Singapore leads Asia on overseas recruitment

Skill shortage remains a driving force for expatriate-hiring.

Almost one in three or 28% of Singapore-based firms said that they have recruited workers from overseas, the highest in Asia to do so, Hay’s annual salary report revealed.

Majority, or 60%, of Singapore-based firms are receptive to hiring expatriates to fill in skill gaps in their workforce, saying that they would consider hiring or sponsoring overseas workers, according to Hays' annual salary report. This makes them the second-most willing to hire overseas workers following labour-short Japan, which leads at 67%.

Singapore’s receptiveness to expatriates comes at the heels of the government's continuing efforts to reskill and upskill its aging workforce.

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Local employers still bemoan the skill shortage, with one in three, or 32%, of employers saying that this will impact their operations. In addition, more than half (52%) said that the shortage of skilled workers will have an impact on their companys' operations.

Almost two in three employers, or 59%, said that the skill shortage will negatively impact their productivity, followed by growth and expansion (45%), and business development (41%).

"Unlike other Asian regions, Singapore’s relatively smaller size offered a more limited talent pool – therefore hiring or sponsoring qualified overseas candidates was an understandable necessity. But considering newer regulations on hiring expats and added upskilling initiatives by the government, it will be interesting to see how hiring practices will shift to cover skill gaps over the course of the year," said Grant Torres, regional director at Hays Singapore.

Despite complaining about the lack of skilled workers, local employers were found to be more optimistic than they were a year before. 52% said that their organisation has the talent needed to achieve current business objectives, compared to only 45% last year.

Additionally, only 19% said they were unsure as compared to 26% last year. This shows a growing confidence in the current talent pool and skill sets available, which may be attributed in part to the Singapore government’s continued efforts and initiatives to promote upskilling and re-skilling, noted Hays.

Further, 62% of employers said they were confident or very confident that they will be able to recruit candidates with the skills needed to meet their organisation’s needs in the next 12 months. This is up from 59% last year and makes Singapore the most skills confident country after China (66%).