Chapter 5: Managing Equal Employment and Diversity

HR Headline
Facing the Workforce of the Future
IT manager N. Prasannakumar was flabbergasted when he read an advertisement in an
online job portal that said: Non-Indians preferred. The job advertisement was posted by a
Singapore service provider, Frontline Technologies, looking for a suitable candidate to fill a
project manager vacancy. He subsequently wrote to the press to urge companies in
Singapore to adopt an equal opportunity stance and rid themselves of the bias toward
any nationality or race. Mr. Prasannakumar said he took offence with the job ad and added:
Many of us would read it as Indians not preferred. This clearly reeks of racism in the
Singapore job context and does not augur well for racial harmony in this country.

Although Mr. Prasannakumar was a permanent resident in Singapore, his view was echoed
by many netizens in Singapore who agreed that stigma against minority races is a cause for
concern in todays recruitment practices. His comment stoked a debate online and in
response to this feedback, Frontline removed the discriminatory requirement from the job
ad. Frontlines human resource manager Tong Suit Ping said the requirement was a
mistake on the part of her company, which assigned the task of posting the job ad to a
new staff member. She also disclosed that the new project manager, when employed, will
be part of a team of eight persons, which currently comprised three Indians, three Chinese
and one Filipino. Ms. Tong apologized to everyone who might have been offended and the
case was closed.
As discussed in Chapter 4, the employment-related legal
framework in Singapore gives top priority to ensuring an
environment conducive for investment as well as the fair
treatment of both the employer and the employee. Moral suasion,
rather than legislation, is preferred whenever and wherever
possible. This makes Singapores employment laws easy to
comprehend and sets Singapore apart from advanced countries
such as the United States, which tend to take the legal approach to
ensuring that discriminatory practices do not arise or persist to
adversely affect minority groups equal access to employment
opportunities.

Equal employment opportunity (EEO) is a concept adopted by the

United States (see Figure 5-1 for its major components). EEO refers
to the idea that all individuals should be given equal treatment in
all employment-related actions. It includes the need to engage in
non-discriminatory employment practices and affirmative action
(the act to make up for past discrimination).

Figure 5.1Equal Employment and Diversity Management

 The philosophy behind EEO is a noble one as it respects and
supports every human beings basic right to have an equal chance
to work and to earn a living. Its overly legalistic emphasis on the
individuals right to an equal opportunity to work, however, may
not be operationally or economically optimal for Singapore. As
Singapore lacks natural resources, it must ensure that investors
find it feasible and attractive to invest in a production system that
will sustain the countrywithout having to shoulder undue
burdens in complying with legal requirements. How, then, does
Singapore uphold this noble ideal of ensuring equal employment
for all while at the same time maintaining a pro-investment climate
that helps to sustain its economic prosperity? In this chapter, we
will look at the basic tenets and the background of equal
employment opportunity as it is conceived and practiced in the
United States and contrast it with how Singapore meets the same
moral standards in a different way.

5-1Race,National Origin, and

Citizenship Issues
Race and national origin discrimination are illegal under the Civil
Rights Act of 1964 in the United States. In Singapore, Article 12 of
the Singapore Constitution states that all persons are equal before
the law and entitled to the equal protection of the law, and that
except as expressly authorized by the Constitution, there shall be
no discrimination against citizens of Singapore on the sole grounds
of religion, race, descent, or place of birth in any law or in the
appointment to any office or employment under a public authority
or in the administration of any law relating to the acquisition,
holding, or disposition of property or the establishment or carrying
on of any trade, business, profession, vocation, or employment. It
further specifies that the Article does not invalidate or prohibit

1. any provision regulating personal law; or

2. any provision or practice restricting office or employment
connected with the affairs of any religion, or of an institution
managed by a group professing any religion, to persons professing
that religion.
What constitutes discrimination, however, is not defined under
any law in Singapore and thus it would be difficult for anyone to
rely on Article 12 to police the employment scene and to detect
and eradicate any discrimination practices against any citizen
based on religion, race, descent, or place of birth. Furthermore, the
focus on Singapore citizens in respect of employment also makes
the Article too limited in scope as years of high economic growth
 have resulted in a highly heterogeneous work force in Singapore,
where one out of three employees is a non-Singaporean.

To fill the gap in the legal system, the Government has set up the
Tripartite Alliance for Fair Employment Practices (TAFEP) and the
Tripartite Center for Fair Employment (TCFE). The TAFEP was set
up to leverage Singapores strong tripartite partnerships
(between employers, employees or the labor movement, and the
government) to shift mindsets among employers, employees, and
the general public toward fair and responsible employment
practices for all workers. Likewise, the TCFE was set up to work
with employers and employees to make Singapore a fair and
inclusive workplace. These two establishments, however, are not
legal in nature and their recommendations and practices are not
legally binding. They are meant to be the main driving force to
encourage employers to be enlightened in their employment
practices and to consciously avoid engaging in any discriminatory
practices against anyone in Singapore, citizen or otherwise. The
TAFEP encourages all employers to pledge to engage in fair
employment practices and it publishes a list of these employers
regularly. The TAFEP adopts and promotes these five principles
of fair employment practices:

Recruit and select employees on the basis of merit, such as skills,

experience, and ability, regardless of age, race, gender, religion, or
family status.
Treat employees fairly and with respect and implement progressive
human resource management systems.
Provide employees with equal opportunities for training and
development based on their strengths and needs, to help them
achieve their full potential.
Reward employees fairly based on their ability, performance,
contribution, and experience.
Abide by labor laws and adopt Tripartite guidelines which promote
fair employment practices.
Note that these practices cover all employees and not just
Singaporeans alone.

