APAC Workforce Challenges & Solutions

Asia-Pacific region Workforce Challenges and Solutions

Businesses are realigning as the economies of the Asia-Pacific region recover from the effects of COVID-19, with growth expected to reach 7.2% in 2021. Companies are growing locally, regionally, or internationally in an effort to take advantage of new possibilities and profit from market circumstances. However, for the majority, finding and keeping talent to fuel development is still an imposed workforce challenge. Intense competition is growing for the top Talents.

Likewise, companies are evaluating how the epidemic has altered daily operations. Many businesses are still establishing their management and hiring practices more than a year and a half later.

What are the core challenges?

Every business faces various difficulties when hiring, each of which are unique to the respective businesses depending on its industry, size, and scale. However, the most common challenges posed by the business environment in the Asia-Pacific region include:

• Global Mobility Restrictions Caused by the Pandemic
• Lack of Talents in the Local region
• Increased drop-out in certain sectors

Global Mobility Restrictions Caused by the Pandemic

Constraints on both domestic and international travel posed one of the major obstacle in growing the workforce. Relocation have been hampered by the global mobility restrictions. Before the advent of COVID-19, recruiting abroad was a little challenging but feasible. Importing Talents is now extremely constrained or impossible due to governmental travel restrictions. The increased regulation poses a risk of limiting company’s development potential.

Lack of Local Talents

It’s possible that those with the best abilities to assist business development don’t live in the nation where the company is headquartered. New technologies are developing more quickly abroad, putting local talent behind and without the most latest skills. Additionally, these talents need time to learn, and nations cannot produce qualified graduates at the required rate. Businesses are compelled to find new employees in this situation. As a result, it is frequently necessary to gather the right talent and skills abroad.

Increased drop-out in certain sectors

Asia-Pacific (apart from Australia and New Zealand) are witnessing an increase in drop-out employees in in particular segments or with particular skill sets posed a significant problem. Employee are quitting their job for various reasons. In times of strong industry demand, some look for better employment prospects elsewhere. The isolation and “Zoom fatigue” experienced by COVID-19 work from home arrangements has left many individuals feeling disengaged, while others just desire a new beginning.

Given the intense competition for the best people, the scarcity of talent in the area, and the limitations on international travel, retention is more crucial than ever.

Thanks to technology, businesses are no longer limited to recruiting locally but also hire internationally qualified talent. This tactic may or may not result in cheaper costs than the growing expenses of employment brought on by the “War for talent.”  Nevertheless, companies are considering new approach to hiring, employee retention, and skill enhancement in order to meet future demands.

High Demand for Sales and Technology Talent

There are two skill sets that are most in demand as Talents. First off, in today’s fiercely competitive marketplace, the company with the greatest salesforce has an edge over others and they are more likely to takeover most of the market share.

Technology has revolutionized the Asia-Pacific market resulting in companies targeting digital-savvy audiences. For instance, according to findings from Facebook and Bain & Company’s report, 70 million people aged 15 and above are new digital users since the beginning of the pandemic. The need for next-generation sales people who are adept at using analytics, digital technologies, and agile processes is being fuelled by these changes.

Second, technology is crucial in these unprecedented times to offer a top-notch online experience. Agile businesses who want to take advantage of the continuously changing digital market need a robust platform to connect with their target markets, customers, and consumers. These trends will prompt businesses to look for talent in technology, business development, digital marketing, and e-commerce as they continue to pursue growth.

Considering the work-from-home and the hybrid model.

The epidemic has made remote work the new norm. In fact, companies have observed that recruitment and retention of employees became easier when given the option to choose certain work arrangements.The ability for hiring managers to manage overseas talent without relocating them to where the business is situated is also made possible by location flexibility.

The majority of businesses are amenable to hybrid work arrangements that combine home and office time. While challenges are present, businesses that implement hybrid work may be more appealing for both hiring and retention. In countries such as China and Vietnam, companies have displayed their inclination  for a work-from-office arrangement.

Asia-Pacific companies are becoming more interested in exploring remote work options as they become more receptive to hybrid working. Many are open to hire and manage remote talent in order possess the best human resources. Some obstacles they might face include the following:

• Managing performance
• Diverse language and culture
• Working across different time zones

What’s Next?

The Asia-Pacific region continues to be a market with great prospects for companies looking to expand. Success involves seizing the opportunity for rapid expansion and acquiring the best Talent. Speed is of the essence for talent acquisition. Elitez Group has supported our clients in APAC to rethink their workforce strategy and provided regional talent solutions to keep them robust, adaptable, and competitive.