How CEOs Can Leverage Public-Private Partnerships to Attract and Retain Top Talent
Singapore’s labor market is a paradox: unemployment remains at a historic low of 1.9%, while employers face a 1.39:1 job vacancy-to-unemployed ratio. With GDP growth projected at 1–3% in 2025, businesses must navigate a landscape where talent scarcity, digital disruption, and shifting worker priorities collide. Here’s how to outmaneuver competitors by tapping into government initiatives and private-sector innovation.
1. Redefine Talent Acquisition: Tap Overlooked Pools
Why it matters: Singapore’s resident workforce growth is slowing due to high labor force participation (over 70%). To fill gaps, expand your talent strategy:
- Non-resident workers: With 18,200 non-resident hires in Q3 2024 (mainly in Construction and Manufacturing), leverage Work Permit and S Pass holders for roles locals avoid. For higher-skilled roles, align with Singapore’s tightened COMPASS framework by offering competitive salaries and clear career pathways.
- Older workers: Singapore’s aging population (median age 43) demands phased retirement models and part-time roles to retain institutional knowledge.
- Skills-first hiring: 79% of HR leaders prioritize skills over credentials. Use AI-driven assessments to identify candidates with problem-solving, AI/ML expertise, or cybersecurity skills.
Action: Partner with Workforce Singapore (WSG) to access Career Conversion Programmes (CCPs), which subsidize mid-career reskilling for roles in tech and green sectors.
2. Double Down on Digital Upskilling
Why it matters: Singapore’s digital economy contributes 17.7% of GDP, yet 2 in 3 employers cite skills mismatches as their top challenge.
- Prioritize AI, cybersecurity, and data analytics: These skills are critical for 2025 roles like Data Scientists (salary growth: 12–15%) and Cybersecurity Specialists.
- Leverage government grants: Use the Productivity Solutions Grant (PSG-JR) to redesign jobs and integrate automation. For example, SMEs adopting AI tools saw productivity gains of 20–30%.
- Embed continuous learning: 97% of Singaporean firms prioritize upskilling. Create “micro-learning” modules aligned with SkillsFuture’s Jobs-Skills Portal, which maps emerging skills in the Digital, Green, and Care economies.
Action: Allocate 1–2% of payroll to upskilling. For example, Avid Adventures used SkillsFuture insights to design career simulation games for staff.
3. Revamp Employer Branding: Flexibility + Purpose
Why it matters: 95% of Singaporeans prioritize work-life balance, and 42% reject roles lacking flexibility.
- Hybrid work as a norm: 56% of employees prefer hybrid arrangements. Offer core hours (e.g., 10 AM–3 PM) and remote Fridays.
- Monetary and non-monetary perks:
- Salaries: Offer 3–5% raises for retainers and 12–20% premiums for job movers in tech.
- Flexible benefits: Subsidize childcare, mental health apps (e.g., Intellect), or green commuting (e-bike allowances).
- ESG alignment: Highlight sustainability initiatives. For example, green finance roles are surging due to Singapore’s push to be a carbon services hub.
Action: Showcase success stories on LinkedIn. Sainsbury’s-style retention campaigns emphasizing career growth boosted retention by 15%.
4. Retain Through Career Crafting
Why it matters: Turnover costs 2x salary, but 60.4% of retrenched workers re-enter jobs within 6 months. Keep talent engaged with:
- Internal mobility: Companies with mobility programs see 40% lower attrition. Rotate high-potential employees into AI or green economy projects.
- Stay interviews: Quarterly check-ins to address pain points. For example, 32% of firms plan 2025 salary hikes—use these insights to preempt poaching.
- Leadership pipelines: Develop HR Business Partners and Total Rewards Specialists internally.
Action: Use WSG’s MyCareersFuture portal to map skills pathways for employees.
5. Forge Public-Private Partnerships
Why it matters: Singapore’s government invests heavily in workforce development. Align with national initiatives to stay ahead:
- SkillsFuture Singapore (SSG): Access the 2025 Skills Demand Report to identify trends in Care, Green, and Digital sectors.
- Global talent pipelines: Lobby for streamlined visas under the Tech.Pass scheme for roles like Software Engineers (demand up 23% YoY).
- Industry alliances: Join RHB’s Manufacturing 4.0 consortiums to share talent pools amid semiconductor sector growth.
Action: Co-design curricula with institutes like Nanyang Polytechnic for AI/ML certifications.
The Bottom Line
Singapore’s talent war demands agility and collaboration. While government initiatives like SkillsFuture and WSG provide critical support, businesses must also:
- Address salary inflation: 38% of firms struggle to meet rising wage expectations.
- Build geopolitical resilience: Diversify talent pools and cross-train employees for multi-functional roles.
- Integrate ethical AI: Combat risks like data breaches and GenAI inaccuracies through upskilling.
To thrive in 2025, businesses must strategically leverage government initiatives while driving private-sector innovation. SkillsFuture’s insights, WSG’s reskilling programs, and Tech.Pass’s global talent pipelines are powerful tools—but they must be paired with agile compensation models, ethical tech adoption, and a relentless focus on employee well-being. The winners will be those who treat talent strategy as a core pillar of business resilience.
Final Tip: Monitor the Jobs-Skills Portal for real-time labor trends. As Minister Gan Siow Huang emphasized, “Harness data to power competitiveness”. The winners in 2025 will be those who treat talent strategy as core to business resilience.
References
- Singapore Ministry of Manpower (MOM): Labour Market Report Q3 2024. Link
- Workforce Singapore (WSG): Career Conversion Programmes (CCPs). Link
- SkillsFuture Singapore (SSG): Jobs-Skills Portal. Link
- Singapore Green Plan 2030: Carbon Services Hub and Green Finance Roles. Link
- Tech.Pass Scheme: Global Talent Attraction Initiative. Link
- Productivity Solutions Grant (PSG-JR): Job Redesign and Automation Support. Link
- Singapore Budget 2024: SkillsFuture Mid-Career Support. Link
- Minister Gan Siow Huang’s Speech: Harnessing Data for Competitiveness. Link