5-1aRacial/Ethnic Discrimination
A recent survey by global staffing solutions firm Kelly Services
found that two out of three employees in Singapore experienced
prejudice of some sort when applying for a job in the past five
years. Based on the responses of 1,500 respondents, the most
commonly cited type of discrimination was age (29%), followed by
race (19%), gender (11%), and disability (2%).
 More research is needed to confirm the extent to which individuals
are discriminated against based on race in Singapore. The opening
case, of course, shows that such discrimination may indeed exist,
although it may be attributed to an oversight or good reasons.
Employers, however, cannot be prosecuted for such actions
because the laws on employment discrimination do not impose any
specific punishments on them.

Although race was cited by 19% of the respondents and was

ranked after age as the second most common discriminatory
factor, race is top on the list of things to look out for on the part of
the government because back in 1965, Singapore was expelled
from Malaysia as a member state due to racial issues. The
government would not want to see any racial tensions that may
arise in employment situations. Hence, the tripartite alliance is
pragmatic to specifically list race as one of the factors that
employers should look into when implementing fair employment
practices. Today, the meritocratic system in Singapore has seen
many people from minority races taking up positions in prestigious
occupations such as politics, the Singapore Civil Service, the legal
profession, the medical profession, and others.

5-1bRacial/Ethnic Harassment
Racial/ethnic harassment includes ethnic jokes, vulgar epithets,
racial slurs, and physical actions. In the United States, employers
may be punished under the law for allowing such behaviors to
occur in their workplace. In Singapore, the Penal Code (Chapter
224) specifically states (Section 298A):

Whoever
1. by words, either spoken or written, or by signs or by visible representations or otherwise,
knowingly promotes or attempts to promote, on grounds of religion or race, disharmony or
feelings of enmity, hatred or ill-will between different religious or racial groups; or
2. commits any act which he knows is prejudicial to the maintenance of harmony between
different religious or racial groups and which disturbs or is likely to disturb the public
tranquility, shall be punished with imprisonment for a term which may extend to 3 years, or
with fine, or with both.
As this law applies to anywhere within Singapore including
workplaces and non-workplaces and is directed at anyone who
commits the acts, anyone may be punished accordingly. Because of
the wide coverage, racial/ethnic harassment does not occur in any
significant way in Singapore, rendering it unnecessary to enact
separate laws just to penalize employers for allowing such
behaviors to occur in their workplace.
5-1cLanguage Issues and EEO
Singapore has long been a multiracial and multicultural country. Its
National Pledge specifically states: We, the citizens of Singapore,
pledge ourselves as one united nation, regardless of race, language,
or religion In addition, as mentioned above, Singapores
Constitution also specifically provides that no one shall be
discriminated against based on religion, race, descent, or place of
birth in an employment situation. The use of language at the
workplace is thus not restricted in general.

English-Only Requirements At times, an employer may

implement a language policy. Years ago, the Singapore franchise of
an American bookstore implemented an English-only policy.
Management would issue a warning to any employee who was
caught speaking a non-English language at the workplace. This
triggered mixed reactions from the general public, with some
saying that the policy was in line with the companys being
American and using a non-English language in an environment
where English was the main business language might cause
unnecessary suspicion in people who did not understand a non-
English language. People who disagreed with such a policy said
that it might be an anathema in a multiracial country and it
infringed on personal rights. A straw poll of ten firms revealed that
most companies in Singapore preferred to be flexible, encouraging
employees to use a language that customers would understand.

Although there are no specific laws to penalize an employer for

discrimination based on language, any employer who wants to
implement a language policy should have a good reason for doing
so because public opinions are quick to form about the policy and
its adopter. Words are quick to spread through the mass media
here in Singapore and ultimately business necessity is likely to be
the main determinant of the sustainability or success of a language
policy. This appears to be the same line of reasoning and thinking
adopted by the EEO Commission in the United States, where
justification for an English-only policy is based on business
necessity.

Bilingual Employees The Singapore education system has

implemented a bilingual policy for decades. Students must master
both English and a second language (typically the Mother Tongue)
to graduate. As a result, most employees command at least two
languages in Singapore. This augurs well for business efficiency
because customers in this open economy speak many languages.
As many tourists from other countries frequent Singapore for
sightseeing, shopping, business, and even employment, having
 multilingual employees is thus a plus to meet customer needs. The
need to increase the heterogeneity of languages used at
workplaces in the United States appears to be driven by business
necessity as well.

5-1dRequirements for Immigrants and Foreign-Born Workers

In the United States, the stringent anti-discriminatory laws may
actually hamper employers ability to identify who is eligible to
work legally and who is not. Employers, for example, may be
penalized by anti-discriminatory laws for asking for too much
information to ascertain whether a prospective employee is a
citizen. This may have partly contributed to the growing
population of illegal workers in the United States.

In Singapore, conflicting laws such as those in the United States do

not exist to confound the admission and management of
immigrants and foreign-born workers. As discussed in Chapter 4,
the Immigration Act and Employment of Foreign Manpower Act
jointly regulate the presence of foreigners in Singapore as
residents and employees. The government is able to efficiently and
effectively control the population of foreigners working in
Singapore and employers are not hindered from complying with
these laws. Foreigners who stay or work in Singapore without a
valid visa are duly dealt with. Employers are also made legally
responsible for ensuring the well-being and repatriation of low-
skilled or unskilled foreign employees if they hire them.

