Five Challenges in Asia’s New “Age of Talent”

"This is an age where talent makes all the difference to a nation's success," said Singapore’s Prime Minister Lee Hsien Loong in his 2022 National Day speech. "We need to focus on attracting and retaining top talent. Business follows the talent.”

Global companies are diversifying their investment strategies in Southeast Asia, as are Asia’s leading firms. Singapore, Thailand, and Hong Kong are among the nations introducing new visa formats to recruit across borders, attract talent, and build growth.

Taking DKSH as an example, we are focusing on providing more internal mobility opportunities as a priority as we build and upskill our existing talents, we must enable them to flourish; be it across Business Units or different markets. “Enabling people to flourish” is the phrase DKSH uses for the people element of our sustainability strategy.

The speed and competition for talent in the market will remain high. Companies will not be able to hire fast enough and will focus increasingly on upskilling their existing talent base while complementing their talent strategies with other critical hires.

Governments and companies recognize that the race for talent to be competitive is here to stay. It will likely impact most industries, but especially high-disruption sectors, like artificial intelligence, machine learning, robotics, software engineering, online retail, extended reality, metaverse engineering, fintech, telehealth, biotechnology, and agritech.

Takeaways:

• Governments are introducing talent visas to help their companies gain an advantage in highly competitive markets
• Transferable intelligent technology skills that can be applied across different sectors will be in high demand
• Employers are seeking employees who can think critically and adapt quickly to technological advances

Businesses across Asia understand that digital literacy and data analytics skills drive business efficiency. For example, DKSH is working with Microsoft’s Enterprise Skills Initiative to deliver digital skills training programs to employees at its Corporate Shared Services Center in Malaysia.

Employees can register for certified training courses that deepen their technical knowledge across Microsoft’s product portfolio. The courses, delivered by in-region online tutors, focus on skills to enhance the ways that teams compile, analyze, and share information.

IT staff can also expand and update their technical expertise in key areas such as network management, programming languages, and data analysis. These are important because within the IT community, new standards, new systems, and new ways of working constantly evolve. Enabling IT teams to stay current in their field can motivate them to learn and apply newly acquired skills and knowledge in their work.

Takeaways:

• Employees seek opportunities to improve and upgrade their technical skills throughout their career
• Gaining formal qualifications provides a tangible incentive to complete technology-based training courses
• Skilled IT talent is in strong demand. Providing training programs that enable staff to keep pace with tech industry trends can enhance job satisfaction

Businesses are regularly surveying employees’ attitudes on various issues to support recruitment and retention. An emerging priority is environmental protection. A survey by PwC revealed that 66 percent of employees in Asia say they lack support to make ethical decisions, and 73 percent feel unsupported to help minimize their company’s impact on the environment.

An example is Belonging@DKSH program. It is our approach to diversity, equity, and inclusion. As a purpose-led organization, it is about creating an environment to make sure that every single one of our people feels a sense of comfort, connection, and contribution.

Mental wellness is another timely issue. More companies are addressing the emotional well-being of employees after the pandemic disruptions to working and living. Customized telehealth apps and platforms enable staff to privately discuss issues such as stress, anxiety, and depression, or seek advice from counselors and learn thought-balancing techniques. Gamified activities for staff using health-tracking wearables incentivize them to monitor their physical and mental health and make healthier choices around diet and exercise.

Takeaways:

• Employees increasingly expect their employers  to embrace diversity, equity, and inclusion
• Businesses are introducing digital therapeutics and mental health support apps to support the overall well-being of staff
• Understanding employee attitudes and concerns regarding personal and social issues are important factors in improving retention rates

The pandemic forced businesses and employees to innovate and find new ways to manage the working week. Those experiences, both positive and negative, remain top of mind, and the demand for less-rigid working is crystallizing.

What does flexible working mean, and how can we make it work for us? This is a question many companies are asking themselves. Flexible working can include hybrid, remote, flexible hours, and 100 percent in-office. Since September 2022, workers in Malaysia can legally apply to their employer for flexible working arrangements following an amendment to the Employment Act 1955.

New remote working trends will develop as employers respond to changing attitudes among existing staff and potential recruits, as well as to fit the needs of the individual. A driving factor will be the use of automation technology “to minimize physical movement and interaction,” says a McKinsey report. “This will likely pick up steam in the next 18 to 24 months,” it adds, although different patterns will emerge across Asia depending on the demographic, economic mix, and automation investment.

Takeaways:

• Remote working trends will continue to develop, with distinctive features in different countries
• Automated technology, 5G access, and Internet of Things connectivity will make it easier and more convenient to work beyond the office
• Flexible policies will be a differentiating factor for potential recruits choosing their next career move​​​

Markets across Asia are aging as birth rates decline and life expectancy increases. Population shrinkage is forecast over the coming decades in China, South Korea, Thailand, and Vietnam, while Japan and Singapore are rapidly aging.

As noted in our previous article Five Reasons Why Asian Markets are Creating Ageless Societies, one outcome will be an altered size and composition of the workforce. This will create fresh employment challenges for companies and governments. The mandatory retirement age will be extended in some markets, and firms will utilize the knowledge and experience of senior employees in different ways.

Companies in Japan are introducing policies to entice retirees to return to work, learn new skills and adapt life-long knowledge. Incentivizing seniors to mentor younger associates help them feel included and valued in society, earn extra money, and enhance their spending power.

Takeaways:

• Shrinking workforces will necessitate skills training programs for existing staff that enable them to work across departments and locations
• Increasing the mandatory retirement age will mean more people stay in work for longer and expect tailored working terms and experiences
• HR professionals will create workplace policies catering to a broader age spectrum than ever, from high-school graduates to seniors working in their retirement years