Every company today is now competing in the global economy. Traditional work models have evolved in the aftermath of the pandemic, and employees and businesses alike have begun to embrace remote work as the future of work. What trends have arised as companies in Singapore and the wider Southeast Asia region navigate through the challenges of this shifting landscape?
Hiring remotely to fill the talent gap
Across various sectors in Singapore such as hospitality, technology, and healthcare, workforce shortages are on the rise. As businesses confront these shortages, embracing a global approach to talent acquisition to bridge this gap is becoming imperative.
Historically, companies focused on recruiting locally, drawing workers primarily from nearby regions by default. However, as virtual working styles become common, hiring managers have discovered they no longer need to recruit from a limited local talent pool. Our 2023 Remote Workforce Report highlights a noteworthy trend — 44% of businesses globally now observe a substantial surge in full-time employees located overseas. In Singapore, more than 50% of SMBs/mid-market companies are planning to hire 20-30% FTEs or contractors in the next year, leveraging remote employees for diversity, productivity, and global expansion.
Singaporeans are moving to other Southeast Asian countries to combat rising cost of living
According to the Singapore Business Review, over half of Singaporeans are compelled to seek second jobs or work overtime due to the financial strain imposed by high living expenses, leading some to relocate to nearby Southeast Asian cities in search of alternatives for more sustainable living. These economic factors, coupled with the widespread adoption of remote work models since the pandemic, have led to an upsurge in the digital nomad population.
This phenomenon has brought to light a significant challenge for the region: legal frameworks related to cross-border work have yet to adapt. While the digital nomad lifestyle is poised for further growth, strict work permit and visa requirements make it challenging for nomads to settle and work in Singapore, resulting in missed opportunities for the country to attract a diverse pool of global talent and potentially stifling innovation and economic growth.
Today’s HR solutions aren’t ready for the remote work revolution
Many modern businesses are not well-equipped to manage globally distributed teams. The 2023 IDC InfoBrief sponsored by Remote, “Bridging the Talent Gap: The Future of Hiring in the Asia/Pacific Region,” which surveyed over 400 companies across Singapore, India, Australia and New Zealand, revealed that 42% of companies in APAC lack a dedicated remote worker management solution, clinging to disjointed tools, and juggling on average 16 HR systems. The adoption of technology in Singapore is lagging behind too, with only 30% of companies using solutions such as EOR to manage remote employees. This magnifies complexity, risk, and costs.
As it becomes increasingly necessary for companies in Singapore to manage a range of employees and contractors distributed across multiple locations, the reliance on outdated HR systems is becoming a barrier to efficiency and progress. It hinders Singaporean companies from fully harnessing the potential benefits of a global talent pool, ultimately limiting their competitiveness on the international stage. Embracing modern HR technologies purpose-built for remote teams can be pivotal in propelling Singapore’s businesses into a more agile and competitive future.
The growing role of AI in hiring
The popularity of remote work has grown in tandem with another tech trend, the use of AI, which is also rapidly transforming HR practices in Singapore. As companies scale their recruiting efforts beyond their local markets, AI can play a vital role in how they review increased volumes of applications, automate tasks, and ensure global compliance. This trend is set to intensify, as Human Resource Online indicated 80% of HR leaders are anticipating increased AI integration in the coming year or two.
Yet, the rise of generative AI raises ethical concerns among 65% of Singaporean HR leaders, even though 98% are already utilizing AI within their HR systems, and 83% acknowledge AI’s time-saving benefits. Singaporean companies must grapple with these ethical concerns, along with other concerns around privacy, bias, and transparency, as they navigate the ever-evolving landscape of AI implementation in their organizations.
While AI is not yet an all-encompassing solution, it serves as a foundational tool. As AI advances, it will continue enhancing HR roles, becoming indispensable for remote-first companies.
Globally distributed workforces face unique cyber security risks
The increasingly sophisticated cyber crime landscape poses a growing threat to traditional and remote workforces alike. The distributed nature of remote teams, operating from home offices and external locations, adds complexity to monitoring individual behaviors, making employees more susceptible to phishing attacks or exposure through unsecured networks. This underlines the urgency for companies with globally dispersed workforces to address cybersecurity risks.
Fortunately, there are ways to mitigate the risks as the majority of security breaches stem from human error. Initiatives such as adopting the ‘Least Privilege’ principle, enhancing secure single sign-on (SSO) logins, and intensifying employee training offer proactive solutions to combat security threats inherent to globally distributed workforces.
Young Singaporeans are more inclined to remote work
There is a noticeable generational shift in remote work preferences among employees in Singapore, with younger individuals showing a growing inclination towards remote work compared to older generations. As the workforce continues to shift to younger generations, this means companies must take remote work seriously in order to attract new talent.
According to Deloitte, surveys reveal that 69% of Gen Zs and 70% of millennials in Singapore are open to exploring new job opportunities if their current employer mandates full-time on-site work, prioritizing aspects such as work-life balance, flexibility, and the autonomy that remote work arrangements offer.
Looking ahead
The trends paint a clear picture: remote-first companies will be better prepared to face the economic, generational, and technological shifts in the future of work. Companies aiming to stay ahead of the curve, gain access to the best talent, and achieve growth in a global economy must prepare now for the globally distributed workforce of tomorrow.
About the author
Job van der Voort is the co-founder and CEO of Remote.com, the world’s fastest-growing employment network that allows companies to easily and transparently hire worldwide. Job previously worked as a neuroscientist before leaving academia to become the VP of Product at GitLab, the world’s largest all-remote company, where he hired talent in 67 different countries. Job is a sought-after presenter, speaking on topics related to scaling a remote-first startup, remote culture, and the future of work.
