In a challenging employment market, Singapore has shown impressive resilience, but as the country’s population surged to six million for the first time, five per cent of this is attributed to non-residents, making the proper management of foreign hires more and more complex. Although this rapid growth offers various benefits, such as social and economic benefits such as supporting the caregiving needs of the country or filling construction roles, it can also be challenging for employers to meet the Ministry of Manpower’s (MOM’s) requirements, especially in terms of foreign talent specifications.
As MOM continues to refine labour policies to ensure that the red dot has a healthy size talent pool to keep the economy thriving, CEOs need guidance to ensure they are selecting the right candidate for the job. Enter the Complementarity Assessment Framework (COMPASS) – a transparent points-based system designed to help employers select high-quality professionals while promoting workforce diversity and strengthening the local labour market. According to MOM, COMPASS offers “businesses greater clarity and certainty for manpower planning.”
Recently, RMI collaborated with Ethos BeathChapman and the British Chamber of Commerce Singapore to host a COMPASS event, where we reflected on insights and learnings from the past year regarding the new Employment Pass (EP) regulations. Joining us at the event were Richard Bradshaw, CEO of EthosBeath Chapman; Ella Sherman, Head of Human Resources, APAC, for StoneX Group; Rachel Ang, Immigration Manager at Magrath Global; and Sandip Bhandal, Partner at Deloitte.
After the event, we considered the critical milestones businesses need to achieve in today’s dynamic landscape. Below, we first revisit the fundamental aspects of COMPASS before moving on to the questions we answered.
Key essentials of the COMPASS framework
The COMPASS framework evaluates EP applications based on a points-based system that requires applicants to achieve a minimum of 40 points. The scoring is derived from four foundational criteria: Salary, Qualifications, Diversity, and Support for Local Employment. Additionally, applicants can earn bonus points through two specific criteria:
Skills Bonus
This bonus rewards applicants filling roles listed on the Shortage Occupation List (SOL), which currently includes 27 occupations across various sectors, such as healthcare and technology. Filling a position on the SOL can yield up to 20 bonus points, significantly enhancing an applicant’s total score.
Strategic Economic Priorities Bonus
Firms engaged in innovative and transformative activities can earn an additional ten points per application. This encourages organisations to invest in local workforce development while attracting foreign talent.
The 5 questions we answered at the COMPASS event
Leveraging these bonuses and understanding how to align a business with the COMPASS framework effectively can reveal a competitive edge in navigating the COMPASS process. During our recent event, we covered various aspects of COMPASS, and here are the primary questions we answered:
1. What are the differences between EP qualifying salary (Stage 1) vs COMPASS C1 salary (Stage 2)?
The EP-qualifying salary criterion is benchmarked to the top one-third of local PMETs by age. In Stage 2, the C1 Salary criterion benchmarks your candidate’s salary against the local PMET (Professional, Manager Executives and Technicians) salaries in your specific sector.
2. Which top-tier institutions are aligned with C2 level qualifications?
The top 100 universities are based on QS World University Rankings, including highly reputed APAC universities in Asia. Also included in this list are Singapore’s autonomous universities, such as the National University of Singapore and Nanyang Technological University.
3. What constitutes the verification of credentials?
Qualifications declared must be authentic and from accredited institutions—this applies to renewals for passes expiring from 1 September 2024. For verification proof issued before 1 September 2023, employers must ask for a background screening, such as RMI, to reissue the proof with a MOM verification reference number.
4. The question of Permanent Residents (PRs)
PRs are considered foreigners based on their nationality under C3 (Diversity) but are counted as locals under C4 (local PMET share). The nationality or citizenship of your firm’s employees is based on the nationality or citizenship on their passport in the Singapore Government’s records.
5. What is the Strategic Economic Priorities (SEP) Bonus?
This Bonus is designed to reward firms that engage in significant investment, innovation, internationalisation, or transformation of their company and workforce. Companies awarded the SEP bonus will receive ten bonus points on the COMPASS framework for EP applications. To qualify, firms must participate in eligible programs and commit to developing the local workforce.
Businesses can leverage RMI’s expertise to navigate the framework
Navigating the COMPASS framework is a tricky, yet essential process for employers in Singapore, particularly as the country continues to adjust and change its approach to foreign talent management. For SMEs and businesses seeking to hire top-tier professionals, understanding the criteria, and leveraging the available bonuses can make a significant difference in securing EPs for their employees.
A blended team, including foreign and Singapore nationals, has proven as a recipe for success when local talent is prioritised and outside talent is brought in as required. As former Prime Minister Lee Hsien Loong said, bringing in foreigners can enrich the identity of Singapore society. At RMI, a MOM-listed background screening company, we recognise the crucial role that accurate verification plays in this process. With the increasing importance of credential verification for COMPASS applications, our services provide employers with the confidence that their employees’ qualifications meet MOM’s stringent requirements.
For more information on how RMI can support you, please download our Best Practice Guide: Singapore MOM Employment Pass for HR professionals for a comprehensive overview of the requirements and upcoming changes effective September 2024 for Employment Pass (EP) applications.
