The talent landscape in the Asia Pacific and the Middle East (APAC & ME) is undergoing a dramatic transformation. Driven by socio-economic shifts and rapid technological advancements, companies are finding that leveraging cutting-edge technology to manage talent is crucial for their growth. This is the core focus of the People Matters SHRPA 2024 report, a deep dive into the dynamic changes shaping the HR industry.

HR has come a long way from its early days focused on payroll and record-keeping. What started as simple paper-based processes in the early 1900s has transformed through the advent of HRMS systems in the 1980s to the current era of advanced analytics and AI. As businesses evolve, HR too must innovate and adopt new strategies for talent management to stay ahead in a rapidly changing landscape.

Addressing the knowledge gap

The SHRPA report was born out of a pressing need. As businesses grapple with rapid changes in technology, economic conditions, and employee expectations, HR professionals often find themselves struggling to keep pace. The report aims to bridge this knowledge gap, providing HR leaders with actionable insights to navigate the complexities of the evolving industry and prepare for the challenges and opportunities of the next 12-18 months.

The report leverages a multi-pronged approach to paint a complete picture. Data from over 1300 responses is culled from two surveys - The People Matters HR & Business Leaders Survey 2024 and The People Matters Service Provider Leaders Survey 2024 - conducted across APAC and ME. The findings were supported by 25-plus interviews with HR leaders, CXOs, tech experts and investors to create a source of truth for the HR industry. 

3 Shifts set to dominate HR agenda in 2025

The SHRPA 2024 report reveals a clear trend: CXOs and HR leaders in Asia Pacific and the Middle East are increasingly recognising the strategic importance of talent. A workforce equipped with agility, a digital mindset, and the right skills is imperative for future growth. Businesses can no longer rely solely on cost competitiveness or market expansion; the key lies in fostering a workforce equipped to navigate a rapidly evolving environment.

Three critical gaps are emerging that could significantly impact HR's ability to lead this transition: 

1. HR of the Future Must Execute Change with Speed: It’s now or never. The key to HR success in delivering business impact will be its pace of change execution in 2025. HR leaders must put a disproportionate focus on enhancing their ability to lead and implement change efforts driven by advanced technology at speed. This is aligned with the strategic shift our research highlights.

2. HR Must Develop Functional Resilience to Enhance Effectiveness: It’s all about becoming HR for HR. Underpinning the many vital, ambitious changes that HR wants to create in the coming 12-18 months is the urgent need to improve HR’s functional capabilities and effectiveness. HR leaders must prioritise internal upskilling, building a digital mindset, and adopting agile operating models to enhance their ability to drive people-centric, tech-enabled execution necessary to scale businesses.  

3. HR Must Build Sustainable Technology Infrastructure to Maximise Business Value: HR tech is a key enabler, accelerating HR leaders’ ability to create business impact and build a skilled, agile, and digitally-ready workforce. HR leaders must keep up with the maturity curve to invest in the right technology aligned with their organisational needs for long-term, multiplier business impact.  

Industry leaders echo the findings of the SHRPA report. Saakshi Wadhawan, Head HR, Southeast Asia at Livspace, states the increasing challenge of securing relevant talent in the market. "As the business landscape evolves, one of the biggest challenges leaders are likely to face is the availability of relevant talent in the markets they operate in," she says.

Diana Spalding, APAC Sales of Employee Experience at ServiceNow, highlights the growing importance of flexibility in the workforce. "There's a growing emphasis on mobile workforces, allowing employees to work remotely or collaborate across different locations," she explains. "Businesses need to be adaptable to keep pace with changing market demands. These factors necessitate a more flexible talent pool."

The SHRPA report, which offers a wealth of insights into the future of HR in the APAC and ME regions, makes one thing clear: talent strategy is the key to business growth. The report challenges HR leaders to reevaluate their approaches, embrace technology, and align their strategies with the evolving needs of both businesses and employees.

DOWNLOAD the SHRPA 2024 report now for more insights.