Career

Managing Hiring Costs – Here’s One Scheme Singapore Business Owners Shouldn’t Ignore

career support programme

Mark Cheng

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Talented staff can propel your business to new heights, and as we already know, Singaporeans are definitely a hard working bunch. But employing great workers comes at a price.

For many businesses, hiring costs are one of the biggest expenses, yet simply cutting salaries or reducing headcount can have a disastrous effect on the quality of work and employee morale.

This is why managing hiring costs should not be approached in a haphazard manner. Spending some time quantifying an employee’s contribution to a company is crucial, so that you can design compensation packages that can attract talent without busting your budget.

It is also important that you know where to look when searching for qualified hires. Experienced Professionals, Managers, Executives and Technicians (PMETs) require less training and have more skills to bring to the table than fresh grads.

Luckily for employers, there is a government scheme in town that alleviates the financial burden of hiring experienced PMETs.

 

Receive a subsidy for hiring experienced PMETs

While retrenchment might be on the decline, as shown by MOM’s Third Quarter Labour Market Report 2017, we will continue to see PMETs made redundant due to business restructuring. However, these PMETs are job-ready and can be an asset to an organization.

They already have specific training within their area of expertise, and coupled with their experience, companies can save time and money by hiring the PMET. Literally, “have the cake and eat it”!

The Career Support Programme (CSP) makes it easier for businesses to hire experienced PMETs who were made redundant or those unemployed and have been actively looking for jobs for at least 6 months.

To qualify, companies will need to offer these job candidates PMET positions paying $3,600 or more in SMEs, or $4,000 or more in non-SMEs.

The CSP will subsidise the employees’ wages for up to 18 months of their employment, making it much more affordable for businesses to hire them.

 

How does the Career Support Programme work?

So long as a new hire fulfils the CSP’s criteria, an employer can make a claim to have his or her salary subsidised.

In the first 6 months of employment, salary support covering 20% to 50% of an employee’s wages will be offered to employers hiring eligible employees. The maximum funded salary is $7,000.

 

Salary Support for Singapore Citizen PMETs First 6 months of employment Second 6 months of employment Third 6 months of employment
Aged 40 years and above, unemployed and actively looking for jobs for 12 months and above 50% 30% 20%
Aged 40 years and above, made redundant or unemployed and actively looking for jobs for 6 months to less than 12 months 40% 20% NA
Aged over 40 years and actively looking for jobs for at least 6 months 20% 10% NA

 

 

A Career Support Programme success story

IFS Capital Ltd is one example of a local company that has hired PMETs eligible for the CSP.

Mr Patrick Chew, head of human resources and administration at the company, says, “At IFS, we have always hired based on merits. The CSP helped to ease the hiring costs of the company, it gave us the chance to tap on the wealth of experienced PMETs and see if the new hires fit our company’s needs.”

One of the employees hired by IFS under the CSP is Iris Ang, who joined the company as its Chief Financial Officer at age 49 after 30 years of experience in the financial services sector.

Another is Eliza Hee, who is in her fifties and has been credited with increasing the business’s productivity by reducing time spent on documentation.

Not only has the company been able to benefit from the experience and capabilities of Ms Ang and Ms Hee, it has also enjoyed subsidies on their wages, making this a win-win situation for both employer and employees.

 

How do you submit a claim?

If you are hiring a person whose wages can be subsidised, simply notify CSP personnel who will then advise you on how to proceed. All in all, with a programme like this, it really makes no sense for employers to not take advantage of what is being offered to help ease some of the burdens of hiring costs.

For more information, you can always call 6883 5885 or visit the WSG Career Support Programme website.

What are your biggest concerns when hiring job candidates? Share them with us in the comments!

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Mark Cheng

I rant and rave a lot, but when I'm not busy doing that, I'm managing the content for MoneySmart. I love Singapore, but I also believe in helping it to improve bit by bit, and that's where MoneySmart comes in. Have some thoughts? Drop me an email at [email protected]