With Singapore’s Ministry of Manpower (MOM) rolling out new hiring regulations under the Complementary Assessment Framework (COMPASS), businesses are facing a significant shift in how they hire and manage foreign talent. These regulations emphasize not only attracting high-quality foreign professionals but also ensuring fair treatment and career development opportunities. As a result, companies must adapt their hiring practices to align with these stricter requirements, making effective background verification more critical than ever.
Key Highlights of Singapore’s New Employment Pass Rules
Here are the key highlights of the new hiring rules introduced by Singapore’s Ministry of Manpower (MOM):
- From 1 January 2025, the minimum monthly salary for foreign executives and professionals will increase to SGD5,600 (US$4,119), up from SGD5,000.
- In the financial sector, the minimum salary threshold will rise to SGD6,200, up from the current SGD5,500.
- Employment pass applicants in their mid-40s will need to earn over SGD10,700 per month, with a higher threshold for the financial sector.
- A clear career path must be established for foreign hires before extending a job offer.
- These new salary criteria will apply to new employment pass applications from January 2025 and renewals from January 2026.
The changes aim to create a fair job market for locals while ensuring that foreign workers are high-quality professionals.
Impacts of New Regulations on Hiring Practices
The updated rules require employers to provide clear career development pathways for foreign employees and competitive compensation. For companies with tighter budgets and those heavily reliant on foreign talent, this presents a challenge. The need to remain competitive while adhering to these regulations means reevaluating compensation structures and hiring strategies, ensuring that every hire meets the stringent criteria set by MOM.
The Importance of Background Verification
Background verification is not just a formality—it’s a necessity. Companies that fail to comply with these regulations can face penalties and sometimes bans on hiring foreign workers. Beyond financial risk, non-compliance can damage a company’s reputation, eroding trust among the stakeholders and leading to legal issues.
By implementing background verification processes, companies can ensure that they are hiring individuals who genuinely meet the qualifications and experience required under the new regulations. This helps in minimizing the risks of hiring candidates with misrepresented credentials or unsuitable backgrounds.
Challenges in Verifying International Talent
Here are some of the major challenges faced by employers when verifying international talent:
Documentation and Certification
Verifying the authenticity of international degrees, diplomas, and work certificates is essential. Employers must ensure these credentials are genuine by cross-checking with issuing authorities, which can be challenging due to varying standards and language barriers.
Global Credential Evaluation
Evaluating foreign qualifications against local standards ensures candidates meet the necessary criteria. This process involves understanding different educational systems and ensuring foreign credentials align with domestic benchmarks.
Identity Verification
Accurate identity verification is crucial to prevent fraud. Employers must verify government-issued IDs and cross-check official records, especially with the rise in identity theft and forgery.
Regulatory Compliance
Employers must explore diverse international laws, including labour regulations and background check requirements. Staying informed and compliant with local and international laws is essential to avoid legal issues.
Access to Information
Obtaining reliable information about candidates’ backgrounds can be difficult in foreign jurisdictions. Employers need reputable verification partners with the resources to gather accurate and comprehensive data.
However, conducting these checks can be resource-intensive, especially for smaller businesses. This is where choosing the right partners for background screening and credential verification becomes crucial.
How OnGrid can help
OnGrid offers a seamless solution for businesses looking to navigate these new regulations effectively. Here’s how we can support your hiring processes:
Educational Certificate Verification: OnGrid ensures that the educational qualifications presented by candidates are legitimate, verified, and recognized by relevant authorities.
Global Database Check: Searching global databases to check if an individual or entity is involved in fraudulent, terrorist, or criminal activities, is politically exposed, listed on sanctions or blacklists, or has faced legal or regulatory enforcement. This helps ensure that candidates or entities do not pose risks or compliance issues.
Employment History Checks: We verify previous employment details, ensuring that candidates’ experience and career progression are as stated.
Compliance with Local Regulations: OnGrid helps your organization stay compliant with Singapore’s legal requirements for background screening.
Conclusion
As Singapore tightens the regulations on hiring foreign professionals, other countries might follow suit. Businesses must stay proactive by following comprehensive background verification strategies. With OnGrid’s expertise in background verification solutions, your company can navigate these changes smoothly, ensuring compliance while continuing to attract and retain top talent. Effective background verification is not about ticking the boxes—it’s about building a foundation of trust and quality in your workforce.
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