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April-June 2015 Issue
April-June 2015 Issue Driving business success and excellence
No smart workforce,
no good business
Social technology used right
How to retain
talent?
Protected wherever you go
Get flexible
Protected
wherever you go
Portable medical benefits are
the way forward
A publication of Singapore Human Resources Institute
Find out more about
our programmes here.
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1
PRESIDENT
MESSAGE
HR experts must play a part in
Singapore’s transformation to meet
future manpower needs
Dear members & fellow practitioners,
The year has moved quickly and we are fast approaching mid-2015. Reflecting
on the past few weeks, there have been several major national issues in the spotlight
within the context of the Budget 2015.
One of the most important takeaways from the ensuing Budget discussions is
that the Singapore labour market growth is expected to slow down significantly as
we progress towards the end of the decade. It is one thing to feel the supply crunch
taking place today, and quite another to learn that local employment growth may
fall to about 20,000 yearly in the latter part of this decade, compared to a workforce
growth of 95,000 in 2014.
This has immense consequences for all key stakeholders in society as it requires
out-of-the-box, transformational thinking. In addition to training and staff development
initiatives, leaders have to re-think their organisation’s future objectives in the context
of lower staffing levels, moving forward. Staff, on the other hand, need to better grasp
the demands of a dynamically changing work environment, especially understanding
the skillset required to do the job in the future.
As HR experts, we need to play a strategic role in bridging the organisational
aspirations and visions with the capabilities and productivity of staff. A better
understanding of tools, processes and support mechanisms must come to bear.
Continuous skills training will certainly be at the heart of this matter as it is the
answer to meeting Singapore’s future manpower needs. In this regard, the newly
announced SkillsFuture is a transformational move because the aim is to achieve
sustained innovation and productivity improvement in the workforce.
SkillsFuture is about developing a workforce which is relevant, sustainable and
productive to meet our long-term manpower needs. As this is a multi-faceted programme,
HR experts can be strategic supporters in recommending initiatives that would work
for their organisations, while getting more staff to be part of the national drive.
SkillsFuture is here to stay and we – collectively as a group of experts – need to
play our part in making this work.
Another major discussion that is of equal concern to us is one that cuts across
all segments of our society. This relates to the unprecedented spotlight on low-wage
phenomenon in Singapore. This is a national as well as an organisational concern and
we need to adopt more creative approaches to enable low-wage workers to achieve
sustainable salary increases through productivity improvements and skills training.
We are aligned with the national policy of helping our low-wage workers stay
relevant and employable. In the simplest terms, addressing this matter helps alleviate
the manpower shortage in the economy. There has been a drive to increase access to
training by bringing continuing education and training opportunities closer to workers
and workplaces, especially the lower income workers.
These are major issues and challenges that will continue to be in the spotlight
and we need to be part of the national debate. I look forward to stimulating greater
discussion with you on the topic and working together to propel the national agenda.
Erman Tan, MSHRI
President
Singapore Human Resources Institute
2
CONTENTS
April-June 2015 Issue
16
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Erman Tan, MSHRI
SHRI PUBLICATIONS COMMITTEE
Ethan Tan, MSHRI (Chairperson)
Yin Hong Shuen, MSHRI
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Samreen Jabeen, MSHRI
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28
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3
CONTENTS
CONTENTS
04
TAKING STOCK WORKPLACE STRATEGIES
04 Being talent competitive 28 Urgent HR Challenges!
Singapore is ranked the world’s second A shrinking and ageing workforce has
most talent competitive country behind fuelled the country’s battle for talent. The
Switzerland and this is due to its openness future lies in workplace flexibility and career
to trade, investment, immigration and ideas. development opportunities.
SHRI CONNECTION TECHTAKE
10 The Singapore HR
Challenge 2015
Human Capital speaks to the winning teams
32 Social technologies for
a smarter workforce
Industry experts say social and mobile
and the best presenters who have proposed technologies are becoming increasingly
innovation solutions on how companies can powerful tools for HR practitioners to recruit
implement fair and progressive employment. talent, facilitate on-boarding and scale
up to enable learning and professional
development.
COVER STORY
46
16 Understanding portable
medical benefits
TEAM CONNECTION
The HR approach to healthcare planning
has evolved from purely employee benefit
schemes to portable medical benefit
46 Looking for new venues?
HR managers are constantly looking for
programmes. Human Capital takes a closer good training venues to hold their regional
look at how HR leverages on healthcare meetings, corporate presentations and
planning as a strategic tool. employee trainings. What are some of the
issues that HR managers should look out for
before planning for their next staff training?
MY VIEWS
24 Retiring at 65 QUICK TAKES
48 Retirement age in Singapore is on the rise.
What happens when an employee reaches
65 and he/she is willing and able to continue
48 The IR Act: what the
changes mean
Professionals, managers and executives can
working? now be collectively represented as a group
by rank-and-file unions after Parliament
passed amendments to the Industrial
Relations (IR) Act earlier this year.
4
TAKING
STOCK
Being talent
competitive
Singapore’s openness to trade, investment, immigration and new ideas has
played a role in making the country a leader in this aspect of economic success.
Singapore is ranked the world’s second most talent compet-
itive country behind Switzerland, says international business
school INSEAD. Third on the list is Luxembourg.
