Why “Stability” is the New Most Desirable Trait in a Candidate

Introduction

Employers in Singapore increasingly say they want candidates who demonstrate stability. Why has “stability” become the new most desirable trait in a candidate, and what does it mean in practice for hiring, compliance and workforce planning?

This article explains why stability matters for Singapore employers, how it intersects with regulatory obligations (MOM, CPF Act, IRAS, ACRA), and practical steps companies can take to prioritise steady hires while avoiding legal and HR pitfalls.

Who this applies to

This guidance is relevant to a wide range of employers and HR professionals in Singapore, including:

• Small and medium enterprises (SMEs) seeking to reduce recruitment costs and improve productivity.
• Multinational corporations managing talent mobility and compliance across Work Pass holders, Employment Pass and S Pass employees.
• Employment agencies and recruiters operating under the Employment Agencies Act placing local and foreign workers.
• Company directors and HR teams responsible for payroll, CPF contributions and statutory reporting via ACRA BizFile+ and IRAS myTax Portal.

Key rules and requirements in Singapore

Hiring decisions that prioritise stability should also account for Singapore’s regulatory framework. Key considerations include:

• Employment Act: Minimum terms, hours, notice requirements, and protections for employees covered by the Act (and exclusions for certain managerial roles).
• CPF Act: Employer CPF contributions are mandatory for eligible employees; accurate payroll reporting and timely payment are essential to avoid penalties.
• IRAS requirements: Proper tax treatment of salaries, benefits, and the correct use of IRAS myTax Portal for filings.
• Employment of Foreign Manpower Act (MOM): Work Pass issuance, renewals, cancellations and employer responsibilities for Employment Pass, S Pass and Work Permit holders.
• Manpower Act and levies: For Work Permit holders, employers must manage levies, quotas and dependency ratios to avoid sanctions.
• Work Injury Compensation Act and Workplace Safety and Health Act: Employers must provide safe workplaces and manage claims appropriately where staff continuity affects safety culture.
• PDPA and POHA: Handling candidate data and conduct expectations—longer tenures mean sustained data stewardship and behavioural compliance.
• Skills Development Levy (SDL): Employers must budget for SDL across payroll and training, which is affected by staff turnover.

Focusing on stability can reduce compliance risk, administrative burden and overall employment cost, but it must be balanced against merit-based hiring and anti-discrimination obligations.

Step-by-step process

Follow these practical steps to incorporate stability into your recruitment and retention strategy while complying with Singapore law and statutory obligations.

• Define what stability means for the role — e.g., tenure expectations (1–3 years), continuity of duties, career progression pathways.
• Refine job descriptions and employment contracts so expectations, probation periods and notice provisions are clear and compliant with the Employment Act and company policies.
• Screen for stability indicators ethically: consistent employment history, clear career progression, references, and reasonable explanations for gaps. Avoid unlawful discriminatory criteria.
• Use probation periods to assess fit: set measurable KPIs and regular reviews to document performance and determine whether notice or termination complies with contractual terms and the Manpower Act where relevant for foreign staff.
• Check Work Pass status early: confirm Employment Pass, S Pass or Work Permit eligibility, salary thresholds, quota/levy implications and renewal timelines with MOM to ensure uninterrupted legal employment.
• Ensure payroll and statutory contributions: register and maintain CPF obligations, file IRAS reports, pay SDL and meet WICA requirements to protect both employer and employee rights.
• Plan onboarding and retention: structured onboarding, training (SDL-funded courses where eligible) and documented development plans reduce turnover and build stability.

Common mistakes to avoid

Employers often unintentionally undermine stability by making these common errors:

• Overweighting short-term signals, such as salary demands, instead of looking for long-term fit and cultural alignment.
• Failing to verify Work Pass details or assuming pass renewal is automatic—this risks unauthorised employment and MOM sanctions.
• Neglecting payroll and CPF compliance: late CPF or IRAS filings can attract fines and damage employer credibility.
• Using rigid tenure thresholds that lead to indirect discrimination against certain applicant groups or unfairly excluding talented candidates with legitimate career gaps.
• Poor onboarding and vague contracts that lead to misunderstandings, higher attrition and potential disputes under the Employment Act or POHA.

Practical examples

Three concise scenarios illustrate how prioritising stability works in practice.

• SME administrative hire: An SME needs an office manager to improve continuity in operations. They set a 12-month minimum expectation, create a clear employment contract with probation and notice periods, and use structured reference checks. Result: reduced rehiring costs and consistent payroll and CPF administration via ACRA records.
• MNC technology lead: A multinational values deep domain knowledge and team retention. They offer a structured career path, competitive benefits, and flexible working arrangements. They monitor taxation treatment and benefits via IRAS guidance and keep records on BizFile+ for director changes. Result: improved retention and smoother Employment Pass renewals.
• Manufacturing with foreign workforce: A factory employing Work Permit holders manages levies and dependency ratios. By prioritising stable hires and upskilling local staff (SDL), the employer reduces reliance on foreign labour, improves WSH compliance, and lowers the risk of MOM enforcement actions.

How an experienced consultant can help

Working with an experienced employment and immigration consultant can make implementing a stability-focused hiring strategy more efficient and compliant.

• Advisory on recruitment and employment documentation that aligns with the Employment Act, CPF Act and Employment Agencies Act.
• Support with Work Pass applications, renewals and cancellations under MOM and navigating Employment Pass/S Pass quotas and levy implications.
• Guidance on payroll processes to ensure timely CPF contributions, IRAS filings and SDL payment to avoid penalties.
• Practical assistance with onboarding, probation management and drafting performance KPIs to build longer tenures and reduce turnover risk.

Little Big Employment Agency can provide application, compliance and advisory support to help embed stability into your workforce planning while complying with Singapore law.

Frequently Asked Questions

Does a longer CV necessarily mean a better candidate?

Not always. A longer tenure can signal reliability, but employers should also assess skills, cultural fit and whether a candidate’s previous roles match job requirements. Consider references and structured interviews rather than tenure alone.

How does stability affect Work Pass holders?

Stable employment is beneficial for Work Pass holders because consistent salary and tenure support renewal applications. Employers must also observe MOM rules on salary thresholds, quota/levy (for S Pass/Work Permit), and ensure prompt notification of changes.

Can focusing on stability lead to discrimination?

Employers must avoid discriminatory hiring practices. Use objective criteria, give applicants a chance to explain gaps, and ensure policies comply with the Employment Act and fair hiring practices.

What compliance tasks are most important to protect stability?

Timely CPF contributions, accurate IRAS reporting, lawful work pass management, clear contracts and proper onboarding are essential. These reduce administrative disruptions that can cause turnover.

Key takeaways

• Stability is increasingly prized because it reduces recruitment costs, strengthens institutional knowledge and lowers compliance risk.
• Balancing stability with merit-based hiring and anti-discrimination obligations is critical under Singapore law.
• Practical steps include clear contracts, structured probation, reference checks and proactive Work Pass management with MOM.
• Ensure payroll, CPF, SDL and IRAS obligations are met to protect both employer and employee rights.
• Little Big Employment Agency can support hiring strategy, Work Pass applications, payroll compliance and retention measures.

Requirements may change, so always check the latest guidance from MOM, or consult a professional adviser.

If you would like to find out more about how Little Big Employment Agency can assist with your employment and immigration requirements, please get in touch with the team at [email protected].

Yours sincerely,
The editorial team at Little Big Employment Agency

Disclaimer: This does not constitute legal advice. If you require legal advice, please contact a lawyer.