More APAC Companies Adopt Contingent Workforce to Overcome Talent Crunch: Survey

SINGAPORE, April 6, 2022 /PRNewswire/ -- PERSOLKELLY, one of the largest and leading HR solutions companies in Asia Pacific, released a business survey report today that highlights how companies are turning increasingly to a Contingent Workforce strategy to overcome headcount shortages. Businesses impacted by COVID-19, technology's rapid growth and economic uncertainty are rethinking traditional recruitment approaches to stay competitive.

The survey highlights how a Contingent Workforce is already an essential part of workforce strategies in Asia Pacific and the trend is accelerating, with companies planning to increase their usage over the next two years.

A Contingent Workforce includes short-term and fixed-term contractual employees, freelancers and independent contractors outsourced to agencies.

The most common reason for adopting a Contingent Workforce is that it offers flexibility to workforce planning. The second top reason is to help fill specialised roles to ensure no disruption to operations.                                 

The survey illuminates a changing mindset, with the majority of companies likely to offer contingent workers the same or better rewards as permanent staff.

Key findings:

• 58% of respondents use a Contingent Workforce when experiencing a headcount shortage. Sectors most in favour of using a Contingent Workforce are IT/Hi-Tech, Healthcare/Pharmaceutical, FMCG, Logistics/Supply Chain, Financial Institutions/Banking, Professional Services/Consultancy, Manufacturing and Government/Statutory Agency.
• The highest adoption of a Contingent Workforce is in Indonesia (67%), Hong Kong (66%), Malaysia (64%) and Singapore (60%).
• About 25% of companies already using a Contingent Workforce will increase their usage over the next two years.
• 74% of companies are likely to reward a Contingent Workforce the same or better than full-time staff.
• 48% of respondents engage recruitment agencies for their headcount needs and strategies.

"While economic uncertainty remains, the post-pandemic rebound presents businesses with a wave of opportunities. Given the talent shortage and fluctuations in supply and demand, growth-hungry companies must embrace fresh hiring approaches to stay competitive. A well-implemented Contingent Workforce strategy brings multiple benefits in this volatile landscape," said Elvin Tan, Regional Director - Head of Operations APAC, PERSOLKELLY. "The survey findings will help us build and refine robust Contingent Workforce strategies for our clients as part of our Regional Talent Solutions across Asia Pacific."

PERSOLKELLY and YouGov surveyed 1,112 employers and HR decision-makers in Australia, mainland China, India, Indonesia, Hong Kong, Malaysia, New Zealand, Singapore, South Korea, Taiwan, Thailand and Vietnam.

Media Contact:

Lareina Turaga
lareina.turaga@salweengroup.com