High Costs Still Deter Some Firms Despite Growing Demand
A rising number of companies in Singapore are conducting background checks on foreign hires following the introduction of the Complementarity Assessment Framework (Compass) for Employment Pass (EP) applications last year. However, the high costs associated with verification remain a barrier for some firms.
Since September 1, 2023, new EP applicants must meet a minimum of 40 points under Compass, which evaluates candidates based on four foundational criteria. This has led to a surge in demand for background-screening services, particularly from small and medium-sized enterprises (SMEs) that previously lacked structured verification processes.
Despite the increased adoption, some businesses still choose to bypass the screening process due to the added financial burden. Industry experts note that while verifying educational qualifications and employment history is becoming more common, cost concerns continue to deter widespread compliance.
The shift towards stricter checks reflects Singapore’s efforts to enhance workforce integrity while balancing the need to attract global talent. However, the challenge remains in ensuring that verification costs do not become a deterrent for businesses looking to hire skilled foreign professionals.
