Hiring on hold: 70% of Singapore companies putting off recruitment until 2011

After receiving an influx of new employees in the first half of 2010, retaining top performers is now the priority of 60% of businesses for the remainder of the year.

The latest Michael Page Employment Index revealed that only 30% of companies plan to increase staff numbers in the fourth quarter. “Hiring activity in Singapore will be evenly spread across front line, operational and back office functions. With the recovery now well underway, employers are recruiting more broadly across their business to support increased levels of business activity. This balanced approach to hiring across business functions contrasts with China and Hong Kong, where we are still seeing a strong preference to recruit for front line revenue generating positions,” the recruitment consultancy firm said.

Looking back at the first quarter of 2010, most of the hiring activity was in front line areas because employers were investing in revenue generating roles to grow their business in the early stages of the upturn. “With the recovery now well underway, the challenge is to retain those people with the key skills needed to build and sustain business growth,” said Tulika Tripathi, Managing Director of Michael Page Singapore.

After a year of strong jobs growth in Asia there is widespread acceptance that a professional skills shortage is likely in 2011. Of the employers surveyed in Singapore, 69% recognise that a skills shortage will be an issue for their business next year. [The lack of qualified candidates] will increase the strong focus that companies are already placing on talent management as we move into 2011,” Tripathi said.