In Asia Pacific (APAC), rapid technology adoption among businesses have spurred the region’s growth in becoming an economic powerhouse. According to IDC, the region’s ICT spending is expected to soar, reaching nearly US$1.4 trillion (RM6.2 trillion) by 2026 with a compounded annual growth (CAGR) of 5.2% by the end of 2026.
While business leaders continue to invest in the next digital solution that aims to solve all their problems, the influx of new technologies has exacerbated the issue of a dwindling talent pool. Despite having a relatively young workforce, many within the region are lacking the skills and experience that employers are looking for to utilise new technologies. Like elsewhere in the region, Malaysia is experiencing the same challenge. In a 2018 study, Korn Ferry had reported that Malaysia will face a severe talent shortage with a deficit of close to 94,000 workers in 2030 and a total output of US$6.1 billion.
In order to overcome these challenges, organisations need to adopt a three-pronged approach to tech talent management: adapt, cultivate, and retain. Business leaders must create a work environment that is attractive, which often means offering flexible work arrangements and a strong culture of collaboration.
Adapt
Traditionally, organisations have focused on hiring candidates with a strong technical background. However, in today’s market, it is more important to hire candidates with the right attitude and aptitude for learning.
Globally, many have shifted towards skills-based hiring, where the hiring of workers without a degree has grown by 20% since 2019, while the APAC region recorded only a 3% increase in the same period. Interestingly, non-graduates spend 34% more time with an organization compared to graduates. Practical skills might be more beneficial than paper degrees, but fresh hires are still an effective source of talent.
Organisations can also partner with educational institutions to create training programs that prepare students for careers in the tech industry. These programs can help to close the skills gap and ensure that there is a steady pipeline of qualified candidates.
Cultivate
For most companies, human capital can be said to be the backbone for business growth, crucial for customer engagement and driving product innovation. Undoubtedly, the modern workforce has gone through a shift due to the pandemic, with employees prioritizing work culture and how they value-add over other factors such as financial remuneration and benefits. The pandemic has generated a 52% increase in employees who question the purpose of their day-to-day jobs.
In this regard, organisations need to cultivate a work environment that is conducive to employee growth and development. This means providing employees with opportunities to learn and grow, as well as creating a culture of collaboration and support.
Providing employees with opportunities to work on challenging projects also gives them the opportunity to develop their skills and experience and helps organisations keep employees engaged and motivated.
Retain
In order to retain talent, organisations need to create a work environment that is attractive. Beyond competitive salaries and benefits, organisations need to have a culture of appreciation, flexibility and collaboration, while providing employees with opportunities for advancement, as the pandemic has put more pressure on well-being and equality at work.
Having the right technology to support them at work boosts employee engagement and can lead to higher retention rates. A study by the University Consortium of Malaysia found that SMEs that used social media experienced a 26% increase in productivity while those that engaged in e-commerce saw productivity increase by 27%. It also found that application of advanced digital technologies such as data management solutions could increase SME productivity by up to 60%. With such significant impacts generated by adopting simple digital technologies, leaders have a long runway to further elevate team engagement and efficiency, when the right tools are used.
Ultimately, leaders need to recognise that technology is well-integrated into everyday lives and will become increasingly indispensable in the future. One way or another, each individual will be part of that ecosystem. The missing piece to solving the talent crunch for the tech industry may lie with those without industry expertise.
In addition to the above, here are some other specific strategies that organisations can adopt to attract and retain tech talent in APAC:
- Offer remote work options. This is especially important for tech workers, who are often highly mobile and value flexibility.
- Create a culture of diversity and inclusion. This helps to attract and retain a wider range of talent, and it will also create a more innovative and productive work environment.
- Invest in employee training and development. This will help employees to stay up-to-date on the latest technologies and trends, and help them to develop their skills and advance their careers.
- Provide opportunities for professional growth. This could include things like mentorship programs, stretch assignments, or cross-functional projects.
- Celebrate employee successes. This shows employees that their hard work is appreciated, and it also helps to create a positive and motivating work environment.
By adopting these strategies, organisations can attract and retain the tech talent they need to succeed in the APAC region.
By Radu Lazar, Regional Manager, Endava
