Blog Layout

Attracting top talent to startup jobs in Singapore

Dr Biz • Aug 24, 2020

As we are keen to point out here on the Dr Biz blog, Singapore is a great place for startups and startup jobs – one of the world’s top ranked cities, in-fact. As such, investment has been flowing into startups in the city-state, with data from Singapore’s Economic Development Board (EDB) showing that last year, startups raised 50% more funding than they had anticipated. In 2019, the EDB predicted that between S$8 and $10 billion would flow into startups in Singapore, yet investment actually exceeded S$15 billion.

This wave of funding is testament to the attractiveness of Singapore. The city is a highly competitive global business destination and a hub for manufacturing, innovation and digital startups. The startup sector has also seen strong support from the government over the years, who as far back as 2014 launched its Smart Nation Drive, with the aim to position Singapore as a global leader in smart technology for healthcare, transportation and more. Since then, it has introduced numerous programmes focused on the digital and startup sectors.

Desperately seeking startup staff

Despite all this, though, startup jobs in Singapore are going unfilled. While investment floods into the sector, a lack of talent means that the number of vacancies at startups in the city is growing, even as investment continues to flood-in. One reason for this is suggested by data from recruiter Indeed, who in February last year reported that the top positions searched for in Singapore were in customer services and teaching, while the number one advertised job – software engineers – had the fewest applicants.

Singapore, like many developed nations, has an ageing population and a shrinking workforce, something government ministers have long voiced concerns about. One solution to the problem could be to allow more talent from overseas to enter the workforce. However, the Singapore government’s current position is to nurture home-grown talent, and has placed some restrictions on hiring foreign workers. While admirable in its support of Singaporeans, this is contributing to the mismatch between government ambitions to be a Smart Nation, and a disengaged workforce.

Growing – and keeping – tech talent

Singapore’s position as a business gateway to the East combined with ever growing government support for innovation, however, means that demand for both startup investment opportunities and top talent is only likely to grow. To tackle the increasing number of vacant startup jobs, Singapore has expanded the number of university places available to study tech-related subjects. Educating aspiring tech stars is less of an issue, however. Rather, it’s keeping top talent in the country and out of the hands of high paying tech giants in Silicon Valley and Shanghai that is the problem. And with companies like China’s ByteDance Technology offering up to USD $3 million per year to the most gifted staff, that may not be easy.

Added to this is the challenge posed by the global Covid-19 pandemic, which has hit small companies across Southeast Asia particularly hard, leading to the loss of numerous startup jobs. A recent Tech in Asia survey revealed that a staggering 80% of startups in the region have been negatively affected by the pandemic, often meaning that they have had to lay off staff. In April The Monetary Authority of Singapore said it expects more job losses and fewer pay rises in 2020.

Plugging the startup job gap

Programs including the recently extended Jobs Support Scheme, in which the government covers up to 75% of the salaries of workers in some of the hardest hit industries, should provide some immediate relief for all employees in Singapore, including those in the startup sector. Initiatives are also popping-up among venture capital funds aimed at helping startup employees find new roles. These include SEAcosystem, a community database run on a Google sheet that helps to connect employees directly with startups that is moderated by leading VCs in the region including Saison Capital and FutureLabs.

Over the longer-term, there are a number of initiatives being run by the Singapore Government to grow staffing for startups, including the SG StartUp Founder programme, which matches startups with funding and talent. Moreover, as part of its Covid19 relief efforts, on 17 August the government announced an extra S$150 million for the programme. The TechSkills Accelerator and Professional Conversion Programmes (PCP) are tools to help IT employees and companies alike to upskill and expand their talents, with the PCP placing emphasis on training software developers and IT systems support engineers. Meanwhile the Tech@SG programme allows fast growing companies to employ more skilled foreign workers.

There are, undeniably, huge opportunities for early stage companies in Singapore, with the ever growing number of vacant startup jobs testament to this fact. However, filling these roles may take a little more ambition. Both the government and startups alike need to focus on growing the talent pool in Singapore, which in coming years should benefit from the support currently being shown to it. If our city-state is able to find the right formula to train, keep and hold onto our top tech workers, there is no reason Singapore should not rise to be one of the leading Smart Nation’s in Asia, if not the world.

At Dr Biz, we provide tailored and comprehensive solutions for our client's business needs. From incorporation to accountancy, tax and payroll, to professional advisory services, we help businesses in Singapore assess potential risks and become more cost effective and efficient.

To find out more, please feel free to contact us.

< Older Post Newer Post >