Not sure recruitment process outsourcing (RPO) is for you? Think your organization is too small for RPO? Think outsourcing doesn’t fit your company culture?
Think again.
Our complete six-piece toolkit gives talent acquisition leaders the essential information on how RPO can boost their recruitment outcomes.
In this toolkit, you’ll get:
Our comprehensive buyer’s guide for RPO—everything you need to know
A guide for building a business case for RPO (including a free template!)
Conversation starters to help you create buy-in for RPO at your organization
Learn how RPO can unlock the full potential of your talent strategy. Download your kit now.
Recruitment Process Outsourcing (RPO) Buyer’s Guide
In this challenging landscape, talent acquisition leaders are increasingly turning to recruitment process outsourcing (RPO) to gain the flexibility, scalability and agility they need to hire the best talent.
So, how do you know if outsourcing to an RPO partner is right for you? Our RPO Buyer’s Guide provides an in-depth exploration of RPO and how it can help you achieve your recruitment goals.
In this ebook, you’ll learn:
What RPO is and the benefits it can bring to your business
Whether RPO is right for you and the benefits of selecting an RPO partner
What to expect at each stage of your RPO partnership
At PeopleScout, we’re committed to providing you with information to help guide your talent acquisition decisions across the globe. This article is part of our series identifying talent trends across the globe.
Asia Pacific (APAC) is home to more than 4.7 billion people, as well as some of the largest global economies. And, because it’s made up of more than 50 countries and territories with varied cultures, languages and job roles, it’s impossible to leverage the same talent acquisition strategy across countries.
APAC by the Numbers
However, according to the International Monetary Fund, APAC is also the fastest-growing region in the world and, as such, represents a huge opportunity for global enterprises to capitalize on this diverse talent pool. For this reason, it’s imperative for organizations to understand the skills shortages, demographic gaps and pandemic recovery challenges throughout the region.
In this article, we’ll cover some of the labor market trends in APAC. We’ll also point out what multinational organizations should be aware of when it comes to immigration, education and diversity, as well as their effect on talent acquisition in the region.
Pandemic Recovery Continues to Vary Across APAC
The COVID-19 pandemic recovery continues to lag behind in Asia. For instance, China is still enforcing its “zero-COVID” policy, while Shanghai and Hong Kong are dealing with spikes in infection numbers and deaths, which is delaying border openings and stifling employment recovery—particularly in economies that are dependent on tourism.
In Australia, the unemployment rate is at a record low of just under 4% as of May 2022, and it’s expected to drop even lower. However, the country is also experiencing an acute labor shortage: The closure of Australian borders during the pandemic meant that overseas migration to the country was negative for the first time since 1946. Pre-pandemic, one in 10 workers in Australia was on a temporary work visa. Then, as lockdowns went into place, hundreds of thousands of workers with temporary visas had to depart Australia—leaving a record number of jobs vacant. Accordingly, with only the local labor pool to pull from, unemployment dropped and vacancies soared, tripling in the retail and manufacturing sectors from 2020 to 2021.
Then, in December 2021, the country’s borders reopened to students and migrants with visas, which is helping to fill positions—especially among casual jobs in retail and hospitality. Now, many Australian organizations are looking to new talent pools, including tapping into globally dispersed talent. As an example, PeopleScout recently helped a hospitality client take advantage of a visa strategy introduced to attract chefs to Australia’s tourism industry: Through a Recruiter On-Demand solution, we were able to source chefs in the United Kingdom who were willing to relocate.
With a large and complex country, the knock-on effect of the pandemic on the Australian labor pool is still yet to be seen. Yet, CEOs in the country are optimistic, with 88% expecting growth in the Australian economy.
Global Hiring: Key Takeaways for Employers
Shifting Demographics Affecting Talent Pools and Global Hiring
Across APAC, many countries are facing labor shortages due, in part, to aging populations and the accelerated rate of retirement during the COVID-19 pandemic. However, Gen Z makes up 25% of the APAC population—and they’re keen to have an influence.
Meanwhile, in another part of Asia, India is experiencing a talent surplus: While most countries have seen a post-pandemic drop in unemployment, India is experiencing a decline in jobs, with an unemployment rate of more than 7.8% in April 2022. At the same time, the Indian workforce grew by 8.8 million people in April; so, even with unemployment dropping, available jobs are still not enough to satisfy the demand for work.
