A report from the down south.
Short of foreign execs? Tap S'pore market fully
Jul 31, 2006 The Straits Times THE report, 'Firms finding it tough to hire execs, says survey' (ST, July 19), highlights the difficulty in recruiting skilled manpower.
Employers face the reality of a tight skills market. To meet the demands of globalisation, they need skilled professionals at cost-effective rates.
However, this no longer holds because of effective demand in supply countries. Are local employers prepared to compensate skilled talent at international market rates?
The labour market cannot remain segmented, and must offer uniform wage rates. In such a market, a professional is paid differential wages, through market discrimination.
Singapore encourages foreign talent to take up permanent residence or citizenship to increase the size of the population with skills to meet the demands of globalisation. This policy has been successful.
Skilled talent can be attracted with better pay and perks than current practice, via an unsegmented market: Merit and not extraneous factors determines salaries.
Those attracted here have better qualifications and experience in their respective skills. But spouses of foreign talent cannot fit easily into the labour market despite their qualifications. Employers should recruit such skilled people to fill gaps.
Also, what about those aged 45 plus or 60 plus who can do quality work? It is anachronistic to label them 'low-productive'. They are reliable and loyal and will buffer the demand-supply equation.
Those aged 45 and above include many potential workers willing to try new jobs, if employers are willing to provide on-the-job training.
Retirement age need not be mandatory. There is also no life-long employment: Workers leave and rejoin industries in periods of unemployment and under-employment.
As more working years are needed to save for retirement, the retirement period must be reduced with an open retirement age. Social security (read CPF balance) does not guarantee old-age security, but social protection is feasible with housing equity, health and social subsidies. Older workers can be retrained at public cost.
Employers chase foreign talent by offering higher salaries, but the basic problem will persist. Instead, recognise qualifications from elsewhere of those who are already here so that they can enter the labour market.
Higher levy for unskilled labour may not reduce intake. Skills will continue to be sourced from abroad, against international demand. And better pay must offset competitive demand.
What about re-employing the retired, especially the better educated? Our universities retire professors by 55 or 60 (rarely extended to 65), when they reach academic maturity and wisdom.
Even in government departments, the sudden exit of older officers creates a vacuum in expertise, and younger officers need an interface with mentors. Drastic change hurts the labour market, encouraging employers to seek talent elsewhere. Local expertise may mean lower costs too for many projects.
The Government should pay less heed to employers' short-term demands.
Skills forecasting must be sharpened by local expertise. Retraining through government avenues must be stepped up. Many vocational institutes may not be fully utilised.
Employers are less forthcoming with retraining programmes and public action is called for.
Dr G. ShantakumarConsultant Demographer
Short of foreign execs? Tap S'pore market fully
Jul 31, 2006 The Straits Times THE report, 'Firms finding it tough to hire execs, says survey' (ST, July 19), highlights the difficulty in recruiting skilled manpower.
Employers face the reality of a tight skills market. To meet the demands of globalisation, they need skilled professionals at cost-effective rates.
However, this no longer holds because of effective demand in supply countries. Are local employers prepared to compensate skilled talent at international market rates?
The labour market cannot remain segmented, and must offer uniform wage rates. In such a market, a professional is paid differential wages, through market discrimination.
Singapore encourages foreign talent to take up permanent residence or citizenship to increase the size of the population with skills to meet the demands of globalisation. This policy has been successful.
Skilled talent can be attracted with better pay and perks than current practice, via an unsegmented market: Merit and not extraneous factors determines salaries.
Those attracted here have better qualifications and experience in their respective skills. But spouses of foreign talent cannot fit easily into the labour market despite their qualifications. Employers should recruit such skilled people to fill gaps.
Also, what about those aged 45 plus or 60 plus who can do quality work? It is anachronistic to label them 'low-productive'. They are reliable and loyal and will buffer the demand-supply equation.
Those aged 45 and above include many potential workers willing to try new jobs, if employers are willing to provide on-the-job training.
Retirement age need not be mandatory. There is also no life-long employment: Workers leave and rejoin industries in periods of unemployment and under-employment.
As more working years are needed to save for retirement, the retirement period must be reduced with an open retirement age. Social security (read CPF balance) does not guarantee old-age security, but social protection is feasible with housing equity, health and social subsidies. Older workers can be retrained at public cost.
Employers chase foreign talent by offering higher salaries, but the basic problem will persist. Instead, recognise qualifications from elsewhere of those who are already here so that they can enter the labour market.
Higher levy for unskilled labour may not reduce intake. Skills will continue to be sourced from abroad, against international demand. And better pay must offset competitive demand.
What about re-employing the retired, especially the better educated? Our universities retire professors by 55 or 60 (rarely extended to 65), when they reach academic maturity and wisdom.
Even in government departments, the sudden exit of older officers creates a vacuum in expertise, and younger officers need an interface with mentors. Drastic change hurts the labour market, encouraging employers to seek talent elsewhere. Local expertise may mean lower costs too for many projects.
The Government should pay less heed to employers' short-term demands.
Skills forecasting must be sharpened by local expertise. Retraining through government avenues must be stepped up. Many vocational institutes may not be fully utilised.
Employers are less forthcoming with retraining programmes and public action is called for.
Dr G. ShantakumarConsultant Demographer
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