ASIA: Nearly half of employers in Asia are making bold plans to expand their headcount in 2025 as they confront ongoing skill shortages and aim to close critical workforce gaps, according to a new report by Hays featured in an article published by HRD Asia. This strategy highlights the region’s growing focus on recruitment and talent retention, responding to both the challenges of an evolving labour market and the need to secure a competitive edge.
Skill shortages drive recruitment push
Hays’ latest report surveyed over 8,700 skilled professionals and nearly 3,700 employers across key Asian markets, including Singapore, China, Hong Kong, Japan, Malaysia, and Thailand. The findings reveal that 46% of organizations in Asia are planning to expand their workforce this year, a modest increase from 44% in 2024. As businesses face moderate to severe skill gaps, 27% of employers are making recruitment a top priority for their HR departments.
According to the report, 62% of employers reported experiencing significant skill shortages over the past year, with the primary causes being fierce competition from other companies (47%), insufficient pay levels (33%), and limited opportunities for career advancement (27%). With these issues in mind, companies are signalling their intention to address these gaps through hiring and more focused investment in human resources.
A shifting focus on employee retention
While recruitment efforts are gaining momentum, retention remains a critical focus for employers across the region. Marc Burrage, Managing Director for Hays Asia, emphasizes that organizations must also adapt to internal workforce dynamics to prevent unnecessary turnover. In fact, 32% of employers are prioritizing employee retention as a strategic goal this year.
The rising costs of recruitment, along with the potential loss of valuable organizational knowledge, are motivating businesses to rethink their approach to leadership development and career progression. To address these challenges, Burrage suggests that companies rethink their leadership pipelines, focusing on upskilling programs and offering clear internal mobility opportunities to prevent top talent from seeking opportunities elsewhere.
The job seeker’s dilemma
As companies intensify their recruitment and retention strategies, employees across Asia are also considering their career options. The report reveals that 55% of employees in the region are actively looking, or planning to look, for new jobs in 2025. The main drivers for this trend include the lack of future career opportunities (43%), job insecurity (22%), low salary (15%), a desire for more challenging roles (15%), and poor work-life balance (15%).
These findings underline the importance of creating clear and attractive career advancement pathways. Employers who fail to meet these expectations risk losing talent to competitors. As Burrage concludes, “Leaders must evolve their approach to leadership pipelines and upskilling programs to retain and attract the workforce of today.”
In response to these findings, businesses in Asia are positioning themselves to compete for top talent and secure a future-ready workforce that can thrive in an increasingly dynamic global economy.