Technology Companies in Asia Pacific Struggle to Retain Employees While Ramping up Hiring Plans
PUBLISHED ONAugust 08, 2019 7:30 AM
- In Singapore, the percentage of technology companies that plan to hire aggressively increased from 5.5% to 6.0%.
- Employee turnover in the technology sector is highest in Singapore at 14.7%, followed by China at 14.2% and Hong Kong at 13.9%.
SINGAPORE - Media OutReach - 8 August 2019 - Voluntary employee turnover in the technology sector, a closely-watched metric for human resources leaders, has increased in eight out of 10 markets this past quarter, according to the Radford Global Technology Survey. Radford is part of Aon plc (NYSE: AON).
Average Voluntary Employee Turnover at Technology Companies
| Q1 2019 | Q2 2019 | Direction |
Australia | 13.3% | 13.8% | + |
China | 14.0% | 14.2% | + |
Hong Kong | 11.7% | 13.9% | + |
India | 13.9% | 13.4% | -- |
Japan | 9.8% | 10.9% | + |
Malaysia | 15.0% | 15.3% | + |
Philippines | 12.2% | 14.3% | + |
Singapore | 13.1% | 14.7% | + |
South Korea | 11.3% | 11.8% | + |
Taiwan | 9.6% | 9.1% | -- |
Source: Radford Global Technology Survey Quarterly Workforce Trends Report, Q2 2019
As employee turnover has gone up, so too has the percentage of technology companies reporting aggressive hiring plans. Companies reporting that they are actively planning and recruiting for organisational growth increased in six out of 10 key Asia Pacific markets. In Singapore, the percentage of technology companies that plan to hire aggressively increased from 5.5% to 6.0%. At 18.4%, India has the highest percentage of companies actively growing their workforce. Meanwhile, China experienced a drop in companies expecting to grow headcount -- from 10.9% to 7.0% -- which could be partly driven by an ongoing trade dispute with the United States .
Percentage of Technology Companies Reporting Aggressive Hiring Plans
| Q1 2019 | Q2 2019 | Direction |
Australia | 7.1% | 8.5% | + |
China | 10.9% | 7.0% | -- |
Hong Kong | 2.4% | 3.6% | + |
India | 12.9% | 18.4% | + |
Japan | 6.6% | 7.3% | + |
Malaysia | 3.7% | 1.4% | -- |
Philippines | 4.2% | 4.3% | + |
Singapore | 5.5% | 6.0% | + |
South Korea | 3.2% | 2.6% | -- |
Taiwan | 3.0% | 2.5% | -- |
Source: Radford Global Technology Survey Quarterly Workforce Trends Report, Q2 2019
Trend lines often converge between turnover and hiring. When the technology sector is in a robust state of growth, employees are more likely to be lured into new jobs by attractive rewards plans, career advancement, and opportunities to expand their skills.
"We define rewards as anything an employer provides that an employee finds valuable," says Alexander Krasavin, Partner and Chief Commercial Officer of Emerging Markets in the Rewards Solutions practice at Aon. " As companies reassess their retention strategies, they must work harder to optimise their rewards to align them with their employee preferences. In addition, businesses with a voluntary turnover of more than 10% should evaluate their employer brand and human capital practices carefully."
About Rewards Solutions
The Rewards Solutions practice at Aon empowers business leaders to reimagine their approach to rewards in the digital age through a powerful mix of data, analytics and advisory capabilities. Our colleagues support clients across a full spectrum of needs, including compensation benchmarking, pay and workforce modeling, and expert insights on rewards strategy and plan design. To learn more, visit: rewards.aon.com .
About Aon
Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance. For further information, please visit aon.com .
