Why happiness is a serious business in Singapore

As one of the easiest places to do business in the world according to World Bank reports, Singapore has a reputable track record of pro-business regulations and investor-friendly policies. This signals Singapore’s emergence as a global business hub that continues to attract multinational corporations (MNCs) to set up operations in the country.

In two other global rankings, however, Singapore has not done so well. A late 2012 Gallup study reported that Singaporeans are among the least happy people in the world. In addition, a 2011 survey by talent management firm Lumesse covering 14 countries including the US, UK and China showed that Singaporean workers are the least satisfied with their jobs.

These two trends together imply that the workplace may be a major source of unhappiness for Singaporeans. They may also have future implications. Will an unhappy workforce affect Singapore’s status as a business hub? If that is the case, what can be done to reverse these trends?

Unhappy workers may lead to high turnover rates. Research on the US labour market shows that younger workers change jobs every two to three years to look for the best fit. If the new generation of globally connected workers are unhappy, they are unlikely to remain in their jobs for very long.

From a business perspective, high-turnover rates lead to high costs in replacing personnel and in training the replacements. This could in turn deter MNCs from setting up or continuing their operations in Singapore, thus affecting Singapore’s long-term economic strategy.

The good news is there are steps firms can take to improve employee satisfaction to prevent high turnover rates. According to management consulting firm Hay Group, the first two criteria of a great working climate are Flexibility and Responsibility.

Firms could foster a positive working environment by being more flexible in the day-to-day management of employees and having fewer unnecessary rules. This would have a positive impact on employee morale, who would feel that they are given more trust to do their jobs well.

When it comes to actualising responsibility, firms could promote a better sense of ownership in employees’ work by giving them more freedom to make decisions. This serves to further make employees feel that they are trusted and valued.

Moreover, in making their own decisions on the work they are doing, employees would also feel more personally invested in their work and would therefore feel more attached to it. In turn, they would be less likely to jump ship at the drop of a hat.

Google is an outstanding example of a firm that has been able to give its employees both Flexibility and Responsibility at the same time. The company offers its employees what is known as ‘20-per cent time’. Under this policy, 20 per cent of Google programmers’ time at work can be spent on projects that they are interested in.

This unique policy and other similar ones are reasons why Google has been able to establish its reputation as a highly desirable employer to work for. ’20-per cent time’ has directly benefited Google’s product line and revenues as well, being responsible for the creation of Gmail, Google News and AdSense.

Certainly, the success of a particular policy depends on many factors within each firm, such as its size and hierarchical structure.

Nevertheless, whichever the policies that firms opt for, taking tangible steps to create a climate that gives employees more freedom at work and that makes them feel trusted would go a long way in boosting employee retention. This would benefit employees, firms and the Singapore workforce as a whole through promoting greater efficiency and stability in hiring.