The business school recently released findings from its 2014
Global Talent Competitiveness Index which measured a nation’s
competitiveness based on the quality of talent it can produce,
attract and retain.
INSEAD Dean Ilian Mihov said: “We live in a world where talent
has become the core currency of competitiveness – for businesses
and national economies alike. Yet there is an all-too-frequent mis-
match between education systems and the needs of labour markets.
“Businesses and governments need new kinds of leaders and
entrepreneurs, equipped with the skills that will help their firms and
countries to thrive in the global knowledge economy.”
The rankings are dominated by European countries, with only
six non-European countries in the top 20: Singapore (2), the US
(4), Canada (5), Australia (9), New Zealand (16) and Japan (20).
The 20 top-scoring countries are all high-income countries
with better universities and a greater ability to attract foreign talent
through higher quality of life and remuneration – making them more
talent competitive.
But beyond this correlation of talent competitiveness with wealth,
the report revealed six key factors affecting talent competitiveness
across countries of different GDP per capita and development levels.
The six factors are:
1
Openness is key to talent competitiveness
Switzerland, Singapore and Luxembourg are open to trade,
investment, immigration and new ideas, embracing globalisation
while leveraging on their human resources.
2
Fiscally stable countries need talent competitiveness for
sustainable development
Mineral or oil-rich countries, or those with a context-specific
competitive advantage, should foster talent competitiveness
to ensure sustainable prosperity.
3
Talent growth can be internal or external
Countries like the US and those in Europe successfully focus
on developing talent within their own borders, while others such
as China attract foreign talent or send their elites abroad for
further education.
4
Countries must consider employability or risk
high unemployment
‘Talent for growth’ means meeting the actual needs of a national
economy. Switzerland, Singapore and the Nordic countries have
customised their education systems towards appropriate levels
of employable skills.
5
TAKING
STOCK
5 Education systems need to reconsider traditional learning
Talent development must go beyond traditional formal education
to develop vocational skills. Students are encouraged to choose
the apprenticeship track rather than the university route so that
they become employable early in life.
6 Technology is changing the meaning of ‘employable skills’
Technological advances in the form of big data and business
analytics will affect new segments of the labour market, impacting
the 250 million ‘knowledge workers’ globally. Given the rapidity
with which technological changes take place, employers have
a central responsibility for adapting their labour forces to such
challenges.
In Singapore, the talent hunt is set to intensify this year as
employers increasingly seek to hire Singapore talent. Research from
the latest 2015 Hays Asia Salary Guide reveal that hiring demand
is expected to continue across most sectors this year.
The findings also show that salaries are unlikely to reflect this
level of demand. This year, 54% of Singapore firms gave their staff
a salary increase of 3 to 6%, compared to last year’s 59%.
2014 TOP New HR
Global Talent
Competitiveness
Index Rankings 10 platform
1 Switzerland
for SMEs
2 Singapore Smaller firms to receive help
with HR activities.
3 Luxembourg HR executives working in small and medium sized
companies (SMEs) can now seek help from govern-
4 United States ment agencies in managing HR-related functions.
SPRING Singapore is ramping up its support to SMEs
by creating a shared HR solutions platform which will
5 Canada gather a pool of HR solutions providers who will provide
much-needed expertise in this area. This platform will
enable micro enterprises and SMEs to outsource their
6 Sweden administrative HR functions to this shared platform.
Minister of State for Trade and Industry Teo Ser Luck
7 United Kingdom said: “Participating SMEs can benefit by outsourcing their
administrative HR activities, so that they can focus their
limited manpower on their core functions.”
8 Denmark The move is part of ongoing efforts to encourage
collaboration among SMEs, Teo said. “Collaboration
helps our SMEs build track records, pool resources, share
9 Australia best practices and create new business opportunities.”
SPRING Singapore aims to enrol 50 companies in the
platform which firms were able to use from April 2015.
10 Ireland
6
TAKING
STOCK
Lifelong learning
through SkillsFuture
WDA’s Earn and Learn programme promotes
staff career advancement.
Services, Games Development,
Logistics, Infocomm Technology,
Marine and Offshore Engineering,
Retail, and Precision Engineering.
Career advancement
Speaking at the programme launch,
Senior Minister of State for Man-
power and Health Dr Amy Khor
said that this is a national effort
to provide all Singaporeans with
opportunities to advance in their
careers through skills, regardless
of their starting points and quali-
fications.
“For SkillsFuture to succeed,
employers have to value skills and
be prepared to invest in helping
Full-time workers achieve skills mastery,”
Employment she explained. “They need to offer
Participants will be meaningful and attractive career
full-time employees progression pathways that are built
Structured upon skills. This is particularly so
of participating
Learning in a tight labour market, in order to
Fresh Poly- Skillsfuture companies
Participants will attract and retain talent.”
technic and Earn and benefit from structured The SkillsFuture Earn and
ITE graduates in Learn workplace learning,
in-house mentorship,
Learn programme is created
the Food Manu- Programme job rotation and talent
to support both individuals and
facturing industry
can look forward to
offers: development
employers in developing higher
skills and capabilities.
Career plans
a headstart in their
careers.
