In less than 20 years, the Asia Pacific region will represent 40% of the world's GDP, larger than the U.S. and EU combined. Currently home to the world's second- and third-largest economies, Asia is fertile ground for growth-oriented organizations, but this continuing rapid expansion puts additional strains on employers. Talent and labor shortages are only one of a series of challenges.
To capitalize on the market potential across the region, companies need to consider a host of complex issues. These include:
- Conducting rigorous workforce planning to define their near- and longer-term skill needs
- Sourcing the right talent and deploying it effectively
- Creating cost-effective pay, benefit and Total Rewards strategies that drive a high-performance culture
- Balancing global and local application and governance of workforce policies and programs
These challenges are even greater for organizations just entering Asia, many of which are unprepared to address the complexities of managing a workforce of so many different cultures, languages and characteristics.
Starting with the understanding that there is no single Asia, employers establishing or expanding their presence in the region need to consider how to do the following:
- Build and apply knowledge of local culture, customs and regulations to ensure a smooth start-up and transition of operations.
- Create talent management strategies that align with business needs and address the attraction, retention and engagement issues specific to that location.
- Design compensation programs that are competitive and attractive within an affordable cost framework.
- Develop benefit structures that account for the shifting needs of the local population.
- Understand the needs and motivations of the different segments of their workforce to ensure they are driving the right behaviors and level of commitment.