The challenge is pressuring employers to turn to non-monetary benefits, cost-saving tactics
The challenge of attracting and retaining top talent is growing for employers in the Asia-Pacific region as they ranked it fourth in their top 10 business risks.
This is five places higher than its previous ninth place in 2021, according to the latest Global Risk Management Survey from global professional services firm Aon.
The report further found that employers don't think the problem will go away in three years - as they ranked it third in their list of top future risks.
According to the report, the challenge of recruiting individuals with specific skills comes as many businesses are vying for a small pool of talent who have varied preferences.
"Many employees are seeking out increased pay or new roles because of financial pressure as well as a desire for career progression and alignment between their own and their employers' values," the report said.
The challenge is putting employers under pressure to reimagine total rewards beyond salary, according to the report. They are turning to non-monetary opportunities or cost-saving tactics to support employees and their businesses as they struggle to align wages with high inflation.
"This shift in dynamics means employers in the region - large organisations, in particular - are focused on retention, wellness, and factors driving the global economy," the report said.
Cyberattacks as biggest concern in APAC
Meanwhile, employers are mostly concerned of cyberattacks or data breaches hitting their organisations as they placed it first on their top current risks.
"This reflects the pervasiveness of cyber risk and mirrors a global trend of growing awareness of the expanding cyber threat landscape," the report said.
According to the report, cyber risk concerns have worsened over the years following high-profile data breaches and ransomware attacks in the region.
Concerns are also fuelled by increased data protection review and enforcement by regulators, as well as the underwriting scrutiny by the insurance market.
The full top 10 list of business risks for APAC employers include:
- Cyberattack or Data Breach
- Economic Slowdown or Slow Recovery
- Business Interruption
- Failure to Attract or Retain Top Talent
- Rapidly Changing Market Trends
- Supply Chain or Distribution Failure
- Regulatory or Legislative Changes
- Increasing Competition
- Failure to Innovate or Meet Customer Needs
- Commodity Price Risk or Scarcity of Materials
Anne Corona, chief executive officer of Asia Pacific for Aon, said these newer and emerging threats continue to reshape the views and sharpen the need of business leaders to make better decisions.
"With cyber risks/data breach, economic slowdown, and business interruption identified as top risks for businesses facing organisations in Asia Pacific today, there is a compelling need for a shift in mindsets around being better prepared for risks by using data and analytics and experts to advise on the dynamics of long-tail risks," Corona said in a statement.