5-2Sex/Gender Issues
Similar to the United States, where women account for about half
of the workforce, about 43% of the workforce in Singapore are
women. The female labor force participation rate (proportion of
females who are working or actively looking for work) among
people aged 15 years and above was about 49.5% in 1997 and it
has steadily increased over the years to 58.1% in 2013. The male
labor force participation rate (aged 15 years or older), in
comparison, was 78.2% in 1997 and 75.8% in 2013. The increase
in female labor force participation was partly due to the
governments efforts of encouraging and facilitating women to
enter or reenter the work force to help address the perennial skills
and labor shortage problems facing Singapore.

5-2aSex Discrimination
As more women enter the workplace, their biological (bearing
children) and traditional (raising children) roles alter the amount
of time managers spend in helping their employees cope with non-
 work issues. As mentioned above, the Employment Act in
Singapore provides maternity benefits to all female employees
covered by the Act. Under this Act, qualified female employees
(who have worked for at least 3 months) regardless of nationality
and marital status enjoy 8 weeks of paid maternity leave per
confinement (delivery) for giving birth to the first two children.
Both the mother and the father (if they have worked for at least
three months) are each entitled to two days of paid leave per year
if they have at least one child under the age of 7 years during the
year. The Children Development Co-Savings Act enhances the paid
maternity leave for working married women (having worked for at
least 3 months) whose newborns are Singaporeans to 16 weeks
per confinement (delivery) regardless of the number of children
she already has. The government pays for the enhanced portion of
the leave (i.e., beyond the maternity leave already provided for
under the Employment Act). Both the married mother and the
married father (having worked for at least 3 months) are each
given up to 6 days of paid leave per year if they have at least one
Singaporean child below the age of 7 years during the year. The
first 3 days are paid by the employer and the last 3 days, by the
government. The working mother is also protected against
termination of employment during the last 6 months of pregnancy
and against retrenchment in the last 3 months. The father may at
the discretion of the mother take one week of the government-paid
maternity leave from the mother. The Children Development Co-
Savings Act extends these benefits to all employees as well as self-
employed people subject to three conditionsSingaporean new
born; at least 3 months of being employed; being legally married.

5-2bPay Inequity
As in the United States, women earn less than men in Singapore.
According to official statistics, a typical male employee in
Singapore earned an average of $3,467 per month (inclusive of all
fixed and variable bonuses, overtime payments, commissions,
allowances, and other monetary payments) in 2013, compared
with $3,000 for his female counterpart. The income disparity
between male and female employees is evident across all
industries. Refer to Figure 5-2 for more details.

Figure 5-2
Median Monthly Earnings Per Employed Resident Excluding CPF (Central
Provident Fund) by Industry and Sex (2013) (S$)
Industry Males Females

TOTAL 3,467 3,000

Manufacturing 4,117 2,925

Construction 3,250 2,871

Services 3,250 3,021

Wholesale and Retail Trade 3,033 2,500

Transport and Storage 2,200 3,000

Hotels and Restaurants 1,976 1,408

Information and Communications 5,000 4,300

Financial Services 6,500 4,667

Real Estate and Leasing Services 3,500 3,467

Professional Services 4,900 3,938

Administrative and Support Services 1,700 1,800

Public Administration and Education 4,979 3,792

Health and Social Services 4,388 2,813

Arts, Entertainment, and Recreation 2,779 2,438

Other Community, Social and Personal Services 2,330 2,000

Source: Singapore Yearbook of Manpower Statistics, Ministry of Manpower, 2014.

Even though the wage disparity is widespread, there has been no

systematic evidence to suggest that it is due to discrimination
against women. One of the major causes of the differences in
earnings is the tendency for females to drop out of the labor force
after working for a few years to perform the biological and
traditional roles of child bearing and child rearing. When these
women do return after their children have grown up, they possess
 fewer skills and experiences to command the pay given to their
male counterparts. A recent study by the Ministry of Culture,
Community and Youth (MCCY) corroborated this explanation and
revealed that young females in their 20s earned 98% as much as
their male counterparts.

5-2cNepotism
When relatives work for the same employer, a situation may arise
where collusion or conflict could occur. It is thus common for
employers to request for information from employees to ascertain
whether such a situation may arise. Where necessary and
appropriate, the employees (who are relatives) may be required to
work in different parts of the workplace so that they do not work
for or with each other. Relatives typically refers to spouses,
brothers, sisters, mothers, fathers, sons, and daughters. More
distant relatives may also be considered by employers to prevent
nepotism as Singapores laws do not restrict employers from doing
so in any way. When a potential conflict or collusion may occur, the
employer usually would discuss the issue with the employees
concerned and an arrangement is then worked out so as to
neutralize the potentially sticky situation. In an academic
department, for example, a professor may be newly married to the
departments confidential secretary. After the wedding, either the
wife or the husband may have to be transferred to another
department so that nepotism does not arise.

5-2dNon-Traditional Jobs
Women are free to enter any industries or occupations where their
skills are needed. In certain industries or occupations that are
dominated by men (such as the marine industry or the various
fields of engineering), employers may even pay special attention to
encouraging women to join them to overcome the perennial
manpower shortage problems. The Ministry of Manpower has
publicly acknowledged its stand against discrimination against
pregnant women. When it learned of a case in which a pregnant
woman was demoted and given a pay cut because she was
pregnant, it took immediate action to look into it. As the TAFEP has
emphasized the need to treat all employees fairly, the onus falls on
the employers to justify their case if they decide to institute any
policies that may be perceived as discriminatory against women,
pregnant or otherwise.