In 1991, the Indian government made sweeping reforms to its industrial and trade policies, which led to greater foreign investment due to its youthful population. As a result, India went from a primarily agricultural economy to a services-led economy with a boom in IT-related jobs. Consequently, there are now fewer lower-skilled jobs to absorb the large number of unskilled or low-skilled workers.
Moreover, the vast majority of jobs in India are informal: Just more than 2% of Indian workers are in secure jobs with access to benefits like retirement savings and healthcare. Therefore, these high unemployment numbers could be influenced by the number of educated young people who can afford to remain jobless while they find desirable work, rather than take low-paying positions. On the other hand, the poor—who have limited access to education—are forced to take any work they can get, which often involves pursuing unstable, daily-wage laborer roles in manufacturing and construction.
Key Takeaways for Employers Exploring Global Hiring and Recruitment
Tech Investment is Up, but Women are a Missed Opportunity
The technology sector is having a significant influence on global hiring strategies and talent trends in the APAC region: India is home to the largest tech companies, like Wipro, Infosys and HCL. The growth of the Indian IT industry has also created more than 16 million jobs that drive the digital transformation for global enterprises offshoring their IT and R&D functions to take advantage of India’s less-expensive software talent. To keep up with the demand for tech talent, STEM university grads have more than doubled in India. Yet, despite IT being a top interest for 21- to 25-year-olds, there’s still a talent shortage.
What’s more, with global enterprises embracing Indian talent, the country has also become a gateway to other markets in Asia. Now, $1 of every $2 in global investment goes to companies in Asia, some of which is fueling their own talent pools. For example, tech giant Apple has committed to building three Developer Academies in Indonesia, which will each produce 200 iOS developers annually.
Meanwhile, as a long-time leader in innovation, Japan’s high-tech and renewable energy sectors are the most profitable industries in the country. As a result, the Japanese education system is now adjusting to keep up with the demand for digital and software skills: In 2020, computer programming languages were introduced to elementary curricula. However, not all countries in APAC are stressing technology education. In Australia, only 3,000 to 4,000 IT graduates enter the workforce each year, which won’t meet the need for 156,000 new technology workers by 2025 to ensure that economic growth is not stalled by skills shortages.
Any company looking to remain competitive—especially those in the manufacturing or technology sectors—must emphasize becoming a top employer in APAC. And, one talent pool they could look to attract in Asia is women. Diversity and inclusion is one area where the wide variety of cultures across APAC shows itself, but the region scored highest on the importance of maintaining gender roles. Of course, it varies from country to country but, in patriarchal societies like Japan and China, females are often underrepresented in the workplace due to traditional views about women taking care of the home, rather than contributing to the household income.
Unfortunately, the tech sector will suffer the most from this, with men making up 84% of STEM graduates in Japan alone. Conversely, companies that invest in reskilling and upskilling women—while also providing flexible work arrangements—will reap the rewards when it comes to attracting and retaining female talent. Indeed, research from McKinsey shows that Asia Pacific could add $4.5 trillion to annual GDP in 2025 by closing the gender employment gap.
Key Takeaways for Employers
RPO in APAC
Despite the challenges of COVID-19 and changing demographics, corporations in the APAC region have showed resilient, expanding profits throughout the last decade. And, enticed by the large global hiring and labor market trends, leading organizations are investing in the talent pools of APAC as a means of future-proofing their workforce.
However, the complexity of the region also means that there’s no one-size-fits-all solution for recruitment in APAC. So, increasingly, global enterprises are turning to recruitment process outsourcing (RPO). According to Everest Group, Asia Pacific is the fastest growing region for RPO and is set to make a swift recovery; finding the right RPO partner in APAC can help you navigate the region’s unique talent market conditions—and capitalize on the growth it offers.
Learn more about how RPO can support your global talent acquisition strategy, download our free Buyer’s Guide to Global RPO.
As organizations continue to adjust to changes caused by the pandemic, access to skilled talent remains a key factor preventing them from accelerated recovery and growth. However, with work-from-home and hybrid models becoming the new norm, organizations have the unique opportunity to expand their talent network across borders. And, for workers looking to relocate for greater job prospects, crossing borders for work is becoming easier than ever for both employees and employers: According to Harvard Business Review, “Many countries have now put the legal framework in place to hire and relocate global talent at a cost and speed that is broadly comparable with hiring domestically.”
Furthermore, in a 2021 survey by Boston Consulting Group and The Network, about 50% of respondents were either already working abroad or willing to move abroad for work. Moreover, 57% of respondents said they were willing to work remotely for an employer that didn’t have a physical presence in their home country.
