Given the unprecedented economic headwinds, businesses find the solution of offshore recruitment can be cost-effective.
FREMONT, CA: Since COVID-19, businesses have grown more receptive to implementing new operational models and remote labour, and they are now viewing offshore recruitment tactics to increase agility and get their operations moving in the right direction. According to research by the Singapore-based HR solutions provider PERSOLKELLY, up to 84 companies in the Asia Pacific region favour outsourcing recruitment tactics.
According to the report titled Hiring and Managing Talent Beyond Geographical Boundaries, which highlights the effectiveness and growing trend of employers across the region in adopting offshore recruitment strategies for their hiring needs, the markets with the highest adoption rate are Vietnam (46 per cent), South Korea (43 per cent), Thailand (39 per cent), India (36 per cent) and New Zealand (36 per cent).
Given the unprecedented economic headwinds, businesses find this solution can be cost-effective. It also opens opportunities to reach new markets, gives access to a bigger pool of talent with specific skill sets, provides resources to quickly fill gaps in their workforce, and enables the diversification of business operations. The adoption rate for businesses in the IT sector is the greatest, followed by those in high-tech engineering, manufacturing, and finance.
According to the study, the top four advantages listed by businesses in the Asia Pacific as justifications for pursuing an offshore recruitment strategy are as follows:
- Gaining access to a larger talent pool (59 per cent): All markets, except Australia, India, and South Korea, chose this as their top motivation.
- Lowering labour and overhead expenses (by 50 per cent): A broader labour supply is made possible by a wider talent pool drawn from numerous markets.
- Using cutting-edge technology, acquiring and managing offshore talent minimises the need for physical offices, making this a viable and cost-effective company approach (49 per cent): This was selected as the third factor by nearly half of all respondents.
- Generating fresh market possibilities (47 per cent): Through the talent's network and knowledge, hiring offshore talent aids organisations in entering new target markets. Due to this, businesses in the following markets: China (58 per cent), Singapore (57 per cent), India (55 per cent), Vietnam (52 per cent), and Taiwan (50 per cent), are in favour of offshore recruitment tactics.
Further, the report said that the top three supports required when considering implementing the offshore recruitment strategy include advisory on labour law and compliance (69 per cent), payroll and tax submission (61 per cent), as well as recruiting and onboarding new offshore talent (50 per cent).
Employers can now hire and manage personnel across geographic borders to globalisation and technology. Companies must differentiate themselves to add more value for their customers as marketplaces become more competitive to maintain or develop new competitive advantages. Only the right talent with the proper skill set can be hired to do this.