Career management

Nobody is ever prepared for retrenchment. And when retrenchment strikes, it certainly feels like the end of the world. This is especially so if you are a middle-aged white-collar PMET. With the job market saturated with young graduates and foreign talents, finding a position that matches your last drawn salary could be a challenge. Without retrenchment support, things can spiral out of control.

With the unfolding trade war between US and China, Singapore’s economic growth is expected to slow to 0 to 1% this year. Against this backdrop, the job market in Singapore currently looks hazy. According to Ministry of Manpower, the number of retrenchments in the first half of this year stood at about 5,500, slightly more than the 5,300 recorded in the same period last year.

Whilst it is not possible to change the macro-economic conditions, Singaporeans can certainly take steps to safeguard themselves against the spectre of retrenchments. The worst thing in life is to be complacent and assume that your job will always be there. Such assumption may not be valid anymore given the structural changes in industries and the constant technological disruptions.

Our ability to earn income is key to building wealth. Therefore, it is important to ensure our skillsets remain relevant and that we have transferable skills that can be tapped on for future job opportunities.

In Singapore’s context, there are only three category of jobs that are immune from retrenchments. Successful entrepreneurs, civil servants and full-time homemakers do not have to fear the dreaded retrenchment. If you have chosen to climb the corporate ladder, this is the golden rule you must always remember. The second rule is never to forget the first rule.

With disruptions brought forth by technologies and the emergence of new business models, it is definitely not “business as usual” for many companies. Changes in the industry will only gather pace and this means that businesses would have to evolve as well. In most circumstances, companies often choose the easy way out by laying off staff whose skills and competencies are considered obsolete. Through retrenchment, substantial costs can be saved and management is therefore able to provide answers to shareholders.

According to data released by Ministry of Manpower, the total number of retrenchments reached a peak of 19,170 in 2016 and subsequently tapered down to 14,720 in 2017. The job market is expected to improve significantly in 2018 as Singapore economy had shown signs of growing since the second half of 2017. Nonetheless, employees should remain vigilant of the headwinds in the market.

Applying to jobs after a period of unemployment can be intimidating. The application pool is already so competitive across the board, you’re worried this might be a red flag for potential employers. You can let out a sigh of relief because a gap in employment doesn’t have to be catastrophic to your application.

Taking time off from one time to another is normal. Maybe you were caring for a child or relative or you went back to school. Maybe you simply decided to travel and see the world or focus on a side project. No matter why you left the traditional world of employment, you don’t have to write off your hiring chances. Keep reading for a guide to explaining an employment gap on your resume!

Image via Unsplash

First, decide if you need to mention the gap on your resume.

Depending on the gap in employment, you might not need to mention it on your resume at all. If the gap in your employment was in the past and you’ve been employed since it doesn’t need to be on your resume. Remember, you don’t have to include your entire professional history on your resume. It’s commonplace to include only the most recent and relevant information.

Losing your job due to company down-sizing can be both dramatizing and depressing. Indeed, with the rise of machine-learning and artificial intelligence, thousands of jobs are being made redundant on a daily basis. What this means is that many skills are becoming obsolete. However, the topic of retrenchment is seldom discussed in Singapore because of the social stigma. Recently, when I touched on the SPH retrenchment exercise, a reader questioned my agenda and even condemned me for being anti-government. I wish to use this article to set the record straight.

Building this blog from zero had been both challenging and at the same time, rewarding on a personal level. I have gained useful knowledge that readers have shared in this blog. Over the years, I have received numerous compliments from readers through emails and Facebook messages. Yet at the same time, this blog had also attracted a fair share of criticisms from detractors and critics questioning my agenda and intentions for sharing my articles.

Perhaps, critics who denounced my blog may not have spent time reading the articles that I have shared freely over the years. If they did, it would be clear to them that this blog is about promoting financial literacy and helping others to make better decisions.

In respond to public perception that the civil service placed too much emphasis on paper qualifications, the Public Service Division (PSD) announced that the civil service has stopped grouping its officers according to their education levels since 1^st January 2017. This is a good move because it means that our civil servants will be judged based on their work performance rather than their academic results. This article will discuss the Current Estimated Potential (CEP) in Singapore Civil Service.

According to preliminary data from Ministry of Manpower (MOM), 16,600 workers were retrenched in Singapore in 2016. This is a record high since 2009, the peak of the Great Financial Crisis. With retrenchment so prevalent nowadays, job security is certainly at the top of many Singapore employees’ mind. Long considered an iron rice bowl, a job in the civil service is highly sought after because of the perceived high pay and work-life balance.

