Is hiring facing an ‘age of uncertainty’?

IN Partnership with

After a booming 2021, hiring rates in Singapore and across the Asia-Pacific are stabilising following post-pandemic highs as major economies see slower economic growth. LinkedIn examines the latest hiring trends and how business leaders are navigating an uncertain economic environment

AS SINGAPORE emerged from the pandemic at the beginning of 2022, its job market made a strong recovery. Hiring activity increased by 11% in the month of April, and the education and construction sectors saw particularly strong upticks. Over the last six months, this picture has been slowly changing. The Monster Employment Index showed “muted growth” in August, and hiring activity has seen a downward trajectory of 7% over the last six months. According to LinkedIn, the Asia-Pacific region has now entered an “age of uncertainty”, so in many ways employees still hold the power to demand more from their employers when it comes to salary, flexibility and benefits.

With more than 800 million members, LinkedIn is the largest professional network in the world and a popular choice among professionals looking to advance their careers. LinkedIn’s Talent Solutions are built to help companies of all sizes throughout the entire candidate journey. Our range of solutions will help you to plan, hire and develop more effectively than ever, helping you to build winning teams.

Find out more

“Companies that hire for skills and cultivate a culture of internal mobility by investing in upskilling and reskilling their employees will find it easier to attract and retain top talent”

Pei Ying Chua, LinkedIn

LinkedIn’s Global Talent Trends October 2022 report analyses the current state of the labour market to surface the top priorities of today’s jobseekers, and examines employer attitudes towards factors such as flexible working, skills development and the importance of internal mobility, and how these will impact hiring. A balancing act: expectations vs costs As hiring activity starts to ease off from 2021 levels, this year has brought a slower pace of growth to all major APAC economies. According to LinkedIn’s report, Singaporean data is in line with this trend, with the hiring rate dropping by 14% since September last year. Australia saw the same level of decline, while India and New Zealand saw an 18% and 12% decrease respectively. “Amidst the uncertain global economic climate, it is likely that the hiring rate will continue to decelerate from the historical highs of last year,” says LinkedIn head economist APAC Pei Ying Chua. “Companies that hire for skills and cultivate a culture of internal mobility by investing in upskilling and reskilling their employees will find it easier to attract and retain top talent.”

With the International Monetary Fund predicting global growth to slow from 6% in 2021 to 3% in 2022 – the weakest growth profile since 2001 – it’s no surprise that workers are bracing themselves for a downturn. However, LinkedIn notes that employers also have their challenges, and many are facing pressure to tighten their belts. In Singapore, leaders are particularly concerned about the growing cost of living and rising employee expectations. LinkedIn recently surveyed over 2,900 C-level executives from large organisations across the globe to understand how they are approaching this period of uncertainty.

In response to the ‘employee’s market’ and the war for talent, many employers have introduced a slew of new perks and benefits over the last several years. However, the recent uncertainty has now led some business leaders to reconsider these changes and roll back progress in some areas as they look for ways to reduce costs. LinkedIn’s research also shows that flexible working in particular has taken a hit, with eight in 10 Singaporean business leaders looking to reduce flexible and hybrid working roles. Thirty-five per cent are considering cutting employee learning and development budgets, and almost half (45%) have already reduced benefits, including remote working equipment (by 53%) and training and development (by 44%).

Their decisions have clear drawbacks, however, and employers are conscious of what cutbacks might do to employee morale. Eighty per cent of Singaporean business leaders are concerned that cost-cutting could have a negative impact on employee motivation, while 27% say they are not planning to cut back on any employee benefits as they feel these are important for talent attraction and retention, as well as employee health and wellbeing.

“Consider relatively low-cost, high-value benefits that you might have overlooked before. And don’t underestimate the calm that can follow when you reassure employees that you hear them, and that tough times aren’t forever”

Guy Berger, LinkedIn

Internal mobility is also an important factor linked to employee retention, particularly in Singapore and Australia. LinkedIn’s report found that these two countries saw the biggest improvements in employee retention among internal movers at the three-year mark, compared to other Asia-Pacific regions – a clear signal for employers to actively encourage new career paths within their organisations. In Singapore, there’s an 81% chance that an employee who has made an internal move will stay at their company after two years, and a 54% chance that an employee who has not made an internal move will stay. After three years, there’s a 67% chance of an employee who has made an internal move staying, and a 40% chance that an employee who has made no internal moves will stay.

