Small and Medium-sized Enterprises: The Backbone of Singapore’s Economy
Small and medium-sized enterprises (SMEs) play a crucial role in Singapore’s economy, contributing to around 48% of the country’s GDP and employing over 65% of the workforce. Despite their significant impact, SMEs in Singapore face a myriad of challenges, particularly in the area of human resources. This article addresses these challenges and provides actionable strategies to help Singapore business owners unlock their full potential and succeed.
Top Challenges Faced by Singapore SMEs
Human Resources
- Talent Shortage: A Major Obstacle for Singapore SMEs
Singapore’s limited talent pool and high competition among companies for skilled employees make hiring competent Singapore citizens and PRs challenging. Additionally, stringent work visa requirements and government policies make hiring foreign talent increasingly difficult.
- High Labour Costs: Balancing Employee Expectations and Business Viability
With Singapore’s increasing cost of living and rising expectations for employee benefits and compensation, SMEs struggle to balance meeting employee needs and sustaining business viability.
- Retaining Employees: The Battle Against High Turnover Rates
High job turnover rates and rising inflation leading to higher salary expectations make retaining employees a significant challenge for Singapore SMEs.
- Attracting and Retaining Interns: A Competitive Landscape
A limited pool of interns and a lack of career development opportunities make hiring and
Strategies to Overcome Human Resources Challenges
- Talent Shortage Strategies
- Broadening the Search for Talent: Leveraging Multiple Channels
- Embrace various channels, such as online job portals, social media, and employee referrals, to reach a larger pool of potential candidates. Expanding your search increases the chances of finding the right talent for your business.
- Offering Competitive Salaries, Bonuses, an