Progression
Pathways
Key Features of
Through the Workforce
Development Agency’s (WDA) SkillsFuture Earn
and Learn Programme, graduates will be given
relevant training and opportunities to learn on the SkillsFuture Earn and
job, leading to industry-recognised certifications
such as Advanced or Specialist Diplomas. Learn Programme
They can also enjoy skills-based wage increments and mean-
• Matching participants to employers which are related to
ingful career advancement pathways when they complete the
their disciplines, allowing them to deepen skills acquired
programme and achieve satisfactory job performance.
in school through workplace learning and mentorship.
Designed in close collaboration with employers, this pro-
• Participants will undergo structured on-the-job training and
gramme spans 12 to 18 months. It integrates on-the-job training,
mentorship, leading to industry-recognised certification.
mentorship, facilitated learning, in-company projects and, poten-
• Assigning participants mentors and support in continual
tially, overseas attachments to provide fresh polytechnic and ITE
skills development in accordance with the company’s
graduates with practical workplace learning, to better respond to
talent development plan.
evolving industry needs.
• Participants will have a well-structured career development
The SkillsFuture Earn and Learn programme will be rolled out
pathway in the company.
first for the Food Manufacturing industry, followed by seven other
sectors over the next few months. The other sectors include Food
7
TAKING
STOCK
SkillsFuture
Charting your own Helping businesses
enhance staff
training path capabilities
NTUC moots idea for individual training
account for Singaporean workers.
SkillsFuture Earn and
Learn programme
• Matching Polytechnic and ITE
graduates and employers for
structured on-the-job training and
membership leading to industry
qualifications.
Targeted support For
career progression
• SkillsFuture Study Awards for
Singaporeans to develop deep
specialist skills in future growth
clusters.
• SkillsFuture will be introduced from
2016 to help Singaporeans achieve
mastery in their respective fields.
• SkillsFuture Leadership Development
Initiate for companies to develop
Singaporean corporate leaders.
The National Trades Union Congress The WTS scheme encourages older
(NTUC) is calling for a Skillsave low-wage workers to upgrade their skills
Account to allow workers to plan for their through training so that they can improve
own training and to use the account to pay their employability, upgrade to better jobs
for unfunded portions of training courses. and earn more.
NTUC Assistant Secretary-General Pat- Recruitment firm Randstad’s Coun-
rick Tay said that this initiative could also be try Director for Singapore, Michael Smith,
supported by other Government schemes agreed: “Upskilling and re-skilling are vital
such as ASPIRE, SkillsFuture and CET2020. for employees to remain relevant in today’s
Tay hoped that this initiative will competitive labour market. Having access
empower workers to make their own learning to training opportunities is one of the driving
decisions and address current gaps for some factors leading employees to remain with A new industry collaboration
workers who do not have access to the their organisation.” Sectoral Manpower Plans (SMPs)
Workfare Training Support (WTS) Scheme. According to the 2014 Randstad World will be developed in all key sectors
He explained that this proposed initiative of Work Report, seven in 10 employees in by 2020.
can also be used to help workers pay for Singapore cited the lack of opportunity • Boost SMEs’ training capabilities
the unfunded portions of training, as well as for career growth and advancement as through a pool of SkillsFuture
to fund Continuing Education and Training a major reason for leaving their current mentors.
(CET) programmes. jobs.
8
TAKING
STOCK
The Asia Pacific: Key insights
Improving leadership: • Leadership development strategies
may be in place, but execution
key to growth remains a significant problem; per-
formance management processes
are not effectively identifying who is
Defining the talent pool, the ready for the next move within the
competencies and the tactics leadership pipeline.
• Systems and processes for
required to build workplace leaders.
executing talent management
processes are inefficient.
• Organisations are not focusing
leadership development efforts on
women, despite them making up a
percentage of senior management.
• Companies are still relying on
expatriates rather than local talent
for top leadership roles, calling
into question the effectiveness
of leadership development and
localisation strategies.
• Investment in leadership
development is concentrated on
top-level leaders.
• Leaders and managers are not
accountable for grooming future
leadership talent.
Leadership development is viewed The research programme found that • People-related competencies are
as critical to business success and a companies in the Asia Pacific are adopting not among those seen as most
key priority for companies in Latin Amer- effective practices for nurturing leadership critical for leadership success.
ica, according to Mercer’s recent study on talent by investing heavily in training and • There is a disconnect between
leadership practices. developing senior level and global leaders development methods rated most
Nearly three-quarters of organisations at the top of their organisations. effective (“stretch” assignments)
in Latin America have a defined leadership However, the studies also identi- and those most widely used
development strategy – significantly higher fied critical gaps in current planning that (classroom training and individual
than companies in the Asia Pacific and the potentially limit organisations’ ability to development plans).
Middle East. produce the multi-skilled leaders required
Mercer’s Leadership Practices Study in modern, rapidly-growing businesses,
comprised a series of research reports as well as differences in the leadership successors in place for critical leader-
based on surveys conducted from 2012 to competencies that are deemed critical for ship roles.
