The employment landscape is rapidly evolving due to demographic shifts, technological advancements, rising cost pressures and changing workforce preferences. In Singapore, these challenges are further compounded by an ageing population, talent shortages, and an increasing push towards productivity and efficiency. These forces are driving organisations to rethink traditional employment models. PwC’s 28th Annual Global CEO Survey reveals that 42 per cent of business leaders believe their companies will not be viable within the next decade without significant change, underscoring the need for businesses to innovate their workforce models.
In recent years, flexible work arrangements – such as part-time roles, remote work and gig employment – have become mainstream, focusing primarily on when and where people work.
However, job fractionalisation – which breaks down conventional full-time roles into modular components that can be performed by multiple individuals – enables organisations to distribute work based on business needs and individual skills. This can be through automation or redistribution of tasks among workers and contractors.
When implemented right, job fractionalisation can help companies redesign jobs and transform their workforce because it enables task-based work restructuring. This is especially relevant with the increasing adoption of artificial intelligence (AI) and automation, which enables organisations to systematically evaluate which parts of a job can be automated and which require human expertise. The end outcome is a more agile workforce model where skills, rather than job titles, dictate work allocation.
Unlocking the potential: How fractional jobs benefits employers and workers
One key benefit of job fractionalisation is cost and time efficiency. Instead of waiting months to find the right fit in terms of skill set and experience for full-time positions, companies can engage multiple specialists to cover specific tasks, which are traditionally easier to source and secure in shorter time frames. The fractional jobs model also enhances business flexibility and allows for managing demand fluctuations more effectively, by enabling organisations to scale up and down the manpower, based on business cycles.
From a national policy perspective, fractional jobs provide an opportunity to enhance workforce participation and reduce long-term structural unemployment by expanding employment models that cater to diverse workforce needs. It also strengthens Singapore’s labour market resilience, making it more adaptable to economic shifts and industry disruptions.
For individuals, it opens opportunities for specialists and professionals to continue to stay relevant in the workforce while contributing based on their expertise and availability, driven by personal preferences and responsibilities. This will be particularly beneficial for active seniors, caregivers and people with disabilities.
Implementation challenges: What needs to change?
While job fractionalisation presents a compelling opportunity, its success depends on overcoming key implementation challenges. For the scheme to be sustainable, businesses must integrate it into their long-term workforce strategies. This means shifting from a headcount-based approach to a skills-first model, ensuring that fractional roles align with business goals rather than being seen as a short-term cost-saving measure.
Businesses must first redefine how work is structured. For job fractionalisation to be effective, roles must be broken into clear, measurable components that can be executed independently or with minimal coordination. Tasks that require high levels of collaboration or continuous handovers may not be suitable for fractionalisation.
Another critical consideration is ensuring the right infrastructure is in place. Managing a fractional workforce requires new policies and governance structures. Businesses must address key areas such as employment contracts, employment benefits and tax implications to ensure compliance and avoid unintended risks. Additionally, robust digital tools for collaboration, performance tracking and workflow automation are essential to making fractional jobs work at scale.
Technology is also a vital component in this transition, with AI-driven workforce planning tools helping businesses design jobs that maximise efficiency and optimise talent deployment. Therefore, firms must also invest in workforce upskilling initiatives to prepare employees for this transition. Strengthening retraining programmes and promoting continuous learning will ensure workers transitioning into fractional roles have the necessary competencies to succeed. Despite this clear advantage, the Singapore Business Forum/National Business Survey 2024 Manpower & Wages Edition reveals that only a third of businesses currently consider technology adoption and automation as essential to job redesign, suggesting a vast untapped potential that businesses can harness.
From a leadership perspective, managing a distributed workforce requires a shift in mindset. Managers must transition from traditional oversight to outcome-driven performance management. This means focusing on impact rather than hours worked, fostering a culture of trust and equipping teams with the skills needed to work in a more decentralised structure.
Policymakers also play a key role in this transition. Regulatory frameworks must evolve to support job fractionalisation models, providing greater clarity on taxation, employment contracts and worker protections. Legal considerations around compliance, data privacy and cybersecurity must also be addressed as organisations adopt AI-driven workforce planning tools to support job fractionalisation at scale.
To fully harness the potential of implementing fractional jobs, businesses and policymakers must collaborate to create a sustainable ecosystem that enables its adoption. Establishing industry pilots across key sectors such as healthcare, education and technology can provide tangible use cases and encourage wider adoption.
In summary, job fractionalisation is not a one-size-fits-all solution but a critical component of a more adaptable and sustainable workforce strategy. By embedding fractional jobs into broader transformation efforts, Singapore can maintain its competitive edge, ensuring that businesses remain agile, and workers continue to thrive in an evolving job market. The future of work is not just about flexibility – it’s about resilience, sustainability and how businesses and policymakers shape the next era of workforce innovation.
The writer is a Workforce Transformation Partner at PwC South East Asia Consulting.
Prime Minister and Minister for Finance, Mr Lawrence Wong, delivered the Singapore 2025 Budget statement on Tuesday, 18 February 2025 in Parliament.
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