Why Hiring Employees in Singapore Is Hard and What to Do

If you’re an employer looking for employees in Singapore, you’re not alone in feeling the squeeze. ManpowerGroup’s Talent Shortage Survey 2025 reports that 83% of Singapore businesses struggle with hiring employees in Singapore due to skills gaps and talent scarcity. At the same time, the number of employees in Singapore hovers around 3.7 million, but competition for skilled workers across industries is fiercer than ever.

Costs are also rising. According to Mercer, Singapore employees’ salaries may rise by 2-5% in 2025 despite uncertain economic outlook, pushing companies to rethink compensation packages. Employers can’t just offer higher salaries anymore, they must also rethink benefits, culture, and policies to attract and retain the right people.

For many employers, the question isn’t just where to find employees in Singapore, but how to hire employees in Singapore in a way that works long-term.

Why Hiring Employees in Singapore Is Hard

1. Skills Mismatch & Changing Training Needs

One of the biggest reasons hiring employees in Singapore is so challenging is the growing skills mismatch. According to ManpowerGroup, 83% of employers in Singapore say they struggle to find candidates with the right skills, one of the highest rates in the Asia-Pacific region.

This isn’t just about technical knowledge. The changing training needs of employees in Singapore mean roles in IT, finance, and healthcare are evolving faster than education and corporate training pipelines can keep up. Employers need specialists in areas like AI, cybersecurity, and data analytics, but the talent pool is still catching up.

Without structured upskilling and reskilling, even capable staff risk falling behind, leaving companies competing for a limited pool of “job-ready” candidates.

2. Rising Costs & Benefits Expectations

Beyond base pay, candidates want more. They ask about types of allowances for employees in Singapore, such as transport, housing, and meal allowances, and they expect clarity. Benefits are equally important: questions like is medical insurance compulsory for employees in Singapore? or what are the mandatory benefits for employees in Singapore? come up often.

By law, WICA is compulsory for all employees and companies in Singapore, and while medical insurance for employees in Singapore MOM guidelines require coverage for foreign workers, many firms now offer broader medical benefits for employees in Singapore to remain competitive.

3. Shifting Workforce Attitudes

PwC’s survey revealed that one in three Singapore bosses has demoted employees to cut costs. Combined with high living costs, this drives employees to seek stability elsewhere. Gen Z, in particular, prioritises mental health and flexibility. It’s no wonder companies in Singapore are expanding mental health and wellness benefits for employees to keep them engaged.

4. Compliance & Employment Laws

Hiring isn’t just about attraction, it’s also about compliance. Employers must know:

How to calculate overtime for salary employees in Singapore (44-hour workweek standard).
How many days of public holidays are employees entitled to in Singapore? 11.
What is the maximum hours per week for part-time employees in Singapore? Typically 35 hours.
Are interns considered employees in Singapore? Yes, under certain conditions.
Can a sole proprietor have employees in Singapore? Yes, but must register CPF and provide statutory benefits.

Without this foundation, even the best hiring efforts risk falling flat.

What Employers in Singapore Can Do

1. Strengthen Employer Branding & EVP

The largest companies in Singapore by employees, such as DBS, Singtel, and ComfortDelGro, succeed not just because of scale but because they market themselves as great places to work. SMEs can learn from this by highlighting culture, career paths, and benefits.

2. Offer Competitive, Transparent Packages

Salary transparency matters. Employers should know and address relevant questions like:

This clarity, combined with types of allowance for employees in Singapore, helps set realistic expectations and builds trust.

3. Rethink Policies for Flexibility

Employers should modernise policies:

4. Explore Broader Hiring Channels

Many businesses now consider hiring foreign employees in Singapore to fill gaps, though MOM regulations apply. Others explore hiring remote employees in other countries (Singapore companies) to access talent pools abroad.

Of course, safeguards are necessary: conducting a background check on employees in Singapore ensures compliance and reduces risks.

5. Build Strong Onboarding & Retention Strategies

Reddit HR leaders note that 70% of new hires decide if they’ll stay within the first month. Employers must go beyond paperwork. Create onboarding that provides purpose, belonging, and growth.

The Future of Hiring in Singapore

Looking ahead, competition for talent will remain intense. Whether you’re an MNC or a small employer looking for employees in Singapore, success depends on balancing compliance, competitive pay, and employee well-being.

At Wecruit, we specialise in helping employers hire employees in Singapore more effectively, with data-driven strategies and deep market expertise. Whether you’re expanding your team or exploring outsourcing, we’re here to help. Talk to us today.

FAQ

How to hire employees in Singapore?

Employers must advertise on MyCareersFuture (for EP/S Pass), provide employment contracts, CPF contributions, and ensure compliance with MOM regulations.

Is medical insurance compulsory for employees in Singapore?

Yes, for Work Permit and S Pass holders, medical insurance for employees in Singapore MOM requires at least SGD $60,000 coverage annually. For locals, it isn’t mandatory but is increasingly expected.

What are the mandatory benefits for employees in Singapore?

CPF contributions, paid leave, 11 public holidays, sick leave, and mandatory insurance for employees in Singapore such as WICA.

Is poaching employees illegal in Singapore?

No, but non-compete clauses may apply. Ethical hiring practices are recommended.

Where to find employees in Singapore?

Top platforms include MyCareersFuture, LinkedIn, recruitment agencies like Wecruit, and job boards.

Can a sole proprietor have employees in Singapore?

Yes, but they must register CPF and comply with all labour laws.

How much do part-time employees make in Singapore?

Typically SGD $10-$15 per hour, depending on industry.

What is the maximum hours per week for part-time employees in Singapore?

Generally capped at 35 hours weekly.

Are interns considered employees in Singapore?

Yes, if under contract, but CPF contributions may vary depending on citizenship.

What about travel and wellness benefits?

Many companies in Singapore are expanding mental health and wellness benefits for employees, alongside travel subsidies and flexible travel policies for employees in Singapore.