97% of business executives fear upcoming recession

Question is - are they ready for it?

Apparently, more than half or 55% feel they are better prepared for market volatility, having learnt from the last global downturn.

Market volatility and skills shortages are now part of the business DNA in Asia Pacific, according to research from Talent2. The findings from the ‘Talent2 APAC Market Pulse Study 2’ show that whilst the majority of businesses in Singapore, Hong Kong and China have experienced consistent growth since the Global Financial Crisis, 97% of business executives in Singapore are concerned about an imminent recession, and this is more acutely felt in larger businesses. Encouragingly, more than half of the executives (55%) in Singapore feel better prepared for market volatility having learnt from the last global downturn.

The ‘Talent2 APAC Market Pulse Study 2 surveyed 748 senior business executives across Singapore, Hong Kong, China, Australia, New Zealand and Japan. More than 70% of those surveyed were from multi-national corporations. Conducted to understand the level of business confidence and volatility, and its impact on talent and people strategies across APAC, the research indicates that many businesses have come to accept market volatility as the new business norm with a large proportion feeling more prepared to respond to unstable market conditions.

More prepared but missing a talent management trick

Despite many businesses feeling confident about navigating future market volatility, the research reveals that not all businesses are adjusting their workforce management strategies to adapt to the current unpredictable environment. The study points to a disconnect in the perceived benefits of blended working models to deal with unpredictable environments and the number of businesses implementing these strategies.

Most senior business executives across the region believe in the benefits of a contingent and flexible workforce, yet the majority are still sticking to more traditional employment models, indicating that many are unsure about which steps to take to move to a blended model:

» 73% in Singapore see the principal benefits in employing workers on contract as the flexibility to scale up and down and the ability to better manage employment costs (51%).

» Yet only 9% of the Singapore workforce is employed on a contingent basis.

» The vast majority of the Singapore workforce -- 89% is made up of permanent employees.

Nicholas Tuckfield, Managing Director, South Asia, Talent2 commented on the survey saying, “It’s clear that most businesses are concerned about the future and have come to accept this as the APAC business reality. What is surprising is the apparent market contradictions taking place. Thanks to market growth, businesses in APAC are having problems finding skilled employees, many of which are for Permanent Full Time roles, but they are also concerned about a recession. Employees on the other hand are not responding to market volatility with most expecting higher salaries and flexible working conditions from their employers.

“Despite these conditions, businesses in the region are lagging behind the rest of the world in the employment of contingent workers. With only 12% of the APAC workforce made up of contingent workers, compared to 22% globally, there is clearly potential for the expanding APAC market to move more in line with global trends, whilst also addressing some of the current regional concerns.”