The changing talent landscape in Asia
Asia is rapidly emerging as a global hub for skilled talent and investment. In Southeast Asia alone, the international investment in the digital economy has grown to US$4.4 billion. The region’s rapid technological advancements and robust economic growth have turned it into a hotspot for skilled professionals.
India’s booming IT sector and South Korea’s leadership in robotics and automation highlight the region’s innovative edge. At the same time, the Philippines has solidified its position as a global outsourcing hub, fuelling demand for skilled workers in customer service, IT, and business processes.
However, this surge in demand has intensified competition for talent. A recent report from the World Economic Forum found that 53% of companies in East Asia and Oceania—including Japan, South Korea, Hong Kong, and China—identify talent shortages as a major barrier to transformation. These shortages make it harder for businesses to fully leverage new technologies, expand operations, and meet customer needs.
While the competition for top talent presents clear challenges, it also opens opportunities for growth. In this blog, we’ll explore some innovative recruitment strategies and explore practical solutions to help your company secure a competitive edge and thrive in Asia’s dynamic talent market.
Challenges and pain points in attracting and retaining talent
Bridging the skills gap in emerging industries
Industries like technology, fintech, and healthcare are growing rapidly, creating a huge demand for specialised skills. But many parts of Asia face a significant skills gap. In fact, 63% of employers say this gap is a major barrier to achieving their business goals.
To address this challenge, employers need to think beyond traditional hiring practices. Rather than focusing solely on academic qualifications, businesses should consider skills-based hiring and assess candidates based on their potential to learn, adapt, and grow.
In addition, more workers are also realising the value of skill development in boosting employability. According to CXC’s Contingent Workforce Experience survey, 39% of contingent workers in Asia reported gaining skills that enhance opportunities not only with their current clients but also with future engagements. This shows the importance of broadening skillsets to improve career prospects and adaptability.
How can organisations assess and hire based on skills rather than traditional qualifications in Asia?
- Craft skills-centric job descriptions: Create job descriptions that clearly outline the specific skills, experiences, and abilities required for success. Focus less on educational credentials and more on the practical skills needed for the role.
- Use skill assessment tools and techniques: Evaluate candidates using practical exercises, technical tests, and case studies to gauge their proficiency and suitability for the job.
- Build talent pipelines and promote internal mobility: Proactively identify individuals with the necessary skills both inside and outside the organisation. Invest in internal mobility and upskilling/reskilling programs to empower existing employees, fostering a culture of continuous learning and growth.
Building employer branding and workplace flexibility
To attract and retain top talent, it’s essential to showcase why your company is a great place to work. Your employer brand plays a significant role in this effort by highlighting your values, culture, and growth opportunities. Emphasising commitments to sustainability, diversity, and innovation can draw in professionals who align with these priorities.
Moreover, offering flexible work arrangements is also an effective way to appeal to talent. Studies reveal that a majority of professionals in Japan, Hong Kong, and Singapore prefer hybrid or remote work options. This shift highlights the broader trend where employees prioritise work-life balance and autonomy.
In Japan, for example, companies like Panasonic have introduced flexible work hours and remote work options to attract top talent and reduce burnout. Similarly, many startups in Asia often leverage their modern work culture and innovation-driven environment to attract millennial talent.
Overcoming cross border hiring complexities
When local talent is scarce, businesses often look beyond borders to meet their hiring needs. However, cross-border hiring has its own set of challenges, from navigating legal requirements to managing tax compliance and payroll. These complexities can slow down your hiring process and add burden to your recruitment teams.
Fortunately, solutions like Employer of Record (EoR) make global hiring more manageable. An EoR acts as a third-party partner, taking on the responsibility of compliance, payroll, contracts, and other administrative tasks. This allows businesses to focus on finding the right talent without the need to establish a legal entity in every new market.
Take GitLab as an example. The tech company faced challenges in hiring talent from new markets, limiting their business growth and increasing their risk profile. To solve this, GitLab leverages CXC’s employer of record solution to manage compliance, contracts, and payroll. This collaboration enabled GitLab to expand its talent pool and hire skilled workers in Poland, Ukraine, and Romania, fuelling business growth while ensuring full compliance with local regulations.

