Speech at Inaugural HR Youth Forum

Mr Hawazi Daipi, Senior Parliamentary Secretary, Nanyang Technological University

2.   It gives me great pleasure to join you this morning for the inaugural HR Youth Forum.

Evolution of the Role of HR

3.   Today's theme is "Towards the New HR Horizon." As the theme indicates, the field of HR in organisations has changed dramatically. In the past, HR did not create new value as HR departments tend to focus on processes, administration and transactional work. These included areas of recruitment, payroll, compensation and benefits, and training as well as development. While HR played an essential role in sustaining daily operations, it did not directly help the businesses achieve the business outcomes they strived for. Most employers hence viewed HR as an administrative cost which needed to be managed and minimised.

4.   The role of HR has since evolved beyond the administrative function to take on strategic importance within organisations. Many CEOs have realised that the organisation with the right talent is a winning organisation. Successful CEOs are the ones who pay attention to their people strategy. This is especially critical given the borderless operating environment and the high mobility of talent. Only the right people in the right positions will be able to ensure that organisations can execute their strategy effectively and build sustainable businesses.

5.   More organisations are building strong HR capabilities to help them get the right people in the right positions. In these organisations, HR acts as a strategic business partner seeking to align and integrate people strategies with business strategies. Performance management, leadership and learning frameworks are now geared towards ensuring that organisations are adequately and competently staffed to cope with today's fast-paced business environment. HR is also starting to measure the impact of their people strategies in order to convince result-oriented CEOs how such strategies have improved their bottom line. The best HR departments are always tracking workforce trends and anticipating how the market is changing. As a result, many of the traditional functions of HR management are being outsourced to allow HR to devote more time and resources into the important business of talent management.

Key HR Challenges in Singapore and Asia

6.   I see two key immediate HR challenges in Singapore. First, HR needs to compete for talent. Singapore is an open economy with many MNCs basing their regional headquarters and high-value businesses here. There is intense competition for creative and specialised talent and global leaders, even in a downturn. Demand will always exceed supply. HR practitioners are challenged to find enough new hires with the right skills for their business units. Therefore, HR personnel may have to go beyond their country's shores to bring the best talent for the organisation in their attempt to fill the gap. The next task is to integrate, develop and retain a culturally diverse workforce.

7.   Secondly, HR needs to improve the productivity and morale of their employees, which are being challenged by the downturn. There are proven solutions that can help boost productivity and bring benefits for employers. For example, providing flexible work arrangements are win-win solutions. Employers will have more options to manage excess manpower, reduce costs and avoid job losses. The benefits can be substantial if the strategies are well-implemented, coupled with management commitment and the involvement of all leaders to reassure their workers. Flexible work arrangements also help the organisation to recruit during the recovery. Such practices are attractive to workers as they enhance work-life harmony.

8.   These two challenges are also relevant not just here in Singapore, but also in many parts of Asia. For example, HR faces acute competition for talent in China and India. Businesses in such emerging markets expand rapidly to satisfy their fast-growing domestic markets, as well as to take advantage of global opportunities. It is valuable for a HR professional in Singapore to be aware of the HR challenges in the region. This gives them the ability to work effectively for a regional MNC headquartered here, while managing employees throughout Asia.

HR Industry Professionalism and Career Prospects

9.   The long-term career prospects in the HR industry are promising if you view HR as a key component of value-creation. Businesses need competent HR professionals and leaders to know where to reduce and where to expand their workforce according to business needs and how to improve the performance of their staff. HR service providers are also expanding their operations as more businesses outsource their administrative operations. Based on these observations, despite the current economic situation, there are job opportunities in HR when you graduate.

10.   For those who are interested in HR as a career, more training and development opportunities exist now than ever before. In October last year, the Workforce Development Agency, WDA, launched the HR Workforce Skills Qualification (WSQ) Framework and the Leadership and People Manager WSQ Framework - to help HR professionals build competencies which contribute to the success of their organisations. The frameworks were developed in consultation with industry and international experts. They indicate the strong commitment of the Singapore HR industry to high, professional standards.

11.   The extensive sharing of best practices also reflects the high standards of the HR profession in Singapore. You will find it simple to join HR communities of practice centred on specific sectors or topics. For example, the Singapore Human Resources Institute, SHRI, runs regular events for its HR communities.

12.   Besides the WSQ frameworks and the many HR communities of practices available, MOM and WDA also support HR research and projects which help HR professionals to be more effective. We also bring in thought leaders to share leading-edge HR knowledge at the annual Singapore Human Capital Summit. The inaugural Summit in October last year was well received. MOM and WDA will continue to be advocates for the HR industry because it optimises our manpower pool and makes businesses more competitive. A vibrant HR industry will also attract new businesses into Singapore and create attractive job opportunities for you.

13.   Today's event is an excellent opportunity for you to experience the HR challenges and sharing of best practices in industry. I applaud NTU's Human Resource Consulting Club for organising it and the Nanyang Business School for its support. The high quality of such programmes by students and for students shows that our youth have a very bright future ahead.

14.   I wish you all an enjoyable day ahead. Thank you.