SGUnited Traineeships: The pros, the cons, and the bottom line

Updates from Budget 2021

The government recently announced the extension of the SGUnited Traineeships (SGUT) Programme and SGUnited Mid-Career Pathways Programme in the 2021 Budget Address.

Graduates in the calendar year 2019 to 2021, can look forward to up to 35,000 traineeship and training opportunities. Meanwhile, 14,500 traineeships and full-time training positions will be available for those who qualify for the mid-career category.

What is a Traineeship in the context of SGUnited Jobs and Skills?

Before the pandemic, the concept of traineeships was not as widely adopted in Singapore. We are more acquainted with internships. Though there are slight nuances that differentiate the two around the world, by definition, they serve the same purpose.

A traineeship is designed to help young people who may not have the relevant work experiences become work-ready through skills training from job attachments. The objective is to curb a “chicken-and-egg” problem that most graduates face: they want to gain relevant skill sets through meaningful employment, yet they could not secure such opportunities due to the lack of their work experiences.

The term runs under a slightly different meaning for traineeships launched under SGUnited.

As an initiative that was triggered solely in response to COVID-19, traineeships launched under SGUnited are primarily centered around a dual focus: Firstly, to help recent graduates and mid-career individuals affected by the pandemic-ridden job market find employment and secondly, to help companies gain access to much-needed resources during the economic downturn. The government incentivises host organisations to hire by co-funding 80% of the training allowances for the duration of the contract (up to 12 months during its first launch in FY2020, reduced to up to 6 months for the extended launch for FY2021).

Traineeships under SGUnited were made accessible to recent graduates and mid-career individuals under the SGUnited Traineeships and the SGUnited Mid-Career Pathways Programme respectively.

The SGUnited Traineeships was introduced in the Fortitude Budget in May 2020. Under the programme, recent and new graduates of Institutes of Higher Learning and Institute of Technical Education get opportunities to build their capabilities and enhance their employability as the economy recovers from COVID-19.

The SGUnited Mid-Career Pathways Programme kicked off slightly later in August 2020. Under the Mid-Career Pathways Programme, more experienced mid-career individuals similarly can gain industry-relevant experience to stay employable amid the pandemic through job attachments and traineeships.

The contemplation

By December 2020, some 4,700 fresh graduates have been placed in such opportunities out of the 21,000 openings made available. Meanwhile, 430 out of 13,700 opportunities were filled for the Mid-Career Pathways Programme.

Despite the good intentions behind the SGUnited traineeships, the low- to mid-range take-up rates reflect the reservations prospective job seekers still have about the programme.

For some, traineeships should only be considered at the last resort: if, and only if jobseekers have tried unsuccessfully to find full-time employment.

Yet, to do so can be limiting one’s potential and growth in his or her career.

In this article, we’ll explore a rounded perspective for those who are considering this pathway. We’ll do so by examining the tangible and intangible pros and cons you need to consider from being a trainee. Managing the expectations of what a traineeship entails helps you to reconcile with the uncertainty and moments of hardships in your pursuit, should you embark on this path.

The Cons

1. Money

Let’s start with the elephant in the room. Looking at monetary benefits alone, it’s clear why traineeships are perceived to be the more subservient option as compared to permanent employment contracts. For both graduates and mid-career individuals, the specific training allowance is capped according to the different tiers of education qualifications and requirements.

For Graduates from 2019 to 2021 (both years inclusive)

For Mid-career individuals

According to the 2020 Polytechnic Graduate Survey jointly conducted by the five local polytechnics (RP, NP, TP, NYP and SP) in Singapore, the median gross salary for fresh graduates and post-NS graduates in full-time permanent employment across all course clusters is $2,400. As for ITE graduates, the starting gross mean monthly salaries reflected in the 2019 Graduate Employment Survey for fresh graduates and post-NS graduates are $1,765 and $2,180 respectively. University graduates in NTU, NUS, SMU and SUSS who found a full-time job earned a median starting salary of $3,700.

Since some graduates can earn higher starting salaries in other permanent employment opportunities, a traineeship can be seen as an inferior choice. Similarly, mid-career individuals who have racked up a certain level of experience may expect to command a certain salary that a traineeship’s training allowance is unable to provide. Hence, they may perceive the outlines of the allowance bracket as more inhibiting when considering whether to take up the job.

2. Employee benefits

Trainees do not have an official employer-employee relationship with the company that they are attached to. That’s why companies are referred to as “host organisations”, and trainees are paid “training allowances” instead of salaries.

