WORKPLACE PRODUCTIVITY
Singapore - Prime Minister Lee Hsien Loong said flexibility in skills, wages and mindsets are a key prerequisite for improving workplace productivity, as well as, meeting changing market conditions.
Speaking at the Singapore National Employers' Federation (SNEF) 30th Anniversary CEO and Employers Summit this morning, PM Lee said besides training workers to perform different jobs, employers should be "mindful" of wage flexibility. With Singapore's economy set to hit record growth this year, PM Lee said locking in higher salaries now would not be sustainable because market conditions would change.
Besides factoring the 1% increase in CPR contribution rates this year, salary increments should be spilt between the basic pay, monthly variable component and the annual variable component. Lee said, "I hope that in a tight labour market, employers will be similarly prudent in their approach to wage settlements."
But Lee said the inculcating the right mindsets in both management and employees is the "most basic and critical flexibility" and workers will be flexible at work when there is high level of trust. He added that employees cannot be expected to abide strictly by the explicit rules in employment contracts, or worse work to rule. Employers should foster a corporate culture that promotes openness and trust from the start. He said, "They will go the extra mile for the company only when they are confident that management will uphold their end of the bargain, and not forget workers' sacrifices in bad times when things improve later."
Lee said Singapore's tripartite efforts should now be directed towards improving employee productivity so they could move up the value chain. "Then companies can earn good returns and workers can justify higher wages."
Singapore's productivity has also seen a 13% jump, due to a tight labour market and more overtime work. Lee said Singapore businesses cannot expect to save costs by employing more lot low-costing labour. "Instead, firms must utilise resources efficiently, develop new markets and innovate."
SNEF will launch a new Productivity and Trust Leadership programme for CEOs. The federation will work with Singapore Management University to run Productivity Leadership seminars for senior executives. SNEF will also design workshops to help SMEs hire, retain and develop talent.
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