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Strategic workforce planning: Talent strategies for the insurance and healthcare industry in a changing regulatory landscape

Access to talent
Risk, Compliance and Law
CXC Global7 min read
CXC GlobalOctober 24, 2024
CXC GlobalCXC Global

Introduction: The importance of strategic workforce planning

The world of work in Asia is changing fast—especially in industries like healthcare and insurance, where workforce needs constantly evolve. Organisations in these sectors face unique challenges, from keeping up with complex regulations to embracing digital transformation, all while managing talent shortages

This is where strategic workforce planning (aligning an organisation’s long-term business goals with its future workforce needs) is beneficial and essential for survival and growth. It ensures that companies have the right people with the right skills to meet evolving demands and challenges.

What are the key objectives of strategic workforce planning?

The primary objectives of strategic workforce planning include:

  1. Anticipating future skill requirements
  2. Aligning the workforce with long-term business goals
  3. Developing a proactive approach to talent acquisition and retention
  4. Ensuring organisational agility in the face of industry changes

What is the difference between HR planning and workforce planning?

While often confused, HR planning and workforce planning serve different purposes:

  • HR planning focuses on day-to-day employee management, including hiring, training, and performance reviews.
  • Workforce planning takes a broader, more strategic view, considering future trends and aligning human capital with long-term organisational goals.

As these industries confront these pressing issues, the need for a proactive, well-rounded approach to managing talent becomes even more critical. Strategic workforce planning goes beyond simply addressing immediate staffing needs—it anticipateses future demands to ensure that organisations have the talent and resources to thrive no matter what happens.

With this foundation in place, let’s explore the key challenges healthcare and insurance companies face regarding effective workforce planning.

Key challenges in healthcare and insurance workforce planning

Workforce planning isn’t easy, especially in industries as complex as healthcare and insurance. Let’s dive into some of the most significant challenges.

Workforce shortages and skills gaps

Several key factors drive the shortage of workers in healthcare and insurance. In healthcare, the industry is facing:

In the insurance industry, the worker shortage is due to the following factors:

  • The rapid digital transformation requires niche expertise in data science, AI, and digital operations.
  • Just like in Australia, attracting younger, tech-savvy professionals is demanding, as they find the insurance sector less appealing.
  • Like the nursing industry, the workforce is ageing, with many senior employees nearing retirement, exacerbating the need for more digital skills.

The shortage of specialised nurses is particularly acute. At a 2023 ICN Asia Workforce Forum, nurse leaders raised alarms about the widening gap between supply and demand, warning of immense pressure on healthcare systems across the region. This shortage affects patient care and hinders the implementation of new technologies and treatments. Hospitals will need help maintaining operational efficiency, affecting overall health outcomes in the region.

The challenge in the insurance sector lies in the growing skills gap, especially in digital and technical roles. A McKinsey report revealed that 75% of global executives see this gap as critical. With many experienced employees nearing retirement and needing more digital talent in data science and AI-driven risk modelling, insurance companies urgently need to reskill and upskill their workforce. This shortage of specialised talent hampers the industry’s ability to adjust to changing market demands and remain competitive.

These shortages in both sectors underscore the urgent need for strategic workforce planning to address immediate gaps and prepare for future demands.

Regulatory compliance and technology

Asia’s healthcare and insurance industries face the challenge of operating in highly regulated environments.

What does this mean?

  • Compliance with constantly evolving laws around patient privacy, insurance claims, and data security is critical. Failure to meet these regulations can result in hefty fines or legal consequences, placing significant pressure on organisations in both sectors.
  • Stricter data protection laws add to these challenges, mainly as healthcare providers manage digital records and telemedicine amidst a shortage of specialised staff
  • Adopting AI technologies for risk assessment further complicates insurance companies’ compliance efforts. Both industries must invest in skilled talent and robust data governance strategies to handle these increasing demands effectively.

While AI-driven diagnostics, wearable devices, and automated risk assessment help enhance the efficiency of the healthcare and insurance industry, these advancements also introduce new complexities—especially regarding data privacy and the need for specialised professionals. 

Amidst these technological and regulatory shifts, strategic workforce planning becomes crucial for organisations to ensure compliance and harness the potential of new technologies.

Cost efficiency and workforce management

Healthcare and insurance are labour-intensive industries, and managing costs while ensuring quality stays the same remains a constant challenge. 

Reducing labour costs is crucial in healthcare, but it must not come at the expense of patient care. Similarly, insurance companies are constantly under pressure to streamline operations while continuing to provide top-tier services to their customers.

