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APAC Edition
25th October 2024
 
THE HOT STORY
China's new plan for skilled workers
China is set to enhance its skills cultivation system for industrial workers, aiming to raise incomes and improve the income distribution system. A recent guideline document highlights the need for a transition from demographic dividends to talent dividends, emphasising the importance of high-quality population development. As China strives to become a manufacturing powerhouse, it faces a technological revolution that demands multidisciplinary skills from workers. The document states: "China will increase the training of composite technical and skilled talents," to meet the needs of new productive forces. With younger workers prioritising personal development, measures will be implemented to safeguard their economic rights and enhance their job satisfaction, thereby attracting more youth to the manufacturing sector.
HIRING
Contract hiring surges in India
India's job market is experiencing a notable shift towards contract hiring, particularly in sectors such as consumer goods, e-commerce, and technology. Staffing experts predict a 20% increase in contract hiring over the coming months, potentially creating 600,000-700,000 jobs in the organised sector. Kartik Narayan, chief executive of TeamLease Services Ltd, commented: “Overall consumer spending is low and permanent recruitments in BFSI are low.” The trend is driven by companies' need to manage costs amid uncertain economic conditions, with contract employees typically earning less than permanent staff. The festive season is further intensifying this demand, as firms offer incentives to attract temporary workers. According to the Indian Staffing Federation, the contract staffing industry saw a 19.1% growth in employment in the April-June period compared to the previous year.
TAX
AWU demands end to super tax
The Australian Workers' Union (AWU) is urging the Albanese government to abolish the taxation on superannuation for Pacific and Timor-Leste workers under the Pacific Australia Labor Mobility (PALM) scheme. Currently, over 30,000 workers are employed in various sectors, but they face a tax of 35% on their superannuation when withdrawn. Paul Farrow, AWU national secretary, stated: "It's pretty tough to see how seizing 35% of workers' superannuation is sending the right message." The union highlights that a complex administrative system hinders workers from accessing their entitlements, leading to significant unclaimed superannuation, estimated at A$136m. The government has defended the tax, stating it is designed for those not retiring in Australia. However, workers like Manu Jones from Vanuatu express frustration, saying: "It's heartbreaking to have to hand so much back again." The AWU continues to advocate for better access to superannuation for these workers.
WORKFORCE
South Korea's elderly workforce surpasses middle-aged
In South Korea, the number of employed individuals aged 60 and older reached 6.75m last month, surpassing those in their 50s for the first time. The trend reflects the country's demographic shift towards an ageing population; it is set to become a superaged society next year, with over 20% of its population aged 65 and older. Many seniors continue to work due to insufficient retirement savings and financial instability. Lee Joong-keun, chairman of the Korean Senior Citizens Association, suggested raising the statutory retirement age from 65 to 75 over the next decade. He stated: "The time has come for a social discussion on raising the old-age threshold." The Korea Development Institute also supports this idea, advocating for a gradual increase in the legal retirement age.
HSBC CEO says redundancies are inevitable
HSBC chief executive Georges Elhedery says staff at the bank should brace for job cuts in the wake of an overhaul that will see some operations merged. He said: “Inevitably some of our colleagues will face redundancies as we streamline duplicative senior roles.”
PRODUCTIVITY
Four-day workweek trial shows productivity gains
In today's corporate landscape, the importance of a healthy work-life balance is increasingly recognised, with a 2023 study by the American Psychological Association revealing that 92% of employees value companies prioritising their emotional well-being. However, 77% still experience high work-related stress. As mental health expert Prakriti Poddar notes: "A balanced, emotionally healthy workforce is critical to success for everyone." Employees who establish boundaries and incorporate well-being practices report enhanced productivity and job satisfaction. Employers also benefit, as demonstrated by a 2022 trial of a four-day workweek, where 97% of participants preferred the shorter week, citing improved productivity. Achieving work-life balance requires collaboration between employees and employers, emphasising the need for flexibility and support in the workplace.