2014 that compare current leadership trends success by companies in each region. • Under-investment in the development
in the Asia Pacific, Latin America and the of frontline leaders. Companies are
Middle East from nearly 1,000 companies. Key findings: spending less annually per person on
The study examined how companies • Companies can do more to plan and training and developing middle level
approach leadership strategy, assessment, prepare for the next generation of and frontline leaders than they do on
development and succession planning. leaders. Fewer than half of the com- global or senior level leaders. In the Asia
Kate Bravery, Mercer’s Growth Markets panies conduct regular pipeline projec- Pacific, under-investment is even starker,
Leadership & Organisational Performance tions, and very few have specific plans with just 5% of companies achieving
Practice Leader, explained: “To achieve long for developing key segments of their this level of spending for individuals at
term success, a more strategic approach to workforce (e.g. women or grooming the earliest stage of the pipeline – the
nurturing the pipeline of leaders is required. local talent) and even fewer have met- next generation of leaders.
“This starts by translating core business rics for tracking progress on pipeline • Companies view a leader’s ability to
objectives into a leadership strategy that management. ‘create strategy’ as one of the most
defines the talent pool, competencies and • Many businesses are not effectively critical competencies for leadership
the tactics required to build leaders from identifying who is ready for the next success. Some 64% of companies in
within. It continues with an execution plan move or position within their leader- the Middle East, 52% in Latin America
that helps businesses identify, develop and ship pipeline. Some 15% of businesses and 36% in the Asia Pacific prioritise
accelerate the critical talent moves that will in the Asia Pacific, 20% in Latin America strategic competencies above other
help them achieve real competitive advan- and just 6% in the Middle East report operational, people or personal capa-
tage,” she added. that they have strong, “ready-now” bilities.9
COMING
EVENTS
MARK
THIS DATE!
10 JULY THE RITZ-CARLTON,
MILLENIA, SINGAPORE
SHRI Global HR Seminar
SHRI’s inaugural SHRI Global HR Seminar takes place, with the focus on Talent
Analytics in HR. This topic was inspired by the observation that organisations
today do not sufficiently consider big data that ultimately determines critical
business decisions. As the business world is transformed by the sheer
volume, speed, and availability of data, more emphasis must be placed on
talent analytics as a must-have capability in HR. Besides building a case for
talent analytics, the SHRI Global HR Seminar also aims to feature a sharing of
thought-leadership in managing current and future HR challenges, not just in
Singapore but regionally and internationally.
SHRI’s 50th Anniversary Gala
SHRI’s 50th Anniversary Gala celebrates SHRI’s 50 years of powering human
capital in Singapore. Minister for Manpower Mr Lim Swee Say will be gracing
this event as Guest-of-Honour. SHRI’s 50th anniversary commemorative
publication will also be launched at this gala.
The Singapore HR Awards 2015 will also be presented to recipients. This
Award celebrates leading organisations and HR practitioners in their drive for
impactful human capital strategies. As one of SHRI’s signature events, it serves
as an excellent platform to promote and recognise excellence within the HR
profession in Singapore by highlighting leading organisational HR practices and
individuals (CEOs, HR Leaders, HR Entrepreneurs, HR Professionals and HR
Executives).
Learn how you can be a part of SHRI’s events!
Please contact Marc Wong at marc@shri.org.sg, for enquiries on
Singapore HR Awards 2015, Falilah Mohamed at falilah@shri.org.sg.10
SHRI
CONNECTION
Singapore HR
Challenge 2015
Students challenged to use classroom theories
to tackle real-world issues.
Organised by Singapore Human and creativity and promote progressive HR. Challenge 2015 were for students to provide
Resources Institute, the Singapore Organised in partnership with the Minis- original and effective ideas for organisations
HR Challenge 2015 encouraged partici- try of Manpower (MOM) and supported by to recruit, engage and retain key talents,
pants to use their knowledge to address the Tripartite Alliance for Fair and Progres- hence, promoting good integration and
contemporary human resource issues, said sive Employment Practices (TAFEP), the 8th multi-cultural diversity among its workforce.
winners of this year’s event. HR Challenge was focused on “Building Fair Each team conducted interviews with
The competition allowed young, aspiring & Progressive Workplaces in Singapore”. HR representatives from two different organ-
HR and business leaders to provide insights Participants from various educational isations and two diverse industry sectors
from a fresh perspective. institutions were brought together to under- to understand their existing policies, pro-
“The HR Challenge encouraged us to stand existing organisation policies, pro- grammes and practices in various areas
be more innovative and either incorporate grammes and practices in the area of fair including recruitment and selection, per-
our ideas with other initiatives to achieve and progressive employment, as well as formance management, grievance handling
better synergy or ultimately choosing tested how middle management in organisations and capability development of managers
and proven solutions that were proven to be are equipped with the knowledge and skills and supervisors.
successful in many contexts,” said MarTeam to implement such practices. The results were then presented in a
(Nanyang Technological University) team consolidated report, which included an
leader Martin Tan, who led the winning team Effective solutions for implementation analysis of the similarities and differences
in the university category. Some 30 teams took part in the 2015 com- between the organisations/industry sectors
petition, including students from Nanyang as well as recommendations on how to
Engaging future leaders Technological University, Singapore Institute overcome identified barriers and lever-
The annual event seeks to engage future of Management, Nanyang Polytechnic, Ngee age enablers to build fair and progressive
leaders, people managers, critical thinkers, Ann Polytechnic, Republic Polytechnic, Sin- workplaces.
