Q2 2024 HR Market Insights APAC - The Key HR Trends

The HR market in Q2 experienced a mix of cautious optimism and strategic transformation. While there were signs of improvement, the overall market remains cautious. Most hiring activities are concentrated on middle management positions

q2 HR Market Insights

Organisations are undergoing significant changes, putting pressure on HR leaders to demonstrate ROI. This has led to substantial HR transformation efforts, including changes to the HR operating model, better utilisation of HR technology, and strategic location planning.

Demand has increased from SMEs and large MNCs with smaller APAC operations looking to expand across the region. Conversely, larger companies with significant headcount in the region have seen reduced demand, often resulting in reduced headcount through natural attrition or senior-level redundancies, with a focus on internal promotions or confidential hiring for niche positions.

The demand for mid-level HR Business Partners and HR Managers is increasing with companies aiming to manage costs and improve efficiencies. These roles now usually come with expanding responsibilities in specialist areas such as HR analytics or talent acquisition and other areas.

Reward specialists are under pressure to manage costs effectively while tackling additional data-related projects. The focus has shifted to identifying inefficient spending and underutilised benefits. Consequently, more companies are personalising their compensation and benefits programs to boost employee satisfaction.

HR Analytics remains a focal point for many organisations, driven by the integration of AI and automation. Companies are emphasising data-driven decision-making, but this has not led to an increase in HRIS hiring. Instead, there is a greater reliance on utilising existing internal resources to manage costs or engaging specialist consultants with expert knowledge.

Large MNCs are considering or have already moved HR Shared Services to low-cost countries to reduce expenses and fund automation. Other businesses are increasing demand for junior HR Business Partners who can operate both operationally and strategically. As remote work and hybrid models become the norm, HR Shared Services are focusing on improving the remote onboarding experience.

Talent Acquisition has been the hardest hit HR function. While there is increased demand for mid-level recruiters in mid-sized companies, this demand is still significantly lower than in previous years with HR Manager and HR Business Partner increasingly being asked to take on the responsibility.  Large MNCs are still hiring TA Leaders in high cost countries like Singapore and Hong Kong  but are replacing Recruiter in other countries or building out there sourcing teams 

In conclusion, the HR market in Q2 reflects a cautious yet strategic approach to hiring. Despite this there is still demand for HR professionals with good communication skills and the ability to influence, drive change and improve operational effectiveness

Currently hiring check our our latest hiring guides on How to keep candidates engaged during the recruitment process and How to shortlist top talent for interview

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