News

Technology Companies in Asia Pacific Struggle to Retain Employees While Ramping up Hiring Plans

  • 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.

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