Employers engaged in an unsustainable bidding war on salary

HRM 17 Dec 2012

More than nine in 10 employers in Asia are facing difficulties recruiting and retaining talent. An inability to match candidates’ salary expectations is one of the top reason firms in the region are struggling to fill roles.

According to the Hong Kong Institute of HR Management and Chartered Institute of Personnel and Development’s (CIPD’s) survey, Talent resourcing and retention in Asia, despite the increasing challenges associated with recruitment and retention, and 48% of organisations expecting to need to increase staff levels in the next 12 months, resourcing budgets in Asia remain flat.

When it comes to retention strategies, which nine in 10 organisations have in place, the survey found that increased pay and benefits topped the list of activities Asian employers are engaging in. Less than a third, however, cited that they use learning and development opportunities as a way to keep staff engaged and build internal talent pipelines to support future growth.

Also, while recruitment and retention difficulties were common across all six countries in the survey, some challenges were more pronounced in certain countries than in others. For example, recruitment difficulties are most acute in China and Hong Kong, and organisations in China, Malaysia and South Korea are most likely to predict an increase in funding for resourcing over the next 12 months.

Claire McCartney, Research Advisor at the CIPD, said: “As Asia continues to experience growth despite the global slowdown, it’s perhaps not surprising to learn that employers in the region are engaged in a war for the best talent to fuel their growth.”

“However, it’s important to avoid getting into an unsustainable bidding war on salaries. Instead, employers should get better at communicating a broader package of incentives to prospective employees – including, for example, the learning and development opportunities they can offer,” she added. “It’s also important for firms to develop stronger employer brands around a sense of meaning and shared purpose.”

Leave your comment
Start a new discussion

HRM Asia forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Post a Comment
HRM Asia welcomes your contribution. Your IP address is recorded in the event of a complaint.
Name *
Email *
(required, but will not display)
Comment *
Please enter in the numbers in the box left.
You are about to submit your comment. Is it:
  • Professional
  • In your own name or pseudonym, not impersonating someone else
  • Free from rude language
  • Free from advertising
  • If you prefer not to post but are still keen to get your viewpoint across, you can always e-mail the editor.
  • 23 Apr | Mission Aviation Fellowship International | Not Specified
    23 Apr | Elliott Scott HR Recruitment Pte Ltd | Singapore
    23 Apr | Kelly Services | Singapore
    MasterCard – International mobility and training for HiPo talent
    Appandairajan Krishnakumar, Senior Business Partner - HR, MasterCard, shares how his organisation effectively selects its high potential talent, sends them off on international assignments and trains them.
    Organisational leadership in the 21st century
    Spearheading corporate democracy @ Facebook
    Tailor-make your talent strategy: Top tips from Carlsberg
    Performance Leadership Pte Ltd | info@performance.sg
    Increase productivity and getting funding from Health Promotion Board, through a series of General Health and Mental Wellness programmes.
    Organisational Development Concepts | enquiries@odctraining.com.sg
    The Service Excellence Competency Frame (SVCF) is a competency-based training and assessment framework that equips service professionals with the rele ...
    Performance Leadership Pte Ltd | info@performance.sg
    Lunch, Learn and Bond with your teams, all within 1 hour! Choose from a variety of light-hearted, interesting or thought-provoking topics that appeal ...