companies employing cost-cutting measures

Despite being eligible for government grants and financial assistance, many companies are still looking at ways to shave overheads and variable costs to tide through the current pandemic. The decision to implement more extreme measures is expected in quarter four of 2020, as the government gradually weans companies off COVID-19 support measures and subsidies.

The Randstad Singapore’s COVID-19 Labour Pulse Study conducted in July 2020 has found that 15% of respondents have been retrenched and 31% have had salary cuts or freezes as a result of the pandemic.

Though COVID-19 has proved that digitisation and access to reliable, real-time data is an absolute necessity, many are unable to bear the excessive cost to automate. Instead, companies are more focussed on staying open for business rather than incur more costs in digital transformation.

a change in the talent landscape

Needless to say, many employers have reduced their headcount budget or froze hiring activities due to the declining and uncertain market conditions.

Those hiring reported challenges expanding their workforce to meet orders, largely due to more stringent border control measures and the increasing costs of hiring a foreigner. The talent pool is also further limited as employees are less inclined to change jobs during these trying times.

Companies that are hiring are also sourcing from the local talent pool to take advantage of government grants and schemes. For example, employers may want to hire a mid-career switcher or a lesser qualified candidate who has transferable skills and reskill them in the process. Although economic conditions are less than favourable, companies are doing everything they can to offer a salary comparable to market benchmarks, so that good talent can still receive a fair compensation for their skills and experience.

With more candidates than job vacancies, it is expected that the interview process will take longer than before as employers need more time to review the increased number of applications. Candidates should practise more patience, as it might take 4 to 6 more weeks to complete the interview process.

If finding high performing leaders and talent remains a key challenge for you, find out more about our specialist talent recruitment and management services in the manufacturing and supply chain sector.

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