The often-repeated complaint of the service sector has grown to a resounding refrain with more and more businesses echoing the same lament of not having enough manpower. For the sector that relies heavily on manpower to provide the human touch and service, it is not a simple issue that automation and digitalisation can solve.
Singapore’s economic activity has started to bloom with the reopening of borders and cessation of safe management measures. However, many businesses in the service sectors have not been able to fully capitalise on the recovery as there simply isn’t enough manpower to ramp up operations. For the hard-hit service sector which saw many businesses cutting back on manpower during the earlier stages of the pandemic, hiring back their skilled and trained staff has not been an easy task.
Given these challenges, the Singapore Business Federation (SBF) has proposed a manpower policy paper detailing how key stakeholders, including businesses, trade associations and chambers (TACs), government agencies, unions, and post-secondary educational institutions (PSEIs), can work together in partnership to address them.
Read Also: Singapore Employers Are Hiring. But Where Exactly Are These Job Opportunities?
Manpower Shortage Is A Perennial Problem For Service Sector
Any business that has been operating in the service sector would know that the manpower shortage is not a new problem.
However, this current period is particularly exacerbated by the restricted flow of foreign manpower due to pandemic-imposed border restrictions, the initial manpower cuts due to slowed business activity and the difficulty in hiring due to shift in worker expectations.
Redeploying Manpower To Lifestyle Service Sector Is Not Enough
Of the 9 action steps that the SBF has proposed, one of the three key actions the SBF would be advocating for is the redeployment of manpower from pandemic-related operations to Lifestyle Services. Lifestyle Services comprise retail, food services, hotels, and nightlife industries that form almost 42,000 establishments in Singapore that contribute to 3.5% of GDP in 2019 and employ close to 11% of the overall labour force.
This is an obvious move to make as a large proportion of the manpower activated for pandemic-related operations, such as safe distancing ambassadors and swabbers, have been diverted from lifestyle services in the first place.
However, this may not be sufficient as not all workers who have left the service sectors are willing to return. For foreign workers who have returned to their home countries, coming back to Singapore may not be a feasible option, due to employment passes and lifestyle upheavals. Likewise, local workers may not wish to return to work in the lifestyle sectors after experiencing a different kind of work environment.
Read Also: 4 Things SMEs Should Know About Singapore’s Improving Job Market In 1st Quarter 2022
Increase Cross-Sector Collaboration To Reduce Manpower Needs
SBF also advocates that TACs facilitate cross-sector collaboration to achieve higher operational efficiency and better resource allocation.
One unexpected outcome for businesses moving towards to e-commerce is the need for additional manpower to manage the logistics and order fulfillment. However, it is not an efficient use of manpower (or the company’s resources) for every retailer to own their own in-house warehousing and logistics team. Instead, retailers can tap on e-commerce enablers and logistics providers to execute supply chain activities. This would build economies of scale as a team of warehousing and logistics workers can serve a group of companies in the most efficient way, instead of each company recruiting their own in-house teams.
Propose Reviewing Broad Classifications Of Business Activity For The Services Sector For Foreign Manpower Quota
Finally, the third action step that SBF advocates for is the review of broad classification for Services Sector.
Currently, the companies in the Services sector may hire up to 35% of their total workforce to be Work Permit Holders. This applies to all service sectors including finance and insurance sector, food & beverage sector, retail sector and transport and logistics sector.
However, the cry for more (foreign) manpower to make up for the shortfall of locals is especially pronounced in Lifestyle, Environmental and Estate & Facilities Management Service Sectors. However, they are subject to the same foreign manpower quota for service sector as the finance and insurance sector which doesn’t face the same manpower challenges.
To address this, SBF is advocating the Tripartite partners work together on a more nuanced classification of business activity, particularly for Services, so that more differentiated policy interventions can be applied to address specific manpower challenges of the sub-sectors.
Read Also: Foreign Worker Quota In Singapore: What Is It And How To Calculate It For Your Business
Workers’ Expectations Have Changed Over The Course Of The Pandemic
One of the employment trends that have emerged during the pandemic is the Great Resignation. While commonly referenced for white-collar workers who resign due to burn-out, job dissatisfaction, and frustrations with working from home, the fact remains that the pandemic has greatly impacted every worker’s relationship with their job.
While essential workers have continued their job operations during the pandemic, the availability of work-from-home options and push towards flexible work arrangements have shone a light on the dichotomy between the different types of work.
The nature of work in the lifestyle service sector often involves shift or weekend rosters, physical exertion over long periods of time, and high customer interactions and expectations. When viewed side by side with other competing jobs that do not require irregular hours, physical work and customer interaction, employers in the service sector have a tough sell.
Read Also: Are Singapore Employees Part Of The Great Resignation?
Whether these proposed action steps will eventually materialise would depend very much on the cooperation and motivation of the various stakeholders from businesses themselves to unions, trade associations and chambers (TACs) and government agencies. In the meantime, businesses can take inspiration from the proposed action steps to find their own individual solution to their manpower challenge.
Subscribe To The DollarsAndSense Business Pass
Enjoy what you are reading and want more? Join The DollarsAndSense Business Pass and unlock access to valuable tools, exclusive networking opportunities, and tap into the wisdom of industry experts to fuel your business expansion!
