain talent by helping employees balance work and childcare. While initially met with mixed reactions, the programme has gradually gained acceptance. Local governments are implementing measures, such as setting clear guidelines, to ensure that the presence of children does not disrupt work or increase risks pertaining to confidential material. Concurrently, private companies are increasingly establishing on-site and off-site daycare centres to care for employees’ children, supporting them in balancing work and family responsibilities.

Takeaway: The move can be a potential model for private companies to adopt similar policies.

Read the full article about Japan’s family-friendly workplace schemes.

v: UK: Labour Proposes Introducing the Right to Switch Off

The Labour recently proposed introducing a “right to switch off”. The initiative gives employees more control over work-life boundaries by allowing them to disengage from work-related communications outside of working hours. It is part of a broader effort to improve workers’ rights and address the blurred lines between work and home life that have emerged, particularly post-pandemic. The proposal suggests creating a code of practice that employers and employees would agree to, setting clear expectations for out-of-hours contact.

Takeaway: While the “right to switch off” is well-intentioned, its success will largely depend on how well it balances protecting employees’ well-being with the operational needs of businesses. For instance, beyond a possible increase in compensation claims, a food for thought is how this would work across different industries and what legal implications might follow if the code is breached. The flexibility needed to accommodate various business needs and job roles also adds complexity to creating a one-size-fits-all policy.

Read the full article about the UK’s support for the right to switch off.

2. Trends

i. SG: Firms Plan to Boost Hiring Amid Mixed Economic Outlook

The Singapore Business Federation (SBF) survey revealed that:

• Despite mixed economic expectations, 40% of companies plan to increase hiring over the next year.
• Fewer businesses that intend to reduce headcount.
• Firms from the logistics, transport, banking and insurance sectors were more optimistic, while those from the hospitality, F&B, and administrative and support services sectors were more pessimistic.

Takeaway: However, increasing manpower costs and limited local talent remain key challenges. Fewer companies intend to raise salaries and will, instead, focus more on training, flexible work arrangements, staff redeployment, outsourcing business functions and delaying business expansion. Raising wages to attract local talent is still a key approach, though it is less favoured compared to 2023.

Read the full article about companies’ HR plans.

ii. CN: Demand Increases for Autonomous Driving Safety Operators

The rapid growth of the autonomous driving industry has led to an increased demand for safety drivers. Salaries currently average between 5,000 and 6,000 yuan, and some companies receive as many as 600 to 700 applications daily, with a significant portion coming from ride-hailing drivers. These positions, often appealing to experienced drivers, involve monitoring autonomous vehicles during operations and intervening when necessary to ensure safety. Despite the role being promoted as light work, it involves heavy responsibilities such as vehicle testing, road safety assessments, and providing feedback for system improvements. Nonetheless, educational and technical barriers are low, which makes the job accessible to many.

Takeaway: The expansion of autonomous driving is also creating new roles beyond safety drivers. An example is intelligent vehicle testers, a role requiring technical expertise in automotive engineering and regulations.

Read the full article about the demand for autonomous driving safety operators.

iii. AU: Growing Use of Blood Analysis in Australian Employee Screenings

The recent “No Blood-No Job” report from The Australia Institute highlights an increasing trend among Australian organisations to use blood analysis in pre-employment screenings. Companies claim these tests help identify health risks that could impact job performance.

Takeaway: However, this practice raises significant concerns regarding privacy, fairness, and potential discrimination. The report reveals that many organisations do not fully comply with existing privacy laws while handling sensitive employee data. Australia’s current privacy regulations are also considered inadequate for addressing these evolving issues. In response, the government is considering legislative updates, potentially by the end of 2024, to protect workers’ rights better.

Read the full article about Australian companies’ use of blood analysis.

3. Business Moves

i. Xiaohongshu to Remove Job Gradings and Simplify Hierarchies

Xiaohongshu recently issued an internal announcement stating that it will no longer use job gradings and will simplify management hierarchies. This move aims to eliminate the emphasis on seniority and create a more agile organisation. The key adjustments include:

• Simplifying management hierarchies;
• Appointing leaders at each level;
• Removing “R-levels”.

R-levels were comparable to Alibaba’s P-series, with R5, R6, and R7 being common job gradings at Xiaohongshu. R5 refers to the firm’s core employees, while R6 is typically group leaders, and R7 is heads of small or large departments. Xiaohongshu previously stated that the maximum age for R5 was 32 years and 34 years for R6. Under the new system, salaries will be more directly tied to the difficulty of the work, and bonuses will be linked to performance outcomes.

Takeaway: The new mechanism focuses more on quickly identifying top talent and matching business needs with greater flexibility so as to energise front-line employees and make it easier for outstanding front-line workers to be recognised.

Read the full Chinese article about Xiaohongshu’s job grading.

ii. Tencent’s Average Employee Salary Crosses a Million Yuan

Tencent Holdings reported its financial results for the first half of 2024, showing a revenue increase of 7% year-on-year to RMB 320.6 billion and a 72% growth in profit attributable to shareholders, reaching RMB 89.5 billion. Key drivers include the recovery of its domestic gaming revenue and accelerated growth in international gaming markets due to strong engagement in existing games and successful launches of new titles. Tencent Video also saw significant growth in viewership and paid memberships, supported by original dramas adapted from Yuewen IP.

Looking ahead, Tencent plans to continue investing in platforms and technologies, including AI, to enhance commercial value and better meet user needs. Employee numbers rose by 1,003 year-on-year, reaching 105,506 as of June 2024. The company spent RMB 54.3 billion on salaries in the first half, suggesting an average annual salary exceeding RMB 1 million per employee.

Takeaway: Tencent’s robust profit growth is driven by both its gaming business and content platforms, with strategic investments in AI and technology to sustain future growth. The increasing employee compensation highlights Tencent’s focus on retaining top talent amid its growth strategy.

Read the full Chinese article about Tencent’s employee salary.

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 Image Source:

• Xinhua
• Reuters