Economic instability has slowed the freight train of growth that we’ve seen across APAC in the past decade, but it is unlikely that the issues of retention and talent supply in APAC will let up over the long term. As intra-regional trade and finance stabilizes to shore up long-term economic prosperity, talent supply will remain a major issue for businesses across the region. Understanding the bigger picture that will alter supply and demand for talent across the region and how to stay ahead of the curve will be the key to meeting the needs of customers now and in the decade ahead.
Of the major emerging markets, the fastest annual talent-pool growth will be in India (7.3%), according to an Oxford Economics report. Indonesia and China will also be key to talent supply in the region, but far less so than India at 4.9% and 4.6% respectively. To put these figures into perspective, China’s 4.6% talent-pool growth over annually will see it overtake the US as the country with the largest single pool of educated talent by 2021.
However, many unstoppable demographic trends—including the rapidly ageing population in key talent markets such as China—point to little or no relief (and more likely worsening talent shortages) in areas such as:
- health care and pharmaceuticals;
- computer sciences and software development;
- agriculture and bio-tech;
- finance; and
- senior management.
Despite the impressive
mobilization of talent that is now occurring in the region, Asia-Pacific organizations must focus on developing the essential skills that are already in short supply locally.
If we consider that each of these skill-sets are projections based on what’s already happening inside the global marketplace, and that these skills will also be needed to fuel intra-regional development, local organizations must consider how they will tap into sufficient supply of the right talent. Unless they meet these skill needs with local talent, they will need to consider
talent supply from developed economies elsewhere—and this may come at a higher cost in the near term.
Organizations operating within the region must carefully consider the following points:
- How well do they understand and consistently measure their supply of critical skills?
- How agile they are to mobilize talent and specific skills where and when they are needed?
- How they will retain these key skills despite the inevitable shortage ahead?
- How will they supply key skills and local knowledge to companies seeking a superior, high-end outsourced experience?
For more infomation on the Asian Talent Market download the full report here: Building the new Silk Road: the talent challenge for Asia-Pacific in 2013/14 
