Cost-Efficient Recruitment Practices in

In Singapore's bustling financial hub, where competition for talent is fierce and operational costs can escalate rapidly, finding cost-efficient recruitment practices is crucial, especially in the banking and financial services industries. As companies navigate the complexities of talent acquisition, optimising processes without compromising quality becomes a priority. How are companies within these industries managing these challenges and ensuring that they are able to keep costs in check?

1. Junior employees rising to the role

Rather than undertaking exhaustive searches and hefty compensation negotiations to fill senior-level positions, many companies are adopting a more practical approach – cultivating talent from within. Recognising the untapped potential within their own ranks, companies are investing in the development of high-performing junior employees. Through structured career progression paths and robust professional development initiatives, companies are empowering their junior staff to step into senior roles. This approach not only reduces recruitment costs but also fosters loyalty and commitment among existing staff members.

However, it is worth noting that some forward-thinking companies are also strategically recruiting junior candidates externally. By nurturing these recruits, they aim to cultivate a diverse talent pool and adapt to shifting skill requirements in the industry. This dual approach ensures that companies have access to a blend of fresh perspectives and institutional knowledge, positioning them for long-term success.

2. Offshoring initiatives

In response to the rising operational costs in Singapore, numerous banking and financial services firms have embraced offshoring as a solution. This entails relocating specific operations to more cost-effective locations such as India and Malaysia, enabling substantial cost savings without sacrificing service excellence. Presently, approximately 75% of operations are conducted offshore, while 25% remain onshore. This strategic manoeuvre allows companies to leverage cost differentials while maintaining a presence in Singapore’s competitive market.

3. Embracing technology

Traditional recruitment processes often involve multiple rounds of interviews, extensive paperwork, and logistical challenges. However, technological advancements have changed this aspect of recruitment. Banks and financial services firms are increasingly leveraging applicant tracking systems (ATS), AI-powered resume screening tools, and video interviewing platforms to automate and streamline their recruitment processes. By reducing manual intervention and expediting the screening process, banks and financial services firms have significantly cut down on time and resources expended.

4. Flexible work arrangements, remote hiring & virtual onboarding

In the wake of the global pandemic, remote work has emerged as a viable and cost-efficient alternative to traditional office-based employment. As a result, many banks and financial services firms have adopted remote hiring practices. Virtual interviews and assessments have become the norm, eliminating the need for costly travel and other expenses associated with traditional face-to-face interviews. Additionally, virtual onboarding processes have been developed to ensure a seamless transition for new hires, further reducing overhead costs.

Navigating the competitive landscape of Singapore’s banking and financial services industries requires a strategic approach to recruitment that balances cost-efficiency with the company’s overall talent acquisition strategy. As the industry continues to evolve, leveraging these cost-efficient practices will be instrumental in sustaining competitiveness and driving long-term success.

If you are a banking or financial services firm seeking to hire top talent, or a banking and financial services professional currently on a lookout for new opportunities, consider partnering with Ambition. For additional inquiries, feel free to contact me directly at Melody.Leow@ambition.com.sg.