This has allowed them to 'pull back' on aggressive hiring strategies
Technology companies across Asia Pacific were more cautious about hiring in the third quarter of 2019, according to a new study.
‘Aggressive hiring’ has declined in many countries across Asia, most notably in India, where the demand for technology talent was previously ‘robust’.
The study attributed the ‘pull-back’ to a decrease in voluntary turnover. The average voluntary turnover among firms in APAC was 12.2% – lower than the global average of 13.3%.
Singapore’s tech sector remained steady, with about 6% of technology companies planning to increase headcount. This, while voluntary turnover in the city-state dropped from 14.7% to 12.9%.
On the other hand, only about 1.9% of Taiwanese companies are ramping up hiring, based on Radford’s latest Global Technology survey.
China is experiencing a slight rebound in hiring after last quarter's slowdown amid an ongoing trade war with the US.
Despite the dip in hiring across the region, India remains the top market for technology company growth with 12.1% of companies planning aggressive hiring. India’s the only market where turnover has not decreased, based on the trends report.
The findings are not surprising as trend lines often converge between turnover and hiring, said the report. When the tech sector is in a slower state of growth, employees are less likely to switch jobs.
At the same time, the decrease in turnover can also be attributed to businesses improving retention through more compelling rewards programs.
As companies put the brakes on aggressive hiring, HR leaders can examine their rewards programs and ensure they resonate with current employees to keep top talent engaged, said Alexander Krasavin, Partner and Head of Technology and Life Sciences for the Asia, Pacific and Middle East regions, in the Rewards Solutions practice at Aon.
“The annual merit increase is an important component of a total rewards package, but many employees view this as an entitlement,” Krasavin said.
“To make your merit budget go further, consider differentiating merit increases even more and leveraging long-term incentives to reward performance.”