- By 2030 a deficit of in-demand employees could cost APAC companies billions of dollars
- By 2030 average pay premium for skilled workers in APAC could be more than $14,500 per worker per year
- Hong Kong will have the greatest shortage for skilled talent in proportion to total demand
Salaries for highly skilled workers could boom as talent shortages take hold across Asia Pacific, according to the ‘Salary Surge’ study by Korn Ferry. Left unchecked, the salary surge could add more than $1 trillion USD to annual payrolls in the region by 2030, jeopardising companies’ profitability and threatening business models. In Hong Kong, worker shortage will cost an additional $19 Billion by 2020, $30 Billion by 2025, and $38 Billion by 2030.
“The new era of work is one of scarcity in abundance: there are plenty of people, but not enough with the skills their organisations will need to survive,” said Dhritiman Chakrabarti, Korn Ferry, Head of Rewards and Benefits, APAC. “While overall wage increases are just keeping pace with inflation, salaries for in-demand workers will skyrocket if companies choose to compete for the best and brightest on salary alone.”
The ‘Salary Surge' study estimates that the talent shortage will have an impact on payrolls in 20 major global economies over three milestones: 2020, 2025 and 2030, and across three sectors: financial and business services; technology, media and telecommunications; and manufacturing. It measures how much more organisations could be forced to pay workers, above normal inflation increases.
“Buying in talent from the market is unsustainable. Instead, companies across Asia Pacific must focus on engaging and enhancing the skills of their current workers,” said Chakrabarti. “With existing highly skilled workers, leaders must focus on what really drives retention. We know that employees who have the opportunity for career development, benefit from inspiring leadership and feel their work has purpose are more likely to stay at an organisation, and – crucially – will be more engaged and productive.”
Paul Arkwright
Publisher
