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Old 20-07-2013, 11:10 PM
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An honorable member of the Coffee Shop Has Just Posted the Following:

Short-term contract work seems to be a growing trend among professionals in Singapore as the economy restructures.

Office workers cross the road in the central business district of Singapore. (AFP/Simin Wang)








SINGAPORE: Short-term contract work seems to be a growing trend among professionals in Singapore as the economy restructures.
And increasingly, this is working in the favour of employees, say HR experts.
Contract work used to be the domain of low-skilled workers.
But increasingly, professionals, managers, executives and technicians (PMETs) are being hired on contracts.
Figures from the Manpower Ministry show that some 70,000 PMETs were hired on term contracts last year, up from 67,000 in 2011.
HR firms Channel NewsAsia spoke to also noticed a similar growing trend.
Robert Walters said it saw a 43% increase in contracting vacancies in the first quarter of this year, compared with the 4th quarter in 2012.
Mr Toby Fowlston, managing director of Robert Walters Singapore, said: "If a company is looking to move operations to other parts of Southeast Asia or other parts of the world, and they are not necessarily able to secure permanent headcount sign-ons, so obviously, interim contract is a more viable option."

Meanwhile, Ms Linda Teo, country manager of Manpower Singapore, said: "Yes, we have seen an increase in contingent orders. In view that organisations do not know what will happen with Europe and the US, organisations will take more contingent workforce to gain more flexibility."

HR experts say contract work will be a growing market in challenging economic times when companies need to exercise flexibility on headcount.

The contract period for PMETs is typically short-term -- anything from six months to a year.

A quick street poll shows that workers still value job security.

Le Duy Linh, a Vietnamese software developer, who is on a two-year contract in Singapore, said: "A short term contract is not comfortable for the employee because it does not guarantee anything. Up to six months -- what can you do if your contract expires? You go home?"

Ee Ling, a quality service officer, said: "Not for me. I have commitments. So, because of commitments, I need something full-time."

Chiu Kai Ling, a manager, said: "In this economic climate, I'm not that comfortable because it's not very certain whether I will be able to find a job by the time my contract ends."

Joshua Tay, a corporate services manager, said: "I prefer to have a stable position where I can excel, maybe at least three years and above."

Perceptions aside, one HR firm said more professionals in Singapore are warming up to the idea of contract work

Hays said it has seen a three-fold increase in the number of people looking for such work over the past three to four years.

And the hunt for skilled people is happening across sectors.

One big change it is starting to see is that contract staff are getting better deals.

Hays' regional director Chris Mead said: "It used to be they would get minimal benefits, and I think when you have minimal benefits and only a short-term job, it can sometimes lead to a perception that this is not a good thing to do.

"But the smart organisations in Singapore - and I would say the oil and gas industry, the banking and finance industry and technology industry, in particular - have started to change the benefits that are available to contract workers, coming much more in line with permanent staff."

Another trend emerging is the conversion of contract workers to permanent staff by employers who are satisfied with the person they have hired.

"Also, a growing trend in Singapore is that the employer takes on an employee for six, nine or 12 months on a contract, and if the work is ongoing, the employee likes the company, the company likes the employee, then that employee is converted to a permanent (staff)," said Mr Mead.

With contract work, there is always the issue of job security. So experts advise workers to go in with their eyes open.

"It does take a leap of faith if you take a nine-month contract. Obviously, there's an element of uncertainty there. However, for good skilled professional staff, the unemployment rate in Singapore is about 2%, so there is no shortage of good jobs out there for staff who are professionally trained and have good experience. So the risk of going for a long time without a job is actually quite minimal," added Mr Mead.



- CNA/ir


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