Since companies hosting trainees are effectively not employers, this translates to different obligations as compared to other permanent employment contracts:

• Host companies are not obliged to provide trainees with non-monetary benefits such as accommodation, food and transportation.
• Trainees do not get CPF contributions. Losing out on months of CPF can be a big deal especially for graduates planning to purchase their first homes, or mid-career individuals who have already committed to financial obligations using their CPF accounts.
• Trainees are not protected under the Employment Act (EA). This means that trainees are not entitled to any mandatory annual or sick leave, overtime-pay or a notice period from the hosting company’s part, among other standards outlined by the Ministry of Manpower. Though host organisations are also encouraged by the government to provide a minimum of 7 days paid medical leave and 7 days paid annual leave on a goodwill basis, it is up to the companies’ own discretion to implement them.

A possible reason for the gray area outlining the obligations required by host organisations is because traineeships were never engineered to be a long-term solution to the employment crisis. For example, EA guidelines highlight that employees who have worked for employers for at least 3 months are entitled to paid annual leave. The duration for traineeships can go up to 6 months from April 2021 onwards, this means that trainees can exit their contract prematurely if they secure better opportunities outside. Thus, the non-compliance to EA gives more room for host organisations to enter an agreement without holding the shorter end of the stick. That said, the onus is largely on the trainees to negotiate their desired terms with the host organisation.

3. Uncertainty

Host organisations are not obligated to extend the trainees’ tenure beyond the agreed-upon length as stated in the contract. This means that a trainee’s conversion to a permanent role is not guaranteed. If a company wishes to convert their trainee into a permanent full-time role, they will need to iron out the details in a separate contract. If a full-time position is not offered before the traineeship ends, trainees will have to resume their job search.

Before considering a traineeship, it’s important to keep in mind that it was never designed to be a long-term solution. When possible, open up that conversation with your host companies early on about the timeline and likelihood of conversion. If the prospect of full-time conversion with the host organisation is unlikely, trainees must start actively searching for other opportunities before their contract is terminated. This means that they have to allocate time and resources on top of their full-time trainee role to apply for jobs and go for interviews.

The Pros

1. Security in Flexibility

On the upside of uncertainty, traineeships are designed for trainees to have more room to explore before settling. Because permanent conversion was positioned as a possibility instead of a guaranteed outcome, trainees have the flexibility to exit the traineeship program with no strings attached should better opportunities present themselves in the future. Traineeships thus give opportunities for individuals to dip their toes in various roles or sectors before deciding whether an industry or job role is suitable for them.

While it sounds awfully similar to the nature of internships, traineeships are geared more towards thrusting trainees into roles that (as much as possible) simulates those of full-time employees. In short, yes, it’s likely that you will be doing a permanent employee’s job at a rate that is below the market. However, if it boils down to unemployment as the worst-case scenario, traineeships do provide a lifeline during this time when jobseekers are still waiting for the market to pick up.

For those who can afford to take an exploratory approach to discover the right career for them, traineeships are viable options that can provide the depth of scope to learn industry-relevant skills with the promise of a certain degree of financial security as well.

2. Opportunity to break into any industry

Besides opportunities to gain valuable industry skillsets, the government’s additional support to defray manpower costs has opened doors for particular companies which may not have freed up slots for fresh graduates or mid-career individuals under non-pandemic circumstances.

More often than not, the roles offered by such companies only assess applicants who have had years of experience climbing up the career ladder. Companies that fall under this category could be more resource-strapped in nature, such as SMEs and startups. They could also be established MNCs who generally do not hire fresh graduates or offer entry-level positions.

If not for the training allowance co-funded by the government, such employment opportunities would have otherwise been reserved for interns or qualified applicants who can operate as jacks of all trades. Traineeships thus present a rare opportunity for trainees to experience how it’s like to run like full-time employees in such organisations. In doing so, trainees get first-hand experience on whether these companies are able to offer that alignment with their interests and long-term career goals

TL;DR: Evaluating the SGUnited Traineeships

Making the decision to take up a traineeship is just the beginning. In your journey, you’ll definitely wrestle with moments where you feel short-changed as a perfectly qualified entry-level or mid-career candidate for a permanent position.

