Oct 23, 2009 - Sharp rise in hiring expectations among firms: recruitment survey

[Watchman]

Sharp rise in hiring expectations among firms: recruitment survey

Channel NewsAsia - Friday, October 23


Sharp rise in hiring expectations among firms: recruitment survey

SINGAPORE: Hiring expectations among Singapore companies have increased. A survey by recruitment firm Hudson, found that 34 per cent of firms polled expect to increase headcount in the last three months of this year.

But it also warned that companies may turn cautious again when economic stimulus packages end.

More jobs are expected as employers start to hire aggressively again, all thanks to Singapore’s economic engine which is chugging again.

Initiatives like Jobs Credit have helped. However, the government has announced that the wage subsidy scheme designed to stem unemployment will end in June next year. Hudson said companies might become cautious again then.

Gina Mclellan, country manager, Hudson Singapore, said: "That would be a concern towards the end of next year when the package comes to completion. This also happens internationally where a number of stimulus packages will actually come to an end.

"Some as early as quarter one and then it would take a period for the market to self—adjust, to come to terms to the fact that they don’t have the savings anymore. So, I think there will be a period of uncertainty to see how the global economy works with these new constraints."

According to the Hudson Report, the higher hiring expectations cuts across key business sectors. Banking and Financial Services is the most bullish, with confidence returning to the sector, after being battered by the financial meltdown.

Going forward, Hudson said the top HR priorities are talent development and retention.

HR practitioners said reinstating cutbacks during the recession would be an important incentive.

David Ang, executive director, Singapore Human Resources Institute, said: "If companies are doing well and are making profits and they’ve been able to manage cost and reduce their cost because of sacrifices from the employee, then in addition to all the things which I’ve mentioned earlier in terms of cost management as well as in terms of productivity programmes, I think it’s good to return some of these sacrifices back to the employee, and encourage them to stay on and help with the growth of the organisation."

The Hudson Report surveyed some 600 executives in August. — CNA/vm