LinkedIn vice president of talent development Linda Jungfang Cai says employers need to answer the call for upskilling, development and progression. Employees are increasingly asking how they can do their jobs better, or how they can earn a promotion or pay rise. For talent leaders, addressing these points will significantly enhance loyalty and retention. “Give employees more ownership over their career paths at your company,” Cai says. “Start the conversation with them on their possibilities for learning, growth and – ultimately – internal career transformation on Day 1.” As employers move forward, they’re going to be looking for the skills they need to drive their organisations into the future. LinkedIn’s C-suite research revealed that in Singapore, business leaders believe resilience (29%), empathy (29%) and problem-solving (27%) will be the three most important attributes. However, with the economic downturn causing the skills gap to widen, they’ll need to develop a strong strategy to cultivate these skills internally, and to attract the right talent. “We know people want to learn and grow at work, regardless of economic and market conditions,” Cai says. “I often think what gets lost in conversations is: What do your employees want? Just as businesses need new skills, employees need to discover their career possibilities and change, too.” To discover more insights and read LinkedIn’s Global Talent Trends report, click here.

ASIA

News

SPECIALISATION

Events

Best in HR

Resources

Companies People Newsletter

About us Authors Privacy Policy Conditions of use Contact us RSS

News

Specialisation

EVents

Best in HR

Resources

ASIA

Companies People Newsletter

About us Authors Privacy Policy Conditions of use Contact us RSS

News

Specialisation

EVents

Best in HR

Resources

ASIA

Companies People Newsletter

About us Authors Privacy Policy Conditions of use Contact us RSS

Singapore: Key workplace statistics

of leaders are looking to reduce learning and development budgets

-14%

of leaders are looking to reduce hybrid working roles

34%

35%

Hiring rate:

Singapore: Employee priorities

Flexibility

Advancement

Compensation

According to Chua, the ongoing uncertainty will no doubt be a cause of stress for employees. In this environment, transparency is key, as well as establishing training and upskilling opportunities. A workforce equipped with in-demand skills will be much better placed to withstand future disruption, and employees with a strong development path will be more likely to stay with their companies. “LinkedIn's Talent Drivers survey also shows that apart from compensation, candidates in APAC have ranked career advancement and upskilling highly on their list of priorities,” Chua says. “Consider establishing programs such as leadership training or holding courses to create win-win situations for both employers and employees.” LinkedIn principal economist Guy Berger adds that while you can’t eliminate uncertainty, you can do your best to mitigate its effects on your employees. “That may mean doing more with less – using scarce resources to support employee morale and confidence in a smart and targeted way. You may see more upside with increased benefits than pay – or vice versa,” Berger says. “Consider relatively low-cost, high-value benefits that you might have overlooked before. And don’t underestimate the calm that can follow when you reassure employees that you hear them, and that tough times aren’t forever.” Meeting the right expectations According to LinkedIn’s research, hybrid working, flexibility, work-life balance, mental health and wellbeing support, and learning and development opportunities remain expectations of employees. If employers want to keep their best people on board, then there’s no way around it – they need to offer what they’re looking for. In LinkedIn’s C-suite research, 69% of Singaporean leaders agree that it’s been challenging to attract top talent in the current economic environment; however, benefits such as hybrid and flexible work arrangements have increasingly been put on the chopping block. This stands in contrast to jobseeker expectations, which still prioritise work-life balance, flexible working and upskilling opportunities. For job candidates in Singapore, LinkedIn’s Global Talent Trends report showed that, since 2021, flexibility had jumped 16% to top priority. Flexibility allows businesses to keep productivity, wellbeing and morale high, while potentially being able to scale back on the operating costs of running a physical office. With learning and development budgets also under scrutiny, LinkedIn encourages employers to pay attention to the specific skills they’re going to need in their workplaces moving forward, and to provide ample opportunities for learning and growth in these areas.