Talent crunch in Asia-Pacific drives focus on reskilling and strategic human capital planning

In an increasingly volatile business landscape, where digital transformation and supply chain resilience dominate strategic discussions, the role of human capital in Asia-Pacific is undergoing a profound evolution. Far from being a mere support function, it has emerged as a critical strategic powerhouse, driving long-term competitiveness. This pivotal shift is a key takeaway from Forvis Mazars’ annual C-Suite Barometer 2025, a report capturing insights from senior executives globally, including 171 from the Asia-Pacific region.

Iris Goh, Director of Talent at Forvis Mazars in Singapore, emphasised this transformation. “The findings from the Forvis Mazars C-Suite Barometer 2025 underscore a pivotal shift: Human capital has moved beyond a mere support function to a strategic powerhouse driving long-term competitiveness across Asia-Pacific,” she told HRM Asia.

A striking revelation from the report highlighted the escalating talent challenge in the region: half of executives in the Asia-Pacific region face significant difficulties in attracting and retaining skilled employees, a figure notably higher than the global average of 43%. This data, Goh emphasised, “reinforces the urgent need to accelerate digital workforce transformation, as our economy is rapidly shaped by AI, automation and advanced analytics.” However, she cautioned that technological adoption alone is insufficient. “The digitalisation of work processes alone isn’t enough; success also requires nurturing human-centred skills such as creativity, collaboration, problem solving and critical thinking.”

This reorientation of priorities means that HR professionals are no longer confined to traditional administrative roles. Instead, they are becoming integral to strategic planning. “Talent development, workforce, and leadership capabilities will need to take a different look,” Goh asserted. “As such, HR professionals must work closely with key stakeholders in the organisation to embed human capital into their strategic planning and prioritise investing in upskilling and reskilling our key human assets to build a resilient and adaptable workforce for long-term value creation.”

The C-Suite Barometer 2025 also identified strategic vision and analytical thinking as paramount leadership qualities. Cultivating these traits in both current and emerging leaders requires a more intentional approach from HR teams.

Goh suggested moving beyond conventional development programmes. “While traditional leadership development programmes are useful for equipping leaders with the necessary skill sets, HR teams must take on a more intentional and future-focused approach to leadership development,” she advises. This includes fostering data-driven decision-making by equipping leaders with digital tools and analytical training, often in collaboration with specialised experts.

Mentorship and executive coaching programmes are also vital in this regard. “They allow leaders to demonstrate and listen to differing views and share strategic vision, paving the way for knowledge impartation from one generation to the next,” Goh explained. She even advocates for reverse mentoring, which can help seasoned leaders understand the evolving work environment.

Crucially, HR professionals must embody the very principles they champion. “HR professionals should lead by example: championing the values they believe in, thinking outside the box, and integrating these values into performance expectations and metrics,” Goh stated. Evolving the framework of talent reviews and performance conversations to foster long-term employee growth and adaptability is also key.

Navigating the hybrid landscape

Flexible working arrangements (FWAs) continue to gain traction in Asia-Pacific, with remote working (43%), hybrid working policies (39%), and compliance with standard working hours (37%) topping the list of working model priorities for executives in Asia-Pacific. While this signifies a progressive shift, it also introduces a unique set of challenges.

Goh identified these as “expectations around visibility and presenteeism, maintaining team rapport and communication, navigating compliance and labour laws for cross-border remote working, and balancing work and life to ensure the wellbeing of employees.”

READ MORE: HR 2025: The human touch in the digital age

Despite these hurdles, Goh firmly believes that “remote working is there to stay in Asia-Pacific.” Navigating this hybrid environment, she noted, requires transparent and clear guidelines. “HR must be innovative and creative to aid in balancing flexibility and creating smart workplaces while maintaining organisational structure and fundamentals.”

While autonomy is valued by employees, Goh stressed the continued importance of face-to-face interactions for building trust and relationships. “Hence, HR should advocate for flexible strategies that maintain productivity and equitable and collaborative practices.”

The paramount priority: Retaining top talent

Looking ahead to the next 12-18 months, Goh identified the single most critical priority for HR leaders in the Asia-Pacific region: retaining top-performing talent. This is supported by the C-Suite Barometer 2025 data, which indicates that half of the executives in the Asia-Pacific region are facing hiring difficulties.

The key to achieving this, according to Goh, lies in developing a robust employee value proposition. This involves providing flexibility in career growth, proactively addressing employees’ evolving needs, and aligning with their values to build a supportive and inclusive culture.

Goh emphasised the profound transformation of HR’s role. “HR’s role has transformed significantly: it is no longer about simply filling positions but strategically empowering employees to discover their purpose, feel genuinely valued, and contribute meaningfully to organisational success,” she concluded.

By proactively championing this vision, organisations can foster a more engaged, high-performing workforce. HR leaders, in turn, can cement their position as central drivers of sustainable business transformation, ensuring their organisations remain agile, competitive, and future-ready in an ever-evolving regional and global landscape.