Employers responding to skill shortages through recruitment, retention efforts
Nearly half of employers in Asia are planning to expand their headcount this year in a bid to address skill gaps in their workforce, according to a new report.
The report, released by Hays, surveyed 8,790 skilled professionals and 3,670 employers from Singapore, China, Hong Kong SAR, Japan, Malaysia, and Thailand.
It found that 46% of organisations in Asia plan to grow their workforce this year, up from 44% in 2024. In fact, 27% of employers surveyed said recruitment is an investment focus area for their HR department this year.
The report attributed the heightened focus on recruitment to the skill gaps in the workforce, with 62% of employers experiencing moderate to extreme skill shortages in the previous year.
Employers attributed the skill shortages to three factors:
"Businesses are signalling a willingness to address these shortages this year. Twenty-seven per cent of organisations chose employee recruitment as a HR investment focus in 2025," said Marc Burrage, Managing Director for Hays Asia, in a statement.
"A further 32% were committed to improving employee retention, underlining a need to reduce lost knowledge, hiring expenses, and missed revenue opportunities."
Burrage said organisations should "rethink" their approach to leadership pipelines as the lack of career opportunities emerges as one of the top reasons why employees in Asia are leaving.
According to the report, 55% of employees in Asia are looking, or are planning to look for a new job this year. Their reasons for departing include:
"Leaders need to rethink their approach to leadership pipelines, upskilling programmes, and internal mobility, ensuring they offer clear pathways to advancement that today’s workforce demands," Burrage said.