and contributors of the new workforce. It gapore Polytechnic, Temasek Polytechnic,
aims to groom and develop the next gen- Anglo Chinese Junior College, ITE College Gaining new insights, experience
eration of future-ready people managers East and ITE College Central. Speaking to Human Capital, Martin said
for the HR fraternity, showcase innovation The key objectives of the Singapore HR that “Prior to Singapore HR Challenge, our11
SHRI
CONNECTION
whole team did not have any experience “From the interview, we compared both nised three of the best presenters from
participating any case-related competition. organisations’ policies and how such poli- the 2015 event – Benson Fan from Anglo
We felt that participating in the challenge cies were suitable for their workplace. With Chinese Junior College for the ITE/JC
could help us gain new insights and expe- the help from our mentor who has HR rele- category, Ngoh Man Hua from Singapore
rience as participants of a national level vant experience, we ironed out the feasibility Polytechnic for the Polytechnic Category,
competition.” of our recommendations to suit company and Mae Chong from NTU from the Uni-
He added: “We wanted to develop our- needs and that of specific industries,” said versity category.
selves in the HR field by gaining more prac- Tham, leader of Ngee Ann Polytechnic’s Chong told Human Capital that
tical insights on contemporary HR issues, as HiRe Me team. “through this experience, I’ve learnt that
well as analyse how local companies utilise Tham felt that the key takeaway from the while what we were taught in school can be
their HR practices and its impact on their HR Challenge 2015 is that “Every employee put to use in the real world, these concepts
employees and stakeholders.” should be considered on equal and fair must be handpicked and contextualised to
Admitting that the competition was defi- grounds. No employee should be overlooked situations for them to be effective.
nitely not easy, he said, “Our never-give-up based on perceptual or group biases”. “Since businesses differ from one com-
spirit helped us pull through as we continu- He explained that organisations should pany to another, there is no textbook,
ously improved our report and presentation look towards integrating close bonds and one-size-fits-all solution that we can readily
up until the very last minute before the harmony among staff, so that they can be apply to any company. Importantly, this
submission. We are glad that it paid off.” open and expressive based on transparent competition has encouraged me to ven-
and progressive policies. “This ties in with ture beyond prescribed curricular learning,
Focus on retaining talent what our nation strives for – a meritocratic because these challenges will provide
Reflecting his team’s experience, Polytech- society,” he added. enrichment in very many different ways
nic category winning team's leader Farrell Team Superhuman fom Anglo-Chinese than in an academic context,” she said.
Tham told Human Capital that his team Junior College won in the ITE/JC category. “The HR Challenge was a great platform
“managed to provide certain recommenda- for such exposure, and I’m thankful that
tions that were targeted at retaining talent, Awarding best presenters the SHRI had given us this opportunity to
and improving the organisation as a whole. Teams aside, the Challenge also recog- participate,” she added.12
SHRI
CONNECTION
Expert insights at
SHRI Outlook 2015
SHRI marks its 50 years of powering human capital in
Singapore through its first key event of the year.
Evolving developments in industrial “Hence, it is crucial to keep-in-touch
relations and staying employable in with news and trends in our industries which
a tight labour market topped the agenda will reap many benefits not only for yourself
at the SHRI Outlook 2015 event. but also for your organisations and give
This annual event, which brought you a competitive edge. This is even more
together industry experts, has become a important if you contribute to shaping your
key forum for them to share valuable insights organisation's strategy,” he said.
and advice on the current HR and labour E2i‘s CEO Gilbert Tan, who was one
trends, changes to the Industrial Relations of the speakers at the SHRI Outlook, said:
Act and new approaches to managing "Companies can stay competitive by under-
people trends for tomorrow. standing the market, responding to environ-
Organised in partnership with NTUC and ment and finding the right partners.”
sponsored by Ampersand, LexisNexis, Ayam He also called for employers to join the
Brand and EventXtra, this year’s programme productivity push and turn to technology
included presentations on: to ease their dependence on manpower.
• 'Industrial Relations 2015' by NTUC's NTUC’s Assistant Secretary-General
Assistant Secretary-General Patrick Tay Patrick Tay also commented: “There has
• 'Staying Employable in a tight labour been a string of legislative and policy
market' by Employment and Employ- changes to cater to a growing number of
ability Institute (e2i) CEO Gilbert Tan PMEs in our Singapore workforce.”
• ‘Labour market developments and the Hence, NTUC has been lobbying for
Challenges ahead’ by Ministry of Man- PMEs to learn a second skill so they can
power's Divisional Director for Man- increase their job opportunities, said Tay. SHRI Connects
power Planning and Policy Division
Adrian Chua,
He also commented that PMETs should
try new job opportunities available in the
with Members
• 'Navigating 2015’s challenging eco- marketplace. SHRI organises various events, seminars
nomic environment' by OCBC Bank's Erman Tan laboured his point that “With and workshops for HR members and
Head of Treasury Research & Strategy the ever-changing trends in Singapore, it is business leaders. Various networking and
Selena Ling important that we are receptive to the recent sharing sessions are held frequently to
Speaking at the event, SHRI Presi- and impending changes to HR laws as well update CEOs, HR and senior executives
dent Erman Tan said: “Many of us work as leading HR trends, and proactively make on the happenings affecting the human
in changing competitive environments. If informed business decisions.” resource and business climates.
we do not keep up with news and trends, “With new insights and learning points, For more information, check out
we can miss key opportunities and can be we can propel forward to a more sustainable www.shri.org.sg.
caught unaware. future,” he added.13
SHRI
CONNECTION
SHRI 2014
Book Prize
Interest in HR instrumental to
learning, say winners.