Nonetheless, you must have the right mentality in order to join the civil service. Money is important but if that is your primary motivation, then this may not be the best place for you. After all, the civil service is non-profit driven organization and career progression hinged largely on several key factors – readiness to take on more responsibilities, vacancies, performance and CEP.

Temasek Holding’s Surbana Jurong terminated about 50 staff who were deemed as “poor performers”. The layoffs occurred a couple of weeks ago, just before the Chinese New Year.

Surbana has stressed that the terminations were not retrenchment exercise. The staff were let go simply because of their poor performances.

It is indeed a sad day for Singapore. Some people may argue that many of the affected staff are foreigners and hence there is no need to feel sorry for them. But the issue is not whether local Singaporeans or foreign talents are being laid off. The issue is whether Singapore employers are beginning to lose their moral compass.

Make no mistake, bottom-line is of course important for every enterprise. Obviously companies are entitled to sack staff who cannot perform. But surely there should be ample time or few month’s grace period for the affected staff to improve? And surely there should be more sensible or even humane time to fire them? Would it even hurt their financial positions to postpone the firing after the Chinese New Year period?

Losing your job is a very terrible feeling. It not only hurts your ego but also damages your wealth. To lose a job right before the festive season is even worse.

During this year’s May Day rally, Prime Minister Lee Hsien Loon rejected growing calls for unemployment insurance. Instead, he reiterated that the government of Singapore has something even better for Singaporeans – schemes to enable Singapore workers to find jobs. Amid the massive number of retrenchments announced by foreign banks and oil and gas companies, such a move is inexplicable to me.

Firstly, I must clarify that I do not disagree with the government’s push for SkillsFuture. In promoting lifelong learning among workers, the movement enables Singaporeans to develop skill competencies relevant to succeed in the new economy. However, by telling Singaporeans that unemployment insurance is not needed is akin to a doctor advising his patient not to buy medical insurance and to stay healthy through regular exercises. Is this strategy even feasible in today’s challenging context?

We all know that life is fragile and can be unpredictable. Very often, even if you maintain a healthy lifestyle, it does not guarantee you against critical or even terminal illnesses like cancers. And what about unforeseen circumstances like workplace incidents or road accidents? There are simply too many circumstances that are beyond our control and it is naive not to insure our wealth.

With big companies like SPH, Keppel Corp and various investment banks announcing retrenchments, this is definitely a dreadful period of time to look for jobs in Singapore. In today’s context, experience and qualifications can only get you so far. So why is it that many Singaporeans are unable to find jobs in Singapore?

Is it a case of skills mismatch in today’s new age economy? Are Singaporeans too complacent and choosy? Is it down to the lack of selling skill during job interviews? Or have we priced ourselves out of this competitive market? Too many foreign talents fighting for positions that Singaporeans can perform?

I would say none of the above is exactly true. Most Singaporeans are unable to secure a job is because many downplayed or ignored the power of networking. In fact, networking is not only a powerful skill for securing a dream job, it is an important skill that entrepreneurs must possess in order to build their businesses. When you have a quality network, jobs will come to you, and not the opposite.

Contrary to what most people thought, networking isn’t about promoting yourself or cold calling your business contacts when you are being retrenched or fired from your job.

For the 1^st quarter of 2016, Ministry of Manpower (MOM) revealed a record number of retrenchments since 2009. A total 4090 workers were retrenched as Singapore economy slows down and undergo major restructuring. Is your company downsizing and are you on the retrenchment hit list? If not, have you started to future-proof your career?

For many years, Singapore refused to develop policies to ensure safety nets for the unemployed. The fear is that in creating such a social safety net, there will be moral hazards as those who lose their jobs may not be motivated to re-enter the labour market again. This is happening in today’s Europe whereby the unemployment benefits are so generous that the workers would rather remain unemployed in order to enjoy the benefits.

However, the labour landscape in Singapore has changed drastically over the last few years. There are acute shortage of talents in certain job segments like cyber security and digital marketing. While on the other hand, white-collar professionals working in sectors like banking and finance are unable to find work for months and years after being let go by their employers. This phenomenon is known as structural unemployment.

The rising costs of doing business have also put off many companies.

On 13 June 2016, the Ministry of Manpower (MOM) announced a surge in the number of workers being made redundant. Overall, 4,710 workers were retrenched by their companies, representing a record level of retrenchments in Singapore for first quarter layoffs since 2009.

