Talent woes are standing in the way of APAC organisations meeting their growth goals.
By Zee Johnson
Mercer’s Global Talent Trends 2022-2023, a pulse survey of global HR leaders, found that nearly six in 10 executives expect their firms to post stable or high growth this year. But in APAC, that optimism is met by reality—54% of leaders say they will struggle to meet demand with their current talent models.
They’ve attributed their troubles to high staff turnover, an increase in quiet quitting, and difficulty in quickly hiring the right talent at the right price. But to combat these talent concerns, leaders plan to:
- improve the employee experience for key talent (58%);
- rethink compensation philosophy and implement new practices (54%); and
- improve workforce planning (53%) this year.
The report found that just half of APAC employers offer flexible work options for all employees, which is lower than the average (56%). Changing work models could be a way for leaders to get around talent woes. But close to 30% do not plan on offering flexibility to all employees in the future.
Further, with inflation affecting employers globally, APAC organisations are joining other regions in using bonuses to boost compensation packages and/or implementing pay adjustments.
And along with inflation comes yet another predicament: the cost-of-living crisis. The survey showed that 22% of APAC companies fell below the global average of 29% when it came to providing a cost-of-living adjustment or other wage increases for the most impacted markets. Providing aid, the report says, was one of the most sustainable ways of managing compensation for organisations today.
Another way that companies are sorting through their talent challenges is by making progress with initiatives that destigmatize mental health and encourage self-care, (40%, up 6% from last year). However, the region continues to lag in areas like providing on-demand access to virtual mental healthcare (26% versus a global average of 32%). Just 14% (versus a global average of 21%) have invested in financial wellness programs that boost long-term financial security for their employees, especially the older populations.