Stepping up efforts to recognise the
excellent performance of students
pursuing higher learning in human resources,
SHRI awarded two winners the 2014 SHRI
Prize for Diploma in Business Studies. The
prizes were presented by Ngee Ann Poly-
technic's Director of the School of Business
& Accountancy Mrs Anna Yap.
One was former Nanyang Polytechnic
(NYP) student, Jordan Tan, who had started
his HR route with one HR module in his
second year and subsequently went on to
specialise in HR in his third year.
The second winner was Leong Wee
Leng, formerly a Ngee Ann Polytechnic (NP)
student who signed up for the HR module
each year as she believed that understand- Jordan Tan (top) and
ing HR matters would be instrumental in her Leong Wee Leng re-
ceiving their SHRI Book
pursuit of marketing.
Prizes from Mrs Anna
Tan is now waiting to enter a Singapore Yap, Ngee Ann Poly-
university to pursue a degree which he technic's Director of
hopes will further his HR learning, while the School of Business
Leong is in her final leg of securing her & Accountancy.
degree at Royal Melbourne Institute of
Technology (RMIT) University.
SHRI Celebrates
HR Day: 1 March
Charity bowl to support SPD.
Singapore Human Resources Institute teams formed by corporate organisations
(SHRI) organised a charity bowl for its participated in the event.
members and partners in conjunction with The event was packed with various inter-
HR Day on 1 March 2015 at the Orchid Bowl esting activities to spur the innovativeness
located at Downtown East. and creativity of HR practitioners, as well
HR Day aims to recognise the significant as an opportunity for members to network
contributions of HR and people managers, with SHRI's tripartite partners, trade and
as well as to foster and promote goodwill, industry associations and representatives
comradeship and friendship amongst the of leading HR organisations.
HR fraternity. It encourages the HR and A donation of $5,000 was presented
business community to reflect upon the to SPD (formerly known as Society for the
critical role played by HR professionals in Physically Disabled), a voluntary welfare
developing the building blocks of Singapore. organisation that provides programmes and
Among those who attended the HR Day services for the disabled. HR Day Charity
Charity Bowl 2015 was Guest of Honour Mr Bowl 2015 was sponsored by Neo Garden
Hri Kumar Nair, MP for Bishan-Toa Payoh Catering, Ayam Brand, The Central Singa- Botak Jones, and the event was supported
GRC. Organised for SHRI members, 32 pore Community Development Council and by SHRI Academy and SHRI Corp.CRICOS Provider 00109J
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COVER
STORY
Understanding
portable
medical
benefits
HR leverages on strategic healthcare planning as a strategic
tool to attract and retain talent while managing costs.
For many HR managers, the approach The Singapore Government has deliv-
to healthcare planning has evolved ered good healthcare outcomes for Singa-
from purely employee benefit schemes poreans through a mixed financing system,
to portable medical benefit programmes the use of market-based mechanisms to
and now possibly, cross-border pooling of promote competition and transparency, and
employee health and risk benefits. the adoption of technology to improve the
This complexity indicates how today’s delivery of healthcare services.
HR practitioners need to look beyond con- The issue lies in many employees
ventional offerings to develop valuable tools assuming that should anything unforeseen
for human resource attraction and retention. take place, Singapore’s current health-
For this article, Human Capital spoke care financing system – namely Medisave,
to several experts to find out what policies MediShield, and Medifund – will tide them
they need to grasp and what trends they over.
need to look out for in the interests of their While this may be the case in some
employees. instances, it is not necessarily true in others.
Slower economic growth, structural and
cyclical unemployment, and unexpected Reality check on healthcare costs
risks related to pandemic viruses such Healthcare costs today are outstripping
as H1N1, SARS, Ebola or any number of general inflation. Advances in medical tech-
growing epidemics that could affect the nology and drugs, the growing demand for
workforce, are realities that HR practitioners quality and quantity of healthcare profes-
have to increasingly contend with. sionals, and escalating administrative costs
Barely a generation ago, these factors linked to insurance premiums, all contribute
were remote considerations. Today, they to escalating healthcare costs.
must be expected and planned for. A 2014 white paper titled What Deter-
Within the Singapore context, there is mines the Goals of Healthcare Financing
now greater awareness of these macroe- Policies in Singapore? by the Lee Kuan
conomic trends and micro developments. Yew School of Public Policy addresses the
Specifically within the context of HR leading question:
healthcare planning, medical benefits are “Who pays for free healthcare? … The
taken for granted at the employee level. question of who pays for healthcare is18
COVER
STORY
nevertheless an important one because practitioners would do well to heed to receive graduated, smaller subsidies.
the distribution of financial burden has a the notion of multinational pooling, which With expectations of quality health-
significant impact on access to quality care combines a company’s group insurance care services including medical services,
for low to moderate-income families, and contracts for employee benefits in different technologies and better drugs increasing,
on tax burden for richer families.” countries under one financing arrangement it is even more critical for employees to be
Within this context lie the key questions to create savings through economies of covered for the “what if’s”.
