The Corporate Executive Board published a great infographic summarizing the key HR risks in Asia. Their research indicates that 80% of the global GDP growth through 2030 will come from Asia. However, the talent risks the region faces may pose a barrier to realizing the promise of Asia.
Here is my take on some of the findings and it’s implications for HR leaders in Asia:
- Finding: 9 out of 10 senior executives expect rising labour costs in Asia this year. Implication: HR leaders in Asia already know how hard it can be to attract and retain top talent. And with rewards featuring as a top attraction & retention driver in most Asian markets, this finding is not surprising. HR leaders could look at novel approaches to optimizing their Total Rewards spend. Using powerful analytic tools such as Conjoint Analysis, they can spread rewards dollars in line with employee preferences, with a view to maximize attraction / retention. In several cases, it is possible to maximize these outcomes with the same spend, just by changing the allocation to preferred rewards elements.
- Finding: Employees in Asia are more expensive to recruit, expect to get promoted 30% faster and have a lower intent to stay. Implication: Apart from optimization of total rewards, HR leaders could look at creating a differentiated employer brand and aligning their HR strategies to deliver the employee value proposition. This could give them an edge in the talent marketplace and position them as a destination employer.
- Finding: Leaders in Asia are younger, less tenured and less experienced against their global peers. Implication: HR leaders should re-look at their leadership and managerial development programs. Instead of taking a piecemeal approach to training programs, they could look at more comprehensive ways to help leaders / managers understand their roles, build technical & relational capabilities and drive performance.
Do these issues affect your organisation in Asia? What are other HR risks you face and how are you addressing them?