Why should fintech companies adopt part time jobs and contract jobs in Singapore?

Singapore's financial technology (fintech) industry has experienced exponential growth even in times of a global pandemic with a strong focus in digital transformation and innovation.

The sector alone saw several deals worth a total of S$833 million which is a 22% increase year-on-year from 2020. This marks a positive outlook for the fintech sector.

This trend is also seen globally, as the fintech market is predicted to grow at a rate of almost 25% annually over the next couple of years which also signifies a surge in demand for fintech talent.

 

The fintech market might be crippled by chronic talent shortage

Nonetheless, this is also a sector that faces chronic talent shortages. In order to meet the demand to fill urgent fintech jobs in Singapore to kick-start projects that can keep up with the growth, trends have shown that companies would rather hire someone part time than have no one to fill the full-time job now.

At the same time, employees are also yearning for more control over their time which means that more roles are now turning into part time jobs to suit the preferences of employees. In the past, many were working part time because they couldn’t find full-time jobs. These days, by contrast, many more people are working part time because they want to.

As such, we take a deep dive into what part time fintech jobs and contract jobs there are in the fintech sector in Singapore. Before we look at whether companies should adopt a contract work model, let’s look at the differences and similarities between part time jobs and contract jobs in Singapore.

 

Part time jobs vs Contract jobs in Singapore

Definition of part time jobs by Ministry of Manpower (MOM)

A part time employee is one who is under a contract of service to work less than 35 hours a week.

Part time employees are covered by the Employment Act (except for those who are domestic workers or seamen).

Contract of service

As a part time employee, your contract of service must specify your:

  • Hourly basic rate of pay.
  • Hourly gross rate of pay (the hourly basic rate plus allowances).
  • Number of working hours per day or per week.
  • Number of working days per week or per month.

 

Definition of contract jobs by Ministry of Manpower (MOM)

In a nutshell, contract jobs run for a fixed duration. They will be automatically terminated upon expiry unless renewed.

Such contract jobs can be as short as a few days to as long as six months or even a year.

Given that these are temporary positions, companies may not offer the same benefits as a full-time position unless you meet certain criterias. This means that those on contract jobs might miss out on paid medical leave and annual leave. Freelancers may also fall under this category if they have signed a fixed-term contract with a company.

 

Similarities of part time jobs and contract jobs

1. Contract jobs and part time jobs offer your employees flexibility and autonomy

This is an obvious benefit given the shorter number of working hours as well as autonomy to plan your work schedule on a weekly and monthly basis. Whilst there are clear deliverables to fintech projects, one would be able to plan out your focus for the week and allocate your time appropriately to achieve maximum productivity.

This differs for a permanent role, given that there may be KPIs and long-term goals that is set for the individual. If you are someone that enjoys the freedom to plan your work schedule yet still meet your targets and deadlines, part time or contract jobs in Singapore will suit you.

 

2. Contract jobs and part time jobs can allow your employees to acquire new skills

Part time and contract jobs in Singapore allows employees to stay with a company for short stints for a project basis and this allows them to pick up unique skillsets that might be valuable to many companies out there, particularly amongst start ups and larger MNCs. These skills are often transferable even if they are looking to move from one sector to another within the same industry, or within the fintech space.

Below are two interviews we’ve done with professionals of different seniority in the industry who have moved from the traditional banking space to fintech. Find out how they have made their transition smoothly:

Interview with GoTo Group Chief Risk Officer

Interview with Crypto.com Compliance Manager

 

3. Contract jobs and part time jobs in Singapore are both high in demand now

There are many different high paying part time and contract jobs in Singapore. In particular, the fintech industry is expected to flourish in 2021 and 2022. Due to the Jobs Growth Incentive, finding a job is just a matter of filling out applications, having a good resume, and being ready to accept short-term job offers such as contract jobs in the gig economy.

Tech talent in the financial industry is in such demand that many candidates receive multiple job offers and are putting an upward pressure on salary increments in Singapore. Firms are not just looking for developers or engineers, they are increasingly sourcing for people with a combination of skills. As such, part timers and contract workers who have moved from project to project would possess a myriad of skills that firms are looking for.

This is a good move for companies who are looking to maximise their cost by hiring talent who possess the right skills, to deliver on particular projects.

 

Differences in part time jobs vs contract jobs – Terms of CPF contribution

CPF contributions are not payable if a person is providing his services under a "contract for service" as part timers.

A contract for service is an agreement in which a person or an entity is engaged as an independent contractor, such as a self-employed person or a vendor engaged for a fee to carry out an assignment or a project for a company on a freelance basis. For such contract jobs, there is no employer-employee relationship, and the person will not be covered under the Employment Act and will therefore not be entitled to the statutory benefits under the Act.

As statutory benefits do not apply, the terms of engagement will be according to the contract agreed upon by both parties. The contractor, however, is required to pay compulsory Medisave contribution as a self-employed person.

 

Should your company offer part time jobs or contract jobs in Singapore?

Choosing whether you are going to hire a permanent employee for your company or just recruit a fixed-term contractor to help with work instead can be a difficult decision. Everyone’s situation will be different but have a think about the duration of the job scope, objectives of a particular project, scalability of workloads and development of your people before concluding.

Here are our top reasons to employ on a part time or contract job basis:

  • Your company functions on short-term projects
  • You require short turn-around time to replace vacancies
  • Your company prefers to assess a candidate on the job
  • Your company is looking to save on long-term costs
  • Your company prioritise creativity and innovation
  • Your company embraces flexibility

 

What mix is right for your company?

Contractors, freelancers, and part time workers alike are a useful outsource solution for employers looking to successfully navigate periods of transition or steer a business in a new direction. You may have a big project coming up for which you will require an extra pair of hands, or maybe a key member of your team has gone on medical or vacation leave. Understanding this, consolidating your job specifications around your revised requirements, and forming expectations is key. Ultimately, you can also choose to extend or convert them to full-time if they bring consistent value to your team.

If you wish to engage talent on a contract job, or have questions on the type of contract you should be offering to your employees, reach out to us via the form below and our team will get in touch:

Get in touch

Whether you’re a professional looking for a job or a business seeking highly skilled talent, the team at Huxley are here for you.

www.linkedin.com/username

How to write a Resignation Letter (free samples included)

11 Feb 2022

To formally resign from a job, most people will need to write a formal resignation letter to your employer and manager. However, this isn’t a formal requirement in all companies. Nonetheless, it is important to maintain professional and be courteous when resigning from your job in Singapore even if your boss doesn’t specifically ask for a notification in writing.

Cloud Engineer vs DevOps Engineer – Career path & Jobs in Singapore

30 Nov 2021

Find out what are the available cloud engineer and DevOps engineer jobs in Singapore as well as career paths here

How to answer interview questions: What are your reasons for leaving a job?

01 Jul 2022

Find out how to answer interview questions: What are your reasons for leaving a job?

Employment Outlook, Trends and Jobs in Singapore 2022 within Banking, Financial Services & Tech

16 Feb 2022

Joel Foo, Team Manager of Huxley Singapore, was invited to a dialogue hosted by the Institute of Banking and Financial Services Singapore (IBFSG) uncovering ‘Employment Outlook and Trends in 2022’.