HR News & Trends: Oct Week 2

Singapore Market

i. Programmes to Help Employers Tap into a Broader Talent Pool

Singapore is looking to expand its talent pool by tapping into underutilised groups, including seniors, students, and stay-at-home mothers. A new report by the Alliance for Action (AfA) recommends structured programmes to help these groups acquire new skills and address labour shortages, especially in hard-to-fill roles like retail.

Takeaway: Smaller companies could gain from a “talent co-development” approach, which allows employees to temporarily work at other firms through collaborative partnerships, enabling employers to tap into a broader talent pool within their industry. HR professionals are encouraged to pursue Institute for Human Resource Professionals (IHRP) certification to provide employers with the necessary support. The AfA report further suggests creating standardised job-specific assessment tests and playbooks to facilitate greater job mobility within organisations.

ii. 5.5% to 7.5% Raise Recommended for Lower-Wage Staff

The National Wages Council (NWC) recommended a salary increase of 5.5% to 7.5% for lower-wage workers earning up to $2,500 monthly from December 1, 2024, to November 30, 2025. While the government has accepted these guidelines, they are optional. Employers performing well should consider raises of at least $100 to $120, while those with less favourable financial situations should offer increases at the lower end of the suggested range and may consider additional raises if conditions improve. Rewarding employees with variable payments linked to company performance and individual contributions is also encouraged.

Takeaway: The guidelines aim to address income disparities, particularly for lower-wage workers, and encourage employers to implement a flexible wage system (FWS) to adjust wages as business conditions change. While the economic outlook is optimistic, employers should be cautious about rising labour costs outpacing productivity growth. Focusing on improving efficiency and investing in employee upskilling is recommended.

2. Hong Kong Market

i. Hong Kong Employees Pay Rise by 3.2%: Survey

In 2024, Hong Kong employees received a modest pay increase of 3.2%, the lowest since the pandemic’s later stages. In contrast, mainland cities in the Greater Bay Area reported an average salary rise of 4.8%.

Takeaway: Despite the current economic challenges, the Hong Kong Institute of Human Resource Management expressed cautious optimism for next year, with pay packages projected to increase to 3.6% in 2025. The survey also indicates that while pay growth has slowed compared to previous years (3.8% in 2023 and 3.5% in 2022), the economic outlook is improving due to more inbound travel and interest rate cuts benefiting businesses.

3. Japan Market

i. Japan’s Base Salaries See Historic Increase

Japan experienced a significant increase in base salaries, with full-time workers’ wages rising by a record 2.9% in August compared to the previous year and up from 2.6% in July. The Bank of Japan (BOJ) will likely consider another interest rate hike in response to these wage trends and inflation pressures.

Takeaway: This wage growth comes as Prime Minister Shigeru Ishiba prepares for a general election on October 27, where he aims to maintain momentum for further wage increases and combat deflation. Despite this positive trend, real wages have declined, and household spending fell by 1.9%, indicating that consumers are tightening their budgets amid rising living costs.

ii. Japan Courts Digital Nomads

Japan is actively working to attract digital nomads as part of its strategy to enhance regional economies and foster new business opportunities. Recent initiatives include hosting community events at co-working spaces to facilitate networking. The Japanese government has also introduced a visa specifically for digital nomads, enabling qualified individuals to stay for up to six months.

Takeaway: With an estimated 35 million digital nomads globally, this demographic is valued for its potential economic contributions, including higher spending and skill-sharing, particularly in the IT sector. However, the visa has limitations, such as a short duration and restrictions on employment with local companies. Further improvements may be required to make Japan a more attractive destination.

4. UK Market

i. Britain Unveils Details for Highly-Anticipated Workers’ Rights Bill

The British Labour government’s newly proposed Employment Rights Bill marks a significant overhaul of workers’ rights, potentially impacting employment practices for millions. Key provisions include:

• Ending fire-and-rehire practices;
• New rights on parental leave;
• Granting sick pay from day one of employment;
• Banning zero-hours contracts.

Takeaway: However, some pre-election promises, such as giving employees a right to disconnect from work outside office hours and streamlining employment statuses, are still under consultation. This reform is positioned as a way to prevent industrial actions that have plagued various sectors over the past two years.

Discover More Industry Trends with JC

For the latest industry trends or to explore new career opportunities, connect with our HR recruitment consultants for a chat. With executive search firms in Singapore and China, and operations in key business hubs like Hong Kong, you can count on our team for timely access to regional insights that can create synergy for your career and operations.

For employers: Beyond the HR industry, we also have dedicated desks for several sectors that enables us to meet your varied recruitment needs:

• Financial services recruitment consultants
• Life sciences recruitment
• Luxury & retail recruitment
• Legal recruitment
• Tech recruitment

Image Credits:

• Institute for Human Resource Professionals
• South China Morning Post