HEALTH & WELLBEING
Relationships trump workload for wellbeing
According to the recent study, Work Culture & Mental Wellbeing, conducted by Sapiens Labs, fostering strong relationships at work is more crucial for mental wellbeing than traditional work-life balance factors like workload and flexibility. The study, which surveyed 54,831 respondents across 65 countries, revealed that in India, employees working in offices reported better mental health than those in hybrid or remote roles. Neuroscientist Tara Thiagarajan noted: “Relationships with your colleagues and feeling a sense of pride and purpose in your work came in at the top of the list in terms of impact to mental wellbeing.” The findings suggest that poor workplace relationships significantly contribute to feelings of distress, highlighting the importance of social connections in enhancing mental health.
TRAINING & DEVELOPMENT
HK talent scheme leaves graduates confused
Nearly two years into Hong Kong's Top Talent Pass Scheme, many graduates say it has left them feeling disillusioned. Kira Xiong, a finance graduate, expressed her confusion, commenting: “The government invited us, but now that we've arrived, the welcome feels less than warm.” Despite the scheme's aim to attract top talent, a government survey revealed that close to half of successful applicants had not secured employment. The scheme has also faced criticism for its lack of diversity, with 95% of approved applicants coming from mainland China. Lawmaker Wendy Hong Wen highlighted the disconnect between the city's talent needs and the scheme's outcomes, suggesting a review to better align it with local demands. As the scheme approaches its second anniversary, calls for reform and improved capital transfer options for entrepreneurs are growing.
UP teachers trained to transform schools into skill development centres
Over 2,400 government school teachers in Uttar Pradesh are participating in a hands-on "learning by doing" programme to transform schools into skill development centres. Supported by UNICEF and Vigyan Ashram, the initiative trains science and math teachers in vocational skills to better educate students. As part of a pilot project in 60 schools across 15 districts, students learned over 60 skills in areas such as engineering, agriculture, and healthcare. The programme, aligned with the National Education Policy 2020, aims to enhance student learning and improve employment prospects. Education Minister Sandeep Singh noted increased student attendance and improved learning outcomes in science and mathematics.
AUTOMATION
AI revolution: Are jobs at risk?
In a recent discussion, Commonwealth Bank's chief executive Matt Comyn highlighted the potential risks of generative artificial intelligence (AI) in banking, stating: "It will take some time before we will be sufficiently confident that we can control for all the risks." The bank is trialling a ChatGPT-style AI chatbot in call centres, which could lead to significant job losses, with industry experts predicting thousands of roles may be affected. ANZ chief technology officer Tim Hogarth noted that AI is currently assisting staff in verifying documents and assessing loan applications, but he believes that "[just as] some jobs will go away, new jobs will come in." The Finance Sector Union has raised concerns about the untested nature of AI technology and its implications for workers, urging banks to be transparent about its use.
CULTURE
UOB's unique culture fuels growth
United Overseas Bank (UOB) has developed a framework known as “The UOB Way” to enhance employee engagement and productivity. Dean Tong, head of group human resources, emphasises that this approach helps employees understand the broader significance of their work, stating: “We believe that if you know the wider meaning of your work, that helps to bring out the best in the individual.” The framework focuses on care, growth, and trust, providing employees with training and opportunities for sustainable careers while maintaining a healthy work-life balance. UOB's commitment to its core values—being honourable, enterprising, united, and committed—supports its mission to foster a strong culture that benefits both employees and clients. This people-centric philosophy is crucial for UOB's expansion in Southeast Asian markets, as highlighted by Sam Cheong, managing director and group head of UOB's foreign direct investment advisory unit.
INTERNATIONAL
Burnout crisis: UK employers struggling with sick leave
The number of sick days taken by British workers has risen by 41% over the last three years, according to the latest Hiring Trends Index by TotalJobs. The poll of over 1,000 UK HR decision-makers saw more than half report a decline in overall employee performance and productivity resulting from an increase in sick days. It was also shown that a quarter of employee turnover in the last 12 months was related to stress, burnout or other conditions. Almost six in 10 (59%) of those polled believe the spike in sick days is down to a decline in workplace culture and employee satisfaction. Julius Probst, a labour market economist at TotalJobs, said: “With more people out of work due to sickness and sick-leave numbers on the rise, it's never been more vital for employers to create workplaces that support employee wellbeing.”
 


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