Balancing Talent Retention and Operational Efficiency with FWA

Singapore’s logistics sector, like many other industries, faces significant challenges in attracting and retaining skilled talent, especially for physically demanding roles and specialised positions. As Singapore strengthens its status as a global logistics hub, the demand for such talent is only expected to grow. 

Flexible Work Arrangement  

Flexible Work Arrangements (“FWAs”) are becoming increasingly prevalent in today’s business landscape. As work patterns continuously evolve, more companies are embracing flexibility to improve employee satisfaction and enhance overall operational efficiency. 

However, implementing FWAs in the logistics sector presents unique challenges due to the nature of the work, often requiring a physical presence and adherence to strict schedules.  

When properly implemented, FWAs empowers companies to respond swiftly to the constantly changing demands of the logistics industry. Remote work, flexible hours, and job-sharing allows employees to maintain a healthy work-life balance while ensuring smooth and efficient operations. Additionally, these arrangements facilitate faster responses to crises and time-sensitive situations, enhancing employee retention, and attracting a diverse talent pool. In essence, implementing flexible work arrangements not only strengthens the resilience and agility of companies but also contributes to their long-term success and competitiveness in the global market.  

Tripartite Guidelines on Flexible Work Arrangements 

The Tripartite Alliance for Fair & Progressive Employment Practices (“TAFEP”) has issued 10 recommendations on Flexible Work Arrangement (“FWA”). Employers are expected to abide by the Guidelines when they come into effect on 1 December 2024. The guidelines aim to make it easier for employees to request for FWAs, while acknowledging that employers retain the prerogative to decide on work arrangements. More information on the recommendations and the Guidelines can be found at go.gov.sg/twgreport and go.gov.sg/tgfwar, respectively. 

 Three categories of FWAs:    

1.  Flexi-place – Employees work flexibly from different locations aside from their usual office location.
2.  Flexi-time – Employees work flexibly at different timings with no changes to total work hours and workload.
3.  Flexi-load – Employees work flexibly with different workloads and with commensurate remuneration.  

 The process to request and consider formal FWA requests: 

1.  The employee submits a formal FWA request to the employer. 
2.  The Employer should consider FWA requests appropriately based on business needs. 
3.  The employer should communicate the decision within 2 months.   
4.  If the FWA request is rejected, the employer is encouraged to discuss alternative options. 

Rules and regulations:

As an employer, it is important for you to understand your legal obligations under the Employment Act and Workplace Safety and Health Act when designing FWAs.  

Implementation of FWAs

FWAs offer a strategic advantage, helping companies attract and retain talent more competitively by enabling flexibility and efficient workforce deployment. This flexibility can enhance employees’ productivity, allowing them to better manage both their work and personal responsibilities.  

Successfully implementing FWAs requires thorough planning and ongoing oversight to balance employee needs with the company's operational requirements.  

In Singapore's logistics sector, companies are adopting FWAs to attract a diverse workforce, including caregivers and women who may benefit from flexible schedules. While many logistics roles require a physical presence (e.g., drivers, warehouse staff), administrative and support roles can often be conducted remotely or with hybrid work arrangements. For roles that do require physical presence, such as drivers and equipment operators, FWAs can focus on staggered shifts and flexible timings rather than remote options, supporting both operational needs and employee flexibility. 

1.  Administrative and Support 

   For administrative and support roles such as finance, customer service, IT, and human resources, remote or hybrid work arrangements allow employees in these roles to work from home a few days a week, increasing their flexibility without disrupting core logistics operations.

   • Operations managers and customer service agents can handle inquiries, track shipments, and manage schedules remotely.
   • IT staff can work on system updates, software troubleshooting, and network management off-site.

2.  Warehouse and Fulfilment Roles 

   In warehouses and fulfilment centres, employees typically work in shifts. To introduce flexibility: 

   • Staggered Shifts: Instead of fixed shifts, employees could have flexible start times or work shorter, more customised shifts. For instance, instead of a standard 9-5, workers could have options for earlier or later shifts according to their preferences.
   • Compressed Workweeks: Some employees may prefer to work longer hours over fewer days (e.g., four 10-hour days instead of five 8-hour days).
   • Task Redesign: Warehouse tasks, such as stock picking, can be redesigned to allow for flexible hours tailored to personal commitments. 

3.  Drivers

   For delivery drivers, the primary constraint is time-sensitive deliveries. However, there are ways to introduce flexibility without compromising customer service: 

   • Shift Flexibility: Allow drivers to choose from a range of shift options or swap shifts with colleagues, especially during off-peak timings/periods.
   • Gig or On-Demand Delivery: Similar to the gig economy (e.g., Grab, Uber), delivery drivers could work on an as-needed basis. This model provides greater flexibility, allowing workers to choose their hours.
   • Self-Scheduling: In cases where routes are pre-planned, allowing drivers to select pick-up or delivery time slots based on personal preference can enhance work-life balance.

4.  Seasonal and Temporary Workers

   During peak seasons, companies can offer temporary and seasonal work opportunities for workers seeking flexible or short-term commitments.  

   • `On-Demand Labour: During peak periods, logistics companies can leverage a pool of flexible, on-demand workers who can join the team when demand spikes and leave when things slow down.
   • Flexible Contracts: For roles such as temporary drivers, warehouse workers, or couriers, offering flexible contracts allows individuals to opt in or out based on their availability and personal circumstances. 
      

5.  Use of Technology 

   Digital tools and technology can enable greater operational flexibility within the logistics industry. These tools streamline processes, allowing employees to manage tasks remotely or with flexible schedules. 

   • Automation: Automated Storage and Retrieval Systems (“ASRS”), and virtual cloud-based management systems support these arrangements by enabling certain tasks to be managed remotely, reducing the need for strict on-site presence for non-operational roles.
   • Telematics and GPS Tracking: With GPS tracking and real-time data, fleet managers can adjust delivery schedules, track performance, and optimise routes remotely.
   • Warehouse Management Systems (“WMS”): Cloud-based WMS allow warehouse managers to access inventory data and make decisions remotely.
   • Automation and Robotics: Increasing the use of automation in warehouses (e.g., robots for picking, packing, and sorting) reduces the manual labour burden and can enable more flexible working hours for human staff.