5-2eGlass Ceiling
The Glass ceiling refers to discriminatory practices that have
prevented women and other disadvantaged groups from advancing
 to higher-level jobs. Women do appear to hold fewer higher-level
jobs in Singapore, probably due to their biological and traditional
roles in society rather than discrimination. Clearly, far fewer
women than men have made it to the Parliament as Members of
Parliament in Singapore. All the Ministers holding a direct, full
ministerial portfolio in Singapore are men. Among listed firms,
women CEOs are also a minority. Despite these somewhat wanting
disparities, a greater balance between women and men may be
achievable in the future. As mentioned above, for example, the
female labor force participation rate has increased over the years
and it now stands at about 60% compared to the mens, which
stands at close to 80%. With the governments encouragement for
females to enter the workforce and stay on as employees even
when they are pregnant (such as the Children Development Co-
Savings Act), female labor force participation may increase further.
If both men and women have the same labor force participation
rate one day (when women do not leave the workforce for child-
bearing and child-rearing reasons), it would not be inconceivable
to see an equal share of men and women in top positions.

5-2fGlass Walls and Glass Elevator

A related issue is that women may tend to advance to senior
management in a limited number of support or staff areas, such as
HR and corporate communications. If these fields pay less well
than in other areas like sales, marketing or finance, then indeed it
could mean that women are limited in terms of progression and
pay. This phenomenon is referred to as glass walls or glass
elevator. In Singapore, however, it appears that the tendency for
women to progress in certain fields may be more a matter of fit
and choice on the part of the women than discrimination.
Considering that there are fewer women in the workforce vis--vis
men at a ratio of about 3 to 4, we see that women have a
proportionately less visible presence in such industries as
construction, manufacturing, and transport and storage. These
industries typically require more physically demanding tasks than
others. In other industries such as hotels and restaurants, financial
and insurance services, health and social services, and other
community, social, and personal services, women actually
outnumber men. Women may possess skills and abilities that are
more suited for certain occupations and fields.

5-2gIndividuals with Different Sexual Orientations

In Singapore, similar to the United States, there are people with
differing sexual orientations and lifestyles. Gays and lesbians do
live among the people and there have been attempts by gay
activists to ask the government to repeal a law that criminalizes
sexual activities between two male persons. In particular, Section
377A of the Penal Code states that any male person who, in public
or private, commits, or abets the commission of, or procures or
attempts to procure the commission by any male person of, any act
of gross indecency with another male person, shall be punished
with imprisonment for a term which may extend to 2 years. (Sex
between two female persons, in contrast, is not covered by this
provision. The government, however, insists that Singapore is still
a conservative society and that it will not repeal the gay-sex
provision.

Unofficially, however, the government does recognize the need to

leave some space for these individuals without repealing the law.
One good example is the People Like Us movement, a gay and
lesbian informal grouping that runs a website for people with
different sexual orientations in Singapore. The government has on
several occasions refused to allow it to be registered under the
Societies Act but the website has not been blocked by the
government. Given the lack of official recognition for the different
sexual orientations of these individuals, employment
discrimination practices against them, if any, are not likely to be
brought into the open.

Given the lack of specific laws to deal with all other forms of
discrimination against any groups of employees at the workplace
in Singapore, it is inconceivable to expect that gays and lesbians
should be given any special attention. The five principles of fair
employment practices as adopted by the TAFEP, however, direct
employers attention to the fair treatment of employees based on
individual merit. If a gay or lesbian employee is a talented
employee who works professionally and adds value to the
employers business, it would be a great loss to the employer for
not keeping the employee. Worse still, a competing employer who
employs such individuals may actually gain an upper hand in the
competitive landscape.

5-3Sexual
Harassment and
Workplace Relationships
As more women have entered the workforce, more men and
women work in teams and on projects. Consequently, more
employers are facing issues involving the close personal
relationships that develop at work.
5-3aConsensual Relationships and Romance at Work
When work-based friendships lead to romance and off-the-job
sexual relationships, managers and employers face a dilemma:
Should they monitor these relationships to protect the firm from
potential complaints, thereby meddling in employees private,
off-the-job lives? Or do they simply ignore these relationships and
the potential problems they present? Experiences has shown that
consensual workplace romances can create hostile work
environments for others in organizations. Most would agree that
romance must not take place between a supervisor and a
subordinate. Likewise, workplace romances may be risky because
they have great potential for causing conflict.

5-3bThe Nature of Sexual Harassment

Sexual harassment is a concern in many organizations and can
occur in a variety of workplace relationships. Individuals who are
supervisors, customers, vendors, co-workers, former employees,
and other employees may be harassers to an employee. See Figure
5-3 for these potential harassers.

Figure 5.3Potential Sexual Harassers

Sexual harassment may occur when a male in a supervisory or

managerial position harasses women within his power structure.
Women managers may also be sexual harassers. Customers may
also sexually harass customer service representatives and food
servers. Same-sex harassment may also occur. In general, sexual
harassment takes place when the harasser engages in pervasive
and unwelcome conduct of a sexual nature.