Retaining talent in a competitive market
High employee turnover can disrupt your operations, increase recruitment costs, and hurt overall morale. And let’s face it—nobody wants that for their business. To keep your team engaged and minimise turnover, it’s important to set strong retention strategies in place that go beyond just offering a paycheck.
- Offer competitive compensation and benefits: Ensure your salary packages and benefits are aligned with or exceed industry standards. Consider offering perks such as health insurance, wellness programs, and performance-based bonuses to show employees they are valued.
- Provide clear career development opportunities: Employees stay with companies where they see long-term growth potential. Offer training programs, mentorship, and clearly defined career paths to help employees achieve their professional goals.
- Foster a positive and inclusive work environment: A workplace that values diversity, equity, and inclusion (DEI) is more appealing to a broader talent pool. Research from McKinsey shows that companies in the top quartile for diversity are 36% more likely to outperform competitors in profitability. DEI initiatives not only create a welcoming atmosphere but also improve team collaboration and innovation.
- Recognise and reward employees: Regularly acknowledge and reward employees for their hard work and contributions. This can be done through awards, public recognition, or simple gestures like thank-you notes.
Strategies to build a sustainable talent ecosystem
Leveraging technology for recruitment
It’s no secret that tools like AI, automation, and digital platforms are now helping recruitment teams save hours of manual work. According to Korn Ferry’s recent report, more than half of talent leaders have increased AI usage for their recruitment needs. This goes to show how critical technology has become in addressing recruitment challenges.
Automation tools take this a step further by handling repetitive tasks such as scheduling interviews and sending follow-up emails. This allows your team to focus on building meaningful relationships with candidates instead of getting bogged down by administrative duties. Digital platforms like LinkedIn are also integrating AI features to match candidates with job postings more efficiently.
But don’t forget the human touch in your recruitment process. While technology can enhance your recruitment efforts, it’s essential not to lose sight of the human element. A human-centric approach ensures that candidates feel valued and respected throughout the hiring process. Personal interactions, empathy, and open communication are key to building trust and fostering a positive candidate experience.
Aligning recruitment strategies with economic trends
As an employer, staying informed about emerging trends is crucial to adapting to the rapid changes brought about by digital transformation, demographic shifts, and globalisation. These economic forces are reshaping the talent landscape in Asia, and aligning your recruitment strategies with these trends is necessary to achieve growth.
In countries like Japan and South Korea, aging populations have led to shrinking workforces and increased reliance on global talent. Because of these challenges, employers are turning to flexible workforce arrangements and cross-border hiring solutions. Governments are also playing a role by easing visa restrictions and offering incentives to attract skilled professionals from abroad.
Moreover, governments across Asia are taking proactive steps to address recruitment challenges in emerging industries. In Singapore, SkillsFuture initiative provides financial incentives and training programs to encourage lifelong learning and upskilling. Businesses in Singapore can access grants and support to develop their workforce, ensuring employees are equipped with the skills required in a digital-first economy.
On the other hand, the National Skill Development Corporation (NSDC) in India works to close skill gaps in key sectors like IT, healthcare, and renewable energy. Through partnerships with private companies, the NSDC offers vocational training and certifications, helping to build a more skilled workforce.
Adapting your recruitment strategies to align with these trends means leveraging government programs and diversifying talent pools. Partnering with local institutions can help create a steady pipeline of skilled talent, while cross-border hiring solutions like employer of record (EoR) simplify international recruitment.
Future-Proofing Asia’s Workforce
Addressing recruitment challenges and implementing innovative strategies are practical steps for attracting and retaining talent in Asia. Solutions like EoR, upskilling programs, and leveraging advanced technologies can reinforce your business to build global teams efficiently. Companies that adopt these strategies will secure a competitive edge and drive growth in a rapidly evolving market.
Grow Your team in Asia and beyond with CXC
Attracting and retaining top talent isn’t always easy—but that’s where CXC can help. At CXC, we’ve been helping businesses for over 30 years to attract, manage, and retain talent in 100+ countries.
Whether you’re expanding in Asia or building a global team, our employer of record (EoR) solution simplify the process. Forget about the complexities of compliance and ever-changing labor laws—our team of experts handles it all for you. That way, you can stay focused on what really matters: growing your business
Let us help you build the team that drives your success. Speak to our team today.