Brain drain woes persist in SG, says 69% of executives

Hiring expectations have levelled off slightly but remain strong, said Hudson.

According to The Hudson Report, only 61 per cent of respondents across all sectors forecast headcount growth in Q2 2011, compared to last quarter's 62 per cent.

The Hudson Report revealed that hiring expectations are much higher than they were a year ago: the 61% planning to grow headcount this quarter up from 54% in Q2 2010.

Expectations remain steady

Hiring expectations show little change this quarter, suggesting that the market is stabilising at a high level. Across all the sectors surveyed, 61 percent of respondents plan to grow headcount in Q2, compared with 62 percent in Q1. The proportion of respondents who say hiring will be steady has risen slightly, from 35 percent to 37 percent. Georgie Chong, executive general manager, Singapore, Hudson, comments “Hiring expectations remain upbeat across all sectors. However, employers are now facing serious shortages of skilled talent and challenges in retaining key employees.”

Expectations still rising over longer term

Hiring expectations again show a significant year-on-year rise. The 61 percent of respondents expecting to boost recruitment this quarter is up from 54 percent in the same quarter last year. Expectations have risen in every sector surveyed, in some cases very substantially, with the exception of Banking & Financial Services. This sector reports a fall from 65 percent in Q2 2010 to 59 percent this quarter. However, it should be pointed out that financial institutions were among the first to rebound from the downturn and were already hiring aggressively by the beginning of 2010.

Strongest demand is for sales staff

Respondents were asked about the areas in which they expect to increase headcount in the next six months. By far the greatest demand is for sales professionals: 46 percent of respondents across all sectors say they will grow hiring in this area, more than double the figure for any other area. This suggests that companies in all sectors are confident about the strength of the economy and are now focusing on revenue generating roles to secure their market share.

Harder to recruit top talent

Across all the sectors surveyed, 69 percent of respondents say that they are experiencing greater difficulty in recruiting top talent compared to a year ago. This figure is higher than that reported by employers in Hong Kong but lower than for China. The strong recovery from the downturn in most business sectors made it very likely that recruiting attractive candidates would become increasingly problematic. The responses to this question vary between the sectors but it is clear that the war for talent is becoming more severe.

Skill sets shortage is main reason by large margin

Respondents who said they were finding it more difficult to recruit top talent were also asked about the reasons for these problems. Across all sectors, a shortage of the required skills is regarded as by far the most significant cause of hiring problems. This factor is mentioned by 81 percent, followed by candidates demanding pay increases at 49 percent. The proportion of respondents seeing a skills shortage as the main problem is much higher in Singapore than in China or Hong Kong.

Staff retention is biggest challenge

Respondents were asked about a number of potential HR challenges. Retaining top talent is regarded as by far the most critical challenge over the next six months. Overall, this factor is mentioned by 52 percent of respondents, a much higher figure than for China and Hong Kong. Hiring staff who fit the job requirements, cited by 30 percent, is seen as the second most critical challenge. The other issues are mentioned only by small proportions of respondents.