The surge in contract employment in Singapore is mainly due to the departure of foreign workers during the pandemic. Contract roles now span various industries and skill levels, offering individuals and employers distinct advantages. Workers benefit from skill development, flexibility, and networking opportunities, while businesses gain access to specialised talent, can address skill gaps, and mitigate hiring risks. However, it’s essential to follow guidelines to protect the interests of all parties involved.

The departure of foreign workers during the COVID-19 pandemic created a pressing need for immediate staffing solutions in Singapore. As a result, contract employment surged, with 41% of employers seeking more contract and temporary roles.

One example is that while the engineering sector in Singapore was gradually recovering post-pandemic, there was a surge in demand for immediate staffing to resume construction work, whether in public or private infrastructure projects–MRT network, build-to-order (BTO) flats, and more.

Contract works are no longer limited to entry-level or essential administrative roles. In various sectors, professionals at different skill levels are now employed on a contract or project basis to meet staffing shortages, as they may be needed for their niche skillset.

Here’s a glimpse of talent shortages across industries:

Figure 1: Talent shortages across industries, explaining employers are experiencing difficulty hiring the skilled talent they require—source from ManpowerGroup.

How it benefits Jobseekers:

Benefits of adopting contract roles:

1. Skill building and development

Contract work exposes you to different organisational cultures and work styles. This gives you fresh perspectives, the opportunity to learn new skills while on the job and exposure to new work challenges.

While skill shortages for certain industries are a concern, this push factor has led to 77% of employers keen on training and development opportunities.

2. Work flexibility

The recent COVID-19 pandemic has led many to rethink traditional ways of working and has further encouraged many to rethink the importance of work-life balance. Contract work may be an excellent option for individuals who still want to earn an income but cannot commit to a full-time work schedule.

3. Networking in the marketplace

In a contract role, individuals can use this opportunity to develop their professional network and connections through working alongside other industry experts. Such networks can open new opportunities when seeking other contract or permanent roles.

Benefits for employers hiring contract staff:

1. Niche skills or talent due to demand:

By adopting a strategic hiring approach, organisations can strategically acquire specialised talents with skills or expertise that are not readily available internally.

You may consider recruiting contract staff for projects, periods of heightened activity, or unforeseen operational demands. The added benefit of contract workers’ ability to start quickly allows businesses to respond swiftly to changing market conditions or operational challenges.

2. Cushioning skill gaps

For Singaporean employers looking to address the increasing skill shortages, but the cost may be a concern for retraining, upskilling, permanent hiring, or even a headcount freeze, recruiting contract workers may be worth exploring. Contract workers can be onboarded quickly, allowing for immediate filling of critical roles.

As redistributing workload amongst existing employees impacts productivity, cushioning skill gaps with contract staff may help reduce work strains while providing ample support to the organisation without compromising business performance.

3. Talent on a ‘trial’ basis

Organisations often employ contract staff on a trial basis to evaluate their skill set and cultural fit within the company. This approach mitigates the risks associated with long-term commitments to hiring full-time employees.

What you can do as contract workers:

1. Assess your skillset and identify areas for improvement. Consider how contract work may help you develop and improve new skills.
2. Explore contract opportunities by researching the various industries and companies that offer contract positions. You may also email our team to find out about the available opportunities here: nonaviationteam@oaigroup.com
3. Familiarise yourself with MOM employment laws and regulations on contract workers to protect yourself from exploitation and ensure fair compensation for your work.

What you can do as employers:

1. Evaluate your workforce to help you identify skill gaps, increase productivity, and areas where contract workers can add value to your business.
2. Consider or improve benefits by exploring opportunities to convert contract workers into permanent employees should they be valuable assets.
3. Create clear guidelines and processes for managing contract workers during onboarding, performance evaluation and offboarding.

We recommend that businesses, freelancers, and contract workers in Singapore closely follow guidelines created by the tripartite advisory that aims to protect the interests of all parties involved.

For contract staffing enquiries, please get in touch with terence.teo@oaigroup.com

For general enquiries, please contact: nonaviationteam@oaigroup.com