Discovering the gold mine in mature PMEs

Starting this month, companies looking to employ mature professionals, managers and executives (PMEs) to fill vacancies will get financial help from the Government to offset their wage costs.

This Career Support Programme (CSP) by the Singapore Workforce Development Agency is a good start as it encourages companies to tap on the wealth of experience that mature local PMEs can bring to the workplace.

Those who hire unemployed locals, aged 40 and above, and pay them at least S$4,000 a month can get monthly wage subsidies of between S$400 and S$2,800 for 12 months to lower their costs.

But this subsidy, which covers up to 40 per cent of an employee’s wages, may not benefit all firms. As there are fewer positions for PMEs in each small medium enterprise (SME), and these positions by and large do not pay more than S$4,000 a month, the scheme may probably be more helpful to bigger companies.

The scheme’s 12-month time frame may also be an issue for some SMEs because of uncertainties over whether they can afford to continue paying the same wages when the subsidy has been reduced or withdrawn.

For the scheme to have a greater impact, it may be more useful to have a tiered subsidy rate for professionals, managers and executives, as each position draws different salary levels within a company.

The subsidy should also be extended from 12 to 24 months, as a shorter time frame tends to result in companies having a resistance to commit to hiring for the long term.

If companies can see the value in tapping this scheme, it will go a long way to improve the employment prospects of PMEs, many of whom face challenges when looking for a new job.

Government data from the second quarter of this year shows that seven in 10 local workers who are laid off are professionals, managers, executives and technicians, or PMETs. Most are 40 and above. Among the jobless PMETs, only 49.1 per cent found work within six months of beginning their job search.

Mid-career PMEs, especially those in their 40s and 50s, have the toughest time. Many are unfamiliar with the job market, or do not have the skills for new jobs as they may have stayed in one company for several years.

Naturally, when they start seeking jobs, many tend to look for similar work in scope or sector as their last job. But, their job search is usually fraught with problems because of a skills mismatch and the disappearance of old jobs due to increasing automation and technology among other reasons.

Since the Asian financial crisis in 1998, many multinational companies (MNCs) have exited Singapore to take advantage of lower production costs elsewhere. For those who maintain a presence in Singapore, the outfit was downsized from a manufacturing plant or a stocking location to just a marketing and trading office.

The information and communications technology (ICT) revolution over the same period also saw many traditional jobs become obsolete as technology has taken over. Current available jobs may also require some degree of ICT competency that was not necessary in the past.

Compounding the challenges is competition from younger counterparts who may not have the experience but could have the necessary skill set and are willing to accept a lower salary.

TIPS FOR PMEs AND COMPANIES

Those looking for jobs must recognise certain realities; for example, past accomplishments may not count as much as employers are looking for future potential. PMEs must also showcase their “contribution value” to the job as market value is determined by how much the individual can add value rather than just years of experience.

Here are some tips for PMEs who want to take advantage of the wage subsidy scheme:

• Be prepared to lower salary expectations in order to secure a job.

• Once in the job, learn about the new workplace culture, operational methods, constraints and challenges. Do not assume what “used to be” in the previous workplace should be the “must be” in the new workplace.

• If the new boss is a younger person, the PME needs to accept the leadership of the younger person.

• Seize opportunities to upgrade technical skills.

• Treat the one-year subsidy as a probation period where the PME should proactively seek to be accepted by new colleagues as an integral part of the new work team.

Companies also need to appreciate the challenges and realities that PMEs face so as to design a good programme to induct the new PME into the new job.

Here are some tips for companies to employ PMEs successfully:

• Develop a robust salary system that reflects the market value of jobs. In this way, companies will be in a better position to confidently determine a competitive yet equitable starting salary for the PME.

• Design a programme that helps mature PMEs ease into the workgroup, taking into account the profile of this group of employees.

• Appoint a mentor to provide guidance for the PME to adapt to the new environment.

Mid-career PMEs can definitely be an asset to any company that employs them, given their experience and expertise developed over the years. It is just a matter of orienting them into the new culture and work groups. Companies that can successfully do so have a gold mine waiting for them to discover.

ABOUT THE AUTHOR:

William Thien is a Singapore Business Advisors and Consultants Council-certified Practising Management Consultant.