Career Health SG enables our businesses to widen their access to talent. Through Career Health SG, we will equip businesses to take a skills-first approach to hiring and invest in human capital development. By offering meaningful career progression pathways, businesses will be better positioned to attract and retain talent to drive growth.

Career Health SG is about realising the potential of Singapore's most precious resource – our human capital; and through this, supporting Singapore’s economic and social goals.

What is skills-based approach?

A skills-first approach places skills at the forefront of talent strategies, recognising individuals for their capabilities and potential rather than relying on traditional academic qualifications or previous job experience. Organisations set out how skills are identified, prioritised, assessed and recognised. Then, they align the process of recruitment, onboarding and ongoing employee development processes.

What is strategic workforce development?

It is a comprehensive approach that enables organisations to identify and cultivate the skills and capabilities necessary for their future business objectives. It involves assessing the current workforce to identify key skill gaps and creating innovative strategies to build and apply those capabilities, to ensure that individuals are equipped with the necessary skills to advance in their careers and support the organisation’s growth.

In today’s highly competitive labor market, the ability to attract and retain top talent across all segments of your workforce is a critical factor for the success and long-term sustainability of your business. Talent acquisition and retention are no longer just HR responsibilities; they are strategic imperatives that directly impact an organisation’s performance, innovation and growth trajectory.

A 2023 LinkedIn report, based on insights from 49 countries, revealed that employers who prioritise hiring based on practical, applicable skills see their talent pool expand by nearly tenfold. Adopting a skills-based approach to recruitment broadens your hiring options and bridges talent gaps, giving you a competitive edge in today’s challenging labor market.

McKinsey’s recent study further supports this shift, showing that skills-based hiring is five times more predictive of job performance than hiring based on education and over twice as predictive as hiring based on previous work experience. By engaging in skill-based hiring, employers cultivate a resilient workforce that stay on even during difficult times. In fact, companies that adopt skills-based hiring saw their employee retention nearly double—from an average of 2.9 years to 5.4 years—demonstrating the long-term value of focusing on skills when hiring.

Beyond recruitment, a skills-based strategy can also be applied to workforce development, which is equally crucial for building a strong, future-ready team. By identifying the key skills needed for growth and success within your organisation, you can assess transferable skills among your existing workforce and offer targeted reskilling opportunities. This approach fills talent gaps and enhances employee satisfaction and retention. When employees see a clear pathway for career progression and feel supported in their professional development, they are more likely to stay and grow with your organisation.

In short, by embracing a skills-based approach to both hiring and workforce development, employers create a more adaptable, engaged and loyal workforce—one that can meet current challenges and seize new opportunities, ensuring both individual and organisational growth.

How can employers practice skills-based hiring?

In today’s fast-paced business environment, where technological disruptions are not just expected but increasingly frequent, the need for companies to prioritise their employees’ growth has never been more critical. As industries evolve and new technologies emerge, the ability to adapt and remain competitive hinges on a workforce that is both agile and capable of acquiring new skills.  

To stay ahead of the curve, businesses must not only anticipate future trends but also actively invest in cultivating a culture of continuous learning and reskilling. This proactive approach helps ensure that employees keep up with the change and are equipped with the expertise needed to seize emerging opportunities. By fostering a strong learning and reskilling culture, organisations can build a workforce that is resilient, innovative and prepared to tackle the challenges and demands of the future, securing long-term success in an ever-evolving marketplace.

Developing workers for the future not only reduces recruitment costs but also enhances employee satisfaction and engagement when new career pathways are made available for them. A highly engaged workforce is linked to better key performance outcomes like profitability, productivity, lowered absenteeism and higher employee retention rates.

How can employers cultivate a future-ready and competitive workforce?