APAC Talent Trends

APAC Workforce Trends 2024

Companies all over the world are grappling with big changes coming to how they hire and grow teams in the age of A.I. It is clear to me that Asia-Pacific (APAC) is well positioned to lead from the front this year.

APAC already contributed about two thirds of all global growth in 2023, and looking ahead, nearly 90% of hiring managers in the region plan to hire more in 2024.

Emotional intelligence is about to come to the center of growth and innovation. The top skills companies are looking for revolve around uniquely human capabilities like problem solving, communication, and critical thinking. And increasingly, employers expect proficiency using new A.I. tools like Microsoft Copilot or ChatGPT that will not just save us all time, but will meaningfully amplify our people skills and allow us to focus on the highest impact parts of our jobs.

To fully meet the moment, employers need to step up as educators in a way that’s never been done before. The good news is that APAC is ready – with over 90% of companies planning to invest in their people’s learning and development."

Aneesh Raman, Chief Economic Opportunity Officer at LinkedIn

Productivity and Talent Challenges in Asia

The Asian industry faces a complex talent landscape amidst rapid technological advancements.

Data Points:

41% of Asian insurance executives see AI as the biggest driver of future productivity gains, but…
62% of Asian insurance firms adopt new technologies without transforming work processes. This "busy work" culture is cited as a key reason for 45% of employees feeling their productivity is hindered.

Analysis:

While acknowledging the potential of AI to boost efficiency, Asian firms struggle to translate technology investments into actual productivity gains.

This disconnect can be attributed to:

Lack of Work Redesign: Organisations need to adapt work processes to leverage new technologies effectively.
Employee Skills Gap: Many employees may lack the digital skills needed to use new AI tools effectively.
Focus on Busy Work: Firms need to move beyond automation of tasks and encourage more strategic use of employee time.

Additional Challenges:

Burnout: 83% of employees in Asia report feeling burned out, hindering engagement and productivity.
Financial Strain: Financial worries are a major contributor to employee burnout, impacting their well-being and performance.
Implications:
Need for Skill Development: Investing in upskilling and reskilling programs to bridge the digital skills gap is crucial.
Workforce Flexibility: Creating flexible work arrangements can help attract and retain talent while combating burnout.
Focus on Employee Well-being: Programs promoting financial literacy and stress management can improve employee well-being and performance.

By addressing the challenges of work design, skills development, and employee well-being, Asian firms can unlock the true potential of technology and build a more engaged and productive workforce.

_SOURCE:_{https://www.mercer.com/en-sg/insights/people-strategy/future-of-work/gtt-asia/}

APAC Workforce Trends and Their Impact

Digital Transformation:

The rapid technological advancements driving the APAC region, is creating a demand for employees with digital skills (data analytics, AI, cybersecurity). This skills gap can hinder organizational growth if not addressed.

The Great Resignation (APAC Version):

High employee turnover is a challenge, with many seeking better opportunities and work-life balance.

Aging Workforce:

The report identifies an aging workforce in some APAC countries, potentially leading to skill gaps and knowledge loss.

Diversity, Equity, and Inclusion (DE&I):

Importance of fostering a diverse and inclusive workplace is emphasized.

Analysis and Recommendations:

Upskilling and Reskilling: Organisations need to invest in training programs to equip employees with the digital skills necessary for the evolving market.
Employee Experience: Prioritizing employee well-being, offering flexible work arrangements, and creating a positive work environment are crucial for attracting and retaining talent in a competitive landscape.
Adapting to Change: Organisations must be open to evolving work models (hybrid, remote) to accommodate changing employee preferences.
Embracing Diversity: Building a diverse and inclusive workforce fosters innovation and improves company performance.

Economic growth in the Asia Pacific region is expected to be more robust in 2024 and 2025 and is projected to surpass inflation next year. This can have a positive impact on the salary increase rates within the region. From 2023 to 2025, it is expected that salary growth will remain stable in most markets, except for China. Below is a quick look at the compensation landscape across some key markets in Asia Pacific:

China — Salary increase rates are projected to reach 5% for the first time in China in 2025 and are expected to vary across different industries.
Taiwan — The strong demand for AI is impacting the compensation for high-tech manufacturing companies.
Japan — Government policies, union pressures and a high employment rate of 98.1% across fresh graduates have been increasing pay levels at local companies, putting them close to the rates offered by multinational organisations.

_Source:_{https://www.wtwco.com/en-id/insights/2024/09/major-trends-in-asia-pacific-and-their-impact-on-the-employment-landscape}

Thailand — The financial services industry is allocating more of its salary budget toward senior roles and is using variable pay to motivate employees, while the high-tech sector is devoting a larger chunk of its salary budget to junior levels and is leveraging base pay to attract talent.
Malaysia — The country’s Progressive Wage Policy has the potential to alter the compensation for the production and labour workforce.

Economic and geopolitical trends in Asia Pacific

APAC Employers Focus on Wellbeing

Prioritising employee wellbeing can have a substantial impact on business performance. Recently, the 2024 Wellbeing Diagnostic Survey found that a majority (69%) of Asia Pacific employers use their wellbeing strategy to compete for talent:

Source: https://www.wtwco.com/en-id/insights/2024/09/major-trends-in-asia-pacific-and-their-impact-on-the-employment-landscape

Employer priorities are misaligned with employee needs

Companies are increasingly prioritizing employee well-being due to its positive impact on business performance. Despite this, a significant portion of employees still struggle with multiple well-being issues, particularly financial well-being. To address this gap, more than half (81%) of the organisations surveyed, are planning to enhance their well-being strategies by integrating them into their company culture and improving communication. This holistic approach aims to create a more engaged, productive, and resilient workforce.

_Source:_{https://www.wtwco.com/en-id/insights/2024/09/major-trends-in-asia-pacific-and-their-impact-on-the-employment-landscape}