SMEs hold the key to changing hiring practices

Prime Minister Lee Hsien Loong in his National Day Rally speech last year called for “a cultural change” in the way Singaporeans view success and value one another. Singaporeans, he said, should look for ways to succeed regardless of their paper qualifications, and employers should value their staff and develop them to take on higher responsibilities.

The Budget 2015 announcement of the ongoing acquisition and upgrading of skills through the SkillsFuture initiative, which encompasses the Earn and Learn Programme, is a clear reinforcement of this message. It sends a strong signal that the mindset shift has to start now in placing importance on skills development and that the Government is taking the lead by investing in the development of skill sets through generous cash incentives for both trainees and employers.

Surely then, it is timely to have a corresponding mindset shift in how companies recruit and develop their employees for the future.

Of course, that is not to say academic qualifications and experience are not important, as they will continue to give potential employers a picture of a candidate’s skills and intelligence to be able to fulfil a role. This is particularly the case in highly specialised roles such as scientist, engineer and technology specialist.

But for other occupations, it will be crucial to express to potential employers the application of knowledge to demonstrate critical thinking, initiative and even the ability to learn from mistakes.

So have companies changed the way they hire people by no longer looking at paper qualifications? Our view would be that this is a work-in-progress. Certainly, some of the challenges that companies may have to negotiate include changing deeply entrenched mindsets that have been rooted in more traditional recruitment practices established over many years and dictated by the cultural landscape of the country that places a strong emphasis on educational qualifications.

In the Singapore context, if change is to take place in how employees are recruited, then the public sector could take the lead to champion the change the Prime Minister is calling for. But small and medium enterprises (SMEs), which contribute nearly half of Singapore’s gross domestic product and employ seven out of 10 workers in the country, also hold the key to — and would make a very great impact — making this shift in mindset.

INNOVATIVE HIRING PRACTICES

What we have found through our research from last year with 401 local SMEs is that some of these firms are adopting innovative hiring practices and looking at recruiting talented individuals on cultural fit, rather than on qualifications.

One such SME in the petrochemical industry made it clear that successful recruitment is not only about the university a potential recruit comes from, but also whether he has the right will to succeed.

The company is looking for a candidate with creativity, speed and an engineering mindset, who can demonstrate an ability to solve simple practical problems.

Another organisation in the restaurant sector looks to hire people in operational roles who have a passion for the food and beverage industry as well as strong presentation and speaking skills.

This focus on attributes rather than qualifications was illustrated by a quote from an employer in another SME in the electronics sector who believes in the “inner character”.

“We hire the attitude. You can have the best grades, knowledge or skills, but without the attitude or values, it’s quite hard to work with you. The initiative, the growth, the passion, the wanting to grow and learn. The inner desire to be a winner. If someone with the right attitude doesn’t have the right skills and experience, we can teach him,” said the employer.

In other words, enthusiasm and a positive attitude become more important than relevant experience, with the view that any skill gaps can be filled with training.

If any significant examples are needed to vindicate his views, there is no better one than Google.

In an interview with The New York Times, its vice-president of “people operations” revealed that Google does not pay much attention to academic qualifications and is, in fact, increasingly hiring candidates with no formal education.

Regardless of what emphasis is placed on educational qualifications, skill sets or attitude, one thing is for sure. New approaches to recruiting and developing people at work will require employers and human resource professionals to move away from being process-driven and become more pragmatic and solutions-focused in their approach instead.

Some companies, for instance, evaluate their top executives partly based on how they have helped other departments advance the company’s overall interests. Solutions are, therefore, required in reassessing internal appraisal and reward systems to ensure they mirror more closely the cultural and values fit and Mr Lee’s vision for the future.

As Singapore moves towards its next 50 years, it will have to overcome greater global economic uncertainty than before. Employees themselves will need to embrace change and adapt constantly.

Skills that are going to be crucial for the organisational success of companies in Singapore and, ultimately, the Singaporean economy, will be those dealing with pressure as well as being able to work well with a range of different people.

Clearly, this will require skill sets broader than those taught in schools currently.

So what is the message for employees as organisations are being encouraged to build a new future?

Above all, be open and willing to share your life experiences with others, build a strong personal network and be prepared to express examples of where you have collaborated successfully beyond quoting facts and figures of your achievements, all of which demonstrate your emotional quotient, not your intelligence quotient.

ABOUT THE AUTHOR:

Gary Miles is the director of international operations at Roffey Park, a leadership institute based in the United Kingdom and Singapore.