In this article, we’ll share the benefits of a global talent program; highlight considerations to keep in mind; and offer strategies for attracting and recruiting talent around the world.
Benefits of Globally Dispersed Talent
The global talent pool is growing and ready to work—regardless of location—and it’s up to employers to seize the moment. Consider the benefits of leveraging globally dispersed talent:
Expanded Talent Pool
Many organizations have been struggling to fill open roles because they’re unable to find the talent they need in local searches. But, by expanding your search across borders, you can expand your search for the skills the role requires in a larger talent pool. Plus, you can also start these workers out in remote and contract roles to test whether they would be a good fit.
Greater Diversity
It’s no secret that having a diverse team yields better business results due to high levels of creativity and innovation. Consequently, by hiring people from different geographies, you can tap into the knowledge of people from different backgrounds, cultures, educations and more.
Increased Reach
When operating in different regions, you have greater access to new markets, as your dispersed team can help build your brand recognition and reputation with new customer bases in their respective locations. Additionally, having teams across various regions may also enable you to expand your business hours so you can improve productivity and be available to customers no matter where they’re located.
Cost Savings
Labor costs vary across countries, so it’s often cost-effective to move certain business operations to countries with lower labor costs. For example, many companies offshore manufacturing, call center and IT operations to places like Mexico, India and the Philippines. Doing so lowers the cost of operations and, therefore, lowers the cost of products for the consumer.
And, because commercial real estate policies and prices vary from country to country, you can also reduce costs by implementing a remote work program in other countries before deciding whether a physical office space will be necessary in a given region.
Considerations for a Global Talent Management Program
Before diving into a global recruitment program, it’s important to consider the key differences between recruiting in different countries. For instance, cultural nuances, policies and legislation will likely be different from your organization’s primary country and can make or break the success of your global recruitment and employment strategy. Consider the following examples:
Workforce Planning
As you plan your hiring in new geographies, it’s important to be aware of the length of the statutory notice period, as requirements vary widely from country to country and can make hiring timelines longer (up to three to six months, in some cases). For example, in the U.S., there’s no legal requirement to provide notice, but it’s customary for employees to give a two-week notice to aid in the transition. Conversely, in Japan, there’s a fixed notice period of 30 days—regardless of the employee’s years of service or seniority. In other countries, an employee’s notice period depends on the terms of their employment contract and may be connected to the number of years of service to the company.
In places that require longer notice periods, candidate communications are even more essential in order to keep those candidates engaged and to set expectations on next steps. For this reason, incorporating transition timelines into your workforce planning is crucial so you don’t reduce productivity while waiting for your new hire to start in their role.
Recruitment Marketing
Notably, if you’re using the same recruitment marketing tactics in every country, you’re missing a trick. Take social media, for example: Different networks work better in different markets. While LinkedIn, Facebook and Twitter are popular in the U.S., WeChat (a mobile app that focuses on messaging, social media and mobile payments) is heavily used in China. Similarly, XING and Viadeo are popular alternatives for career-oriented networking in Germany and France, respectively. So, understanding social media preferences in each country will help you promote your job ads in a more effective manner.
Granted, social media and digital advertising may not be the best fit for all roles in all places. In fact, even within a single country, there are nuances to consider. For instance, PeopleScout leveraged physical advertisements at bus stops in the smaller European cities where an RPO client in the manufacturing sector was hiring because we knew that it was less likely that blue-collar candidates in these areas would have internet access at home.
And, localization is key—not just in digital channel usage, but also in language and imagery. For example, while an image of a blonde-haired, blue-eyed worker would resonate in North America, the same type of image would not be as well-received by candidates in Asia. In addition, candidates in Europe are more likely to be multilingual, so testing recruitment marketing techniques in a few different languages might prove to be useful when recruiting in that geography.
Regardless of where they are in the world, your potential candidates are looking and applying for jobs via their mobile phones. So, consider how your recruitment tech stack supports a mobile-friendly application process to future-proof your global talent acquisition program.
Regulations & Compliance
Due to varying laws and regulations, recruitment processes can’t be the same in every country, and it can be difficult for enterprises to navigate the requirements in each market. For example, in Sweden, you don’t need to establish a legal entity to hire employees in the country, whereas you do in Singapore. Furthermore, statutory requirements for notice periods, probationary periods and permitted pre-employment checks all vary from country to country. In fact, in 22 countries, it’s mandatory to organize a medical exam prior to hiring someone. In any case, it’s imperative that you understand employment law in each country you’re hiring in so you don’t violate your new employees’ rights.
