Talent attraction and retention challenges persist
A recent study conducted by Willis Towers Watson (WTW) has shed light on the difficulties faced by employers across the Asia Pacific (APAC) region in attracting and retaining talent. According to the report, a staggering 89% of employers in APAC are finding it challenging to attract new talent this year. Of those surveyed, 39% anticipate these challenges to persist until 2023.
Furthermore, the study highlights that 88% of companies are grappling with the retention of their employees this year. However, there is a glimmer of hope as this figure is expected to decrease to 54% by next year, signalling a potential improvement in the retention landscape.
Tan Yong Fei, Work & Rewards Leader at WTW in Singapore, emphasized the importance of employers adopting creative approaches to address the recruitment and retention hurdles they face. Fei stated, “With significant risks in the global economy, continued high inflation, and employers grappling with talent supply challenges, organizations need to get more creative to address attraction and retention challenges.”
In response to these challenges, employers have been taking non-monetary actions to enhance their talent attraction strategies. The report reveals that 67% of employers have increased workplace flexibility, while an additional 20% plan to implement similar measures in the coming years. Furthermore, 58% of respondents indicated that they have placed a stronger focus on diversity, equity, and inclusion (DEI) initiatives, with 24% planning to do the same in the future.
To entice prospective employees, 43% of companies have improved their recruitment offers by providing sign-on bonuses and equity/long-term incentive awards. Additionally, 22% of respondents are planning to adopt this approach in the years to come.
The challenges in talent attraction and retention are particularly pronounced in Singapore, where 75% of employers reported difficulties in attracting staff, especially those with digital skills. To counter this, organizations in Singapore have been implementing non-monetary actions to boost recruitment and retention efforts. The report highlights that 57% of employers in Singapore have expanded their DEI initiatives to retain talent, while 48% have increased flexibility by allowing remote work. Additionally, nearly 40% have made changes to their compensation programs, and 34% have focused on enhancing the overall employee experience.
Fei emphasized the importance of catering to the diverse preferences and needs of the workforce while delivering an exceptional employee experience for all. The dynamic nature of the employee population presents a challenge for employers, requiring them to strike a delicate balance.
The report underscores the persistent challenges faced by employers in attracting and retaining talent across the APAC region. However, with the adoption of creative strategies and a focus on workplace flexibility, DEI initiatives, and improved recruitment offers, organizations can mitigate these challenges and create an environment conducive to talent growth and retention.