Rabu, 30 Maret 2011

MERITOCRATIC EMPLOYMENT 101: FACTS & MYTHS

I have written about "The Gen Y Career Setbacks & FT Policy" in May 2010 and again in Jun 2010. This latest article is yet another affirmation of this phenomenon.


This latest report on polytechnic graduates showed that "among the economically active fresh graduates, 68.5 per cent were in full-time permanent employment" so over 30 per cent had only a contract job or none at all.


MOE's report also says that permanent employment "includes those on contracts of one year or more", so some contract jobs are counted as permanent. And the results vary among faculties, with only 75 per cent of arts graduates from the National University of Singapore (NUS), for example, having found a permanent job.
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EMPLOYMENT FACTS

(1) Around 25% - 30% of our tertiary graduates are not getting permanent jobs.
This has become so common that even our graduates have started to think it's normal.
How is it possible that our population is at its highest educated level ever in the history of Singapore, but we are still not good enough and require foreign talents?

(2) Time lost is Time lost forever. 
It is difficult to get back on the permanent job track, once you have 'fallen behind'. It becomes a vicious cycle.

(3) The ratio of Foreigner vs Local Employed in the 20s age group is likely to be 1:1.
You can't get the Government to release such figures, but it's not difficult to figure out. The act of concealment speaks for itself.


EMPLOYMENT MYTHS

(A) ALL Employers hire based on Meritocracy, and never on other factors, such as Nationality
There is ample evidence to show that foreigners are hiring their own kind in SG. This phenomenon is also known as 'Employment Enclave' and take place in businesses of all sizes, ranging from small businesses to large MNCs.

Also, there are employers who choose to believe that foreigners are better than Singaporeans. Some of these employers are Singaporean.

(B) The Government ENSURES that all hiring decisions are based on Meritocracy, not Nationality
This is definitely a huge myth. In fact, the Government does the opposite. It allows for any employer to hire ZERO Singaporeans at the white collar level. There is NO QUOTA for hiring of foreign TALENTS (white collar).

This means a foreigner or any employer can hire 100% foreigners, even foreigner fresh grads.

Compound this irresponsible policy with the fact that foreigner employers are practising employment enclaves, this directly leads to joblessness and/or impermanent jobs for locals, including fresh grads.

(C) MOM actively filters Foreigners' Eligibility for Employment Pass
In reality, MOM has delegated its gatekeeper role to the employer. As long as an employer is willing to put up an application (by intelligently picking out the right form) to hire an educated foreigner under employment pass, this foreigner becomes a 'foreign talent' in MOM's records and will get the employment pass very easily.

(D) ALL foreign talents in Singapore contribute A LOT to the GDP
A few years after this 'foreign talent' gets into and works in Singapore, he will be offered PR, which in turn means this foreigner no longer requires a job to hang around in Singapore, and can hang around indefinitely. I have witnessed such examples.

An Eastern European in his 30s with an MBA from an unknown university in France gets a job as a consultant with a small-time all-white consultancy firm in Singapore. (Here you see 'Employment Enclave' at work too.)
At that point, he gains entry into Singapore on an Employment Pass. He works with this firm for a couple of years, then quits and becomes an 'entrepreneur'. (Registering a company costs only a few dollars.) As an 'entrepreneur', he applies for an 'entrepreneur pass' to stay on in Singapore, when in fact his 'company' is a one-man show which does not make much. Soon, "when it is time", this 'highly-educated foreign talent' is offered PR. Meanwhile, he speculates in the local property scene and lives off rent from a few properties.

In this year's budget, MOM has tried to show you that it's 'tightening' its policy by increasing the minimum salaries of the foreigners' employment passes, but in effect, it is more like a show. These foreigners may in fact already be earning the increased level of salaries. As such, increasing the minimum salaries on paper does not make a difference to the foreigners, nor to those who are employing them.


POLICY UNKNOWNS

(i) A lot of foreign investment will pull out if Singapore tightens its employment policies. 
So they are only here because they get to hire their own kind?
Singapore has nothing else to offer?

(ii) The average Singaporean will suffer greatly if the foreigner influx is reduced and GDP slows down.
Yes, a significant reduction of foreign talent employed will lead to direct reduction in GDP growth, simply because our GDP is propped up by these people's salaries.

However, does a a reduction in GDP growth lead to 'suffering of the average Singaporeans'?
This is what we have been told. What is the reality?
I think what's not being said is that the rich and powerful Singaporeans who suffer directly. Because fewer foreigners means lower rental income for these rich people's property investments. Lower GDP means reduced number of months of GDP-linked bonuses for top civil servants and politicians.

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