Flexible work is where Asian employers fall behind, said Mercer recently when releasing it Global Talent Trends Study 2023.
According to the study that surveyed close to 2,500 HR leaders globally, only half of employers in Asia say they offer flexible work options for all employees, which is lower than the global average of 56%.
Close to 30% do not plan on offering flexibility to all employees in the future, Mercer said, adding that this falls below employees’ expectations, considering that nearly 70% of employees said last year that not being able to work remotely or hybrid permanently is a deal breaker when mulling whether to join or stay with an organisation.
When it comes to compensation package including bonuses or giving pay raises, the region is on par with global peers, Mercer noted.
However, Asia (22%) fell below the global average (29%) in providing a cost-of-living adjustment or other wage increases for the most impacted markets which is a more sustainable way of managing compensation for organisations, the firm said.
Other key findings
- While 40% of employers have made progress with initiatives to destigmatise mental health and encourage self-care (compared to 34% last year who planned to introduce a well-being strategy), the region continues to lag in areas like providing on-demand access to virtual mental healthcare (26% versus a global average of 32%).
- Only 14% (versus a global average of 21%) have invested in financial wellness programs that boost long-term financial security for their employees, especially the older populations.
- While employers in Asia outperform their global counterparts at safeguarding the future employability of its workforce through training (60% versus a global average of 59%) and understanding talent development needs (56% versus a global average of 53%), they lag in leveraging tools and technology such as AI to assess existing skills and identify skills gaps.
- In line with their global peers, less than 5% of HR leaders consider themselves advanced on this journey.
An employer-employee disconnect
The talent challenges organisations face today boil down in large part to a disconnect between what employers offer and what employees expect,” said Puneet Swani, Mercer’s Senior Partner and Career Leader for Asia, IMEA and Pacific.
Flexible work arrangement, which is now an expectation, is a good example, Swani pointed out.
“There is no silver bullet when it comes to flexible work arrangements,” he said.“Apart from weighing the pros and cons, organisations need to clearly communicate the reasons behind their return-to-work policies.”
When adapting to the future of work, it’s also critical for leaders to build a skills-based talent strategy, he advised.
They could start by breaking down jobs into tasks or activities, and have a clear understanding of what skills are required to perform those tasks effectively, he said.
Given high business growth expectation — six in 10 executives globally anticipate stable or high growth despite economic headwinds, Asian firms will struggle to meet growth goals with current talent strategies, Mercer pointed out.
In the region, business optimism is tempered by talent challenges with 54% of respondents saying they experience talent hiring and retention problems such as will high staff turnover, increase in quiet quitting, and difficulty hiring the right talent at the right price quickly enough, the firm added.