In Singapore, a new Harassment Act of 2014 has been put in place

to specifically and more coherently criminalize various types of
harassment, including:

Stalking
Bullying
Sexual harassment
Cyber bullying
Types of Sexual Harassment There are two basic types of
sexual harassment:

1. Quid pro quo is harassment in which employment outcomes are

linked to the individual granting sexual favors.
 2. Hostile environment harassment exists when an individuals
work performance or psychological well-being is unreasonably
affected by intimidating or offensive working conditions.
In quid pro quo harassment, an employee may be promised a
promotion, a special raise, or a desirable work assignment, but
only if the employee grants some sexual favors to the supervisor.
The second type, hostile environment harassment, is much more
prevalent, partially because the standards and consequences are
more varied.

A number of court cases have emphasized that commenting on

appearance or attire, telling jokes that are suggestive or sexual in
nature, allowing revealing photos and posters to be on display, or
making continual requests to get together after work can lead to
the creation of a hostile work environment. Research has also
found that rude and discourteous behavior is often linked to sexual
harassment. As computer and Internet technology has spread,
the number of electronic sexual harassment cases has grown, as
the HR Online discussion describes.

HR Online
Cyber and Electronic Sexual Harassment
Electronic information technology is creating new problems for HR managers because
sexual harassment is increasingly occurring in cyberspace via e-mails and Internet access
systems. Cyber sexual harassment may occur when an employee forwards an e-mail joke
with sexual content. Or, it may take the form of accessing pornographic websites at work
and then sharing content with other employees. Cyber stalking, in which a person
continually e-mails an employee requesting dates and sending personal messages, is
growing as instant messaging and cybertext equipment expand.

Many employers have policies addressing the inappropriate use of e-mail, company
computer systems, and electronic technology usage. Serious situations have led to
employee terminations, as evidenced by an employer who disciplined more than 200
employees and fired 50 of them for having e-mailed pornographic images and other
inappropriate materials using the company information system.

It is crucial to train all employees on sexual harassment and electronic usage policies.
Additionally, many employers have equipped their computer systems with scanners that
screen for inappropriate words and images. Offending employees receive warnings and/or
disciplinary actions associated with flagged items. Also, employees subjected to severe
sexual harassment may receive counseling assistance. As with all sexual harassment
situations, HR professionals should document the incidents, their investigative efforts, and
the actions taken to prevent further cyber sexual harassment.

Regardless of the type, it is apparent that sexual harassment has

significant consequences on the organization, other employees,
 and especially those being harassed. Follow-up interviews and
research with victims of sexual harassment reveal that the
harassment has both job-related and psychological effects. Also,
harassment even has a ripple effect on others who fear being
harassed or view their employer more negatively if prompt
remedial actions are not taken. Thus, how employers respond to
sexual harassment complaints is crucial for employee morale.

Employer Responses to Sexual Harassment It is

crucial that employers respond proactively to prevent sexual and
other types of harassment. If the workplace culture fosters
harassment, and if policies and practices do not inhibit
harassment, an employer would be wise to reevaluate and solve
the problem before it becomes a factor adversely affecting
employee morale.

5-4Age
Issues and Fair
Employment Practices
The populations of most developed countriesincluding Australia,
Japan, Singapore, most European countries, and the United
Statesare aging. These changes mean that as older workers with
a lifetime of experiences and skills retire, HR faces significant
challenges in replacing them with workers who have the
capabilities and work ethic that characterize many mature
workers. As mentioned in Chapter 4, employers cannot dismiss an
employee based on age if the employee is less than 62 years old
under the Retirement and Reemployment Act. Therefore,
employers must be aware of a number of HR issues associated with
managing older workers.

In Singapore, many older people lack the skills needed by

employers. As a result, many of the older workers are not able to
take up job opportunities available in the job market. Employers
either resort to employing foreign nationals or close down their
operations when they cannot find sufficient people with the right
skills. To counter this structural unemployment gap, the Workforce
Development Agency, a government agency in charge of skills
upgrading for Singapore, has been very active in supporting older
people to upgrade their skills. It typically provides a slightly higher
level of support for people aged above 40 years.

5-4aAge Discrimination and Workforce Reductions

Retrenchment is a managerial prerogative under the Industrial
Relations Act in Singapore (discussed in Chapter 4). When a
 retrenchment occurs, employers may have to pay a higher
retrenchment compensation package to permanently lay off older
employees because in the unionized sector in Singapore,
retrenchment compensation is typically one month of the last
drawn salary per year of service. When an older employee is
retrenched, it is most likely because the employees skills are not
suited for the new environment. Hence, even though Singapore
does not have specific laws targeted at preventing discrimination
against older people in retrenchment exercises, the built-in cost
structure has helped ensure the fair treatment of older employees.

5-4bAttracting, Retaining, and Managing Older Workers

To counter significant staffing difficulties, some employers are
recruiting older people to return to the workforce through the use
of part-time and other scheduling options. During the past decade,
the number of older workers holding part-time jobs has increased.
It is likely that the number of older workers interested in working
part-time will continue to grow.

A strategy used by employers to retain the talents of older workers

is phased retirement, whereby employees gradually reduce their
workloads and pay levels. This option is growing in use as a way to
allow older workers with significant knowledge and experience to
have more personal flexibility, while the organizations retain them
for their valuable capabilities. Some firms also re-hire their
retirees as part-time workers, independent contractors, or
consultants. Employees who start to receive pensions may find it
easier to adjust when they start to reduce their work hours.