relating to the role of how human resource scale. (See story on ‘Cross-Border Pooling Most companies cover doctors’ visits for
experts need to take a strategic perspective of Healthcare Benefits?’ on p23) the common cold and flu. For catastrophic
to craft programmes that address health In PricewaterhouseCoopers’ HealthCast illnesses, employers are most likely – in cur-
planning needs – present and future – of 2020 report covering countries including rent times – to provide only limited coverage.
their workforce. Singapore, Australia, Europe, the Middle The way to go is for HR practitioners to
East, the UK and the US, it was estimated be more strategic and creative in developing
Providing benefits to staff that health spending for the Organisation for human resource healthcare programmes
For organisations and human resource prac- Economic Co-operation and Development that tightly integrate into their broader goal
titioners, healthcare benefits are increasingly (OECD) countries will more than triple to of staff acquisition and retention.
becoming an “obligation and necessity – this US$10 trillion by 2020, consuming 21% of
is how many companies view the provision GDP in the US and 16% of GDP in other
of healthcare for their employees,” ScienTec OECD countries.
Consulting founder and CEO Karen Tok tells What is a
Human Capital.
“Although many go beyond providing the
Means testing framework
While trying to keep healthcare costs low in Portable Medical
minimum that is required by law to include
medical insurance coverage and dental
Singapore, the Government is also steadily
moving away from subsidies because this
Benefits Scheme
reimbursements, there is more that they can
do to differentiate themselves from the rest
distorts the demand-and-supply equation.
Under the new means testing framework
(PMBS)?
to attract the best talent,” she explained. implemented in 2009, patients whose income A Portable Medical Benefits
Towers Watson Asia Pacific senior con- is S$3,200 and below receive substantial Scheme (PMBS) or a Trans-
sultant Rajesh Daswani said human resource subsidies while patients with higher incomes ferable Medical Insurance Scheme
(TMIS) is one where essentially,
medical coverage and protection is
customised by the organisation so
that employees can enjoy continu-
ous benefit.
It is a hospital and surgical plan
that rides on the framework of an
employee’s individual private shield
plan, except that it is partly or wholly
paid for by the company.
Such schemes can potentially
offer affordable, better and more
comprehensive medical coverage
with guaranteed unlimited lifetime
cover, a feature which individuals
can retain for life regardless of their
employment status.
Because of the portability, such
schemes rule out underwriting diffi-
culties to get any pre-existing illness
covered when individuals leave their
jobs and wish to apply for health
insurance again. Designed for the
provision of inpatient hospitalisation
medical benefits, PMBS rides on the
Medisave/Medishield framework.19
COVER
STORY
Employee benefit schemes Portable medical benefits scheme
Employee benefit schemes have been and To circumvent the limitations of group
continue to be the mainstay of what HR employee benefit schemes, continuous –
practitioners offer to potential employees portable or transferable – medical cover is
entering a company. the way to go, several experts told Human
In essence, employing organisations Capital.
tie up with an insurer or its broking agent The National Trades Union Congress
to develop a group medical insurance plan (NTUC), a big supporter of PMBS, has
that covers their employees’ hospital and repeatedly said that flexibility under such
surgical expenses, emergency treatment a scheme lies in its lifetime coverage –
expenses, as well as visits to general prac- regardless of the employment status of
titioners and specialists. workers.
Some organisations may top up some of To cater for the additional Medisave
these benefits by offering their employees contribution under PMBS, the govern-
dental benefits and/or pregnancy-related ment raised the limit of additional Medisave
benefits for female staff or their spouses. contribution to S$1,500 per year. Similarly,
As one major insurer told Human the tax exemption limit for employees for
Capital: “These benefits are not very additional Medisave contribution has also
common and tend to be offered very been raised to S$1,500 per year.
selectively by companies that perform The key issue here is that employers
consistently well.” need to view robust medical benefits
In today’s context, most HR
practitioners are well trained in
Employers should consider as an investment in their staff, if
not one of their talent retention
selling the employee benefits
schemes within the context of
taking up portable medical tools. Employers need to look at
long-term benefits rather than
their employee attraction and
retention efforts.
benefits that ride on MediShield focus on short-term costs
reductions.
As a matter of fact,
major players like AIA Sin-
Life or provide additional C u r r e n t l y, m e d i c a l
expen s es i n cu r re d b y
gapore have perfected their
employee benefit scheme
Medisave contributions to employers are tax deductible,
up to 2% of their total payroll.
and have offered it to both
small and MNC organisations
help their workers pay for For employers who choose
not to implement PMBS, tax
alike.
AIA Singapore was the first-
MediShield Life or Integrated deductibility in respect of med-
ical expenses will be reduced
in-market to launch an online
portal for clients to access their
Shield Plan premiums. from the present 2% to 1% of the
total payroll. Alternatively, compa-
policy benefits, claim status, as well nies and employees could consider
as implement other online transactions; - Cham Hui Fong, Assistant Secretary-General, NTUC co-funding the premiums for PMBS,
first-in-market to make claim processing at achieving a win-win for both sides.
hospitals easier and quicker; first-in-market
to launch a flexible packaged employee Resilient insurance policies
benefits programme for small-and-medium Operating in the current challenging eco-
enterprises; and first-in-market to launch The absence of longevity employment nomic climate calls for prudent but well
a mobile application for clients to access contracts and the growing incidence of thought-out and resilient healthcare strat-
their policy information and submit claims unusual illnesses, among other factors, are egies, some experts said.
