This document discusses HR policies and practices in Singapore. It notes that Singapore faced massive unemployment after independence due to a lack of skills and resources. The government addressed this by promoting foreign direct investment in labor-intensive industries and guaranteeing access to global markets. Today, HR plays a key role in aligning company policies with business strategies and leading change. The government also focuses on merit-based recruitment, performance-linked pay, training programs, and promoting work-life balance to support a knowledge-based economy.

1. HR POLICIES

2. SEQUENCE
 EMPLOYERS
 CHALLENGE AT THE TIME OF INDPENDENCE
 THE SOLUTION
 IMPORTANCE OF HR
 PUBLIC SECTOR EMPLOYEES
 SALARIES IN SINGAPORE
 PERFORMANCE BASED PAY
 TRAINING PROGRAMS
 KNOWLEDGE-BASED ECONOMY
 WORK-LIFE BALANCE

3. EMPLOYERS
 Of the 3.75 million Singaporean, workforce comprises of about
2.75 million.
 Civil Service, the largest employer.
 Employs approximately 67 thousand people.
 More than 8000 MNC’s as employers in Singapore.
 Government imposed quotas over ratio of foreign to local
workers in a company varying from sector to sector.
 Average ratio is 65:35

4. CHALLENGE AT THE TIME OF
INDPENDENCE
“How to create jobs for a non-cohesive nation with
massive unemployment, lacking in basic educational
and technical skills,, with nil natural resources, and
no industrial sector to support its economy??”

5. THE SOLUTION
 Cashing on Labor-intensive foreign investment.
 Key to raising jobs.
 For Singapore lacked skills, knowledge, finances.
 Guaranteed global market for the products resulting from the
FDI of such MNC’s.
 Singaporeans in Private sector;
 Half of the Singaporean workforce is working directly for MNC’s
 and the rest are associated with SME’s which are in turn catering to
MNC’s.
Cont’d….

6.  Human capital, Considered a major asset of a company.
 Knowledge based Economy.
 Financial growth and investment does not usually translate
proportionally to job market.
 Pivotal factor is investment;
 “ Do you have good workforce in your country”. – Siemens CEO.

7. IMPORTANCE OF HR
 Company’s HR policies must align with its business strategy.
 HR must lead the change process
 by bringing in people with new and innovative ideas.
 FDI in a country does not guarantee a job to the locals,
 HR management policies does.
 “Agelion” of HP, an example.
 20% Singaporeans employees.
 80% Foreign workforce.

8. PUBLIC SECTOR EMPLOYEES
 Public Service Commission created to ensure recruitment
 Based on meritocracy, not patronage.
 Hefty salary packages being offered.
 Ranges from 200 thousand SD to 1.2 mil per annum.
 From Grade IV to Grade I Officers.
 Majority, selected at the time of graduation from high
schools.
 Awarded scholarship for higher education abroad.
 A 5-7 year job bond is signed beforehand.
 Officers attain their final rank by 45 years of age.
 New governmental policy.

9. SALARIES IN SINGAPORE
 Per capita income is 46,832 SD.
 Public Sector Salaries at par with Private Sector.
 Hefty bonuses
 Corporate sector pays 4-6 months pay
 Civil service does the same for 1-3 months pay.
 High saving rate thanks to CPF.
 10 to 20% pooled in by Employer.
 15% by Employee.

10. PERFORMANCE BASED PAY
 A noble concept to enhance performance on reward basis.
 Applicable in both Public and Private sector.
 Three tiers of performance;
 Individual worker
 Team based performance
 Company level performance
 Singaporean government has launched a new pay-scale.
 Based on Pay to Performance Based Pay ratio.
 Lower cadre employees; 70:30
 Mid cadre employees; 60:40
 Higher or Executive cadre employees; 50:50

11. TRAINING PROGRAMS
 Currently government is running a talent enhancement program
named “SPER” with a pool of 1.5 billion SD.
 90% employees’ training born by government.
 Government pays about 300 SD to companies for employee
retention during a recession
 Sharing the company’s burden of employee pay.
 Government ensures every laid off employee in a recession upgrades
his or her skills.
 Bonds and Promotions for the employees are offered as an
incentive for ensuring talent retention.

12. KNOWLEDGE-BASED ECONOMY
 Singapore lacks Natural Resources.
 Trained and equally qualified human capital, an attraction for
investors.
 Primary reason for the focal shift towards Knowledge Based Economy.
 Philippines as a comparison.
 A country rich with natural resources but lacking the human capital
to utilize them effectively.
 Under-developed.
 Plagued with corruption and mismanagement.

13. WORK-LIFE BALANCE
 An issue of extreme social concern.
 Extended working hours make family life complicated.
 Average marriage age for males is 32 and for females 31.
 Government encouraging marriages and setting up of a family.
 HDB house for married couple with no age restriction.
 Unmarried person can apply at 35 years of age.