HR News & Trends: July Week 4

HR News & Trends: July Week 4

HR News & Trends: July Week 4

1. Labour Market

i. Singapore’s Total Employment Growth Doubled in Q2

What: Based on Ministry of Manpower’s (MOM) figures, Singapore’s total employment grew significantly in Q2 2024, more than doubling the previous quarter’s figures, driven entirely by non-resident employment.

  • Positive trends were observed in resident employment within crucial growth sectors like financial services and IT, but overall resident employment dipped slightly due to seasonal factors in retail.
  • Non-resident job growth was primarily in non-PMET roles in construction and manufacturing.
  • Unemployment rates improved slightly across all categories.

Implications: The MOM expects continued employment and wage growth, although resident employment growth may slow due to structural limits in the resident workforce. The focus should be on upskilling resident workers to maintain relevance in a shifting economy.

Read the full article about employment growth statistics in Singapore.

 

ii. Oil Traders and Tech Professionals Among Top Earners

What: In 2023, oil and bunker traders in Singapore’s ports were among the top earners, with a median gross wage of S$14,911 per month, largely due to record-breaking bunker sales. The MOM latest annual occupational wage data also highlighted:

  • Roles in technology, finance, and media are some of the highest-paying jobs.
  • The median gross monthly income of full-time employed residents rose 2.5% year-on-year.
  • Jobs with the largest pay gaps include various healthcare and manufacturing roles.

However, academics cautioned that year-to-year comparisons might not fully reflect underlying trends due to limitations in sample size, sampling variability and the lack of adjustment for seniority and job responsibilities.

Implications: Based on the overall trends in the report, positions in artificial intelligence (AI) and sustainability are anticipated to experience ongoing wage increases. Conversely, traditional retail and administrative support services may see slower wage growth or even decline due to technological advancements like augmented reality and AI, which can potentially replace certain human tasks.

Read the full article about MOM’s salary report.

 

2. Singapore Trends

i. HR Leaders Report Low Usage of Health and Wellbeing Benefits in Singapore

What: Despite many Singaporean companies offering health and well-being services, usage remains low. A Cigna Healthcare survey of 1,000 HR leaders, including 200 in Singapore, found that:

  • 89% of employers provide health benefits, making it the second-most offered Employee Value Proposition (EVP) after time off and flexible working arrangements (FWA).
  • FWAs are offered by 91%.
  • These benefits are considered crucial for attracting talent.

However, two-thirds of HR leaders report that these services are underutilised, which means that employers are potentially missing out on gains like:

  • Reduced sick days (60%)
  • Shortened working hours (62%)
  • Reduced absenteeism (58%)

Implications: To fully realise the benefits of health and well-being services, more efforts may be required to communicate and facilitate access to these offerings proactively. By aligning them with employee needs and priorities while fostering a workplace culture that prioritises holistic well-being, organisations can create a thriving, engaged workforce and improve business outcomes.

Read the full article about Cigna’s healthcare poll.

 

ii. Parental Leave Policies Grow in Popularity in Singapore

What: A recent survey by Indeed highlights a growing trend among Singapore employers to feature parental leave benefits in job descriptions.

  • In the first half of 2024, 1.7% of job postings in Singapore mentioned parental or maternity leave.
  • This trend is most notable in sectors like childcare, human resources, and sales, with significant growth observed in civil engineering, veterinary, logistics support, and pharmacy.

The increased emphasis on parental leave is driven by changing attitudes towards workplace flexibility, gender equality, and work-life balance, as well as strong competition for talent.

Implications: The emphasis on parental leave benefits reflects a strategic response to competitive talent acquisition.

Read the full article about parental leave trends.

 

iii. Industry-Recognised Certifications Vital for Wholesale Traders

What: Wholesale traders increasingly value industry-recognised certifications when hiring, as they signify a candidate’s expertise and commitment to industry standards. Certifications not only boost employee qualifications but also enhance their career prospects by ensuring adherence to the latest technologies and practices. Certified professionals often command higher salaries, with median increases ranging from 19% to 27%.