The MOM data is not surprising as it tallies with the ground situation for the employment landscape. In fact, there are many recent articles of Singaporeans struggling to find work after being given the retrenchment notices by their employers. Many of them are actually qualified professionals with many years of relevant working experiences in their industries. Hence, it is understandable that they feel bitter and resentful.

Being fired or retrenched from the workplace can be the worst thing that can happen to an employee, possibly even worse than been passed by for promotion. This is because losing your job is more than just losing your income, it can be extremely damaging to your self-worth and ego. Understandably, you may feel emotional and victimized. The “why me?” will definitely pop up in your head and you start to demonize your ex-bosses or colleagues. But as a wealth builder, you must pick yourself up quickly and move on from the self-pity stage.

After a trip to California’s Silicon Valley, Singapore Prime Minister Lee Hsien Loong called for better recognition and prospects for Singapore engineers. It was as if the government has just awoke from a deep sleep and suddenly found that local born and bred engineers have been given the raw deal all this while. With a magic wand, PM Lee magically revitalized the outlook for engineers and give this profession a steroid injection, in terms of salaries and career progression.

To be honest, I have been an engineer for 11 years and my starting pay was $2,600. It took me 5 years of working experiences to crawl to the $4,000 level. Now, fresh graduate with no working experience can command $4,000 level. Effectively, given the new salaries regime, fresh graduates have 5 years of head-start than me. The quantum increase is quite a huge jump and I wonder whether SMEs can afford to pay such premium for fresh engineering graduates.

It may be the case that the government is struggling to find local computer engineers with cyber security skills. Or maybe there is a dearth of software engineers to support the growth of local fintech industry. Whatever the real reason it may be, the sudden government’s push to groom local engineers is long overdue.

According to the latest Ministry of Manpower (MOM)’s data on the employment landscape in Singapore, more workers were retrenched in 2015. A total number of 13,440 workers were laid off, the highest since 2008-09, which of course was the Great Financial Crisis period. The spike in retrenchments in Singapore reflected the gloomy economic outlook and challenging times ahead.

As a wealth builder, my mantra is to work hard for money and also ensure that my money works hard for me. Being gainfully employed and having a good income is important in order for me to lay down a strong financial foundation for the family. Henceforth, the data on retrenchment is useful because they provide useful information on the impact of economic downturn and allow Singaporeans to identify which industry sectors are ailing.

The latest data from MOM is indeed worrying and I am thankful that I have a job. Sometimes, in the midst of our busy schedules, we tend to take things for granted and expect every day is Sunday in office. What we don’t realize that Singapore is rapidly losing its competitive edge because of high business costs. Many MNCs realize that the so-called talents in Singapore are not so highly skilled or possess niche knowledge that cannot be found in cheaper locations.

This year marks the 10th year anniversary of my working life. It seems not so long ago that I stepped out of the university, fresh and ready to take on the world. I was driven, curious and hungry for success back then. Yet now, I feel like a spent force, jaded and weary of my journey. So many things have happened to me for the past 10 years, both good and bad, and they have inevitably shaped my character and thoughts.

I like my current job because of the opportunity to make significant impact in the industry I am working in. Yet, I came to realize that there is another side of the job equation that cannot be decoupled, and that is human relationships. Having the soft skills to deal with day-to-day issues are important in career success and unfortunately, this is not taught in school. Through the years, I came to realize that successful people are those with strong Emotional Quotient (EQ) and they tend to get ahead than those who are smarter or technically stronger. And this is the area which I fare the worst – the ability to manage my emotions.

For the past few years, I have lost my temper in office on a number of occasions and my bosses had noticed my outbursts.

Throughout my career, I have always heard people claiming that they should have certain level of salaries or pay increments to justify the cost of living in Singapore. My stance is that to we should first and foremost prove our values or worth to the organization in order to make that sort of demand to your employers. Simply telling your bosses that the inflation rate is much higher than your pay increment is not a valid reason for a higher pay check. Today, during lunchtime, my boss shared with me his insights on how to achieve career success.

Why do some people succeed in life?

Have you ever wondered why do some people able to achieve career success despite them having mediocre academic qualifications? Apparently, there are unique traits that make them stand out from the rest of the crowd and that is the ability to see challenges differently. Successful  people would strive to prove their merits to  their bosses before demanding his desired pay package. Most importantly, they view challenges as opportunities, rather than obstacles. This trait spurs them to achieve goals and drive them to career success. When faced with challenges or setbacks, instead of whining, they remain resilient and bounce back from failures.