Granted, the employment law landscape is constantly changing, making it increasingly difficult for multinational companies to stay compliant and avoid damages to the organization’s finances and reputation. Fortunately, a global RPO partner can support you with global and local expertise to ensure you stay on top of regulations in each country you’re hiring in.
Strategies for Recruiting Globally Dispersed Talent
So, how can you overcome these challenges to realize the benefits of expanding your recruitment program to globally dispersed talent? Here are some actionable ideas to help you adjust your recruitment strategies:
Map Each Labor Market
Before you start recruiting in a new market, it’s important to understand the lay of land. Specifically, delving into the talent landscape and competition in each area—not just your direct competitors, but any organization hiring for the roles or skill sets you’re seeking—can inform your recruitment strategy and compensation packages. In this way, investing the time to map the labor market upfront is invaluable for creating a competitive advantage, especially when it comes to new geographies or remote workers. Then, armed with this data, you can create offers that reflect rates in the new hire’s area and boost your acceptance rates in the meantime.
As an example, PeopleScout recently helped a manufacturing client recruit engineers in an area in the north of the Czech Republic, where the available talent pool for the skills they needed was low, but the competition was high. After completing a labor market analysis, we advised the team to expand their search area across the border to Poland (where the talent supply was larger) to find talent that would be willing to commute or relocate. By doing so, we were able to fill business-critical automation engineer roles that saved their productivity levels.
Adapt Your EVP to Your Audience
Your employer brand—an individual’s perceptions and lived experiences of what it’s like to work for your organization—helps you attract and retain the right people to help your organization succeed. According to Gartner, organizations that effectively deliver on their employer value proposition (EVP) can decrease annual employee turnover by 69%. And, in today’s ultra-competitive, candidate-driven market, a strong employer brand can also help you stand out in a sea of job openings.
Specifically, companies that attract top talent will be those that have invested in developing messaging pillars that allow their employer brand to flex and resonate with talent audiences across the globe. For example, PeopleScout helped global law firm Linklaters revamp and tailor its employer brand to support hiring across 20 offices in Europe, North America and Asia-Pacific, while simultaneously boosting its Glassdoor scores and increasing global applications from female lawyers.
So, to truly understand your ideal candidate, do your homework for every position type in each market and adapt your brand messaging and attraction strategies accordingly. In particular, a candidate persona profile is a great way to capture each position’s requirements, motivations and expectations so you can design your recruitment marketing content around messages that will truly resonate.
Invest in Your Recruitment Tech Stack
Investing in standardizing your recruitment technology across geographies offers a litany of ways not only to streamline the candidate experience, but also your internal program management efforts and reporting, as well.
Plus, nowadays, candidates expect a tech-enabled recruitment experience that enables them to search for jobs on the go—and a whopping 89% of candidates think mobile devices play a critical role in the job-hunting process. Therefore, looking for ways to make your application process more mobile-friendly—including leveraging “quick apply” features in your ATS—will pay off in application volumes.
What’s more, hiring in new geographies or for remote workers will almost certainly involve virtual interviews. Thus, investing in a virtual hiring solution can help you hire the talent you need quickly and with a seamless candidate experience. Unlike typical video meeting tools, modern virtual interview tools offer options like on-demand phone interviews and text/SMS interviews, as well as live and pre-recorded video interviews.
However, one consideration to keep in mind when selecting technology for global recruitment is where the data will be stored and processed. Regulations (such as GDPR in Europe) limit the amount of data that can be processed in the U.S. So, look for tools that are SOC 2-certified, and assess any vendor’s information on security policies, procedures and practices.
Put Your Global Talent Program in Action
If your organization is new to global talent acquisition or if you haven’t expanded business operations very far, the considerations and strategies highlighted above can seem daunting. But, the good news is that a global RPO partner can be a valuable partner to help guide you through your global talent acquisition challenges. Moreover, with a wealth of knowledge and experience gained through working with clients spanning a variety of industries and countries, an RPO partner can also help you navigate the complex compliance and cultural issues that accompany a multi-country recruitment program.
So, what should you look for in a global RPO partner? Well, you’ll see the greatest benefit from a provider that is able to offer a customizable solution that’s flexible enough to support everything from your niche hires and short-term needs to your high-volume roles and full-cycle recruitment processes.
