SINGAPORE — The question of whether trainees will stay with companies after completing their apprenticeships may take the gloss off the financial incentive for employers provided under the SkillsFuture Earn and Learn programme, firms said.

While the S$15,000 they will get will offset the costs of training fresh polytechnic and ITE graduates, staff retention in skills-driven industries is a real challenge that may put some employers off the scheme, they noted.

Incentives for both participating companies and trainees to sign up for the 12- to 18-month programme were announced yesterday: Up to S$15,000 for employers and S$5,000 for trainees. In general, the money given to trainees will not carry a bond, said the SkillsFuture Secretariat, although companies may choose to impose one.

The initiative, which will match fresh polytechnic and ITE graduates to employers to work and train towards industry-recognised certification, will be pioneered in the manpower-starved sectors of retail, F&B, food manufacturing and logistics from April.

Commenting on the details, Robinsons and RSH Group of Companies, which has agreed to be part of the programme, pointed to potential challenges. “(These) include the retention of young trainees, who may leave to join other industries and decide the retail industry is not something for various reasons such as irregular hours,” said a spokesperson. The firm will not impose a bond on trainees.

Agreeing, Mr Andrew Chan, managing director of The Soup Spoon, said that, while he is keen on the Earn and Learn programme, the F&B industry generally sees a “high churn” of staff because of its low barriers to entry. But paying trainees the sign-on incentives in two tranches will deter people from leaving mid-way, he said.

Mr Chan would not impose a bond on trainees, but said: “We need to assess their attitude and motivation to join the industry beforehand.”

Employers also said high training costs could be involved because of the need to send trainees for familiarisation courses, while materials for them will add to overall expenditure. Having a bond may help to provide more assurance to firms, they said.

To retain trainees, companies agreed there is a need to ensure career progression and fair remuneration based on skills acquired through the job. Hence, the financial incentive from the Government will come in handy in creating training programmes.

BreadTalk, another firm that will be part of the scheme, said the grant provided “will be used for mentorship, creation of on-the-job training blueprint and expenses for overseas attachments”. Citing past experiences in similar schemes, its spokesperson said mentors need to follow up with trainees throughout a programme to ensure a more fruitful experience.