5-5Individuals
with Disabilities in
the Workforce
Employers looking for workers with the knowledge, skills, and
abilities to perform jobs often have neglected a significant source:
individuals with physical or mental disabilities. Based on a U.S.
government survey, individuals with disabilities or work-limiting
problems have an employment rate of 20.8% compared to a non-
disabled workers employment rate of 78%. One concern is that
discrimination against individuals is often based on
misconceptions about the controllability and stability of different
disabilities. In Singapore, there are no laws to compel employers
to make reasonable accommodations to ensure that people with
disabilities are able to perform their work or that people with
disabilities are not deprived of the chance to work because the
employers refuse to make reasonable accommodations. However,
 numerous social enterprises do employ large numbers of people
with disabilities and pay them reasonable salaries. To do so, they
must take reasonable action to facilitate people with disabilities to
do the work. As mentioned in Chapter 4, the Workplace Safety and
Health Act has all-encompassing provisions that would ensure that
employers provide a safe and healthy environment for employees
with disabilities to work in. Job assignment wise, employees can be
tasked to perform duties that are within their abilities. In a fast
food outlet, for example, an employee with a hearing impairment
can be assigned to perform duties like clearing tables and cleaning
glass windows and not to serve customers, which would involve
verbal communications. As there is a perennial labor shortage in
Singapore, it makes sense for employers to make reasonable
accommodations even on a voluntary basis to enlarge their sources
of HR supply.

5-5aMaking Reasonable Accommodations

At the heart of employing individuals with disabilities is for
employers to make reasonable accommodations in several areas.
Common means of reasonable accommodation are shown in Figure
5-4. First, architectural barriers should not prohibit disabled
individuals access to work areas or restrooms. Second,
appropriate work tasks must be assigned. Satisfying this
requirement may mean modifying jobs, work area layouts, or work
schedules, or providing special equipment.

Figure 5-4Common Means of Reasonable Accommodation

Key to making reasonable accommodations is identifying the

essential job functions and then determining which
accommodations are reasonable so that the individual can perform
the core job duties. Fortunately for employers, most
accommodations made are relatively inexpensive. Employers
who show a positive interest in making accommodations are more
likely to encourage individuals with disabilities to believe that they
will receive appropriate considerations for employment
opportunities.

5-5bRecruiting and Selecting Individuals with Disabilities

Numerous employers have specifically targeted the recruitment
and selection of individuals with disabilities. However, as the HR
On-the-Jobindicates, questions asked during the employment
process should be job-related.
 HR On-the-Job
What Do HR Managers Do?
As shown below, there are subtle differences between questions that are directed at the job
and questions that are directed at an individual with disabilities. Employers should focus
on using questions directed at the job and not the individual so that the job application
form and the employment interview process are not biased against individuals with
disabilities. Although there are no employment laws in Singapore that require employers to
do so, engaging in such a practice is in keeping with the fair employment practices
advocated by the TAFEP.

DO NOT ASK DO ASK

Do you have any physical or mental disabilities?
Why are you using crutches, and how did you become
injured?
How many times were you absent due to illness in the
past two years?
Have you been treated for any of the following
medical conditions?
Have you ever filed for or collected workers
compensation?
How would you perform the essential tasks of the job for which you have applied?
If hired, which tasks outlined in the job description that you reviewed would be more
enjoyable and which ones most difficult?
Describe your attendance record on your last job.
Describe any problems you would have reaching the top of a six-foot filing cabinet.
What did your prior job duties consist of, and which ones were the most challenging?

5-5cManaging Individuals with Disabilities

Employers are increasingly faced with more employees who have
or may develop disabilities. It is important that employers handle
various types of employee disability situations appropriately.

Employees Who Develop Disabilities When employees

develop disabilities that adversely affect their abilities to perform
their existing job duties, the employers should try to make
reasonable accommodations to show that they engage in fair
employment practices for all employees. As the workforce ages, it
is likely that more employees will develop disabilities. For
instance, a warehouse worker who suffers a serious leg injury
while motorcycling away from work may request reasonable
accommodation.

Employers should develop responses for handling accommodation

requests from individuals who have been satisfactory employees
without disabilities, but who now must be considered for
accommodations if they are to be able to continue working.

Employees sometimes can be transferred to other jobs where their

disabilities do not affect them as much. For instance, the
warehouse firm might be able to move the injured repair worker to
a purchasing inventory job inside so that climbing and lifting are
unnecessary. However, the problem for employers is what to do
with the next worker who develops problems if an alternative job
is not available. Even if the accommodations are just for one
employee, the reactions of co-workers must be considered.

Individuals with Mental Disabilities Individuals with a

history of paranoid schizophrenia and clinical depression may be
able to perform their job duties. Employers should not
discriminate against them based simply on their medical history.
To the extent that they cannot do their work because of their
illnesses, it may be reasonable for employers to terminate their
service contract based on medical grounds. At times, employees
may also claim that job stress has affected their work and private
life. Regardless of the type of employees claims, it is important
that employers respond properly by obtaining medical
verifications for claims of mental illnesses and considering
accommodation requests for mental disabilities in the same
manner as accommodation requests for physical disabilities.

Individuals with Life-Threatening Illnesses In the

United States, employers are prohibited from discriminating
against people suffering from life-threatening illnesses, such as
leukemia, cancer, or AIDS under the Americans with Disabilities
Act. People with such illnesses may intend to continue to work
after several months or years if they can be expected to return to
work after a successful treatment. In Singapore, a reasonable
response from the employer would probably include letting the
employee take paid annual leave and paid medical leave. When the
employee has exhausted these predetermined leaves of absence,
the employer may either terminate the service contract or allow a
reasonable period of no-pay leave.

