TEL Systems And Engineering Singapore - Managing Employee Turnover

By Hesan Quazi & D. G. Allampalli

Abstract

The case study on TEL Systems and Engineering (TEL) describes the approaches a Singapore-based information technology (IT) and industrial automation (IA) services company takes to be a fast-growing enterprise. Although TEL overcame the small domestic market and tight labour market conditions during the mid-to-late 1990s by internationalisation, it experienced high manpower turnover, particularly in the cadre of fresh engineers and junior executives from 1995 to 1997. While the national average of employee turnover in the IT sector from 1996 to 1997 remained around 16-17 percent, TEL's employee turnover grew from 36 to 43 percent during the same period. Although TEL's management implemented employee stock option scheme (ESOS) in two stages in 1997 and early 1999, Daniel Lee, the head of the human resource department pondered on the options to halt the exodus of young engineers.

Issues: Sustaining Business Growth, Managing Employee Turnover and Compensation

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