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Singapore firms must brace for a 'talent exodus' by 2014
Employees are eyeing better opportunities.
According to a global study from Hay Group, Singapore firms face the threat of a rising talent exodus as economic and labour market conditions improve.
According to the Preparing for Take-Off study, conducted in association with the Centre for Economics and Business Research (Cebr), developed economies will start to see departures peaking in 2014, with the number of workers taking flight reaching approximately 161.7 million in 2014.
Mr Victor Chan, Regional General Manager (Singapore and ASEAN) for Productized Services, Hay Group, said, “The turbulent labour market associated with the economic downturn has held down turnover rates in many organisations.
“But as the economy recovers and global employment becomes less volatile, dissatisfied workers with pent up frustrations now pose a significant flight risk. They will be looking for alternative employment opportunities, leaving their former employers facing significant hiring costs and crucial talent gaps.”
The Preparing for Take-Off study covers 700 million employees in 19 countries worldwide and is based on a bespoke macroeconomic model that analyses the main factors affecting employee turnover.
Singapore employees looking for the exit
In Singapore, average employee turnover rates have been in the two-digit range for the past five years and climbing.
Singapore companies have witnessed attrition rates of 15.4 per cent in 2009, 14.1 per cent in 2010, 14.0 per cent in 2011, 14.1 per cent in 2012 and 15.6 per cent in 2013.
Mr Chan said, “With the economy in Singapore growing favourably at 3.8 per cent on-year in the second quarter, firms must establish solutions to engagement and enablement challenges to keep high value employees from leaving in search of more favourable work arrangements.
“Some of these include providing clear direction about organisational priorities to help people focus on the highest-value tasks, encouraging superior levels of teamwork both within and across business units to help everyone cope with work demands, supporting opportunities in training, development, and empowerment to ensure that employees have the skills and authority to get the job done, and providing the tools, information and other resources employees need to work efficiently and effectively.”
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