Otherwise the growing attrition rate will become worst, warns Minister Teo Chee Hean

April 9, 2007

The Civil Service has to respond quickly and decisively to close the wage gap with the private sector to attract and retain the best and brightest, Minister Teo Chee Hean said in Parliament today when be presented arguments on why a revision in ministerial and top government servants is called for.

Mr Teo, who is the Minister in charge of Civil Service, said that the attrition rate in the government has been rising and "we need to act before the situation becomes more serious."

"The Civil Service is experiencing the effects of the tightening labour market. Our overall resignation rate has increased from 4.8% in 2005 to 5.7% in 2006," he told the House.

"We are losing our lawyers, accountants and management executives. The resignation rate of the Management Executive Scheme, which employs graduate officers across the ministries, was 10.6%, up from 7.4% in 2005," he told the House.

"At some of our entry grades, the situation is quite serious, with resignation rates as high as 25%. Members of the House would also have read from the newspapers that for our Home Team, there has been a 40% increase in the resignation of junior officers in January and February this year, compared to the same period last year.

"The Government, as an employer, has to respond quickly and decisively to stay competitive and close the wage gaps. Otherwise, we will deplete the Service of the able people we need, and the service level to the public will be affected. "

Stressing the need to pay competitive salaries, Mr Teo said that for Public Service to remain an attractive employer, the terms must keep pace with the private sector.

"That is why our policy is to pay public officers competitive salaries, salaries that are commensurate with private sector earnings. We do not seek to lead the market, but to keep pace with it," he stressed.

He said that salaries in the private sector have been moving rapidly, especially in the last two years.

Citing figures, he said in February this year, the two healthcare clusters adjusted nurses’ salaries upwards by 3 to 7 per cent. He also noted that that some law firms have raised salaries amid the growing demand for legal work and a shortage of lawyers. Reports from HR consultancies also point to more firms hiring executives, and offering attractive salary packages to attract them.

The financial and banking sector is growing rapidly and many potential job seekers are attracted to it.

Added Mr Teo: "The earnings of some of the relationship managers in Singapore surpass the pay levels in Switzerland. Singaporeans are being attracted to these jobs including one young ex-SAF officer who was featured in the report.

He also pointed out that attracting and retaining able people to build a team, especially those who have the potential to take up toop leadership positions in the Public Service is becoming more difficult.

"The competition for talent is not just within Singapore. Our people are being talent-hunted to work in Hong Kong, China or Vietnam and the Middle East. In February this year, a group of public officers attending one of the Civil Service College’s leadership training programmes, made a study trip to Dubai," he said.

"At a networking dinner, they met a fellow Singaporean who had been headhunted to take up a very senior position in a Dubai company. He told our officials that his Chairman is very impressed with Singapore and the ability of Singaporeans. So, he promised his Chairman that every time he is back in Singapore, he will speak with 2-3 Singaporeans to interest them in working for his company. I do not know how often he comes home, but we should be worried. "

In his speech, Mr Teo pointed out that the Civil Service needs to good people, with the right values and passion for Public Service - well led, well trained and well motivated.

"We need good people and leaders to helm our various services – principals for our schools, commanders of our police divisions, managers of our various line departments and customer touch points. We also need the support of our rank and file officers who quietly do good work behind the scenes, or courteously at the counters, helping to implement and execute policies well," he said.

"To bring it all together, to provide vision and coherence, and set the tone and direction, we also need exceptional public service leadership. This means having strong and capable leaders who can anticipate challenges and change, take a long term strategic view, tackle the complex issues, and yet at the same time come up with workable solutions that are needed now.

"We need leaders who can energise, organise and galvanise the Public Service to move the agenda forward and ensure that implementation accords with intent."

As a progressive employer, the Public Service’s human resource management practices must keep pace, and pay competitive wages for its officers and provide them with the development and training to improve and stretch themselves so that they can better contribute to their agencies.

"We must make the Public Service an organisation that provides our officers with a sense of meaning and mission, that ultimately it exists to serve the people of Singapore," he said, adding that many in the public service go the extra mile to work for the good of Singaporeans.

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