The rollercoaster ride continues. 

While the Great Reshuffle of 2020 pushed hiring levels to fever pitch, the trend has cooled significantly since, aided in part by the current macroeconomic climate. LinkedIn’s latest Global Talent Trends data shows that hiring continues to slow around the world and in the Asia Pacific (APAC) region: India recorded a -34% dip, Singapore came down by -42%, Australia saw a -35% reduction, and Indonesia dropped by -34% when comparing March 2023 with the same time last year. 

The hiring spree that once characterised our talent landscape now appears to be replaced by a more focused, inward strategy as skills-first hiring rises in importance. This signals, perhaps, the start of a new, more sustainable ride into the future as skills become the currency of the workplace.

As organisations see a faster proliferation of new skill needs, where someone went to school, or who they know, should matter less than the skills they possess. A skills-first hiring approach widens the talent pool and helps organisations fill their roles with greater efficiency and effectiveness.

We invited four industry experts to weigh in on LinkedIn’s latest Global Talent Trends Report and share their advice to help recruiting professionals recalibrate their talent strategy for the future.

Tip #1: Build a strong talent pipeline by putting skills first 

As the hiring market cools, orienting your talent strategy around skills instead of traditional proxies like direct experience and paper qualifications can immediately widen your talent pool by a global average of 9.4x. This can be even more significant in markets like Australia (10.2x),  India (12x) and Indonesia (13x).

To make the shift towards a skills-first hiring strategy, Stacey Donovan Zapar, Founder of The Talent Agency, has two key recommendations:

      1. Start by taking the time to understand the skills that your organisation needs
      2. Invest in a strong employer brand, making sure that your employee value proposition is aligned with candidates’ priorities

The Global Talent Trends report found that despite swings in the labour market and economic uncertainty, what employees in APAC value when it come to work has stayed relatively consistent through the turbulence of the past two years:  

How can LinkedIn help? You can use your Company Page’s new Commitment section to showcase up to five key values such as diversity, equity, and inclusion (DE&I), career growth and learning, work-life balance, workplace flexibility and more.

You can also use Talent Interest Pipeline, another new feature that allows candidates to express interest in working for your company without applying for a specific role, to automatically maintain a pipeline of warm candidates.

Tip #2: Leverage internal mobility as a tool for retention

While hiring is on a downward trend, we are seeing an uptick in internal mobility in some global industries, indicating that amidst global uncertainty, some companies are preferring to fill their skilling requirements from within.

While  internal mobility is increasing in some global industries, it’s still not top of mind for most employees in some APAC markets.

Our Workforce Confidence Index survey found employees across APAC are more likely to consider leaving the company than look for an internal move. Employees may have internalised that moving up the ladder means changing employers. However, there is a particular untapped opportunity in markets where employees are just as likely or just about as likely to consider moving internally. In Australia 1.1x, in Japan 5.5x and India 1.0x.

Part of this may be because they don’t see opportunities internally. This makes it all the more important to promote internal mobility opportunities to your employees.

Doing so can come with big payoffs, starting with higher employee retention — LinkedIn data shows that employees stay at companies almost 2x longer if the employer is highly committed to internal hiring. You may also be helping to uplift certain employee groups more than others, thereby building a more diverse and equitable workforce along the way:
 

To strengthen your internal mobility and hiring culture and process, LinkedIn Learning instructor Stacey Gordon suggests:

        1. Make it easy for internal candidates to find opportunities, such as through an internal job board
        2. Quantify the skills you’re looking for
        3.  Build a culture of internal mobility and secure managers’ buy-in and support

As a recruiting professional, you can put LinkedIn hiring tools that you already know and use to good use, leveraging features like Internal Candidate Spotlight in Recruiter to find and connect internal talent to internal opportunities.

Tip #3: Invest in upskilling and reskilling the next generation of leaders

Our  Global Talent Trends data suggests Gen Z employees are the least likely to make internal moves and people leaders in management roles are more likely to benefit from internal moves versus individual contributors.

However our Future of Recruiting 2023 report found, career advancement and skill development consistently ranked within the top six priorities of workers across Australia & New Zealand, India and Southeast Asia. In fact, companies generally see a 7% higher retention rate at the three-year mark with employees who have learned skills on the job.

Learning is clearly a compelling driver for both internal candidates and external hires. To help employees acquire the skills and achieve the growth that they desire, Christopher Lind, VP and Chief Learning Officer at ChenMed, recommends:

       1. Understand where employees are in their careers right now and what they need to progress internally
       2. Focus on leadership and management training
       3. Offer targeted mentorship programmes

Watch these five LinkedIn Learning courses to jump-start your company on implementing an inclusive, skills-first talent strategy — they’re free through July 28, 2023.

        1. Upskilling and Reskilling your Workforce with Lori Niles-Hofmann 
        2. Promoting Internal Mobility as a Manager with Alisa Cohn
        3. Attracting, Hiring, and Working with Gen Z with Sophie Wade
        4. Diversity Recruiting with Stacey Gordon
        5. Creating a Culture of Learning with Naphtali Bryant and Jason Mulero

Some of the biggest changes - and opportunities - today are being driven by artificial intelligence (AI). We know how important building AI-related skills will be to navigating virtually every role and industry. Your employees can access over 100 AI courses free until June 15, 2023 to upskill on AI and what it means for the future of work.

Tip #4: Make the business case for skills

As the hiring market cools and the macroeconomic climate weighs on businesses, employee retention is a concern for virtually every organisation. According to LinkedIn’s 2023 Workplace Learning Report, this is true for 94% of organisations in Singapore, Australia & New Zealand and 99% in India, and the vast majority of them are providing learning opportunities in a bid to stem attrition.

Our Global Talent Trends data tells us  companies that focus on skills can expect nearly a 10% higher retention rate, which should be enough to get your leadership to sit up and pay attention.

Gallup estimates the cost of replacing an employee can range from 1.5 to 2x of the employee's annual salary. While this is likely to vary from market to market, over 80% of Learning & Development professionals in APAC agree that it’s less expensive to reskill a current employee than to hire a new one.

To help you build a business case for skills, Crystal Lim-Lange, CEO & Co-Founder of Forest Wolf and LinkedIn Top Voice 2022, recommends quantifying the value of leadership training and skills-building. 

Taking the Next Step

As the world of work continues to shape-shift around us, the best first thing you can do is to start asking hard questions about your company’s internal mobility culture and processes.

Are internal moves encouraged? Do employees know how to access open internal roles? Is there a clear working model between the teams most likely to be accountable for internal mobility (i.e. talent acquisition and talent development)?

The answers to these questions will set you on the right path as you recalibrate your talent strategy for the future. To help you along, here are more resources:

Read the full Global Talent Trends Reports here:

            ●  Global Report
            ●  Australia & New Zealand edition
            ●  India edition
            ●  Singapore edition

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