In 2023, Asia-Pacific (APAC) businesses grappled with an anticipated economic downturn, paired with the concerning rise of operational expenses. Despite the apparent slowing down of recruitment and job growth, the ongoing shortage of skilled talent in the region persists.
The 2023 Hays Asia Salary Guide revealed that the challenge of a talent and skill gap continues to be the foremost obstacle for employers throughout Asia. Therefore, it becomes clear that APAC organizations need a strategic directive: They must collectively strive not only to retain their current workforce but also to acquire new expertise to facilitate workforce growth.
The 2023 Hays Asia Salary Guide reveals that salary greatly affects decisions about staying in a job or seeking new ones. This impact is stronger as global living costs rise, guiding individuals as they plan their next career steps. Surprisingly, data from the last five years shows a gradual decrease in the number of people actively looking for new jobs. This suggests that job security and confidence now play a crucial role in career decisions.
Despite this, the desire for new career opportunities remains strong in 2023 across Asia. However, a significant change is evident: The number of people actively seeking jobs has notably decreased. This trend, observed from 2019 to 2023, is particularly pronounced in China, Hong Kong, and Japan. Even those not currently job hunting show a preference for new opportunities.
As living costs rise worldwide, employees’ choices to remain in their present jobs or explore new opportunities are notably swayed by their salaries. However, this influence extends beyond mere compensation. Aspects of their work experience, such as the allure of career challenges, the balance between work and personal life, and the adaptability of work arrangements, also hold substantial importance. Notably, work-life balance and the flexibility of work arrangements play a pivotal role in fostering employees’ dedication to their current positions.
These trends represent significant shifts in the human resources (HR) landscape in APAC. How can HR teams harness their potential and effectively respond to these evolving demands? Are there distinctive trends specific to Asia that warrant attention? What strategies are imperative to equip APAC businesses to adeptly navigate the present and future HR complexities?
Here are three HR trends that global mobility teams—in the APAC region and worldwide—need to know:
Trend #1: Flexibility
Except in China, where only 27% of participants emphasized it, flexible working arrangements have become increasingly important across all markets. Employees now seem more likely to stay in their jobs if they are offered work-life balance and flexible work arrangements, surpassing other factors. This shift may be due to the gradual decline in work-life balance across all markets over the past five years.
Interestingly, it appears that only Chinese employers have embraced the work-life balance trend, leading to a noticeable increase in employees reporting the availability of flexible work options compared to the previous year. Meanwhile, Japan, Malaysia, and Singapore have experienced more employers requiring their workforce to work primarily on-site.
According to the most recent HR trends report from PwC, a noticeable agreement among employees highlights their growing expectations for customized flexible work setups. This insight comes from a study involving 51,000 participants from 44 different countries. Here are some important statistics to consider:
A substantial 62% of participants express a preference for a hybrid blend of in-person and remote work.
A notable 63% indicated their anticipation for their company to adopt such an approach within the coming 12 months.
In the APAC region, a shared feeling is evident, with 68% expecting their employers to adopt hybrid work in the coming year. Interestingly, this corresponds with about the same number of employees who prefer this arrangement. In this context, only 10% of workers plan to opt for exclusively in-person work a year from now.
Trend #2: Demand for Re-Skilling
In career development, diverse trends emerge. About 47% of Chinese workers prioritize retraining for new job roles over improving soft skills, while in Malaysia, 58% emphasize learning digital tools and platforms, valuing them more than technical skills. Both regions face a shared challenge: a lack of time to enhance these skills, a concern echoed by employees.
Employers emphasize soft skills, like communication, problem-solving, and teamwork, while hard skills, particularly technical and analytical abilities, dominate employer preferences across Asia. Yet, nuances arise. Hong Kong and Singapore stress presentation skills, China and Japan value project skills, and Japan prizes language proficiency, likely due to job requirements. Malaysia’s distinct narrative highlights a desire for managerial skills, indicating employers’ focus on strong leaders.
Trend #3: Diversity and Sustainability
In the APAC region, diversity and inclusion are gaining prominence as influential factors shaping career paths. Awareness of these issues is growing, affecting employment choices. Notably, a shift is occurring: More individuals now view the lack of equity, diversity, and inclusion policies in their workplaces as key reasons for seeking change in 2023. This trend is particularly notable in China, where it has increased from 8% to 13% in a year.
Similar sentiments are echoed among those who intend to remain in their current jobs. About 21% of them see the presence of these policies as guiding factors for continuity. In China, this resonance is even stronger at 33%.
Interestingly, the role of sustainability, while not the primary factor in job decisions, is gaining attention. A majority emphasize the importance of employer commitment to environmental sustainability. In this context, China stands out with 54% considering this commitment pivotal. Singapore, however, holds a different perspective, with a significant group seeing sustainability as less important.
Navigating 2023 Talent Challenges in APAC
The HR trends in 2023 have significant implications for global mobility departments around the world. In the APAC region, businesses are facing economic challenges and rising operational costs, despite a slowdown in recruitment and job growth. In 2023, the challenge of attracting talent remains for APAC employers, set against a backdrop of shifting work dynamics and a desire for stability. To sustain business growth, adapting talent strategies is essential.
The three identified HR trends have diverse implications.
The APAC work landscape prioritizes workplace flexibility for improved quality of life, yet employers are shifting away from pandemic-induced hybrid models as of 2022. Achieving a balance between productivity and employee engagement is essential, given the potential impact of strict return-to-office mandates. Crafting effective flexible work policies involves tailored strategies, employee engagement, role-specific collaboration, and technology for seamless transitions between remote and office work. The growing importance of re-skilling necessitates training programs to maintain employee competitiveness amid industry changes. Additionally, the rising focus on diversity and sustainability underscores the need for inclusive workplaces and environmental commitments.
These 2023 APAC HR trends may impact global mobility departments by necessitating strategic adaptations to recruitment, retention, and workforce development strategies. This involves addressing the changing preferences of employees in the context of economic challenges and an evolving work landscape.
Worldwide ERC® is excited to welcome plenary speaker Peck Kem Low, chief human resources officer and adviser for workforce development at the Singapore Public Service Division of the Prime Minister’s Office, for the APAC Regional Summit (co-located with Global Business Travel Association) at the Shangri-La Orchid Singapore on 19-20 September. Learn more and register.