Let’s face it, besides rental, payroll can be the biggest killer for any businesses.

It doesn’t help with escalating expectations from job seekers looking for an astronomical salary.

If you are an SME, paying a degree holder 4K per month will not only burn a gigantic hole in your pocket but completely upset your equity structure completely.

But fret not. There is a solution called Career Support Programme.

 

What is Career Support Programme?

The Career Support Programme (CSP) encourages the hire of eligible Singapore Citizen PME, launched by the collaboration of Workforce Singapore (WSG) and the Employment & Employability Institute (NTUC’s e2i).

This programme benefits companies by providing salary support for up to 18 months for each eligible individual employed.

Let’s work this out for you:

Look at Aini’s example.

She’s 45 years old, unemployed and looking for jobs for about 20 months.

If you hire her and pay her a gross monthly salary of $7,000

You get the maximized salary support of $42,000 by CSP

Working this out,

You get salary support of (CSP Tier 1):

50% for the 1st 6 months (50% of $7,000 = $3,500)

30% for the 2nd 6 months (30% of $7,000 = $2,100)

and, 20% for the 3rd 6 months (20% of $7,000 = $1,400)

You should be paying: $7,000*18 = $126,000 (for 18 months)

Instead, you only paid: $126,000 – $42,000 = $84,000 (for 18 months)

You saved (for 18 months): ($3,500*6 months) + ($2,100*6 months) + ($1,400*6 months)

= $42,000 (capped)

Instead of paying $7,000 per month, this translates into $84,000/18 months = $4,667 (approx.) per month!

This translates to a monthly salary paid of $4,667

This programme is meant for people above 40. I only hire young and aggressive people

While many companies have a list of conditions of the people that they want to hire – ‘young and aggressive’ seemed to be always one of them.

Does young and aggressive always correlate with efficiency and value adding to the company?

Do a quick Google search on managing Gen Y/Z, that alone will list more than 11 million hits.

Management is struggling to understand them, let along manage them. Articles complaining about Gen Y/ being spoiled, lazy, poor work ethic, little respect for authority, self-centred, unrealistic expectations, and it goes on.

Articles complaining about Gen Y/ being spoiled, lazy, poor work ethic, little respect for authority, self-centred, unrealistic expectations, and it goes on.

When you have an unwritten rule of hiring just the young and aggressive, you are actually getting the diluted talent that everyone else has picked through.

Think about it – the cream of the crop would have gotten a job even before graduation.

The next echelon would be hankering for the sexy companies in the market (e.g. investment banks, tech giants).

The balance is your only target pool. What are the chances of getting a Star Performer from that sample size?

Cost of the wrong hire is too devastating

According to Singapore hiring expert FutureThink!, the total cost of a bad hiring decision isn’t just limited to direct costs.

You would also have to consider indirect costs such as lower personal productivity among dissatisfied employees, disruptions caused by dissatisfied employees, higher turnover rates among productive employees, damages to reputation and market share, lost management time, increased stress and anxiety from people problems, poor employee morale and lost business opportunities

What about Direct Costs? Depending on the seniority of the position:

    • Recruiting Fees
    • Background Checks
    • Employee Referral Incentives / Fees
    • Hiring Manager’s time and expenses
    • Travel expenses
    • Base Salary
    • Benefits
    • Vacation/Time off
    • Legal Costs
    • Outplacement Costs
    • HR department time and expenses

Multiply this by the number of new hires that last barely a few months because they had “learned everything” or feel “something better’s come along”.

Recruitment suddenly became a core business focus when it shouldn’t be.

But older employees are slow

It is a terrible misconception that older workers are not beneficial to the company.

In fact, studies have shown that older workers have much more to offer than younger workers.

They value meaning and contribution to career advancement, as compared to younger workers.

They value meaning and contribution to career advancement, as compared to younger workers.

With their accumulated knowledge and experiences, they thrive much better in the workplace.

By utilizing the CSP to hire older employees, you are not only benefitting from the cost savings of the programme but also the wealth of experience and knowledge that older employees have.

A 60-year-old will outlast your typical job-hopper

Older workers also provide the consistency that business requires so they can plan a bit further into the future.

Their presenteeism and productivity are among the highest and they also bring along strong experience and resilience built from years of employment that their younger peers may be less likely to possess.

Even if that 60-year-old worker only has only 10 years of contribution left, he will transcend at least the 2 years of his 30-year-old peer. How is that for consistency!

Time to re-think about hiring policies

Gen Y and Millennials are skewing the definition of work-life balance to the extreme edge of “life” instead of “work”.

They need time to build up their leadership skills, lose focus so easily and their loyalty and job ethics remain questionable.

Older workers are more than up to the job and they bring unique skills and expertise that few can offer.

Discriminating against them are just discriminating against the bottom-line of the entire organization.

Unless your company is anti-profit, the recruiting department must educate hiring managers on the issue of age bias that relates to hiring decisions.

It is your job to contest the status quo and consider all competent workers for your open positions — not just the young ones.

When a position sits open waiting endlessly for a younger candidate, nobody succeeds.

Not only do older workers bring along savings for your company, they are an asset.

So what else is stopping you from hiring them?

 

Interested? Contact Ingeus to find out more!

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