Most employers are constantly looking out for strategies to increase employee retention. This article discusses the two biggest reasons for the high turnover rate in Singaporean organisations: the absence of work flexibility and professional development and what efforts employers can implement to address and improve employee satisfaction and retention.

In a 2024 article, it was reported that Singaporean employees have some of the longest working hours in the world. A statement that no longer surprises many. Singapore was also labelled one of the most overworked cities in the world, claiming 2nd place amongst 10 other countries with 25.1%:

1. Hong Kong (29.9%)
2. Singapore (25.1%)
3. Bangkok, Thailand (20.2%)
4. Buenos Aires, Argentina (19.9%)
5. Seoul, South Korea (19.5%)
6. Tokyo, Japan (18.3%)
7. Houston, Texas, US (16.6%)
8. Kuala Lumpur, Malaysia (16%)
9. Calgary, Alberta, Canada (15.5%)
10. London, United Kingdom (15.4%)

On the other side of this scale, research uncovers that 49% of Singaporeans will leave their current jobs if required to work long hours. This is supported by 70% of Gen Z respondents, who prioritise flexible working hours and choice of work location at 61%.

In addition to these statistics, 40% of workers left their organisation due to a lack of skills training; 29% plan to leave due to poor remuneration and benefits and another 32% feel unappreciated at work.

Our recent survey concluded that 40% of working adults considered work flexibility a non-negotiable factor when applying for jobs. Coming in second with 34% voted for required professional development opportunities, and 21% cited an emphasis on medical benefits.

Employee turnover rate and retention can be significantly improved through re-evaluation. However, employee turnover can never entirely eradicated due to individual preferences and circumstances. These circumstances include family, commitments and change of career goals and aspirations.

How can employers increase employee retention?

1. Work Flexibility Arrangements

Why is there a need for work flexibility arrangements?

This arrangement was not widely practised until the COVID-19 pandemic hit Singapore in early 2020. At that time, many individuals were involuntarily confined to their homes. Everyday routines hit a reset button, and businesses had a challenging time figuring out the best work protocols to keep up with productivity. This was also when we realised that work flexibility arrangements can be made in most industries.

The Tripartite Guidelines on Flexible Work Arrangements (FWA) will come into effect on 1 December 2024. These guidelines include work arrangements ranging from flexi-time, flexi-place and flexi-load. Factors attributed to this rollout include an 8% increase in the ageing workforce from 19% in 2012 and low birth rates resulting in fewer young people entering the workforce. Additionally, another report cited about 260,000 working-age individuals remaining outside the workforce due to caregiving possibilities.

While most employers concur that work flexibility is beneficial, some cite that these arrangements will affect performance, productivity and team dynamics.

Singapore’s major job application platforms reported a notable increase in remote-work positions of 8.5% in May 2024, growing 1.6 points since November 2022; statistics from Indeed found one in every 23 searches contained the keyword ‘remote’.

Siew Mee Chew, Managing Director of the employment portal, Job Street commented recruiters who offer flexible work arrangements are attracting 2-3 times more applications.

What can I do:

In hindsight, if employers encouraged results-based work, this would trickle into productivity, where performance can be measured. Furthermore, this would create high levels of trust and accountability to ensure the job is completed. Employers can also consider conducting quarterly performance reviews to monitor progress and relay or adjust each individual’s goals and expectations.

Employers can take a step further by investing in project management and communication tools like monday.com, Trello, Notion, and more. These tools can help streamline and track progress and workflow. It’s also important to conduct pilot testing after ample training. This ensures all employees are familiar with any new technology or tool introduced.

Team leaders and mid-level managers are encouraged to initiate face-to-face discussions during in-office days. They should also organise brainstorming sessions and even team-building activities to increase engagement and collaboration within the team. These initiatives help to iron out differences and build on each others’ strengths.

For employers considering a flexible work arrangement, identifying the nature of their industry will determine the best type of flexible work arrangement they can offer their employees.

Aside from higher employee retention, you will also potentially elevate your brand name by emphasising the welfare of its workers. Hence, increasing a wider talent pool and interest in your organisation.

2. Professional Development Opportunities

Why is there a need for professional development?

Two in five Singaporean employees’ departure from their organisation resulted from a lack of learning and development (L&D) opportunities, and only 17% reported satisfaction with their company’s L&D programmes.

While the Singapore government has been encouraging workers to upskill and for companies to offer relevant courses, the barriers to learning are also noteworthy. Based on a LinkedIn survey, these are some contributing factors:

• Lack of time (57%)
• Cost (37%)
• Accessibility (45%)
• Resources (31%)
• Lack of interest (30%)

48% of companies found engaging employees while delivering such programmes difficult, and 41% found redesigning training for younger employees challenging.

As employers, there are a few aspects you can consider before implementing or carelessly offering ‘learning and development’ opportunities to fellow employees. For context, L&D is assessed based on the needs of roles and capabilities of organisations. It’s also important to note that a learning culture must be created and inclusive in learning approaches to ensure its effectiveness.

Likened to various role designations, all form of learning starts with beginner to intermediate. First, assess what existing skills an individual can acquire and what could be lacking. Next, determine which skills to build on and which skills that could benefit future tasks on an intermediate level.

What can I do:

Employers and leaders can initiate L&D programs within their teams by allowing employees to embark on courses that will help them grow individually or professionally. To create a sense of accountability for their learning progress, you may want to initiate weekly discussions. These discussions can be used to exchange knowledge and information.

To take this another step further, create opportunities or tasks where members can use the skills they have learned and put them to practice. As an incentive, celebrate learning achievements by recognising and rewarding employees. This will encourage them to keep going and share their knowledge with others, creating a ripple effect in the organisation.

It’s also important to garner employee input to determine what skills they need to build and how it will help them perform better in their roles. This can help you identify perceived skill gaps and discuss how they can be addressed through relevant and engaging L&D opportunities.

Organisations that invest in their employees’ professional growth and development are more likely to retain top talent than those that are solely focused on productivity.

For hiring enquiries, please contact: enquiry@gjc.ppclander.com

For job opportunities, please email: apply@gjc.ppclander.com

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Read our Flexible work arrangement (FWA) guides here