Fear of obsolescence, along with competitive compensation and benefits, are the key concerns for employees in Asia Pacific, as millenials in the region enter the workforce, said a new report by SAP SE produced in conjunction with independent research group Oxford Economics.
Companies in the region lead in workforce training and mentoring but lag in talent management and the adoption of new technology in the face of changing needs.
Millennials entering the workforce is identified as the top labor market shift factor affecting workforce strategy, followed by globalization of labor supply.
Workforce 2020 surveyed more than 5,400 executives and employees in 27 countries, including Australia, China, India, Japan and Malaysia.
The study shows that Asia Pacific companies fail to fully recognize the talent management changes that will be required.
Amid growing pressure to find and retain skilled staff, employers in the region undervalue the impact of leadership and soft skills needed to lead a global and diverse workforce, see little merit in loyalty and retention, and fail to appreciate the need for career development opportunities, together with work-life balance.
According to the survey, workforce strategy has not been placed in a strategic position across organizations in Asia Pacific to drive business outcomes.
The study’s findings challenge conventional wisdom and highlight the most critical issues facing human resources professionals in the region.
Across Asia Pacific, pay and benefits matter most, but career development would increase loyalty, while being laid off is less of a concern than becoming obsolete – even among Millennials. Millennials are in fact no more likely to job-hop than non-Millennials.
“As the influx of young, ambitious employees join the workforce across Asia Pacific, it is critical for companies to recognize that their talent management practices and policies will need to evolve,” said Adaire Fox-Martin, president, SAP Asia Pacific Japan.
“Workforce data and analytics will be critical in enabling HR managers to track, manage and assess recruitment, demographics, staffing, training, skill sets and incentives in a way that helps the business run better,” he added.
“Workforce 2020 reveals that employees in Asia Pacific are career-driven, especially Millennials, and what they need is not isolated training but more leadership and career guidance,” said Fox-Martin.
“Armed with this sort of data and the right tools, companies will be better equipped to invest resources in the right people and programs that will drive retention and help meet business objectives. As Millennials shape the future of work, every company must transform itself as an employer in order to compete for talent,” he said.