There is a prevailing optimism in APAC, especially in the realm of people management. Despite global headwinds, the rise of new technologies, strategies, and models is helping build momentum – shaping a bright future for the region’s HR landscape.

At G-P, we understand the need for companies to adapt to new technologies and the ever-evolving world of business. Let’s explore the top 3 HR trends in APAC and the exciting prospects they bring.

1. Artificial intelligence evolves from buzzword to powerful tool.

AI has been a hot topic in APAC for quite some time. The technology is being used in different industries — from agriculture to healthcare, finance, and education. According to the International Data Corporation, AI spending in the region is set to reach USD 49 billion by 2026, with a compound annual growth rate of 24.5%.

At the HR Tech Festival Asia 2023, world-renowned research analyst Josh Bersin described how AI is being used to create more intuitive job designs, catering to the needs of businesses as well as talent. When it comes to HR, AI is expected to streamline processes and improve outcomes. Recruitment and performance management, for example, are prime avenues for data analytics and insights to shine.

Not only can AI analyze CVs, but it can also research professional profiles on websites like LinkedIn or sift through candidates’ online portfolios and bodies of work. With this information, AI can make informed recommendations regarding a candidate’s application. It can even match jobseekers to ideal positions, offering companies valuable insights into where individuals can achieve the highest level of success within the team.

Performance reviews and subsequent training are also increasingly influenced by AI. Through performance analysis, AI can identify areas for improvement and suggest optimal training regimens. This approach can be used to compensate top performers and pave career pathways.

Needless to say, AI-driven performance reviews and training are gaining momentum in the APAC region and will continue to put traditional HR practices to the test.

2. Skills-based hiring is transforming talent acquisition practices.

In the same way that digital skills drive development, their scarcity is also one of the main catalysts for labor shortages in many parts of the world. This is why skills-based hiring is gaining traction in APAC —a topic that is widely discussed in the region, with several experts delving into the inherent benefits of this hiring strategy:

  • Wider talent pool: Skills-based hiring addresses one of the biggest challenges many HR teams face today. By placing more value on skills and competencies, instead of educational backgrounds and, in some cases, even experience, employers can gain access to a broader group of suitable candidates.
  • Dynamic potential: With this approach, positions are not restricted by an arbitrary number of years in college or employment. Instead, job searches target skills that can vary depending on the exact needs of the organization. This allows for more tailored job designs and efficient work processes.
  • Empowered employees: Since hires are based on skills and competencies, new hires are more likely to succeed in their role and feel empowered to perform their work. This also improves engagement and retention levels.
  • Customized training: On the other end of the spectrum, existing employees can also benefit from a skills-based approach. HR teams can leverage the same skills testing they use for recruitment to identify skills gaps, and, consequently, design customized trainings to fill them.

3. Remote arrangements improve employee satisfaction.

At this point, flexible working arrangements like remote work have not only proven to be a stopgap solution, but an entirely viable alternative to the traditional office-based setup. According to a report, 70% of organizations in APAC already have a strategy in place to provide the technology and tools needed for both in-person and remote work to thrive. And that number is only expected to grow.

As more companies embrace remote work, other opportunities are also emerging. Combined with skills-based hiring, remote work unlocks a whole world of possibilities in terms of potential hires. Talent can now be sourced and hired regardless of geography. Markets that were previously overlooked now have access to the same opportunities thanks to remote work. This sentiment was echoed by Charles Ferguson, General Manager – APAC at G-P, and John Antos, Vice President – Strategy, Asia Pacific and Global Payroll at ADP during their talk at the HR Tech Festival.

Aside from facilitating access to a wider talent pool, remote work has also been associated with enhanced productivity, retention, and overall employee satisfaction. PwC’s Global Workforce Hopes & Fears Survey revealed that 48% of APAC employees ranked the ability to choose where they work as a top priority.

What’s next for HR teams in the region?

HR teams in APAC can capitalize on these trends by taking the following actions:

  • Incorporate AI in recruitment, job design, and performance management.
  • Employ skills testing methods in talent acquisition efforts and performance reviews.
  • Widen the search for talent using a location-agnostic approach.
  • Provide flexible work opportunities to existing and future employees.

By streamlining job postings, prioritizing skills, and providing flexible work options, employers in the APAC region can build a resilient team for continued success.

Go global with a trusted partner.

For companies to leverage today’s trends and venture toward a more global future, it’s important to have a trusted partner to navigate the challenges of international hiring.

As a remote-first company with over 1,000 employees around the world, we understand the crucial role HR plays in the success of any organization. That’s why we back our industry-leading Global Growth Platform™ with the largest team of in-region HR and legal professionals to help companies hire in 180+ countries quickly and compliantly.

With us, you can hire and manage talent anywhere — no entity setup required. Our global employment products are fully customizable to cater to the specific needs of your company. Make no mistake – our solution does more than just support your global HR team. It empowers them with in-platform HR tools to streamline recruiting, onboarding, contract generation, payroll, benefits administration, and more.

Book a demo to learn more about how G-P can help your company go global.

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