More than 100 companies pledge to adjust hiring practices to focus on tech skills

Today, more than 100 companies across industries such as financial services, healthcare and logistics, pledged their commitment to incorporate skills-based hiring practices when recruiting tech talent. This pledge is in tandem with the launch of the Skills-Based Hiring Handbook jointly developed by the TechSkills Accelerator (TeSA) for ITE and Polytechnics (TIP) Alliance and the Institute for Human Resource Professionals (IHRP), supported by the Infocomm Media Development Authority (IMDA). The Handbook will guide and encourage more companies in Singapore to adopt hiring practices that go beyond academic qualifications.

1. More than 100 companies have joined the movement for skills-based hiring by pledging their support, and demonstrating their commitment by offering opportunities in tech for individuals to gain practical experience and develop the skills needed. These tech opportunities include internships with ITE and Polytechnics, on-the-job training via apprenticeships, and work-study programmes. These efforts were announced by Senior Minister of State for Communications and Information Mr Tan Kiat How at the TechConnect Campus Roadshow, organised by JobStreet by SEEK at Temasek Polytechnic. Each TechConnect session is tailored to the different student bases, aiming to help them understand how they can develop tech skills and careers starting from multiple academic levels and specialisations.

Impetus for skills-based hiring

2. According to IMDA’s Singapore Digital Economy report, published in October 2023, the demand for tech professionals has risen over the years, accounting for 5.2% of total employment today. To meet the increasing demand and to create a more inclusive and diverse workforce, there is a need for companies to access a wider pool of talent. By attracting and retaining talent based on skills, companies can gain a competitive edge in their industry and drive business success¹.

Empowering companies to adopt skills-based hiring practices

3. To drive this mindset shift across the economy, IMDA and the TIP Alliance have partnered IHRP to jointly develop the Skills-Based Hiring Handbook with valuable inputs on industry views and case studies contributed by the member companies of the TIP Alliance. The Handbook was designed for HR professionals, talent acquisition teams, hiring managers and organisational leaders. It provides some of the industry’s best practices, strategies, and practical steps to effectively navigate the hiring phases, enabling organisations to attract, assess, and develop tech talent based on skills and competencies.

4. Beyond the launch of the Handbook, IMDA and the TIP Alliance have taken a collaborative approach to sustain the movement towards skills-based hiring by bringing together an ecosystem of partners and key stakeholders from across the government, as well as Institute of Higher Learning (IHLs), union, Trade Associations and Chambers (TACs), businesses and HR communities. This ensures that all pertinent stakeholders are involved in driving the adoption of skills-based hiring practices in the industry and creating an interconnected network to support the development of a skilled workforce.

5. Mr Aslam Sardar, Chief Executive Officer of IHRP, said, “As technology continues to evolve rapidly, skills that were once in demand may risk becoming obsolete within a few years. The average half-life of skills is now less than five years, and in some tech fields as low as two and a half years. For businesses and HR, one of the key challenges now is finding the right talents and closing the skills gap. Skills-based hiring can help to close the gap between the skills required by employers and the skills possessed by job seekers.”

Inviting companies to pledge support

6. This push towards skills-based hiring is a continuation of IMDA’s ongoing efforts to nurture tech talent under the TIP Alliance, an industry-driven alliance supported by IMDA and co-chaired by SGTech and Singapore Computer Society (SCS), comprising global and local companies that employ tech talent as well as IHLs.

Companies who take the pledge will commit to implement skills-based hiring practices, including:

• Making skills the basis for future workforce planning by identifying and defining the core skills and competencies essential for each role and aligning them with the company’s objectives and future needs.
• Designing job postings based on skills required instead of academic qualifications by identifying key skills required to create job descriptions that accurately reflect the skills and experience required for the job role and removing academic qualifications from job postings.
• Using skills-based assessments to evaluate candidates by considering industry certifications and using skills-based assessments, such as coding challenges or other tests, to evaluate candidates instead of relying solely on academic qualifications in resumes and interviews.
• Providing training and development opportunities to help employees develop new skills and grow in their role.

Companies interested in taking the pledge to support skills-based hiring can visit the IMDA website at go.gov.sg/tip-alliance and fill out the pledge form (Employers' Pledge for Skills-Based Hiring | FormSG). Once the form is successfully submitted, IMDA will get in touch with the company to provide further information and support.

7. Mr Sam Liew and Mr Wong Wai Meng, Co-Chairs for TIP Alliance said “It is crucial for Singapore to build a strong pipeline of tech talents to remain competitive on the global stage. The TIP Alliance strongly endorses the development of industry-based competencies, such as certifications and skills training, to maximise the potential of our tech talents. By supporting skills-based hiring and inviting partner companies to pledge support, we champion a collaborative ecosystem for a skilled and competitive workforce.”