Navigating the COMPASS Framework: A Guide for Employers in Singapore

As of September 1, 2023, the Ministry of Manpower (MOM) has rolled out a significant change in the landscape of hiring foreign talent in Singapore – the COMPASS Framework. Designed to enhance the assessment process for Employment Pass (EP) candidates, this two-stage eligibility evaluation aims to ensure that the right talent is matched with Singapore's economic priorities. In this article, we will delve into the key components of the COMPASS Framework, its implications for businesses, and strategies employers are adopting to adapt to this change.

The Two Stages of COMPASS

The COMPASS Framework operates in two stages and will apply to new applications from 1 September 2023 and renewals for passes expiring from 1 September 2024:

Stage 1: Qualifying Salary

Before diving into the full assessment, candidates must meet a qualifying salary threshold. This ensures that the candidate is offered a competitive remuneration in line with local sector norms.

Stage 2: Points-based COMPASS Assessment

Following the qualifying salary check, candidates move on to the second stage. This is where the assessment begins, involving a points-based evaluation. This evaluation encompasses four foundational criteria that consider both the candidate's individual attributes and the attributes of the hiring firm. Each application can also earn additional points under the bonus criteria if it meets relevant qualifying conditions.

Exemptions from COMPASS Framework

However, candidates can be exempted from COMPASS if they fulfill any of these conditions:

• If the candidate is earning at least $22,500 fixed monthly salary (similar to the prevailing Fair Consideration Framework job advertising exemption from 1 September 2023).
• Applying as an overseas intra-corporate transferee under the World Trade Organisation’s General Agreement on Trade in Services or an applicable Free Trade Agreement that Singapore is party to.
• Filling a role on a short-term basis, i.e. 1 month or less.

Foundational Criteria

The COMPASS assessment is based on four foundational criteria and points are awarded for each criteria:

Points are awarded for each criteria:

Individual Attributes

Salary (C1): The candidate's salary is assessed in relation to local norms for their sector. This ensures that candidates are compensated fairly based on their professional expertise. Fixed monthly salary compared to local professionals, managers, executives and technicians (PMET) salaries in sector by age

Qualifications (C2): The candidate's qualifications play a significant role in the assessment. This criterion considers degrees from recognised institutions, aligning with Singapore's economic priorities.

Firm-related Attributes

Diversity (C3): The impact of the candidate on the firm's nationality diversity is evaluated. Hiring candidates that enhance diversity is emphasised, contributing to a well-rounded workforce.

Share of candidate's nationality among firm’s PMETs

Small firms with fewer than 25 PMET Employees score 10 points on C3 and C4 by default.

Support for Local Employment (C4): This criterion examines the firm's commitment to employing local Professionals, Managers, Executives, and Technicians (PMETs) in comparison to industry peers.

Recent Updates to COMPASS

The COMPASS Framework has recently seen updates that impact the assessment:

Qualifications Assessment (C2)

A list of top-tier institutions, both local and international, was published in March 2023. This list aids in determining the value of a candidate's qualifications. Points are assigned based on the institution's reputation, ensuring a balanced evaluation.

Skills Bonus (C5) and Strategic Economic Priorities Bonus (C6)

Skills Bonus rewards candidates filling roles in occupations facing shortages. On the other hand, the Strategic Economic Priorities (SEP) Bonus (C6) acknowledges firms engaging in innovative, internationalization, or transformation activities. These bonuses introduce an extra layer of incentives for both candidates and firms.

Use of myMOM Portal

The myMOMPortal provides centralized eServices access, workforce insights, and streamlined transactions. The Workforce Insights tool (WFI) offers benchmarking for effective workforce planning, including diversity and local PMET comparisons, which are COMPASS firm related attributes.

Impact on Businesses

While some businesses remain neutral towards the COMPASS Framework, others are facing challenges. The scarcity of skilled workers in Singapore is highlighted, urging the need for an additional layer of scrutiny for eligible candidates. Employers are navigating the fine line between adhering to the framework and ensuring smooth business operations.

Strategies for Adapting

In preparation for the COMPASS Framework, businesses are taking several strategies:

• Rethinking Manpower Allocation: Businesses are strategically allocating manpower to ensure the most effective use of available talent.
• Hiring More Locals: To align with the local employment support criterion, employers are prioritising local talent.
• Embracing Diversity: Enhancing diversity not only improves firm performance but also aligns with COMPASS criteria.
• Salary Budget Reallocation: Employers are considering reallocating budgets to meet COMPASS standards.
• Business Continuity Planning: Businesses are developing continuity plans to minimise disruptions caused by the framework.

The Way Forward

As businesses grapple with the COMPASS Framework, understanding its nuances is pivotal. Adapting strategies, embracing diversity, and aligning with Singapore's economic priorities will be key in successfully navigating this new hiring landscape. With proper planning, businesses can continue to thrive while adhering to the changing regulations in the talent acquisition sphere.

For a more detailed guide to the COMPASS Framework, download our full report here.