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The UK Chartered Institute of Personnel and Development (CIPD) has found that employers in Asia are engaged in a bidding war on salaries as recruitment and retention becomes more difficult.
More than nine in ten employers in Asia are facing difficulties recruiting and retaining talent and an inability to match candidates' salary expectations is the top reason why companies in the region are struggling to fill roles.
This is according to a new survey of over 1,000 employers across Hong Kong, China, South Korea, Malaysia, Singapore and Taiwan on talent resourcing, which was analysed in partnership with the Hong Kong Institute of Human Resource Management.
It found that 48% of organisations expect to increase staff levels in the next 12 months although resourcing budgets in Asia remain flat. When it comes to retention strategies the survey found that increased pay and benefits topped the list of activities Asian employers are engaging in. Less than a third, however, cited that they use learning and development opportunities as a way to keep staff engaged and build internal talent pipelines to support future growth.
“As Asia continues to experience growth despite the global slowdown, it's perhaps not surprising to learn that employers in the region are engaged in a war for the best talent to fuel their growth. However, it's important to avoid getting into an unsustainable bidding war on salaries. Instead, employers should get better at communicating a broader package of incentives to prospective employees - including, for example, the learning and development opportunities they can offer,” said Claire McCartney, research adviser at the CIPD.