What the 5-Year HR Industry Transformation Plan Holds

Unveiling the 5-Year HR Industry Transformation PlanThe Singapore government has unveiled a transformative plan for the human resource (HR) industry. The Ministry of Manpower (MOM) launched the HR Industry Transformation Plan, also known as HR ITP, a comprehensive five-year roadmap to bolster the HR profession and enhance its practices within the nation. The HR ITP is built upon two key thrusts derived from the recommendations of the 2020 HR Transformation Advisory Panel. These thrusts serve as the foundation for the plan’s implementation.

Focusing on building HR capabilities to drive sector and enterprise transformation is crucial. This would involve three key components: digitising HR processes, developing strategic HR capabilities, and implementing progressive practices. By embracing digitalisation, organisations can leverage technology to streamline HR operations, enhance efficiency, and improve employee experiences. Building strategic HR capabilities also equips professionals with the skills and knowledge to align HR strategies with business objectives, contributing to overall organisational success.

Lastly, implementing progressive practices ensures that HR functions remain forward-thinking and responsive to the ever-changing needs of the workforce and the business landscape. These initiatives empower HR professionals to play a pivotal role in driving sector and enterprise transformation.


HR ITP to Tackle Challenges within the HR Industry

Notable initiatives within the plan involve support for adopting new HR technologies and establishing a comprehensive Workforce Insights Portal. Furthermore, the plan encompasses the development of future-ready skills for HR professionals. Other things include the professionalisation of HR practices and the enhancement of local leadership capabilities.

This transformative initiative addresses important challenges like quickly progressing technology, evolving workforce demographics, and the rising demand for strategic, business-oriented HR functions. By focusing on building capabilities and uplifting HR professionals, the HR ITP paves the way for a future-ready HR sector in the country


Emphasising HR and Its Impactful Role Across Industries

During the launch of the HR ITP, Senior Minister of State for Manpower, Zaqy Mohamad, emphasised the importance of viewing HR as a strategic asset and key partner in business success. He urged employers to recognize the value of a strong and strategic HR function, which can drive competitiveness, attract top talent, and seize new opportunities.

Citing a study by Josh Bersin in collaboration with IBM, Mohamad highlighted that companies with robust HR capabilities are 5.5 times more likely to achieve significant profitability and six times more likely to be innovative. He encouraged businesses to envision the potential of an effective HR function and its contributions to organisational achievements.

In line with this, the Ministry is actively supporting employers in their HR capability transformation by promoting HR digitalisation. At an operational level, automating HR processes will yield time and resource savings. At a strategic level, leveraging people data and analytics can enable organisations to plan and expedite matters effectively. It also helps to align workforce skills and identify training needs per their business strategies.


Measures Introduced by the Government

The Ministry has introduced several initiatives to support businesses’ HR technology investments. Firstly, the Productivity Solutions Grant (PSG) has been enhanced. This is done to assist with adopting new HR tech solutions. The areas in this case include applicant sourcing, tracking, and rewards and recognition. Around 11,000 PSG applications have been submitted between 2018 and 2022. This figure showcases the growing interest in HR solutions. Senior Minister Zaqy encouraged employers who have not yet taken advantage of the grant to consider doing so.

Secondly, the Workforce Insights Portal, hosted on the myMOM Portal, provides companies with valuable insights on salary and non-monetary benchmarks across various industries. This information helps businesses in making informed decisions regarding workforce hiring and retention. Since October of last year, companies can also assess their performance on firm-related attributes using the Complementarity Assessment Framework (COMPASS).

The third initiative is the continuation of Workforce Singapore’s HR Tech Transformation Programme. The programme aims to support companies in leveraging technology to redesign HR jobs and align them with business goals. The Ministry plans to establish a new Job Redesign Centre of Excellence, led by the Institute for Human Resource Professionals (IHRP). This one-stop centre will serve as a valuable resource for companies, offering guidance and support throughout their job transformation journey and facilitating access to necessary resources for their job redesign needs.


Singapore’s Transformation Plan Shaping the Future

Through these initiatives, the Ministry aims to provide comprehensive support to businesses as they navigate the integration of HR technology and job transformation, enabling them to optimise their HR practices and achieve their organisational objectives.

By addressing key challenges, investing in skills development, promoting the use of technology, and professionalising HR practices, the HR ITP positions Singapore at the forefront of HR excellence. Singapore’s HR transformation plan empowers professionals to excel in a digital business environment, benefiting businesses with strategic HR functions. Ultimately, the HR ITP aims to drive sustainable economic growth by creating a productive and future-ready workforce for Singapore’s continued success.


Starting a Company in Singapore?

Seize the opportunity of Singapore’s HR Industry Transformation Plan (HR ITP) to enhance your HR capabilities and drive business success. Embrace digitalisation, strategic HR practices, and progressive initiatives. Partner with us at 3E Accounting to navigate this transformative journey and position your organisation at the forefront of HR excellence.