HRtech in Southeast Asia has become a game-changer in talent acquisition in the last few years. It stands for human resource technology and encompasses all the digital tools HR managers can deploy to help them recruit, onboard, manage, and fire employees. While traditional methods had been tried and tested and were successful, they still encountered multiple challenges.
For example, when the Association of Southeast Asian Nations (ASEAN) embraced the digital revolution in the wake of the COVID-19 pandemic, no one anticipated there would be a limited talent pool. Tech workers were few and far between, and there was strong demand for them in multiple industries. Thus, companies must look to hire employees from outside their countries, adding more strain to regional economies and losing their best applicants to other nations that can pay higher salaries.
Secondly, there are many skill mismatches in workplaces, and startups have had to spend more money to either recruit new workers or pay for employee upskilling. While ASEAN has predominantly young, tech-savvy citizens, the older generation may not be as comfortable with technology, leading to mishaps which may prove costly to the company.
A third set of challenges occurs thanks to traditional recruitment models that operate under complex regulations or use informal measures to hire candidates. Even though industry or government policies may impact the talent search, HRtech reduces the guesswork from applicant reviews and provides data-backed information on the best candidates.
Potential hires consider several factors when applying for Southeast Asian jobs: 95% of respondents indicated salary and benefits, while 19% of the respondents cited educational opportunities, and company culture and performance. Moreover, they review their future colleagues, check for flexible working arrangements, and consider their passion for the role. Technology can help align the workplace with the employee’s needs.
HRtech trends impacting talent acquisition in Southeast Asia
According to a study by Computer Weekly/Tech Target IT Salary survey in 2022, less than a third of IT professionals in Southeast Asia intended to stay in their jobs. They were seeking promotions, alternative roles, and work-life balance. This phenomenon was not unique to the region, as the COVID-19 pandemic made many global workers reconsider the value of staying in their jobs. This time was labelled the Great Resignation.
In addition, ASEAN tech companies felt the strain from the dwindling global economy and laid off workers to reposition their businesses for future survival and profitability. Implementing HRtech enables startups to address traditional employee recruitment and management problems. Here are a few ways:
- Streamlining operations
Using technology in recruitment can identify gaps in a business’s talent pool, which is beneficial if filled with high-quality employees. Alternatively, tech can spot redundant positions in the workplace, and removing them can cut down on expenses like wages and benefits.
The software impacts various stages of the recruitment process, from sending out job postings to handling onboarding. It speeds up hiring and goes through thousands of applications using background checks to weed out dangerous employees quickly. It also creates reports for HR to review and improve the process.
- Better recruitment management
HRtech provides tools to automate application responses, save time on recruitment through Applicant Tracking Systems (ATS), engage potential candidates who respond to job ads, and improve the recruit’s overall hiring experience with the company, which is ideal for branding.
Virtual screening also reduces travel, benefiting the environment by reducing everyone’s carbon footprint.
- Employee retention
Companies can manage their workers using technology, thereby helping to retain them. For example, AI can be utilised to identify opportunities such as salary increases, bonuses, benefits, time off, parental leave, and employee training, among others, to convince the worker to stay with the business long term.
- Data analysis and reporting
HRtech gathers data to analyse and writes reports that help managers know their business status and employee satisfaction.
- Diversity and inclusion
Technology can show ways of improving diversity in the workplace to select underrepresented but qualified groups to work for a business.
Potential drawbacks of relying on tech for recruitment
As the region adopts digital technologies more and more, HRtech will help companies solve their talent acquisition needs. Using tech has potential drawbacks, such as algorithmic bias against various groups, data safety, and job losses for the HR team.
Nevertheless, these can be fixed by adopting better AI recruitment models, implementing robust data protection policies, and finding alternative roles for fearful employees.
Furthermore, managers must check industry regulations to remain compliant with worker-protection policies. They should map out their talent needs and fill them immediately to get the company moving forward faster. Finally, they should have remote work policies, understand the regional culture to avoid discrimination, and consider hiring locally to get an employee who understands the residents.
Overall, there will always be a market for HRtech in Southeast Asia as the region encourages innovative startup growth and industry ecosystem development.