The evolution of contracting in Singapore

‘The notion of contracting has changed in Singapore in recent years.

In the past, contracting tended to be associated with instability and impermanence. There was a tendency for a stigma to be attached to contracting which stemmed from belief that temporary or interim contracts were meant for lower skilled workers.

Although nowhere near as prevalent as it is in markets such as UK, US, and Australia, today contracting has shed its negative image and grown in popularity in Singapore.

It is no longer associated with junior roles and contract roles are available for mid to senior level professionals. This is largely attributable to changing hiring practices and a shift in perception by job seekers.

Employers are increasingly more conservative regarding permanent head count and are preferring to increase the proportion of contracting jobs in their organisation.

This allows them to test their potential employees before offering them permanent contracts, and overall provides a higher degree of flexibility in their workforce planning.

With this change of hiring practices, there has been a paradigm shift amongst job seekers. Where previously contracting was viewed as unstable and offering less-than-ideal job prospects, it is now seen as a way for individuals to gain a variety of experience whilst keeping their skills current and more appealing to the market.

What do job seekers want today?

Professionals today now have different career aspirations to job seekers of the past. Previously, job seekers typically sought permanent jobs immediately after graduation, following a straight-forward path of career progression.

However, more and more individuals are choosing to pursue their own interests at different points of their career.

Some choose to pursue creative pursuits before looking towards more conventional forms of employment whilst others may want to do so midway of their career. Contracting hence provides the best solution.

In a constant effort to fast track their careers candidates of today are also always looking to get exposure to that ‘latest skill’ that will make them attractive to their next employer, contracting can also provide this.

How can job seekers benefit from a contract role?

Hiring practices have evolved within organisations to favour the flexibility and freedom in mobility found in contracting. Contracting allows flexibility for both the organisation and the candidate; creating a larger pool of candidates for organisations to choose from whilst offering a candidate an unparalleled opportunity to seek jobs from diverse and varied industries. This benefit of flexibility creates a more vibrant, creative and diverse workforce within society.

How can contracting benefit an organisation?

Contracting allows individuals with varied backgrounds and different skill sets to interact with each other in an organisation, providing professionals with an opportunity to share their knowledge.

This ultimately benefits the organisation with a more dynamic and well-equipped workforce that is able to adapt to the different market challenges across industries. In a world where markets are increasingly volatile, this allows an organisation to retain a strong competitive advantage over their competitors.

What are the challenges in contracting today?

Barriers do exist in the job market before contracting is developed to its fullest potential. The greatest challenge remains to be the changing of perspectives for candidates and employers alike.

Employers need to further appreciate the flexibility, diversity and creativity that contracting can provide for its workforce. Appreciating this would help employers to better understand the need to pay a premiums for contracting, allowing them to attract the best talent and build a strong, dynamic workforce.

For job seekers, contracting provides flexibility and the opportunity to gain new experiences in order to stay relevant and competitive in any job market. It is the perfect opportunity for professionals to reinvent careers, seek new direction and strengthen and develop their skill sets to their best potential.

Joel Hides, Associate Director - Contracting Division, Robert Walters Singapore.

Robert Walters is an award-winning business and one of the leading international recruitment consultancies. The Group has a network of 48 offices spanning 23 countries, including the United Kingdom, Ireland, Continental Europe, the United States, Australia, New Zealand, Asia, South Africa and South America. For more information about Robert Walters Singapore, please visit www.robertwalters.com.sg.