Training Bond

New employees joining NTUC Income is required to sign an agreement to pay us back one month's salary if they leave our service within the first year.

This is a training bond. It is intended to compensate us for the cost of training the new employee. Our actual cost is much higher.

We have implemented this condition for the past five years. It has produced an unexpected benefit. A new employee who is not serious about joining us will not accept our job offer. Those who accept our offer are serious about making a career with us.

This is an effective "selection process". We get the right employee to join us. We enjoy a low turnover rate, and reduced wastage in recruiting and training the wrong people.

We have a few cases where the new employee is not suitable for the job. We ask the employee to leave and waive the training bond.

Singapore has adequate talent

I often hear the remark, "Singapore is short of talent".

I disagree. We have adequate talent. However, they are not well used.

We have many well educated people. Look at the number of graduates, including those who have pursued university degrees on their own. We have many MBAs.

The problem is: are they able to apply their knowledge well? The answer is, "many people are over-educated and under-utilised".

If they learn how to apply their knowledge effectively, we will have more than sufficient talent.