HRO Today Global Spring 2014 - 4

Editor's Note
CEO: Elliot H. Clark
Elliot.Clark@SharedXpertise.com
Managing Director: Faye Holland
Faye.Holland@SharedXpertise.com
Eyes on APAC
Growth-it's one way to describe the Asia Pacific (APAC) market right now. Just ask Shaun
Ruming. The vice president of HR and training for the fast-food giant McDonald's is leading
the company's incredible growth effort in Asia Pacific to increase the number of employees
from 450,000 to one million by 2020. That's a tall order. Learn some of his strategies in Fast
Food Growing Fast on page 10.
Research findings also echo the area's surge in economic growth. Talent2's annual 2013 APAC
Market Pulse 3 study finds that half of businesses in APAC markets have experienced economic
growth in the past year, and 61 per cent predicted growth for the following 12 months. Areas
like Malyasia and Singapore were more likely to forecast expansion than China, Australia, and
Hong Kong.
Martin Cerullo, managing director of development APAC and global lead marketing and
innovation for Alexander Mann Solutions, reports two hot spots to keep on your radar:
Philippines and Japan. Both countries are looking to jump into the outsourcing game to
maintain their growth curves.
Perhaps following suit of multinationals in North America, there is a predicted uptick in the
use of contingent labour in APAC. From the 2013 APAC Market Pulse 3 study, nearly one-third
of APAC businesses expect to increase the number of non-permanent staff.
" In mature markets, we are anticipating continued growth in use of contingent workers, " says
Cerullo. " Places like Singapore, Hong Kong, and Malaysia are showing a shift to contingent
work but at a much slower rate than somewhere like Australia. "
Cerullos says the benefits to contingent workers include access to the best talent; flexibility to
manage headcount; the ability to staff up for specific project requirements; and the ability to
access specialist skills. He also notes some challenges like visibility, control, cost, co-employment
risks, and compliance factors.
Roop Kaistha, solutions design director of APAC for Randstand Sourceright, says that
contingent labour is a possible solution to a very real problem: talent scarcity. " Hiring
temporary and contingent workers is the second most widely used strategy by companies to
combat talent shortage, " she says.
The 2013 APAC Market Pulse 3 finds that 57 per cent of the businesses across Hong Kong,
Singapore, and China have experienced problems recruiting local qualified talent. Kaistha says
that talent shortages are triggered by the labour-intensive nature of jobs and the need for
workers heavily skilled in technology applications. How can contingent labour help?
" Clients in Asia typically look at contingent workforce as a ready talent pool for their core
workforce that at the same time provides them with flexibility, " says Kaistha. " The biggest
challenge is the stigma associated with contract jobs which is a cultural issue across Asia. "
Both Cerullo and Kaistha agree that APAC-based organisations are looking to third parties to
help manage their contingent labour. Kaistha says that while managed services programmes
are a possible solution, organisations may run into problems combining countries with lowvolume
spends, different labour laws, and payrolling criteria under one single technology.
Cerullo reports the rise of blended recruitment process outsourcing as a solution-managing
both full-time and contingent workers under one umbrella.
APAC is certainly a market we will continue to keep our eye on.
Debbie Bolla
Executive Editor
[4]
HRO TODAY GLOBAL | SPRING 2014
Editorial Director: Bill Hatton
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Executive Editor: Debbie Bolla
Debbie.Bolla@SharedXpertise.com
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HRO Today Global Spring 2014

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