54% of Asia-based businesses face talent-related challenges
A new study by Mercer reveals that despite global economic challenges, almost six in 10 executives believe their firms will achieve stable or high growth. However, in Asia, businesses are facing talent-related obstacles, with 54% of respondents indicating that their organizations will struggle to meet demand with current talent models. The primary reasons for the talent gap are high staff turnover, an increase in quiet quitting, and difficulty hiring the right talent quickly enough. To address these challenges, HR leaders in Asia plan to improve the employee experience for key talent, rethink compensation philosophy, and improve workforce planning.
The survey also found that only half of employers in Asia offer flexible work options for all employees, which is lower than the global average. About 30% of respondents do not plan on providing flexibility to all employees in the future. Puneet Swani, Mercer’s Senior Partner and Career Leader for Asia, IMEA and Pacific, suggests that there is no silver bullet when it comes to flexible work arrangements, and organizations need to clearly communicate the reasons behind their return-to-work policies.
The study also reveals that Singapore is the second fastest-growing market in the Asia-Pacific region by the number of organizations hiring. In response to inflation, employers in Asia are on par with their global peers in using bonuses or implementing pay adjustments to boost employees’ total compensation package. However, the study notes that Asia falls below the global average in providing cost-of-living adjustments or other wage increases for the most impacted markets, which is a more sustainable way of managing compensation.
Although 40% of employers in Asia have made progress in destigmatizing mental health and promoting self-care, the region continues to lag behind in areas like providing on-demand access to virtual mental healthcare and financial wellness programs. Only 14% of employers in Asia have invested in financial wellness programs that boost long-term financial security for their employees, particularly older populations.
Puneet Swani, Mercer’s Senior Partner and Career Leader for Asia, IMEA and Pacific, commented: “The talent challenges organizations face today boil down in large part to a disconnect between what employers offer and what employees expect. Remote working, which is now an expectation, is a good example.”