No scheme is perfect. Some unscrupulous companies still lurk in the corners and look to exploit the gray areas of the scheme and shortchange qualified entry-level workers for cheaper labour. There have been accounts HR departments instructed to take down entry-level positions and replace them with traineeships, despite the company’s capacity to increase headcount given their own resources. (read some first-hand perspectives featured on SGUnited Traineeship Reddit threads here and here)  

To view traineeships in one extreme can be limiting. Among the sea of traineeships offered by SGUnited, there are bound to be good-willed organisations that are genuinely looking to part with their wisdom and nurture their talent.

Money talks

For those who are still contemplating, money and the lack of CPF contribution remain the main deterring factor holding them back. Truth be told, it was the most concerning downside for me as well. Regarding the lack of CPF contribution, an alternate way to look at it is that your take-home pay is higher. Given the current circumstances with the pandemic, this may not be such a bad thing as your liquid assets are higher.

The onus is on you to save diligently for whatever big-ticket purchases you are planning for - this means cutting down on luxury purchases and making more informed spending decisions. It sucks, but it can be done. For me, what I found extremely helpful was to track my monthly expenses using this app called Money Manager.

Weigh opportunity costs

Take a step back and evaluate the traineeship holistically from what you stand to lose and gain. When income takes a temporary backseat, think about what are the other possibilities that this traineeship is able to offer you.

You can use this career cost-benefit analysis to weigh your options. We’ve adapted this framework from Millennial Leadership’s evaluation on whether a worker should stay or leave their job. This framework has three facets: Exposure, Compensation and Desire.

Exposure: Will this traineeship help you get the positive exposure necessary to propel your career advancement in a specific field or sector?

Compensation: Does the training allowance compensate you in a manner that is reflective of your skills and capabilities?

Desire: Do you have the passion that resonates with the mission of your host organisation?

Think about these considerations in respect of your present set of circumstances. My take is that if you’re not weighed down by any financial obligations at the moment, it’s worth doing a double-take for a traineeship that aligns with your fields of interests, values and long-term career goals.

Think Long-Term

It’s almost cliché when interviewers ask this question, but give more thought to where you picture yourself in the next five to ten years down the road.

Every step you take now is a stepping stone, and you should view a traineeship as such. If taking up the traineeship pushes you towards the right direction of how you envision your career to plan out, it may be a worthwhile investment.

A traineeship may fall short in terms of tangible benefits, but this could pay off in the long run when you gather relevant experiences that coincide with areas where you want to grow professionally. You become more employable in fields that interest you, and subsequently, be able to command a higher salary in the long-run.

Being able to see the long-term payoffs in five to ten-year brackets will grill a mindset of resilience during this short-term suffering.

Ending notes

There’s a Chinese saying that goes like this: “人比人气死人”.

It means that when you compare yourself to others, you will just be left feeling worse off.

The upheaval triggered by the pandemic has brought about extremely challenging times for everyone, be it their personal or professional lives. As we try to make sense of our narrative in this world, it’s easy to lose our sense of self in the pressure of societal expectations on what we should pursue.  

This could look like mass applying or accepting jobs that do not align with your values out of desperation. This could also manifest in prioritising short-term outputs instead of long-term outcomes, just because others have achieved them.

Before making any major decisions, ask yourself if you are anchored by the values and beliefs that you stand for, or merely hastily reacting to the circumstances around you.

We are all embarking on our own journeys.

There is bound to be noise along the way that challenges us to conform and fit into the mold of what society deems acceptable. Staying grounded to your values and beliefs will prove pivotal in navigating this turbulent season.

Amidst the chaos, I hope you will find the courage to pay attention to that little voice inside you.

About the Author: I joined Hatch through the SGUnited Traineeship program in mid-July 2020. The journey was not without its challenges and moments of doubt. What I hope this article does for you is provide a more structured thought process on how you can go about weighing the pros and cons of taking up a traineeship. You’re not alone :)  Feel free to ask me any questions via my LinkedIn here!

Hatch is an impact-driven business with the mission to make digital and design opportunities accessible for all.  That's why we are committed to sharing valuable resources like these freely and openly for the community.

Preparing to apply for an internship or a job? Here are some career resources:

• Budget 2021 Highlights | 4 Must-Knows for Job Seekers
• Future of Work | 7 Most In-Demand Soft Skills By Singapore Employers
• Future of Work | Resume vs CV: The Difference and Crafting One That Stands Out
• Mid-Career Switch: A Framework to Assess Your Next Career Option

Learn more about what we do at Hatch:

• Future of Work | A Pragmatic Defence of Career Fulfilment
• The Hatch Advantage | The Influence for Success
• Reflections | Why I do what I do

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