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Singapore - Providing attractive compensation packages may attract talent to small medium sized enterprises (SMEs) but it's giving them opportunities for a long-term career growth that will retain them.

Whether during the recession last year or the current economic recovery, the top two attributes talent want in an employer is "opportunity for long-term career progression" and "attractive overall compensation and benefit package". According to the survey "A Correlation Study in Branding of SMEs as Employers" by StrategiCom and Singapore National Employers Federation (SNEF) conducted in early 2010, both attraction and retention factors help drive workplace productivity. The survey added that the increased importance of these two attributes could be a result of the rising living costs in Singapore and employees having experienced pay cuts and layoffs during the recession.

The 150 respondents, comprising of MBA students, undergraduates and working professionals, also said "recognition and appreciation of employees' work" and "job security" would keep them onboard a company in the long run. While most were more willing to take up contract jobs previously, employees are now looking for long-term positions where they can develop their careers. However, Dr. Wilson Chew, group principal consultant and CEO of StrategiCom said employees can only develop their careers in a stable organisation. That means the business has to be "sustainable" in order to provide employees the opportunity for long-term career progression.

This would help in assuring employees about job security, Chew added, but it requires local SMEs to constantly update employees about the organisation's performance. "While this goes against the grain of typical SMEs who tend to shun away from such intimate levels of information-sharing, a change in attitude is necessary if SMEs desire to retain their employees," he says.

While respondents remain attracted to companies with opportunities for diverse job roles and training development in 2010, similar to results from 2008, the need for work-life balance is now among the top five requirements for talent. Chew said this could be a reflection of the changing working attitudes of the younger generation who had to work long hours during the recession.

Training and development remains an important factor in boosting productivity, revealed the survey findings. But Chew said it is important to note that the type of training programmes differs in different economic situations. Companies should concentrate on increasing employees' productivity levels to meet customers' needs and demands as the economy recovers.

Detailed study findings will be unveiled at SNEF's CEO and Employers Summit on 29 July as part of its 30th anniversary celebrations. Prime Minister Lee Hsien Loong and Minister Mentor Lee Kuan Yew will be addressing the attendees during the event.

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