Talent Acquisition Outlook for Asia 2012: Mixed Prospects, but Plenty of Opportunity

The Chapman Consulting Group's 2011 Asia and Global Update for our alumni in Talent Acquisition (TA) and staffing roles focuses on some of the key trends we saw emerging in 2011 and expect to see more of in 2012.

Strategic Importance of TA on the Rise in China, India and the Middle East

If you’re a TA specialist in China or India, times are rosy right now. If you’re not in one of these growth markets, and you are interested in furthering your career immediately, these are the places to be. The World Bank forecasts GDP growth for 2012 of 8.7% and 8.4% in China and India respectively, somewhat slower than in the previous three years, but still robust. We find that companies in these countries continue to see Talent Acquisition in key areas as their most reliable path to growth, and competition is high for TA professionals with outstanding sourcing, process and management skills. This is true for in-house, RPO, and agency search segments. TA professionals able to relocate to either place on local terms will see the most preference.

On the supply side, TA talent from the US and Europe are increasingly looking to Asia as the next place to grow their careers. We encourage growth-oriented management talent from these areas to consider international TA roles that have been cropping up in these countries.

In the Middle East, expatriate talent will continue to be an important factor in the region’s growth, particularly in non-oil enterprises. For example, in the United Arab Emirates, more than two-thirds of inhabitants aged 15-64 are expats. Many Gulf employers are looking to China to fill key talent gaps, and Talent Acquisition professionals with strong ties to the mainland will fill a strategic need for many multinationals in the region. Further, new requirements state that 15% of new private-sector jobs must be reserved for Emeratis, setting off a frenzy of recruiting for qualified local talent. Talent Acquisition experts with blue-chip educational credentials and notable corporate brands on their resumes will find a receptive market in a growing range of industry segments.

Rest of Asia: Be on the Lookout for Cutbacks

After a rapid build out in 2009 and 2010, internal TA functions in banking and financial services across Asia (particularly in HK, Singapore, Middle East and Japan) may be impacted by moderating economic activity. Most ‘at risk’ seem to be contractors, TA specialists in highly specialised areas (e.g. analytics) and management. Organisations are looking to cut costs and chopping areas where there is excess capacity.

RPO firms in these across the region remain undecided on whether slowing economic activity will adversely affect their businesses. On one hand, some multinational corporations that have outsourced part or all of their recruitment operations are cutting back on costs. On the other hand, some companies cutting back their in-house teams may need to leverage RPO providers to deal with short to medium recruitment peaks and troughs. We will continue to monitor conditions in this segment carefully.

Agency and search firms across Asia are bracing themselves for cut-backs of non-essential staff. Most economic models indicate moderating economic activity, and this will have slowing effect on job sheets. Despite this, there are clearly segments where opportunities exist. Multinationals continue their trend of building in-house TA functions in the region. There has never been a higher demand for talent that can show leadership skills, the ability to execute, and success in driving process and technology improvements.

Stabilising Salaries

In 2009-10, we saw rapidly-escalating salary increases reaching 30% per annum in many Asia markets, including Singapore and Hong Kong. A moderating economic outlook for many countries indicates continued growth albeit slowing to more sustainable levels. Across the board, however, experienced TA talent showing demonstrable results on their resumes should continue to see growth in their compensation and available opportunities, especially in the mid-level sourcing market.

A Prognosis for 2012

Our prognosis for the TA profession in Asia is one of moderation in many regions and sectors, particularly in banking. However, there remains much opportunity for the successful TA professional who can be flexible in both location and line of business. We additionally recommend becoming a known expert in utilising newer sourcing techniques, such as social media and blogging, to achieve measurable success. As always, the cream will rise to the top even in softening conditions, and we anticipate a choice of great opportunities for TA talent with flexibility in 2012.