How Singapore’s SMEs can find and retain talented employees
SMEs - resilient, resourceful and adaptable - have soldiered on to become a major contributor of Singapore’s economy. Small and medium businesses attract individuals not for the endless perks and corporate benefits they have to offer, but rather for the personal and professional growth and development opportunities available at these fast-paced workplaces. As drivers of innovation, startups are highly beneficial to emerging economies and growing markets, which demand new solutions. Given Singapore’s solid business ecosystem, the country is in a unique position to act as a launchpad for SMEs to test the waters and venture into the wider region.
However, the adrenaline rush of working in an uncertain, rapidly evolving environment might not outweigh employees’ fundamental needs for safety, security and stability. According to Jobstreet’s Laws of Attraction study, which surveyed over 7,000 people in Singapore, most candidates are motivated by considerations related to salary, work-life balance, and job security when looking for employment. While SMEs might not be able to match big corporations in terms of providing all of the above, it does not mean that working in them would be any less valuable or prestigious. It simply means that SMEs may have to be creative about the way they package their employee retention efforts. However, the good news is that respondents across all industries are fairly open to working in a start-up.
SMEs come in various sizes, the smallest one being micro-organizations which typically employ between one and five people. Small businesses have under 50 employees working for them, while medium organizations boast of up to 100 employees. Consequently, what prospective talent look for in future employers, differs with size.
Micro-enterprises (1- 5 employees)
People applying to micro-enterprises consider work-life balance and location to be their top priority. As micro organisations cannot always afford to hire permanent staff, many people who end up working there are either on a part-time or contract basis. As a result, they would prefer workplaces with flexible working hours, as well as the option to cash out their annual leave or take unpaid leave in the case of emergencies.
They are willing to work only the hours required of them unless they are paid extra for more work. Employees at micro-enterprises also do not expect transport perks or shuttle buses - however, they do expect their workplace to be accessible by bus or train.
Salary and compensation are other factors that matter greatly to talent interested in pursuing a career in micro-enterprises. Extra cash perks, such as guaranteed contract-linked bonuses and work-claims are crucial, especially to those employed on a casual basis.
Employees in micro-organisations prefer to work for leaders who are professional, yet look out for their well-being. They also want to work in a team where communication is transparent, and this is key, as people in small teams must keep each other updated on important issues for work to get done. As micro-organisations often have a small team working closely together, and often for long stretches of time, they prefer teammates who exude positivity and look out for one another.
Small Businesses (6 – 50 employees)
Employees at small businesses also value compensation and work-life balance, however, company culture is also highly important. - After all, small businesses tend to have tight-knit teams, and if employees feel like they do not fit into the culture, or are disconnected from their co-workers, they might not want to stick around.
Due to a business’s small size, employees do not have unrealistic expectations when it comes to promotions, or transfers to another department. As long as their other requirements are satisfied, employees can deal with not receiving performance-based or contract completion bonuses.
As far as management styles go, employees at small businesses prefer their bosses to treat them with respect, but champion innovation and creation - qualities crucial to the success of firms with limited resources. Talent at small businesses want to work in a fun and caring culture, given that they will be spending a considerable amount of time working with only a handful of people daily.
Medium Enterprises (51 – 100 employees)
Those working in slightly larger SMEs will appreciate a leadership style that balances its focus on performance and results, while still encouraging employees to push creative boundaries. They also aspire to work in a place where the culture supports innovation and creativity, all while embracing positivity - even during failure.
Similar to small organisations, those working for medium-sized businesses understand they may not receive lucrative bonuses. In fact, in comparison to its similarly-sized counterparts, those working in medium enterprises appear to care the least about salary and compensation.
Compared to its smaller counterparts, employees of medium-sized companies care more about company reputation. This is possibly because a medium enterprise of good repute has more potential to grow into a large enterprise or corporation if it continues to perform strongly, and employees would naturally want to be a part of that transition and potential for career growth.
Of course, you might not be able to provide your prospective candidates with everything, but it doesn’t mean you can’t go head-to-head with bigger firms and give them a run for their money. For SMEs, it’s not the hefty bonuses or corporate perks that matter the most - it’s about ensuring the personal and professional growth of your employees.
1. Have a strong track record
If your company has high retention rates and steady year-on-year growth and profitability, you need to highlight this to potential candidates, especially those which prefer permanent roles in a financially secure company. Employees need proof that they are taking up a role in a company which has proven itself capable of not only surviving, but thriving in the future. Invest in your workers’ futures - even if you cannot regularly roll out fancy corporate seminars, having small-scale in-house training programs show that you are thinking about their professional viability in the long run.
2. Showcase your agile working culture
Company culture differs massively between SMEs and their bigger counterparts. What works in favour of small companies is their agility, ability to respond to situations with speed, and adaptability. Employees will not be subjected to layers of hierarchy and will find that they can access and work alongside even senior employees with ease. Given that SMEs tend to be small and tight-knit, employees will find that actively voicing their (good) ideas and opinions is not only accepted, but highly encouraged - something which is far more valuable than free-flow breakfast and sleeping pods.
3. Enact policies which preserve and promote work-life balance
Even if your younger, more enthusiastic employees are prepared to burn the midnight oil to bring in the bread, you should discourage them from doing so, and advise them to go home and have a life of their own. They will thank you for being serious about enforcing strict work-life balance policies when they are older. Go the extra mile to make your employees’ lives easier - non-wage benefits such as fitness programmes, childcare facilities and mindfulness activities would be greatly appreciated. This also shows that you as an employer, care about their health and well-being.
Want more insights into how to find and retain the best talent in Singapore? Browse our free online Laws of Attraction tool to access some of the best talent insights in the country.