Despite the challenges of rapidly rising inflation, Asia Pacific markets are outperforming peers to maintain a strong outlook in the global economy.
In 2022, organisations planned higher salary budgets to maintain competitiveness in a tight labour market. However, there is a growing concern with turnover as attrition rates in 2021 and 2022 became higher than in 2019 for most Asia Pacific markets. According to our 2022 Salary Budget Planning Survey Report (July edition), 89% of organisations had difficulty attracting talent, while 86% experienced challenges in retention.1
Figure 1. Asia Pacific employers experiencing difficulties with talent attraction and retention (to a great/moderate extent)
Many Asia Pacific employers are focusing their retention efforts on key talent. Almost half of organisations have conducted compensation reviews for specific employee populations. Nearly two-thirds have either provided a retention bonus, lump sum payment or allowance, or are considering doing so. And over 80% have applied or are considering targeted increases for key talent.1
Figure 2. Employers in Asia Pacific taking pay related actions to address talent and retention concerns
Looking ahead to 2023, around half of Asia Pacific organisations expect to still face attraction and retention challenges. Aside from targeted pay-related actions, many organisations are taking steps to incorporate workplace flexibility and diversity, equity and inclusion (DEI) into their rewards.
Workplace flexibility has also become a major factor in attracting and retaining talent.
Figure 3. Asia Pacific organisations are including workplace flexibility in their attraction and retention efforts
Salary Budget Planning Report – Global
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Figure 4. Employers in Asia Pacific are placing broader emphasis on DEI efforts
Elevate the employee experience to create a culture of care
While compensation remains the major driver in talent attraction and retention, global events of recent years have highlighted for employees the value of intangible rewards, such as work flexibility and an environment that embraces DEI. By taking a proactive approach to leverage and integrate both traditional and less traditional offerings, employers can strive for more holistic total rewards and an employee experience that can translate to higher engagement and productivity and overall business performance in the long-term.
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Today’s talent are seeking employers who are serious about DEI efforts and follow through on promises.