on-the-go. also causes for concern. Insurance companies are of the view
Hence, there has been a growing move that policy makers need to mandate long
Planning for the future among HR practitioners to find ways to put sighted solutions to embrace beneficial
These are all well and good as long as the long-term interests of their staff at the health insurance products in the market.
employees continue to stay with an organi- heart of what they do. Employers should take a more creative look
sation, experts say. However, there are many For instance, to deliver an effective at their bottom line when managing cost
external factors which derail the thinking health plan requires the employee to have cuts, and employees should start thinking
that these benefits will be sufficient for some element of portability in their health- about the basics and what really matters
future needs. care coverage. in such trying times, say these experts.20
COVER
STORY
NTUC recently reiterated its position on
getting more companies onboard PMBS as
a possible way of reducing duplication in
medical insurance coverage.
“Employers should consider taking
up portable medical benefits that ride on
MediShield Life or provide additional Medis-
ave contributions to help their workers pay
for MediShield Life or Integrated Shield Plan
premiums. We have earlier called on the
Government and employers to review and
find ways to remove duplication of coverage
and are heartened that the MediShield Life
Review Committee has heeded our call to
review the potential duplication of medical
insurance benefits,” said NTUC Assistant
Secretary-General Cham Hui Fong.
The Medishield Life Review Commit-
tee was convened in November 2013 as
part of the Singapore government’s plan
to provide universal lifetime MediShield
coverage for Singaporeans. The commit-
tee presented its report in 2014 with the
key thrust of improving the health cover
of Singaporeans.
With regard to the MediShield Life Final
Report per se, Cham said that NTUC wel-
comed the recommendation for the Gov-
ernment to improve the existing regulatory
and accountability framework for Integrated
Shield Plans and their approved insurers.
This includes enhancing responsible selling
requirements, such as necessitating insurer
representatives to explain how Integrated
Shield Plan premiums increase with age.
NTUC held eight focus group discus-
sions in March and April 2014 with over 300
participants from various communities such
as union leaders, youth, families, active
agers, women, the self-employed, freelanc-
ers and pensioners. Their recommendations
on MediShield Life were made public in
April 2014 and the scheme is kicking into
effect in late 2015.
“We look forward to the Government’s
plans to step up outreach and public educa-
tion efforts on healthcare financing. We will
work with our tripartite partners to convey
the full recommendations to our workers,”
she said.
While the benefits of implementing
PMBS in an organisation can be overwhelm-
ing, experts say the benefits are compelling.
“Today, many companies which offer
traditional employee benefits operate with21
COVER
STORY
structured and time-tested systems,” said
one industry expert. “The insurance com-
panies or their brokers who work with their
customers have robust IT systems which
can deliver on a consistent experience.”
By moving from an employee benefits
scheme to a PMBS scheme, there will
be challenges. These relate to the need
to make changes to the payments to the
various stakeholders and ensuring proper
administration.
But the benefits supersede the short-
term challenges, they added.
Portable Medical Healthcare –
How does my company benefit?
HR practitioners understand well that or duplication of coverage, thereby reducing Medisave accounts.
company-based medical benefits cost for employers and employees. As these arrangements can also achieve
cease when an employee leaves the com- Hence, tripartite partners have rec- the objective of enhancing portability of
pany or retires from employment. ommended that companies implement medical benefits, the Government, in con-
The employee may be subject to under- portable medical benefits arrangements. junction with its tripartite partners, will
writing when he joins a new company, or According to the Ministry of Manpower, extend higher tax deduction for medical
seek to purchase his own medical insur- it has received feedback from employers. expenses to employers with such arrange-
ance. The new medical insurance policy Some of them prefer to provide inpatient ments.
may also exclude any pre-existing illnesses medical benefits in the form of Shield plans To make it easier for companies to
from coverage. to their employees, instead of implementing embark on PMBS, the Singapore gov-
Portable medical benefits arrangements PMBS or TMIS. ernment has implemented tax deduction
provide continuous medical coverage for They will either pay the premium of such qualifying conditions for different portable
employees who are in-between jobs and plans directly to the insurance company or medical benefits arrangements.
after retirement. They minimise overlapping reimburse the premium into employees’ Here is the snapshot:
Qualifying conditions
• Employer should implement PMBS for at least 20% of the local employees employed by him as at the first day of the
financial year being assessed and all local employees who commence their employment during that financial year;
Portable Medical • For full-time employees, the additional monthly contribution to Medisave should be at least 1% of an employee’s gross
Benefits Scheme monthly salary, subject to a minimum contribution of $16 per calendar month;
• For part-time employees, the additional monthly Medisave contribution should be computed based on at least 1% of the
employee’s gross rate of pay for the calendar month.
• Employer should implement TMIS for at least 50% of the local employees who are employed as at the first day of the
Transferable financial year being assessed.
Medical Insurance
Scheme
• Employer should provide Shield plans for at least 20% of the local employees employed as at the first day of the financial
year being assessed and all local employees who commence their employment during that financial year; and
Provision of Shield
plan • Employer should pay Shield plan premiums on behalf of their employees directly to the insurance company or reimburse
the premium into their employees’ Medisave accounts.
Source: Ministry of ManpowerYou can also read
