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SINGAPORE: Companies in Singapore should not retrench workers during a downturn and hire new staff in an upturn.
Labour Chief Lim Swee Say called on companies to look at ways to manage costs and retain their existing manpower.
Speaking to 3,000 participants at the HR Summit held at Suntec Singapore on Wednesday, Mr Lim said the traditional approach of “retrench and hire” is no longer applicable.
He added: "At the company level, you're going to lose a lot of experience, a lot of skill, and most importantly, you're going to lose a lot of time because it takes time to hire new workers and to retrain new workers.
"And if you're in the knowledge-based economy, the time needed to retrain new entrants will be much longer, compared to a labour-intensive operation."
He added that at the economy level, it would lead to massive relocation of workforce, while at the national level it would result in a rise in structural unemployment.
He said companies that are restructuring their operations should focus on reskilling, upskilling and multi-skilling their existing workers while keeping their wage costs down.
He said this would lead to a win-win situation for workers, companies and Singapore's economy.
The yearly conference is attended by HR leaders and practitioners from the Asia Pacific region. - CNA/vm
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