The HR talent market in Asia is currently undergoing significant transformations across numerous organisations, characterised by the scaling back of reporting layers and an increase in the number of HR professionals seeking new opportunities due to reorganisations or concerns about job security. Many organisations are experiencing a turnover of senior HR talent, choosing to promote from within or recruit at a more junior level to fill these gaps.
As companies navigate the evolving "return to the office" policies, these changes are creating polarising effects. Some companies are enforcing office attendance from three to five days per week, while employees generally prefer hybrid models that allow for three days in the office with flexible scheduling. In Singapore, there are new initiatives to formalise the process for employees to request flexible working arrangements. However, organisations are reassessing the viability of fully remote roles, considering relocating such positions to lower-cost countries.
There is a notable shift towards investing in advanced HR technologies to enhance efficiency and improve the employee experience. Significant investments are being made in AI and automation, which are transforming recruitment, employee engagement, and performance management. This technological integration is prompting a re evaluation of HR operating models. Large MNCs with a HR BP, CEO and shared services model are exploring relocating HR operations to lower-cost countries like India, Malaysia, and the Philippines, while mid-sized businesses with a HR generalist and CEO model are distinguishing mid-level HR Business Partner roles from operational roles to boost focus on HR operations, leading to stable or increased hiring in this area.
The demand for mid-level HR Business Partners and HR Managers is on the rise as these professionals take on more responsibilities to manage costs and improve efficiencies. Despite budget constraints that slow senior-level hiring, salaries for mid-level roles have increased, reflecting their critical importance in a tight labour market. HR leaders face a competitive job market with fewer senior roles available. Organisations are hesitant to hire seasoned professionals, preferring candidates who can grow into the roles. This has led many senior HR leaders to take on interim roles focusing on transformational changes and coaching while they continue their job search.
The focus on specialised HR functions such as leadership development, total rewards, and HR technology has intensified, especially with the growing emphasis on AI and HR automation. However, this increased focus has not necessarily translated into a rise in hiring. With organisations keen on managing costs, many are turning to consulting firms for HR technology needs or assigning additional data-related projects to existing employees in reward roles. This shift reflects a strategic approach to balance expertise enhancement with budget constraints.
Talent acquisition saw a slight uptick at the end of Q1, though it has not returned to previous levels. There were more strategic hires at the senior level in talent acquisition, reflecting the ongoing changes within the function as organisations frequently adjust their manpower and hiring location plans, requiring greater flexibility from talent acquisition professionals.
Despite these challenges, the HR market in Asia remains dynamic, driven by technological advancements and strategic shifts within HR functions. Companies that adapt to these evolving trends and effectively integrate technology while aligning HR strategies with broader business goals are poised to succeed in the competitive landscape of 2024
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