NTUC LearningHub’s Industry Insights Report 2024 on Wholesale Trade highlights significant trends reshaping the sector. These include technological advancements, sustainability, and supply chain disruptions. A survey of 157 leaders and interviews with experts reveal that:

  • Importance of Certifications: Nearly 90% of leaders find industry-recognised certifications crucial when hiring.
  • Emerging Trends: Increasing digitalisation (52%) and sustainability (43%) are driving changes, with new job roles emerging and existing ones being redesigned.
  • Technology Adoption: Most leaders believe technology will elevate employees to higher-value roles despite challenges like costs, system integration, job restructuring, and skill gaps.
  • Training Barriers: Less than half frequently send employees for training, hindered by operational disruptions, employee reluctance, and budget constraints.
  • In-Demand Skills and Technologies: Essential skills include inventory management, change management, and technology adoption in supply chains. Key technologies adopted are IoT, warehouse management, and e-commerce integration.
  • Sustainability: Initiatives like waste management and energy efficiency are viewed as enhancing supply chain resilience.

Implications: To stay competitive, businesses and employees must invest in upskilling.

Read the full article about the hiring trends for wholesale traders.

 

3. Global Trends

i. More Workers Succumbing to Heat Stress: ILO

What: The latest report from the International Labour Organisation (ILO) highlights a growing global threat: heat stress increasingly endangers workers’ health and lives. The report revealed that:

  • Regions traditionally unaccustomed to extreme heat, particularly Europe and Central Asia, are seeing significant increases in worker exposure to excessive heat.
  • Africa, the Arab states, and Asia Pacific have the highest proportions of workers affected by heat stress, far exceeding the global average.
  • The Americas and Europe are experiencing the largest surge in heat-related workplace injuries due to rising temperatures in areas where workers are less acclimated to heat.
  • Alarmingly, 4,200 workers died due to heatwaves in 2020. Most heat-related injuries occurred outside of heatwaves, indicating a year-round issue.
  • Heat-related injuries have cost low- and middle-income economies up to 1.5% of their GDP.

Implications: Enhancing safety and health measures could better protect employees while reducing the economic impact on vulnerable economies.

Read the full article about the threat of heat stress.

 

ii. Leaders Worry that Staff Training May Fall Behind AI Developments

What: Most business leaders recognise the necessity for new skills and work methods due to advancements in artificial intelligence (AI). However, there is significant concern about whether employees can be trained quickly enough to keep up with these technological changes in the next three years. According to a study by the World Employment Confederation, with contributions from ManpowerGroup:

  • AI is expected to transform workforces significantly, and employees will need to develop both new technical and soft skills to harness AI’s potential effectively.
  • While AI can rapidly change the workplace, the growing skills gap presents a major challenge. To address these challenges, organisations need to prioritise upskilling initiatives and strategies to ensure future talent needs are met.

These strategies include:

  • Establishing talent pools.
  • Adopting skills-based recruitment.
  • Using online talent platforms.
  • Employing contingent workers.
  • Providing internal flexibility through job rotations.
  • Recruiting from overseas.

There is also a notable trend toward using contingent workers to access specialised digital skills and attract top talent.

Implications: The rapid pace of AI-driven workplace transformations necessitates a proactive focus on upskilling employees and embracing flexible, innovative talent strategies to bridge the growing skills gap and ensure long-term business success. Meanwhile, the importance of human-centric skills, such as collaboration, communication, creative problem-solving, and empathy, also increases against the backdrop of AI advancements.

Read the full article about the report on AI and employee training.

 

iii. Boards Prioritise Leadership Stability Amidst Global Political Shifts in Q2

What: Based on the FTSE 100’s data:

  • Globally, CEO dismissals were notably low, with only 51 CEOs leaving their roles, the lowest Q2 figure since 2018.
  • This quarter, boards have heavily favoured internal promotions and planned successions, contributing to an overall environment of leadership consistency.
  • Meanwhile, the drive towards gender parity among CEOs continues to progress, albeit slowly.

Implications: Boards favour leadership stability and internal succession amid political uncertainties, yet there remains a substantial need to accelerate gender parity at the executive level to enhance leadership effectiveness and organisational performance.

 

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