Singapore faces a talent crunch amidst a booming tech sector. Let’s explore how a technology-enabled global workforce strategy can address this challenge and fuel innovation.
Singapore’s economy faces a curious dilemma: a talent drought amidst a booming tech sector.
This paradox is stark when you look at a recent Ministry of Manpower (MOM) report highlighting a rise in PMET (Professionals, Managers, Executives, and Technicians) vacancies, surging from 39.2% in 2013 to 57.2% in 2023. Meanwhile, businesses are aggressively pushing the boundaries of innovation in developing or adopting frontier technologies, including artificial intelligence (AI).
The red-hot tech market is creating surging demand for skilled workers amid a labor market where 80% of local firms perceive hiring as highly competitive. This talent situation inevitably creates a bottleneck for companies, potentially forcing them to slow down ambitious growth strategies.
In “Good Strategy, Bad Strategy,” author and academic Richard Rumelt describes a framework for effective strategy development, arguing that the core of any strategic endeavor lies in identifying the crucial elements of a situation. Once these critical factors are unearthed, a successful strategy focuses on coordinated actions designed to address them.
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The current situation in Singapore perfectly exemplifies Rumelt’s concept. There is a clear mismatch between talent supply and demand within the tech sector, and relying solely on the local talent pool is no longer sufficient. Companies need a new approach – an ‘everywhere workforce’.
The global workforce: A win-win for companies and employees
Going global benefits companies and is highly valued among employees, who perceive global companies to offer more career opportunities. A G-P study found that 93% of Singaporean employees want to work for a global company, surpassing the global average of 79%. This is mainly fuelled by the prospect of better pay and benefits, travel or work abroad options, and the chance to be part of a culturally diverse work environment.
A globally distributed team also brings more diversity of skills and expertise to organizations. These perspectives and experiences can help companies compete globally and spur rapid innovation.
Despite the inherent benefits of a global workforce, global growth can be challenging, and it looks different for every company. Factors such as compliance challenges are preventing companies from leaping – with 32% of global executives deterred from recruiting and hiring in a different country due to complex regulations.
The demands of today’s workforce require more individually tailored solutions for companies and professionals. To overcome these hurdles and navigate today’s dynamic landscape, companies must explore emerging technologies beyond traditional HR tools for global employment.
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The new era of global growth technology
Historically, the path for global growth was often office-by-office and market-by-market. The process was arduous due to cost, time, and ongoing compliance challenges. Modern work has been transformed by technological advances, enabling companies to quickly build global teams and the availability of talent from emerging countries. Despite these developments, navigating the complexities of scaling internationally remains daunting for many companies. Businesses often lack guidance on where to begin and how to effectively implement and manage global growth strategies.
This is where global growth technology steps in, providing businesses with a powerful toolkit of new solutions and strategies to unlock global opportunities quickly, efficiently, and compliantly. Through a powerful combination of generative AI intelligence and human intelligence, companies can remove the tension between their growth strategies and compliance, providing them access to talent (including full-time and contract workers) regardless of location.
Leveraging advanced analytics and data on hiring trends is key for global growth since it enables companies to pinpoint opportune moments to enter new markets while adhering to compliance standards. Custom reports and HR analytics provide teams with real-time insights into local growth strategies, including salary benchmarks, benefits data, and compliance regulations, to ensure organizations are well-positioned for long-term success when entering a new region.
Global growth technology also enables companies to manage global teams efficiently through automation. These AI-enabled tools can automate repetitive tasks, such as managing employment contracts, onboarding documents, and other tedious paperwork. Additionally, AI provides personalization capabilities that allow companies to customize the employee experience, onboarding processes, benefits packages, and HR support, creating a tailored and consistent experience for their global workforce.
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Future-proofing Singapore’s workforce
Attracting global talent isn’t the only way to solve the talent problem; the potential of Singapore’s existing workforce must also be unlocked. While Singapore’s low unemployment rate is positive, it masks a growing skills shortage. To strengthen its reputation as a global talent hub, the Singapore government has launched various initiatives, including SkillsFuture, Overseas Market Immersion Programme, and Global Business Leaders Programme, to support companies in upskilling their employees and accelerating their market expansion plans.
By encouraging continuous learning, offering competitive work environments, and offering global opportunities, Singapore can bridge this gap and ensure the local talent pool continues to be a springboard for economic success.
While the government’s commitment to lifelong learning empowers the local workforce, global growth technology offers a new frontier for sustained growth. By embracing both strategies, Singapore can build a future-proof talent pool where an ‘everywhere workforce’ transcends geographical limitations and fuels continued innovation.
