Managers hiring but expecting recession
Market volatility and skills shortages were now part of daily business life across the Asia Pacific with many employers planning to hire while expecting a recession.
A survey of 748 senior business managers across Australia, New Zealand, Hong Kong, Singapore, China and Japan carried out by Galaxy Research found strong rates of growth amongst businesses had not tempered fears about the future
While 47 per cent of respondents claim their businesses had grown since the global recession, 97 per cent of managers in Singapore, 95 per cent in Hong Kong, 87 per cent in China and 85 per cent in Australia were worried a financial crisis was imminent.
Skills shortages continue in the region with 65 per cent of businesses overall and 76 per cent of those in China experiencing difficulties finding and recruiting talent.
Of those surveyed, 79 per cent cited middle management roles as the hardest to fill. In the past year, 80 per cent of businesses in China have increased headcount, while 73 per cent of both Hong Kong in Singapore grew their people numbers and 53 per cent of businesses in Australia. The rate of hiring in Chinese businesses was 63 percent above the APAC average.
Despite the roller coaster of people needs, of those surveyed about contingent workforces, 76 per cent claimed to understand the benefits of scaling up and down in line with business needs and 43 per cent the cost benefits without formulating any plans.
The research found 88 per cent of workers across the Asia Pacific were permanent employees with only 12 per cent employed on a contingency basis. This compares to a global contingency workforce rate of 22 per cent.
The survey revealed a mixed picture as to how businesses were navigating current volatile conditions with 42 per cent maintaining recruitment and training spending and 38 per cent cutting costs. In China, 61 per cent of employers were maintaining recruitment and training while 53 per cent of organisations in Japan were cutting costs.
