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There is a lot in the world of workforce. Talent availability seems to be a common challenge across industries and as seen from PERSOLKELLY 2021 APAC workforce insights report. The market for skilled digital Talent is especially highly competitive due to Tech adoption and digitization which resulted in a rise in demand for skilled Talent.

Remote work has outlined its benefit over the course of the pandemic and is here to stay in a hybrid version with emphasis on mix of in-person collaborative environment as well as flexibility to work remotely.

Our recent 2021 APAC Workforce Insights Report indicates that 55% of business leaders open to hiring and managing remote Talents overseas.

As per the findings, while 85% cited that the top challenges for companies building a workforce are constraints on global mobility due to the pandemic, lack of skilled talent locally, and a high drop-out rate in certain segments.Borderless hiring solutions may help employers with the problem of finding moving Talent across borders into different markets which maybe perhaps limited by travel restrictions, employment quotas and various connectivity challenges.

In certain organizations, issues like employee stickiness, culture erosion and concerns around moonlighting seem good enough reason to do away with remote work and move back to office space.

Eventually, deciding to evaluate remote, on-site or go hybrid will be driven by what is important now and what has been the learning over past two years by individual companies.So staffing companies need to be open to engage clients differently based on work styles the clients have chosen for the year ahead. It is likely it will continue to evolve over the next couple of years.

General staffing will likely tend to move away from just statutory / compliance offering to additional Recruiting/training/performance offering with the wage codes making staffing pricier.

Value added services and SOW/Managed services will require specialized staff increasing the cost of operations. Advanced markets still rely on staffing providers for ease of employment / customized tenure length – Talent Supply chain Management – a trend to look forward to in India as well.

Sourcing methods are constantly evolving and utilizing advancement triggered by AI and cloud technology to stay innovative and meet the needs of a constantly changing market. Leveraging these tech trends in the recruiting and staffing space and integrating them into processes will be important in 2022. Creating a recruitment workforce who are adept at using new-age technologies will be critical. For this reason, investing in training and upskilling of recruiters will be of prime importance. While there does not seem to be a one-machine fits all solution, it’s very likely we will have a few evolved AI solutions in couple of years.

Talent retention – Retaining talent has been extremely critical in 2021 not just for clients but for staffing firms as well especially with recruiters leaving the staffing industries and moving to so-called corporate set up. Engaging employees by upskilling, re-skilling needs to be top focus while supplementing with competitive compensation and promising work-life balance. Likely, many staffing firms will need to grow and train their talent to keep costs low as typically trying to match compensation from corporates may not make business sense.

Code of Wages may bring about sea change in less organized markets and general staffing.

Interpretation and clarity on Code of wages may take time to settle – expect multiple amendments that can complicate the work of staffing providers.

Ease of certain compliances could be a threat to vanilla staffing, Wage and Statutory costs can increase drastically for organizations resulting in some organizations directly engaging contractors- This will largely depend on client’s cost appetite , risk appetite , philosophy of build or buy that runs in client’s organisation .If cost does increase , Cost sensitive clients may likely either insource or pass the cost back to staffing partner .If this does happen , the challenge of staffing firms is to provide either value differentiator or cost differentiator to client’s in-sourcing attempt. This being a short-term hiccup for those who can overcome it and refine their staffing product and services.

Overall, it is an interesting time to be part of staffing industry. There are ample market opportunities for staffing companies; however we need  to be nimble and adaptable to ever changing client strategy and policy changes. If anything, pandemic has made staffing more relevant sooner than expected.

Author

Thammaiah BN, Managing Director at PERSOLKELLY India Pvt. Ltd.