More than half of Singaporean firms plan to tap on a distributed workforce to bridge talent gaps, improve profitability
Remote, the leader in building, managing, and supporting global distributed workforces, today released the results of a survey of remote work adoption among Asia-Pacific companies. The IDC InfoBrief sponsored by Remote, “Bridging the Talent Gap: The Future of Hiring in the Asia/Pacific Region,” March 2023, IDC Doc #AP241420IB, features findings from the IDC AP SMB and Mid-Market Hiring Trends 2023, and highlights the growing trend of remote hiring and distributed workforce strategies in the region.
The survey demonstrates that, in the three years since the global remote work revolution began, Singaporean companies have increasingly looked towards a model of having permanently distributed teams spread across multiple locations, in an attempt to address current business priorities, which include addressing major talent gaps in the workforce while improving profitability in the current macroeconomic climate. Out of the four countries in the Asia Pacific region surveyed, which include Australia, India, and New Zealand, Singapore came in second in terms of international hiring maturity, which covers payroll management, talent sourcing, and technology adoption.
Key findings from the survey include:
– More than 50% of Singaporean SMBs and mid-market companies are planning to hire 20- 30% of new employees remotely in the next 12 months
– Finding the right mix of required skills in target countries remains the greatest challenge for Singaporean firms looking to hire internationally, alongside building a stronger employer brand and a lack of understanding of compliance requirements in international markets.
– 44% of local SMBs are at the “aware” stage of hiring maturity, where internal transfers between countries are typically used to bridge skills gaps across markets.
“The pandemic has fundamentally changed the way businesses operate, and we are seeing that companies in the Asia Pacific region have been among the fastest in the world to adapt their hiring and workforce strategies for the current era,” said Job van der Voort, CEO and co-founder of Remote. “As remote work continues to gain traction, companies that are able to tap into the international talent pool will have a significant advantage over those that do not.”
The InfoBrief further highlights that most companies in the region rely on internal expertise to hire and retain international workers, which could become unmanageable as the ratio of international remote hires in their total workforce grows. One in three companies (31%), however, are using Employer of Record (EOR) platforms for onboarding and management of their global workforce. EORs help companies employ and pay international employees living in countries where they do not have a legal entity and manage the complexities of local compliance, payroll, benefits, taxes,
and more. This enables business and HR leaders to focus on tasks such as workforce planning, sourcing and retention strategies to drive the new and emerging work culture. The IDC AP SMB and Mid-Market Hiring Trends 2023 study surveyed respondents from SMBs and mid-market companies in Australia, India, New Zealand, and Singapore at the end of 2022, with the aim of understanding international hiring trends in the region. For a copy of the IDC InfoBrief, visit https://idcdocserv.com/AP241420IB_FINAL