Companies more inclined to hire contract staff to avoid complexities of layoffs
Amid news of tech and financial sector layoffs, HR firms say employers may be inclined to hire fixed-term employees in times of uncertainty.
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[SINGAPORE] Singapore’s employers may prefer contract employment for certain roles as they can cut headcount without the complexities of layoffs, human resource (HR) companies said.
Last month, DBS announced plans to cut about 4,000 contract and temporary staff over the next three years, with some roles being replaced by artificial intelligence (AI).
Contract hiring allows such large-scale headcount changes to be made without severance payouts, as firms have the flexibility to simply not renew contracts, said HR firms.
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