Indonesia is Asia Pacific’s Highest Adopter of Contingent Workforce to Overcome Headcount Shortage: Survey


    SINGAPORE, April 6, 2022 /PRNewswire/ -- PERSOLKELLY, one of the largest and leading HR solutions companies in Asia Pacific, released a business survey report today highlighting Indonesia as the highest adopter of a Contingent Workforce in Asia Pacific and the figure is expected to grow by 15% in the next two years.

    A Contingent Workforce includes short-term and fixed-term contractual employees, freelancers and independent contractors outsourced to agencies.

    The report highlights how companies are turning increasingly to a Contingent Workforce strategy to overcome headcount shortages and is already an essential part of workforce strategies in Asia Pacific with companies planning to increase their usage over the next two years.

    Businesses impacted by COVID-19, technology's rapid growth and economic uncertainty are rethinking traditional recruitment approaches to stay competitive. The most common reason for adopting a Contingent Workforce is that it offers flexibility to workforce planning. The second top reason is to help fill specialised roles to ensure no disruption to operations.

    The survey illuminates a changing mindset, with the majority of companies likely to offer contingent workers the same or better rewards as permanent staff.

    Key findings in Indonesia:

    • 45% of Indonesian companies use a Training and Upskilling approach to widen their workforce's knowledge and scope
    • 47% offer the same rewards scheme as permanent employees, while 21% offer better rewards scheme than permanent employees
    • 41% of respondents engage recruitment agencies for their headcount needs and strategies.

    "While economic uncertainty remains, the post-pandemic rebound presents businesses with a wave of opportunities. Given the talent shortage and fluctuations in supply and demand, growth-hungry companies must embrace fresh hiring approaches to stay competitive. A well-implemented Contingent Workforce strategy brings multiple benefits in this volatile landscape," said Elvin Tan, Regional Director - Head of Operations APAC, PERSOLKELLY. "The survey findings will help us build and refine robust Contingent Workforce strategies for our clients as part of our Regional Talent Solutions across Asia Pacific."

    PERSOLKELLY and YouGov surveyed 1,112 employers and HR decision-makers in Australia, Mainland China, India, Indonesia, Hong Kong, Malaysia, New Zealand, Singapore, South Korea, Taiwan, Thailand and Vietnam.

    Press Contact: Lareina Turaga, lareina.turaga@salweengroup.com

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