Unfortunately, employers and employees often react with fear

about working with someone who has AIDS or a life-threatening
illness. Educating other employees may be more appropriate than
terminating the person who is ill. A medical leave of absence
(without pay, if that is the general policy) can be used to assist the
afflicted employee during medical treatments. Also, employees
who indicate that they will not work with an afflicted employee
should be told that their refusal to work is not protected by law,
and that they could be subject to disciplinary action up to and
including discharge.
 5-6Religion
and Spirituality in
the Workplace
In the United States, discrimination against employees based on
their religion or religious beliefs and practices is outlawed under
Title VII of the Civil Rights Act of 1964. In Singapore, workplace
discrimination based on religion is also outlawed under the
Singapore Constitution (Article 12). The Penal Code provides
severe penalties against people who engage in acts that are
detrimental to religious harmony.

5-6aManaging Religious Diversity in the Workplace

Employers are increasingly having to balance the rights of
employees with differing religious beliefs. One way to do this is
to make reasonable accommodation for employees religious
beliefs when assigning and scheduling work, because many
religions have different days of worship and holidays. For example,
some firms have established holiday swapping pools, whereby
Christian employees can work during Passover, Ramadan, or
Chinese New Year, and employees from other religions work
during Christmas. Figure 5.5 indicates common areas for
accommodating religious diversity.

Figure 5-5Religion and Spirituality in Workplaces

One potential area for conflict between employer policies and

employee religious practices is dress and appearance. Some
religions have standards about appropriate attire for women. Also,
some religions expect men to have beards and facial hair, which
may violate company appearance policies.
 Another issue concerns religious expression. In the last several
years in the United States, employees in several cases have sued
employers for prohibiting them from expressing their religious
beliefs at work. In other cases, employers have had to take action
because of complaints from workers that employees were
aggressively pushing their religious views at work, thus creating
a hostile environment. Executives and owners of some firms have
strong evangelical Christian beliefs that are carried over into their
companies. Some display crosses, hold Bible study groups for
employees before work, sponsor Christian prayer groups, and
support other efforts. However, such actions can lead to non-
Christians feeling discriminated against, thus creating a hostile
environment. Other areas that may need to be considered when
dealing with religion at work are food, on-site religion-based
groups, office decorations, and religious practices at work.

In Singapore, issues relating to religious practices at the workplace

are in general handled in a rational and accommodative way
without disrupting the religious harmony already in place. When
an organization requires a certain group of employees to wear
uniform, for example, a female Muslim employee who wears a
religious headscarf, if it is not part of the uniform, may have to
make adjustments by moving to a post where the uniform is not
required or wearing the uniform without the headscarf during
work hours. In a non-religious workplace, employees of all faiths
are treated equallythey are allowed to practice their religion to
the extent that the practices do not create a hostile environment in
the eyes of employees who are not of the same faith. The specific
adaptations needed are typically agreed upon after consultations
with the relevant parties.

5-7Managing Diversity
In todays globalized environment, employers must grapple with a
wide variety of employees at the workplace. Employees may vary
in these dimensions:

Age
Marital and family status
Disabilities
Race/ethnicity
Religion
Gender
Sexual orientation
Since managers in the United States have accumulated a wealth of
knowledge in managing diversity issues at the workplace, let us
 borrow from the U.S. experiences and learn from them how
diversity issues can be more effectively handled in Asia.

5-7aDiversity Management Approaches

Different organizations approach the management of diversity
from several perspectives. As Figure 5-6 shows, the continuum can
run from resistance to the creation of an inclusive diversity culture.
The increasing diversity of the available workforce, combined with
growing shortages of workers in many occupations and industries,
has resulted in more employers recognizing that diversity must be
managed. Organizational experiences and research have indicated
that establishing broad responsibility for diversity leads to more
effective diversity training, networking, mentoring, and other
efforts.

Figure 5-6Various Approaches to Diversity and Their Results

5-7bDiversity: The Business Case

Diversity can be justified on the basis of social justice, but does it
make business sense? The business case for diversity is based on
the following points:

Diversity allows new talent and new ideas from employees of

different backgrounds, which may enhance organizational
performance.
Diversity helps in recruitment and retention because minority
individuals often prefer to work in organizations where co-
workers come from varied demographics.
 Diversity allows for an increase in market share because customers
can be attracted to purchase products and services with varied
demographic marketing activities.
Diversity leads to lower costs because there may be fewer
discrimination complaints.
Whether or not the money spent by employers is producing results
has been researched. A 5-year study of several companies
examined how diversity affects performance. It found that
managing diversity leads to more effective performance on gender
issues, but that racial and ethnic diversity may, in fact, have a
negative impact on business performance unless specific controls
are in place. If not managed properly, diversity can produce
miscommunication, conflict, higher turnover, and lower
performance. Additionally, diversity was found to have enhanced
performance when diversity was treated as a source of innovation
and learning. A final result showed that customers did not care
whether they were served by people of the same gender or race.
Another study found that firms with diverse workforces do not
have higher turnover rates than less diverse firms.

These studies illustrate that the impact of diverse workforces is

still being identified. It does appear that if diversity is to contribute
to business success, organizations need to learn how to maximize
its benefits and minimize its problems. The HR Best
Practices illustrates one example.

HR Best Practices
Diversity Management Pays Off for PepsiCo
Many employers have recognized that diversity management is important. But a number of
leading firms have seen ways in which diversity contributes to organizational success and
growth. One example is seen at PepsiCo, a large food and beverage company.

