Meeting Today's HR Challenges
It is all about keeping that competitive edge in the New Economy and staying relevant.

Today's fluid and dynamic market conditions mean greater mobility in the workforce. Slowly but surely, employers are now having to face up to the realities of a tight labour market - high staff turnover and difficulty in recruiting and retaining staff.

"High staff turnover is not uncommon in a tight labour market. When a valued employee leaves, the company not only loses a worker, but his skills and expertise. Employee turnover is costly - it disrupts the company's operations and clientele," said Mr Ong Yen Her, Divisional Director, Labour Relations & Welfare Division, Ministry of Manpower (MOM). A business case study by leading tax, accounting and consulting firm Deloitte and Touche found that it costs three times more to replace an experienced staff than to retain him. Another study of Chubb Corporation - a global insurance company which has been named by Fortune magazine as one of the "100 Best Companies to Work for" in America for year 2000 - showed that replacing a manager and a non-managerial staff costs an estimated 150% and 97% of annual salary respectively - potentially a significant hit to a company's bottomline.

Family friendly practices can be an effective tool in managing human resource issues. According to Mr Ong, family friendly practices improve staff morale, performance, productivity and also increase job satisfaction and staff motivation.

Five years ago, UMW Equipment and Engineering, an equipment trading and manufacturing company with over 220 staff, was experiencing difficulty in recruiting and keeping staff. The company took decisive steps and introduced part-time work and the staff were also allowed to take leave or apply for flexible work arrangements to care for their families. UMW's staff attrition rate is less than 3%.

Ms Josephine Cheong, UMW's HR Manager said cost is not an issue. "Family friendly practices may not necessarily cost much. But they mean a lot to employees... These practices are not difficult to implement. It can be as simple as granting leave on short notice when the employee really needs it for urgent family matters."

After undergoing a similarly worrying experience last year when the company lost 7% of its employees, petrochemicals giant ExxonMobil introduced part-time and flexi-time schemes. Employees can choose to work and leave at flexible times, as long as they meet the 39-hour per week requirement. ExxonMobil also has a Spousal Relocation Programme - the company will reimburse S$3000 of the expenses incurred by the spouse of the relocated/repatriated ExxonMobil employee during the search for new employment. Alternatively, the company tries to place the spouse of the employee in the same ExxonMobil office abroad.

Mr Sebastian Conde, HR Manager for ExxonMobil in Singapore said, "We want our staff to enjoy a steady life-long career with us. Employee needs change during the years and we have to cater to their needs.&"

The company's schemes have been well received. Ms Lim Loo Bee, Regional
Planning and Stewardship Advisor, who is working part-time at ExxonMobil
because she has to take care of her two young children, said, "I feel more obliged to help if the company needs help. As a recipient of such practices, I feel that the relationship is reciprocal. The company is not just making demands from you, but will step in when we need help. It's a nice feeling."3Com, a company that provides networking devices, has taken its family friendly practices a step further - by extending a helping hand to senior workers. The average age of 3Com's employees is 40, with 25% above 40 years old. Mr C.Y. Yau, 3Com's HR Director, said, "Older
workers are an important sector of the workforce, especially when the Singapore population is graying dramatically. They're valuable as they're the ones without the weekend syndromes and are stable and committed to the organisation."

3Com believes in giving and taking. Mr Yau adds, "Results produced
by employees are more critical...it boils down to trust." 3Com provides senior workers with magnifying glasses and has also re-defined work responsibilities so that senior workers do not have to lift heavy objects. In addition, the company allows its sales staff to telecommute and work from home."

Not surprisingly, more companies are bearing witness to the win-win situation for both employees and employers following the introduction of family friendly practices at the workplace.

Ms Susan de Silva, Managing Partner of Alban Tay Mahtani & de Silva (ATMD), a legal firm with around 100 staff, said, "Employees spend the majority of their waking hours at the workplace. They will thrive in an environment that supports their personal lives. Our productive employees have actually saved us costs, through reduced absenteeism and recruitment and training costs." ATMD's flexible work arrangements
enable its staff to work shorter hours daily and part-time. These have translated to clear benefits - 70% of the firm's staff have stayed for more than two years.

Temasek Polytechnic has a childcare centre on campus. Staff Trainer Mrs Tan-Eng Mui Hong attests to the convenience and peace of mind this facility offers: "I drop my five-year old boy at the centre and go straight to work in the morning. I can also drop by to see him anytime."

The Polytechnic also provides a catalog of services and suppliers via the staff intranet. The Polytechnic plans to expand on its catalog to include suppliers for groceries, car maintenance services and maid employment services. The staff will then be able to order groceries online and have them delivered to the office or home.

During the outbreak of the Hand, Foot & Mouth disease (HFMD) when the childcare centres were closed, the Polytechnic gave its staff five days' time off to take care of their children.

Mrs Koh-Kwok Wan Yee, the Polytechnic's Deputy Director, HR & Staff Development Department, said, "We understand our staff have different needs. They have to take care of their family. We show them a bit more care and they come back revitalised. It's not always about money."

To global logistics and express distribution company, TNT Worldwide Express, showing care means introducing incentives and schemes which meet employee needs. To attract and retain female employees who are planning for children, the company announced in March a rare four-week maternity leave scheme for the fourth child and above. This is on top of the regular eight-week leave employees enjoy for their third
child.

Said Ms Sally Tang, TNT's Country HR Manager (Singapore), "The suggestion for this pro-family benefit came directly from our staff. Within a month of the suggestion, the idea was turned into a reality. This is a classic example of how our employees' needs are quickly recognised and acted upon."

According to Ms Tang, the feedback has been positive so far: "Many of our colleagues have commented that it brings good benefits for mothers who are planning to have more than two children. They are really happy that TNT takes good care of them."

To Create Future Workplace - Start Small & Take Gradual Steps
The solution may be one of changing the employer's mindset and taking gradual but definitive steps towards a more family friendly work environment.

Transmarco's Ms Tham is of this view: "Companies may want to start with small outings such as BBQs and chalets... These will not cost as much but will be very much appreciated by staff." ATMD's Ms de Silva advised: "Start with benefits that don't require much financial outlay, and focus on benefits that suit your employees
and industry."

Employers can also evaluate and adapt practices to cater to changing needs, an approach taken by Singapore Prisons. It introduced family friendly activities since mid-2000, and is now doing a needs assessment study to evaluate and re-align its various programmes according to its employees' needs.

In a recent visit to Singapore, Work-Life consultant and Director, Families at Work (Australia) Ms Prue Warrilow said, "Many employers want to stay in control and at the same time meet veryday needs. Managers in Singapore may not be comfortable with these practices. They have to talk to their employees to identify what will be useful for them and then work out a way to implement these practices without compromising on business needs. Companies should be more focused on results/output rather than the actual time spent in the office."

Companies are starting to see how the positive results outweigh the initial inconvenience and costs. Mr Conde of ExxonMobil said, "We may not be able to measure the actual benefits from these practices, but I see happy employees. We must look at the long-term effects of a positive working environment."

Aptly concluded by Mrs Koh-Kwok from Temasek Polytechnic: "Perhaps it's as simple as being flexible, granting our employees their requests if they're reasonable. They have families; we have families. If we go an extra mile for them, they go an extra mile for us. These are human stories which go beyond policies."

Companies interested to find out more on the work-life strategies can contact the Work-Life Unit of the Ministry of Community Development and Sports at Tel: 3558030 or e-mail work-life@mcds.gov.sg. The Unit promotes awareness, training, consultancy and provides resource materials on the work-life strategy to companies.