[SINGAPORE] The effectiveness of the government-funded graduate traineeships will depend on how they are structured, even as the scheme gives fresh graduates a chance to network and pick up on-the-job training, said labour market watchers.
Walter Theseira, an associate professor of economics at the Singapore University of Social Sciences, said that the programme should, however, avoid heavy requirements that would discourage employers.
On Friday (Aug 22), Manpower Minister Tan See Leng gave some details of these traineeships – which were announced at the National Day Rally – but did not explain how these would be structured.
Prof Theseira expects employers to submit work plans showing how trainees under them would learn industry-relevant skills, but added that extensive monitoring would be impractical.
As trainees choose where to apply, companies with stronger proposals should attract more and higher-quality candidates, he noted.
Dhilip Kumar, senior consultant of talent solutions at Aon South-east Asia, said that impactful traineeships should have defined learning outcomes, structured mentorship and skills-based role matching with career road maps.
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Graduate Industry Traineeships (Grit) in the private sector and Grit@Gov schemes for roles in the public sector will offer a total of 800 roles for a start.
The three- to six-month placements offer monthly allowances of S$1,800 to S$2,400.
Maybank regional co-head of macro research Chua Hak Bin expects the programme to cost the government about S$6 million. Investing in such on-the-job training is likely more effective than simply funding more courses, he said.
Companies may have specific needs and industry knowledge that university programmes cannot readily teach, he added.
Potential for abuse?
Dr Tan, responding to concerns that trainees may come to be treated as cheap labour, said that the scheme is sized to avoid displacing existing roles, and companies must not have retrenchment plans.
These guardrails adequately balance accountability with providing opportunities, said Aon’s Kumar.
And with Workforce Singapore identifying the host companies, the fact that the programme is not open to all firms should mitigate abuse, said observers.
As for whether the scheme may encourage the hiring of young graduates over mid-career workers, Prof Theseira said that this is unlikely, because these two groups have different skills and experience levels to offer. “Also, since the trainees are not intended to be permanent, it would be risky for a firm to have a strategy of replacing full-time permanent staff with said trainees.”
‘Strategic bridge’ to full-time jobs
In a Facebook post, labour chief Ng Chee Meng welcomed the Grit programmes: “They will give our graduates the chance to pick up valuable industry experience, sharpen their skills and build confidence as they take their first steps into working life.”
Ng, who is secretary-general of the National Trades Union Congress, added: “Employers would also benefit from tapping into a pool of eager, capable young talent.”
Maybank’s Chua said that the traineeships go some way to resolve a “Catch-22 situation, where firms want experience, but graduates will not gain any working experience without a job”. He explained: “Firms are reluctant to expand headcount in this uncertain and volatile climate, but may be keen to take on these trainees, particularly if the government is helping to shoulder some of the cost.”
Even if not all traineeships lead to full-time employment, the programme serves as a “strategic bridge” for graduates entering a challenging job market, said Aon’s Kumar.
Prof Theseira noted that rather than an “audition” for a job, traineeships may be best thought of as “allowing trainees to learn and demonstrate skills which are useful for the industry”, thus improving their job prospects.
Singapore Manufacturing Federation (SMF) president Lennon Tan expressed the hope that the trainees can get a taste of jobs in the manufacturing industry, which has long struggled to attract fresh graduates. Through traineeships, they can get a clearer idea of whether the work suits them before going full-time, he pointed out.
As for the fear of artificial intelligence (AI) replacing entry-level hires, Prof Theseira said that it may not be possible to structure traineeships to address this. However, he believes most companies want to use AI in collaboration with their employees, rather than as a complete replacement.
“I would expect that companies that are already using AI at work, will simply have the trainees also learn how to accomplish tasks at work using the same AI tools that permanent staff are using,” he added.
If anything, some SMF members are keen to hire young people for AI projects, said Tan. “They find that AI is something that’s easily picked up by these Gen Zs, versus, for example, a very experienced IT person.”
