HR News & Trends: Nov Week 1

HR News & Trends: Nov Week 1

HR News & Trends: Nov Week 1 

1. Market Sentiments

i. Malaysia: 1/3 of Employees Feel Threatened by Generative AI

A recent study in Malaysia reveals that 13% of Malaysians feel threatened by generative AI, citing concerns over job security and the potential for displacement. The key findings include:​

Job Transformation:

  • Employees in professions that heavily utilise generative AI are more likely to feel concerned about the need to reskill due to technological changes, with 34% anticipating significant job transformations.
  • Employees in industries like healthcare and law, which use AI less frequently, are less worried about having to reskill or find new jobs, with only 21% and 17% expressing such concerns, respectively​.

Using and Reskilling

  • Malaysian users face more challenges with generative AI skills than their regional peers. Notably, 55% reported difficulties crafting prompts and feeling uncertain about which skills they needed to learn to use the technology effectively.
  • Despite these challenges, 58% are willing to acquire new skills to remain competitive as their roles evolve.
  • Interestingly, some sectors, such as transport and logistics, are more open to reskilling, with 66% expressing readiness to learn new skills, despite only 27% being concerned about the potential changes AI could bring​.

 

ii. Singapore MAS: Stronger Wage Gains Anticipated for 2025

The Monetary Authority of Singapore (MAS) forecasts stronger real wage gains in 2025, driven by anticipated labour productivity growth. MAS expects productivity growth to recover significantly in 2024, aided by improvements in sectors like trade, services, and fixed capital formation. This productivity growth, combined with easing nominal wage increases, will help moderate unit labour costs and ensure sustainable real wage growth for workers.

Takeaway: In 2023, Singapore’s real wages grew by 0.4%, with nominal wages increasing by 5.2%. While nominal wage growth is expected to slow due to high base effects from 2023 bonuses and easing inflation, it is still projected to remain higher than pre-pandemic levels due to sectoral demand-supply mismatches. This is particularly true in the health, social services, F&B, retail, and administrative support sectors.

 

iii. Japan: ¼ Men Harassed for Taking Paternity Leave

A recent survey by Japan’s Ministry of Health, Labour, and Welfare revealed that:

  • 1% of men who took paternity leave in the past five years reported experiencing workplace paternity harassment.
  • Over 70% of these men faced harassment multiple times, with some reporting recurring bullying, detrimental reassignments, pay cuts, and negative career evaluations.
  • Harassment was more prevalent in medium-sized companies (30% for firms with 100-299 employees) and among management, where 33% of men faced such challenges.

Takeaway: The development underscores the need for stronger monitoring and addressing of harassment to foster a more family-friendly work environment.

 

iv. EU: Pay Transparency Directive a Concern for Employers

The upcoming EU Pay Transparency Directive is causing significant concern among employers, with nearly 50% of organisations with major operations in Europe expressing anxiety about its impact. The directive, which aims to address gender pay gaps and promote pay equity, will require companies to disclose salary information and take corrective actions if their gender pay gap exceeds 5%. The first reporting deadline is set for 2027, but employers must begin making adjustments by 2025, as the report will be based on payroll data from 2026. It also includes penalties for non-compliance, such as fines.

Takeaway: The survey revealed that:

  • Only 12% of companies feel fully prepared for the directive, while 61% feel somewhat prepared, and 26% are unprepared.
  • Main Reasons: Inconsistent pay decisions, a broken merit matrix, and a failure to regularly update compensation practices in response to market changes.

 

2. Market Trends

i. Singapore: More Tech Jobs, Decline in Salaries

In 2023, Singapore’s digital economy grew to contribute 17.7% of the country’s GDP, surpassing the finance and insurance sector. The digital economy has expanded at a compound annual growth rate of 11.2% from 2018-2023, outpacing overall GDP growth. Along with this comes the rise in tech jobs, with 208,300 tech professionals in 2023, a 3.4% growth from the previous year.

Takeaway: Notably, more than half of these roles are in non-tech industries such as finance, manufacturing, and services. However, despite the demand for tech talent, salaries for tech professionals have seen a slight decline, possibly due to a softer global tech market outlook.

 

ii. US: Private Payroll Increased in October

In October, US private payrolls experienced a strong growth of 233,000 jobs, significantly outperforming expectations, which had predicted a 114,000 increase. This followed an upward revision of 159,000 in September. Despite concerns over temporary disruptions due to hurricanes and factory worker strikes, employment numbers surged, reflecting resilience in the labour market. The report, published by ADP in collaboration with Stanford Digital Economy Lab, is seen as a preliminary indicator, with a more comprehensive Labor Department report expected soon.

Takeaway: Notably, while the ADP figures have typically understated private payroll growth this year, this October data points to a stronger-than-expected job market.

 

3. Tools

i. LinkedIn Trials New AI Hiring Assistant Tool

LinkedIn introduced an advanced AI-powered Hiring Assistant tool to streamline recruitment processes. This tool automates candidate sourcing by generating a shortlist of LinkedIn profiles that match job requirements based on the job ad’s key elements. It also aids HR managers by drafting outreach messages, scheduling interviews, taking notes, and managing follow-ups to reduce administrative tasks.

Takeaway: While this tool may improve efficiency, there’s a risk that candidates could optimise their profiles to fit AI criteria, potentially gaming the system. LinkedIn has stated it’s built safeguards to ensure accuracy, but the move towards AI-driven recruitment could change how candidates approach job applications, making it more SEO-like.

 

Discover More Industry Trends with JC

For the latest industry trends or to explore new career opportunities, connect with our HR recruitment consultants for a chat. With executive search firms in Singapore and China, and operations in key business hubs like Hong Kong, you can count on our team for timely access to regional insights that can create synergy for your career and operations.

For employers: Beyond the HR industry, we also have dedicated desks for several sectors that enables us to meet your varied recruitment needs:

Image Credits:

  • Business Times
  • HRD Asia
  • Speaksly
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