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SPRING Singapore's Human Capital Movement helps SMEs attract and retain talent
Singapore’s multitude of government grants for SMEs with limited resources now includes a programme to develop the most valuable asset of any company’s future – human resources.
One of the biggest challenges local SMEs face when trying to stay competitive is having to balance their resources between growing their business and investing in their employees. With the tight labour market that Singapore is currently experiencing, unfortunately, the latter often ends up being deprioritized. Companies are increasing expenditure by hiring more people to fill labour shortages, and less on developing the potential of their existing employees.
According to a press release by SPRING Singapore, while SME leaders understand and acknowledge that developing human capital is important, they are unable to implement strategic activities around talent management and career development due to a lack of human resource capabilities. Most of their time is spent on more transactional tasks, such as payroll and processing work.
Needless to say, neglecting these areas of opportunity will not bode well for the sustainable growth of an SME. As manpower growth in Singapore is expected to decrease even more in the near future, it is anticipated that human capital will gradually become the most valuable asset of any organisation.
Addressing the human resources needs of SMEs
To address this, SPRING Singapore recently launched the Human Capital Movement for SMEs to highlight the urgency of developing strong HR capabilities and talent management within the company as a way of attracting and retaining talent.
Then Minister for Manpower Mr. Lim Swee Say reaffirmed this in his opening speech at the launch event. “To do well, SMEs need to make their investment in people a core priority,” he said. “Their capacity to grow will be constrained by the human capital they have built.”
One of the key initiatives SPRING Singapore has embarked upon with respect to the movement is recruiting 10 HR directors from the public and private sectors who have volunteered their time to mentor SME leaders in talent development. These directors – who include Foo Chek Wee, group HR director at Zalora Southeast Asia – will engage SME leaders and HR managers to share their perspectives and experiences, as well as HR best practices and strategies. They will also facilitate peer-learning activities among SMEs.
SPRING is also partnering with management consulting firm Hay Group to develop a new HR diagnostic tool that aims to reach out to 1000 SMEs within the next three years.
This tool aims to help SMEs better assess their current HR capabilities and fill identified gaps within their HR processes. Following a pilot run of the tool in 2014, which was conducted with some 180 SMEs across various industries, it was established that most of the SMEs were lacking in strong HR practices, especially in training and development.
SPRING will also work with HR thought leaders to organise themed workshops that aim to equip SMEs with the necessary HR knowledge they need. SMEs can also gain continued support in upgrading their HR capabilities through the Capabilities Development Grant.
Finally, through partnerships with trade associations and chambers, as well as institutes of higher learning, SPRING will work with SMEs to participate more actively in career developmental programmes for young talent. In so doing, SMEs can improve their brand as the employer of choice and showcase promising career opportunities for tomorrow’s talent youth.
SPRING’s Human Capital Movement presents many opportunities for SMEs to develop and maximise their HR potential:
- Assessing and identifying gaps in their HR capabilities through a comprehensive HR diagnostic tool.
- Mentorship on talent management from passionate and skilled HR Directors in Singapore.
- Attending themed-workshops and gaining essential HR knowledge.
- Partnering with SPRING to participate in programmes that aim to recruit and retain young talent.
To read more about other government grants for SMEs in Singapore, click here.