Technology Companies Report Hiring Slowdown in Asia Pacific

SINGAPORE -�Media OutReach - 21 November 2019 – Workforce trends data at technology
companies across Asia-Pacific reflect a cautious hiring environment in the
third quarter of 2019 compared to the prior quarter, according to the Radford
Global Technology Survey. Radford is part of the Rewards Solutions practice at Aon
plc (NYSE: AON), a leading global professional services firm providing a
broad range of risk, retirement, and health solutions.

In many countries
throughout the region aggressive hiring declined, most notably in India, where
the demand for technology talent was robust in previous quarters. Despite the
dip in hiring, India remains the top market for technology company growth with
12.1% of companies planning aggressive hiring. In Singapore, the percentage of
technology companies planning for increased headcount remained steady at 6.0%.
On the low end is Taiwan with only 1.9% of companies ramping up hiring. China
is experiencing a slight rebound in hiring after last quarter’s slowdown amid
an ongoing trade war with the U.S.

Percentage of
Technology Companies Reporting Aggressive Hiring Plans

	Q2 2019	Q3 2019	Direction
Australia	8.5%	7.0%	–
China	7.0%	8.5%	+
Hong Kong	3.6%	3.4%	–
India	18.4%	12.1%	–
Japan	7.3%	5.9%	–
Malaysia	1.4%	2.9%	+
Philippines	4.3%	3.9%	–
Singapore	6.0%	6.0%	No Change
South Korea	2.6%	3.7%	+
Taiwan	2.5%	1.9%	–

Source: Radford Global Technology Survey Quarterly Workforce Trends
Report, Q3 2019

As technology
companies across Asia-Pacific pull back on hiring, we find that voluntary
turnover has decreased in all markets except for India. Voluntary turnover
dropped in Singapore from 14.7% to 12.9%. Average voluntary turnover among technology companies in Asia-Pacific is
12.2%; across the globe, it’s 13.3%.

Trend lines often
converge between turnover and hiring. When the technology sector is in a slower
state of growth, employees are less likely to switch jobs. At the same time,
the decrease in turnover can also be attributed to businesses improving
retention through more compelling rewards programmes, such as adding equity
eligibility further down the organisation or increasing short- or long-term
incentive targets for critical job roles and/or high-performing employees.

Average Voluntary
Employee Turnover at Technology Companies

	Q2 2019	Q3 2019	Direction
Australia	13.8%	13.6%	–
China	14.2%	13.6%	–
Hong Kong	13.9%	13.6%	–
India	13.4%	14.4%	+
Japan	10.9%	9.0%	–
Malaysia	15.3%	14.2%	–
Philippines	14.3%	12.0%	–
Singapore	14.7%	12.9%	–
South Korea	11.8%	9.7%	–
Taiwan	9.1%	8.7%	–

Source: Radford Global Technology Survey Quarterly Workforce Trends
Report, Q3 2019

A final data-point
we examine is salary increase budgets. The Radford Global Technology Survey
reports that technology companies are planning salary increase budgets for 2020
that are on par with, or slightly higher than, 2019 actual reported spending
budgets. Salary increase budgets remain steady in
Singapore at 4.0% but are forecasted to be higher in India, Japan, Malaysia,
Philippines and South Korea.