Optimising staffing levels is one effective way to save costs in both industries. For instance, in healthcare, better workforce scheduling ensures the correct number of staff is available when demand is highest. Additionally, both sectors can benefit from outsourcing non-core functions, such as billing and IT services, allowing them to focus on their operations.

This is where Employer of Record (EoR) services come into play. Many organisations in Asia are turning to EoR providers like us at CXC to manage their workforce across borders. EoR services help businesses reduce administrative costs, ensure compliance with local labour laws, and maintain high-quality standards while efficiently managing talent.

Effective strategies for strategic workforce planning

Considering these challenges, let’s explore strategies to help healthcare and insurance businesses stay ahead of the curve.

Developing a comprehensive workforce plan

Creating a robust workforce plan is crucial for overcoming the challenges faced by the healthcare and insurance industries. This plan should align with an organisation’s long-term goals and consider current and future workforce needs, factoring in technological changes, regulations, and market demands.

Key techniques in workforce planning include skills gap analysis, scenario planning, workforce analytics, succession planning, and competency mapping. Skills gap analysis helps organisations identify areas where their current workforce lacks the necessary expertise, while scenario planning prepares businesses for different potential outcomes, allowing them to adapt quickly. Workforce analytics provides valuable employee performance and retention insights, enabling data-driven staffing decisions.

Take CXC as an example. We provide workforce solutions to help healthcare and insurance companies navigate immediate talent gaps and prepare for future challenges. Our services allow organisations to optimise their staffing strategies and ensure compliance with changing regulations, allowing them to build a more agile, future-ready workforce.

Cross-border recruitment and talent mobility

Both healthcare and insurance sectors in Asia can significantly benefit from cross-border recruitment and talent mobility to address talent shortages and optimise workforce costs.

Tapping into the diverse talent pool across the region enables organisations to access skilled professionals from countries with lower labour costs while addressing critical skill gaps. Here are some examples to illustrate this:

  • A healthcare provider in Singapore facing a shortage of specialised nurses could explore recruiting qualified professionals from Malaysia or the Philippines, where there may be a surplus of trained nurses.
  • An insurance firm in Hong Kong seeking data scientists or AI specialists could consider sourcing talent from countries like India or Vietnam, known for their strong technical expertise.

EoR services like ours facilitate cross-border recruitment smoothly. They handle the complexities of international hiring, including compliance with local labour laws, payroll, and tax regulations, allowing businesses to seamlessly onboard talent from different countries and focus on their core operations.

Aligning workforce planning with business goals

Workforce planning isn’t just about filling vacancies. It’s about aligning your people strategy with your overall business objectives.

To execute strategic initiatives effectively, take note of these essential steps:

  • Communicate goals throughout the organisation so everyone understands how their role contributes to the broader strategy.
  • Align workforce capabilities with strategic objectives by ensuring that the skills and competencies within the organisation match its evolving needs.
  • Develop key performance indicators (KPIs) to measure progress and track how effectively the workforce supports business goals.
  • Review and adjust the workforce plan regularly to respond to market, technology, or business environment changes and ensure continued alignment with strategic goals.
  • Invest in training and development to equip employees with the skills to support new initiatives and adapt to future challenges.

For example, companies that use CXC’s Employer of Record (EoR) services can more effectively align their workforce planning across different regions since they can access the right talent while remaining compliant with local regulations.

This flexibility allows organisations to execute their strategic initiatives with a global talent pool, supporting their business goals while staying agile in a changing environment.

Conclusion: preparing for the future with strategic workforce planning

The healthcare and insurance industries face significant workforce challenges, from talent shortages to technological changes. However, strategic workforce planning presents an elegant solution for companies navigating these disruptions.

The cost of not planning effectively is high. According to the Society for Human Resource Management (SHRM), replacing an employee can cost between 90% and 200% of their annual salary. To illustrate, for a healthcare worker earning ₱1.5 million in the Philippines, that could mean up to ₱3 million in replacement costs.

Organisations that treat their workforce as a strategic asset, supported by data-driven decisions, will be best positioned to thrive in the evolving healthcare and insurance sectors. Companies can address immediate gaps and prepare for future needs by adopting proactive strategies.

When you work with CXC, we’ll ensure that your company can efficiently manage cross-border talent, comply with local regulations, and enhance its workforce planning efforts. Our decades of experience helping global companies scale in the region are a testament to our passion and expertise. Contact us today to learn how we can support your organisation’s growth and success.


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