Hiring Trends: The Outlook for Asia-Pacific

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Hiring Trends: The Outlook for Asia-Pacific

Hiring Trends: The Outlook for Asia-Pacific

 

By Francis Koh, CEO of PERSOLKELLY

 

Asia-Pacific is diverse, and each market in the region has its own set of unique challenges when it comes to hiring and retaining talent. Yet, there are key trends across borders that are likely to shape the future of work in the region.

 

Agile companies that can respond to these market shifts and consider changes in their hiring methods to adapt to fluid situations would be better positioned to take advantage of emerging opportunities.

 

With our presence in 13 markets in Asia-Pacific, we have seen up close the varied conditions faced by human resource practitioners as they strive for organisational strength amid the global pandemic. In this article, we offer insights into these markets and discuss ways HR teams can drive value in their organisations.

 

Some parts of Asia-Pacific demonstrating resilience & coming out stronger amid the crisis

 

The Covid-19 pandemic makes the economic outlook in Asia-Pacific a little murkier, but it can’t obscure the region’s inherent wellspring of vitality. Asia-Pacific has proven to the world that recovery and growth are still possible despite the global health crisis.

 

The Asian Development Bank forecasts that China and India will grow by 8.1% and 10%, respectively, this year. It expects growth to range between 4% and 7% for five of the six most significant economies in Southeast Asia – Indonesia, Malaysia, the Philippines, Singapore and Vietnam.

 

While recent surges of coronavirus cases could constrain rebounds in growth, recoveries can be swift when companies in the region’s markets are able to adjust.

 

Some markets are seeing growing demand for talents

 

A strong pipeline of talents is necessary to deliver market growth. In the recruitment industry, we’ve seen our North Asia business surpass pre-Covid days. China is a particularly vibrant market, with many foreign and local companies actively hiring across a wide range of industries. For example, Chinese banks last year hired tens of thousands of fresh graduates, while Chinese e-commerce giant Alibaba alone doubled the number of its employees to 250,000. At the same time, many Asia-based companies are adding to their workforce regionally as they also expand abroad. With competition for top talents increasing, the cost of hiring also rises.

 

Other fast-growing markets are Indonesia and Vietnam, which have large and young populations but may require a bigger pool of experienced and skilled workers. We see substantial amounts of foreign direct investments (FDIs) pouring into various sectors in these countries, with their success largely dependent upon having the right talents in place. In the second quarter of this year, FDIs into Indonesia surged 20%, the highest year-on-year rise in more than five years, while in the first seven months of this year, Vietnam received $10.5 billion in FDIs, 4% up from the same period last year.

 

Demand for talent will be focused on technology

 

As all industries embrace digital transformation in the coming years to streamline their operations and reach out to digital-savvy consumers, we are witnessing a rise in demand for all tech and digital talents. Whether for different kinds of technologies – agritech, edtech, fintech and more – the demand for engineers and other specialist technology talents will continue to be very high across the region, from start-ups to tech titans.

 

In Asia, China’s tech giants such as Bytedance and Meituan are going on a hiring spree for fresh graduates, while India’s IT services sector led by the likes of Tata Consultancy Services and Infosys is also showing strong demand for fresh graduates. In Singapore, jockeying for tech talent can see software engineers getting several job offers every day.

 

Other than technology, we see continued demand for talents from the financial services industry, particularly in the areas of wealth management and private banking. Many private bankers and wealth advisors are needed to serve Asia-Pacific’s growing list of billionaires and millionaires. Last year, the region recorded 1,149 billionaires (370 more than the previous year), mainly due to newcomers from China and India.

 

Another area where we see substantial demand for talent is in the health sector. Reports suggest Asia-Pacific’s healthcare landscape will represent more than 40% of growth in global healthcare spending by 2030 - expanding almost twice as much as the rest of the world. The pandemic has placed even greater emphasis on health, and the call for healthcare workers for hospitals and medical experts for pharmaceutical companies, among others, is louder than ever.

 

Work is becoming virtual and borderless

 

The pandemic has accelerated the adoption of remote work, and that’s here to stay. According to forecasts, remote workers will represent 32% of all employees worldwide by the end of 2021, or close to double the figure for 2019. To succeed in this new landscape, companies need to have a long-term plan for remote work. Hybrid arrangements would become the norm in a post-Covid world, with more than 20% of workers in advanced economies working from home for three to five days per week.

 

With technologies such as video conferencing and virtual collaboration software, firms can overcome increased regulations and restrictions that have made it challenging to bring new hires into some operating markets. As a result, they can find the talents with the right skill sets, regardless of location, and they can take new ways to approach, interview and hire candidates.

 

Expanding a search for remote employees right across Asia-Pacific can bring cost advantages. In addition, talent based overseas can strengthen an organisation’s diversity and bring alternative perspectives to solve business problems and develop products. Talents in different countries can also provide deep local knowledge about customers and competitors to support a company’s entry into potential new markets.

 

Companies could rethink roles

 

With wider access to talents globally, companies can now rethink their workforce strategy. Looking further afield allows the hirer to focus on who can best meet the role’s demands without constraints on where the company is based. In addition, it enables companies to relook at their current job design and assign the role to a specialist in a different part of the region.

 

Teams now can reside anywhere in the world. It can be Hong Kong or Vietnam, as long as companies equip themselves with the right tools and optimally organise themselves.

 

For instance, consider a company set up in Hong Kong to gain close access to capital investment and clients. The firm’s back-office support can reside remotely in Malaysia, while its delivery team can be spread across various regional markets based on their expertise.

 

Regional Talent Solutions can do the heavy lifting

 

In the current recruitment market, whoever has the top talent gains a tremendous competitive edge. To better support companies aiming to get the best talent Asia-Pacific offers, PERSOLKELLY has launched Regional Talent Solutions (RTS). In this offering, we help companies manage workforce challenges and gain access to talents across 13 markets: Australia, China, India, Indonesia, Hong Kong, New Zealand, Malaysia, the Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam. On-the-ground presence in each market enables us to give our clients invaluable local insights and expertise.

 

Hiring companies will not need to set up legal entities in any of these markets themselves. We can fill companies’ HR-related responsibilities or act as the legal employer of record, taking on talent sourcing, on-boarding, payroll services, immigration compliance, training and performance management.

 

As Asia-Pacific experts with a vast network, we can support clients with a regional perspective. Whether their need is for managing remote talents overseas or a local workforce spread across Asia-Pacific, they will only need to work with a single point of contact for a seamless experience.

 

The road ahead for many companies seeking talent in Asia-Pacific could be challenging with tough competition and talent shortages. Still, companies that embrace technology and rethink their workforce strategy are best placed to harness the region’s best and brightest talents.

 

Like to know how our on-the-ground teams spread across APAC can power your company’s growth plans? Reach out to us today.

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Date published
Date modified
06/08/2021