As part of a broad program, PepsiCo has developed and implemented a Diversity and
Inclusion Council so that diversity considerations are part of all strategic efforts. Also,
PepsiCo has regular diversity celebrations, newsletters, and other events. The value of such
a program is illustrated by the Latino Employee Network in its Frito-Lay division.
Individuals in that group were asked to use their applicable knowledge to provide input on
the taste and packaging of Doritos Guacamole Tortilla Chips. Based on those ideas and
others, once that produce was released, it generated sales of more than $100 million in its
first year on the market.

Key to PepsiCos effective diversity efforts is that they begin at the top level of
management, with the CEO and executive staff. All executives are responsible for ensuring
that diversity management occurs with all types of employees. That commitment then
establishes that diversity is crucial. It also means that throughout the company, inclusion of
diversity issues continues to contribute to PepsiCos success with employees, managers,
and customers.

5-7cDiversity Management Programs and Activities

A wide variety of programs and activities have been used in
organizations as part of diversity management efforts. Almost half
of companies in one survey have a written policy on employee
diversity, a significant increase over a 12-year span. That is an
essential beginning, but there are a number of common
components of diversity management efforts, as Figure 5-
7 illustrates. For diversity to succeed, the most crucial component
is seeing it as a commitment throughout the organization,
beginning with top management. Diversity results must be
measured, and management accountability for achieving these
results must be emphasized and rewarded. Once management
accountability for diversity results has been established, then it is
important that policies and activities provide organizational justice
and fairness in work treatment for employees. A number of
different activities can be implemented as part of a diversity
management program, including diversity training.

Figure 5-7Common Diversity Management Components

 5-8Diversity Training
Traditional diversity training has a number of different goals. One
significant goal is to minimize discrimination and harassment
complaints. Other goals focus on improving the acceptance and
understanding of people from different backgrounds, experiences,
capabilities, and lifestyles.

5-8aComponents of Traditional Diversity Training

Approaches to diversity training vary, but often include at least
three components. Legal awareness is the first and most common
component. Here, the training focuses on the legal implications of
discrimination. A limited approach to diversity training stops with
these legal dos and donts.
 By introducing cultural awareness, employers hope to build greater
understanding of the differences among people. Cultural
awareness training helps all participants to see and accept the
differences in people with widely varying cultural backgrounds.

The third component of diversity trainingsensitivity trainingis

more difficult. The aim here is to sensitize people to the
differences among them and how their words and behaviors are
seen by others. Some diversity training includes exercises
containing examples of harassment and other behaviors.

5-8bEffects of Diversity Training

The effects of diversity training are viewed as mixed by both
organizations and participants. A limited number of studies have
been done on the effectiveness of diversity training. There is
some concern that the programs may be interesting or
entertaining, but may not produce longer-term changes in peoples
attitudes and behaviors toward others with characteristics
different from their own.

Some argue that traditional diversity training more often than not
has failed, pointing out that it does not reduce discrimination and
harassment complaints. Rather than reducing conflict, in a number
of situations diversity training has heightened hostility and
conflicts. In some firms, it has produced divisive effects, and has
not taught the behaviors needed for employees to work well
together in a diverse workplace.

This last point, focusing on behaviors, seems to hold the most

promise for making diversity training more effective. For instance,
dealing with cultural diversity as part of training efforts for sales
representatives and managers has produced positive results.
Teaching appropriate behaviors and skills in relationships with
others is more likely to produce satisfactory results than focusing
just on attitudes and beliefs among diverse employees.

5-8cBacklash Against Diversity Efforts

The negative consequences of diversity training may manifest
themselves broadly in a backlash against diversity efforts. This
backlash takes two main forms. First, and somewhat surprisingly,
the individuals in protected groups, such as women and members
of racial minorities, sometimes see the diversity efforts as
inadequate and nothing but corporate public relations. Thus, it
appears that by establishing diversity programs, employers are
raising the expectation levels of protected-group individuals but
the programs are not meeting the expectations. This failure can
result in further disillusionment and more negativity toward the
organization by those who would initially appear to benefit the
most from such programs.

On the other hand, a number of individuals who are not in

protected groups, primarily white males (in the United States),
believe that the emphasis on diversity sets them up as scapegoats
for the societal problems created by increasing diversity.
Sometimes white males show hostility and anger at diversity
efforts. Those programs are widely perceived as benefiting only
women and minorities and taking away opportunities for men and
non-minorities. This resentment and hostility are usually directed
at affirmative action programs that employers have instituted.

In the United States, the backlash against diversity efforts is not

limited to white males. For example, diversity training that
includes lesbian, gay, and bisexual content has created resistance
from employees with certain religious beliefs. These employees
have felt discriminated against because of their beliefs, and some
have been reprimanded for bringing Bibles to read in the training
classes. It appears that problems such as this stem from what
employees see as attempts to change what they believe. Trainers
emphasize that the key to avoiding backlash in diversity efforts is
to stress that people can believe whatever they wish, but at work
their values are less important than their behaviors. Dealing with
diversity is not about what people can and cannot say, it is about
being respectful to others.

The management of diversity training, and indeed diversity itself,

must be well thought out and implemented. Diversity is a reality
for employers today, and effective diversity management is crucial
to HR management.

In Singapore, much of the diversity training is done in the public

school educational system. For example, a Racial Harmony Day is
conducted at all primary and secondary schools annually and all
school children are assembled to recite the National Pledge, which
emphasizes racial equality to a great extent, on a daily basis. In
addition, young male Singaporeans and Singapore permanent
residents (other than those who have become Singaporeans and
permanent residents on their own merits) are required to do
National Service for two years, during which they are exposed to
all other races and must learn to work together to defend and
serve Singapore.