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“We need to grow our human capital and make the best out of our talent to increase competitive strategy,” Kenny Tan, Deputy Secretary (Workforce), Ministry of Manpower emphasised.
Singapore stands at a pivotal moment in its workforce evolution. With a rapidly aging population and accelerating technological disruption, traditional approaches to talent development are proving inadequate. At HRO’s Learning & Development Asia conference in Singapore in October, Kenny Tan, Deputy Secretary (Workforce), Ministry of Manpower took the stage to deliver a keynote presentation with a compelling call to action: it’s time to rewire our human capital strategies to meet the demands of tomorrow.
A labour market at an inflection point
Singapore’s workforce is set to reach a growth inflection point by 2040, driven by demographic shifts. As it stands, one in seven professional, managerial, executive, and technical (PMET) roles remain unfilled for more than six months — “the top reason is the lack of the necessary skills and experience.”
The traditional “plug and play” hiring model is no longer feasible. Instead, businesses must confront the reality that a new approach to building talent is urgently needed.
DS Tan identified two critical constraints on business growth:
- The lack of people, and
- The lack of skills.
The message was clear: Competing for talent is no longer a winning strategy. We must grow it.
Learning that sticks: The 70-20-10 model
To illustrate what effective development looks like, DS Tan spotlighted the 70-20-10 learning framework as a blueprint for success:
- 10% from formal training
- 20% from social learning (mentors, peers)
- 70% of learning comes from on-the-job experiences
However, he clarified an important distinction:
“Learning through working is not the same as on-the-job training. Experiential learning is on-the-job doing.”
This model emphasises that real growth happens in the flow of work — not in isolated training sessions. Organisations must embed learning into daily operations, stretch employees through challenging assignments, and foster mentorship at every level.
Building a business case for job mobility
Moving from learning to application, one of the most compelling insights that DS Tan shared was that:
- 50% of human capital is gained through work experience, according to McKinsey Global Institute's Human Capital At Work
- Employees who switch roles — especially with a 30–40% skill shift — see the greatest growth
Yet, many organisations are missing this opportunity. Instead of enabling mobility, talent is often left static, underutilised, or misallocated. Some sectors are even experiencing workers moving into less productive roles.
“In fact, the less productive sectors over the past 10 years have gained in terms of the share of the workforce. So, the overall workforce is growing. We are talking about the distribution. The share of the workforce in less productive sectors has grown. More workers than before are in the less productive sectors.”
He added: “Lower productivity means lower profitably, lower wages and lower skills.”
As such, “the key to unlocking the human capture the potential of workforce lies in job mobility,” the speaker highlighted.
He noted that job mobility is the next frontier for learning and development, urging organisations to design career pathways that stretch employees and promote internal mobility.
The three-step roadmap to tomorrow’s workforce
To help organisations take action, DS Tan laid out a roadmap for building resilient, future-ready workforces:
- Revamp hiring practices
- Hire for potential, not just performance
- Look for transferrable skills
- Widen talent pools by considering unconventional candidates
- Build structured learning ecosystems
- Deliver coaching and mentorship at all levels
- Design roles that intentionally stretch and challenge employees
- Promote internal mobility to keep talent agile
- Transform mindsets
- Embrace talent flow — even if employees eventually leave
- Invest in development to become a magnet for top talent
- Align workforce growth with long-term business resilience
To this effect, DS Tan addressed a common concern: “What if I invest in my talent and they leave?” His response was simple yet powerful: “When you take care of the workers, the workers take care of the business, and when they leave, it is not a loss.”
The path forward
The session concluded with a clear call to action: Singapore must build a dynamic human capital system that anticipates change rather than reacts to it. This requires embracing three guiding principles that will shape the future of workforce development:
- Hire for potential over immediate performance. Expanding the talent pool to include unconventional candidates' positions organisations to develop capabilities aligned with future needs, not just present gaps.
- Prioritise internal mobility alongside traditional training. While formal learning matters, the greatest human capital gains come from cross-functional moves that accelerate growth.
- Embrace talent flow rather than resist it. Viewing departures as investments in Singapore’s broader talent ecosystem transforms organisations into magnets for talent and strengthens their long-term competitiveness.
Ultimately, adaptability has underpinned Singapore’s economic resilience for the past 50–60 years. That same quality must now define the nation’s approach to talent management.
As DS Tan reminded the audience, organisations that invest in their people not only future-proof themselves but also contribute to Singapore’s collective success in an increasingly competitive global landscape.
READ MORE: Industry leaders share how young Singaporeans can stay future-ready in an evolving landscape
Lead image / HRO
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