Talent Strategies Amid Limited Resources in Singapore's 2024 Economy

A recent survey by insurance group QBE shows that half of Singapore's small and medium enterprises (SMEs) identified increasing costs and reduced profitability as their top challenges in 2024. This aligns with other studies, including findings by global broker WTW in 2023. With rising expenses, it is no wonder that job seekers want competitive salaries to cope with escalating costs and build a financial cushion.

Offering competitive wages to attract good candidates is harder for SMEs - particularly as profits shrink. Compared to bigger corporations with ample financial resources, SMEs may need help providing comprehensive benefits, such as health insurance and retirement plans. Large companies also have more flexibility in maintaining and even enhancing such benefits during an economic downturn, putting SMEs at a disadvantage.

So, with many SMEs in Singapore now focusing on growing revenue and reducing costs, the challenge lies in how they can attract quality candidates despite limited resources.

Attracting top talent with limited resources

Here are some strategies you can consider using to attract talented candidates:

1. Offer attractive benefits and development opportunities

Create enticing benefits packages and development opportunities that focus on customisation and innovation.

Offer attractive perks like more freedom, balanced work hours, remote work options, extra vacation days, and company trips.
Get creative; offer a tailored benefits package based on the candidate's needs. According to a WTW survey in Singapore, there was a mismatch last year between employees' desired benefits and employers' prioritised benefits. Employers tend to focus on universal needs rather than specific needs.
Provide group health insurance to save on health insurance costs. Group health insurance is a type of health coverage provided to a group of employees, spreading the risk and cost across the group, resulting in lower premiums and better benefits than individual policies.
Offer learning opportunities. If you hire for a skill that you do not have in-house, then offering training with external vendors is a possible option.
Have an internal mobility programme in place in which you specify opportunities for advancement within the company. This makes more sense for medium-sized companies.
If the role is important, offering company shares may be a viable option for acquiring experienced professionals. However, do note that this comes with its own set of challenges.

2. Improve operational efficiency to free up resources

Optimising your operations can help your team be more productive, saving time and money, which can be channelled towards talent acquisition and retention.

Here are five things you can do:

Adopt technology to automate tasks, boost productivity, and save time. Many businesses invest in their digital transformation journey to become more efficient and adaptable to change. Assess whether the use of AI can boost your team's productivity. Tech solutions need not be costly. Explore options and select tools that fit your needs.
Streamline processes by thoroughly analysing existing workflows to identify bottlenecks and eliminate redundant steps. Implementing lean methodologies can reduce waste and improve overall efficiency.
If possible, use data analytics to gain insights into your operational performance. It can help identify areas for improvement and track progress over time.
Learn from past experiences to standardise tasks and reuse valuable strategies. After each project or client engagement, your team should extract valuable lessons for future endeavours. This approach mirrors the agile methodology, where teams reflect on each cycle, discussing what went well and what can be improved. By holding periodic team meetings to review these experiences, you can identify successful strategies and areas for improvement.
Focus on your people. Understanding what motivates your team and identifying areas for improvement is essential. Supporting their development and providing the resources they need to excel is crucial, as your employees are the key to achieving your company's objectives.

3. Boost brand recognition to increase candidate reach

There are several ways to reach good candidates. Networking plays a crucial role in boosting b brand recognition and discovering new talent. It’s essential to actively network on behalf of your company and to enhance your brand awareness through marketing strategies.

Here are some useful tactics:

Organise networking events or participate in such events.
Make contributions on LinkedIn (or other socials) and have your team engage with those contributions to reach new audiences.
Produce and share podcasts or interviews with industry experts on your company's website and social media channels. This can position your brand as a thought leader.

Collaborate with other businesses by organising joint events or webinars.

4. Retention strategies

If you have successfully filled your roles, it doesn’t mean you can rest on your laurels. The next big question is how to retain your workforce. The 2023-2024 National Business Survey (NBS) shows that 51% of professional services companies in Singapore feel concerned about workforce retention.

Why do people leave?

MCG Talent reports that 71% of job seekers are driven mainly by a lack of career development opportunities. Company culture also plays an important role, with 69% of respondents considering it as crucial as the role itself, and 25% valuing culture even more than the specific job.

According to the NBS, professional training and development are the second most commonly adopted measures to attract and retain talent. However, there is a notable concern among SME respondents, with 31% fearing they will lose employees after they have received training and acquired new skills. This worry is understandable, as one of the leading reasons that employees leave is the lack of career progression [x].

Employees often expect career advancement after gaining experience or finishing additional training. If your company cannot provide higher pay or a better position, then there is a good chance that some employees may start exploring other options.

With this in mind, what approaches can you employ to retain your workforce?

Here are seven talent retention strategies:

If one or more of your employees are highly competent and almost indispensable, offering company shares is a good way to retain them. A sense of ownership motivates people for external reasons, such as higher pay, and internal reasons, such as pride. Employees are also less likely to leave if they have a vested interest - the better the company performs, the higher their financial rewards.
Develop a talent management strategy that works for your company. This will improve both operational and financial performance and give you a competitive advantage while building a strong employer brand [x]. Consider using talent management systems and technologies, which can save you time and money. You can explore some talent management systems here. Give your motivated workforce a career progression outlook as part of your talent management strategy. This is best achieved through high-quality career conversations [x]. These discussions will enable you to know your employees on a deeper level and help them understand their goals and aspirations better.
For medium-sized companies (50-250 employees), an internal mobility strategy can help employees move into roles they had not considered before. To achieve this, it is beneficial to profile your workforce based on their skill sets and experience rather than focusing on job titles.
Attractive rewards and benefits packages not only help with attracting top employees but also with retaining them, as this reflects their worth. It is also important to have relevant pay data to determine what's fair and competitive. Furthermore, have conversations with your employees to determine what is important to them. Remote work? Healthy work-life balance? Then, tailor the benefits package to their preferences.
Offer professional development opportunities, as these make employees feel valued and engaged while motivating them to pursue their aspirations. It is vital to assess individual qualities and needs to create productive career development programmes.
Finally, and perhaps most challenging for some, reflect on your management style and its effect on your employees. Some employees may be dissatisfied with their management or the company culture that the management promotes.

The Bottomline

Navigating talent acquisition and retention amid limited resources in Singapore's 2024 economy requires creative strategies and an understanding of market conditions and employee needs. By designing attractive benefits packages, improving operational efficiency, and boosting brand recognition, you can better position your company to attract top talent. Prioritising employee development and fostering a positive company culture will also go a long way towards retaining your people.

Feel free to reach out to us to have a conversation about how to attract and retain talent.