Up to 85% of employers across the Asia Pacific region face challenges in building their workforce, according to the 2021 APAC Workforce Insights Report from PersolKelly.

The report is based on a survey of 1,500 employers and hiring decision-makers from a cross-section of industries in 12 markets including Australia, China, India, Indonesia, Hong Kong, Malaysia, New Zealand, Singapore, South Korea, Taiwan, Thailand and Vietnam.

According to PersolKelly, the main issues impacting companies are restrictions on global mobility, lack of talent and high attrition among workers with specific skills. Salary costs also remain a major consideration.

The report found that organisations are finding it difficult to move people to their offices in

different markets. This is largely a result of government-imposed travel restrictions due to Covid-19, whether domestically or internationally. Tight local employment laws are also a constraint on talent mobility.

“Some emerging technologies are advancing faster overseas, leaving local talent out of step and without the latest skills,” the report stated. “These skills also take time to pick up, and markets can’t churn out acceptable graduates at the rate needed. As a result, businesses based here often have to look overseas to bring in the right talent and skills.”

Another issue that organisations face is the high attrition rate of employees in certain segments or with specific skill sets. With global mobility constraints and a lack of local talent, this problem becomes more pressing especially when companies are looking to grow fast, the report added.

“Employees are leaving jobs for various reasons,” the report stated. “Some emerging technologies are advancing faster overseas, leaving local talent out of step and without the latest skills. These skills also take time to pick up, and markets can’t churn out acceptable graduates at the rate needed when demand in their sector is high.”

Over half, or 55%, of the companies who struggle to fill positions locally are willing to engage overseas talent remotely.

Another key finding from the report showed that half (50%) of the companies surveyed are receptive to hybrid work arrangements, a mixture of home and office. Firms that offer this operational mode are more likely to attract and retain workers, PersolKelly found.

“Although more companies are willing to hire remotely and create hybrid work arrangements, they are still grappling with implementation,” the report stated. “The main roadblock is uncertainty about how to track and monitor the performance of their team.”