The borderless workforce: Navigating the new era of global hiring in Asia-Pacific

The Asia-Pacific region is in the midst of a profound transformation. Once defined by physical offices, the world of work is rapidly shifting towards remote and hybrid models, compelling organisations from Singapore to Sydney to rethink their strategies for attracting, managing, and retaining top talent. A report revealed that this is not a fleeting trend but a fundamental reshaping of the employment landscape, offering a strategic solution for organisations navigating a competitive global market. 

The 2024 Remote Asia-Pacific Report, which surveyed 600 organisations across seven key markets–Australia, Hong Kong, India, Indonesia, Japan, Singapore, and South Korea–provides a snapshot of this evolution. It shows that remote work is no longer a niche perk but a core component of business strategy in the region. 

Eli Chuah, Senior Solutions Consultant for Asia-Pacific at Remote, observed that organisations are increasingly looking beyond their borders for several key reasons. She noted they are driven by a need to “managing high talent costs and ensure diversity in perspectives of the workforce to remain competitive globally.” Furthermore, there is a practical imperative to “ensure that they have local teams to serve customers in the local market where English is not the primary language.” 

The remote work surge: A look at the numbers

The scale of this shift is staggering. The report found that nearly 80% of organisations in Asia-Pacific are now planning to source talent through remote work. This is backed by a strong commitment to permanent remote roles, with 78% of surveyed organisations expecting to hire more than 60% of their remote employees for full-time positions. 

This data reflects a reality that has already taken hold. Currently, 68% of organisations in the region employ a workforce composed of more than 70% full-time remote employees and less than 30% remote contractors. Looking ahead, organisations are planning to increase their ranks of full-time remote employees by at least 10% in the next 12 months. Leading this charge are Japan, where 85% of organisations plan to hire remote full-time employees, and Australia at 83%. 

While the focus is shifting towards permanent hires, contractors remain a vital part of the talent ecosystem. For small to medium-sized enterprises (SMEs), hiring remote contractors is a cost-efficient way to address skills gap with the financial commitment of full-time employees, a trend particularly prominent in Indonesia, Japan, and South Korea. Australia leads in this area, with 55% of organisations planning to hire 20-39% of their workforce as remote international contractors.

While the appetite for international talent is immense, the path is fraught with complexity. The ability to pay and manage a distributed workforce while adhering to a patchwork of local laws is the primary challenge for employers in Asia-Pacific. 

The report identified the top three challenges in managing a remote team: 

• Varying Regulations and Labour Laws (46%): A significant portion of leaders find that navigating different country-specific labour laws complicates the hiring and management process.
• International Payroll Management (42%): The logistics of paying top talent across borders presents a substantial difficulty.
• Team Member Technology Skill Gaps (40%): Keeping remote teams updated with rapidly changing technology is a key concern. 

When it comes to hiring remote talent, the obstacles are equally daunting:

• Payroll Management (29%): The difficulty of setting up and managing an international payroll system is a major deterrent.
• Finding the Right Skillsets (27%): Sourcing the ideal mix of skills for international teams proves to be a significant challenge.
• Understanding Local Policies (27%): The complexity of local tax, labour, and compliance laws is a major hurdle to hiring internationally. 

Another critical finding of the report is the gap between organisations’ remote work ambitions and the technology they use to support them. Despite active plans to hire internationally, half of the surveyed organisations are juggling multiple, disparate solutions for onboarding and managing their remote employees. This fragmentation is even more pronounced in payroll, where only 36% use a single, unified platform. 

This lack of integrated technology leads to significant inefficiencies, higher operational costs, and compliance risks. The report introduced a “hiring maturity” model, classifying organisations into four stages: Ad-hoc, Aware, Managed, and Optimised. Notably, 51% of organisations in Asia-Pacific are still in the Aware stage, indicating a low level of technological deployment for global payroll and hiring. Even among the most mature markets–Australia, South Korea, and Japan–the adoption of unified HR platforms remains low. For example, even with the highest hiring maturity, only 52% of organisations in Australia use a unified HR management platform. 

Unifying HR to unlock global potential

The solution lies in bridging this technology gap. As Chuah told HRM Asia, “Organisations can consolidate and streamline their HR processes by integrating HR, payroll, and Employer of Record (EOR) within one single tool or platform.” 

While EOR services have seen high adoption–with an average of 80% organisations using them–organisations are now seeking more comprehensive, efficient ways to manage compliance, payroll, and HR across borders. The consensus points towards a unified platform that can process global payroll, source talent, and manage the entire employee lifecycle. 

According Chuah, this integration is not just about back-end efficiency; it is about competitive advantage. “With Remote, customers avoid using multiple tools simultaneously and complexities to integrate information across different platforms,” she said. “This reduces inefficiencies and ensures that information is always accurate and up to date.” Citing internal surveys, she added that “customers reported a 47% average boost in efficiency.” 

In a global talent marketplace, efficiency alone is not enough. To truly compete, organisations must deliver an exceptional employee experience. Chuah advised leveraging technology to create a consistent and seamless journey for every team member, regardless of their location. “HR platforms (like Remote’s) ensure employees have a consistent interface no matter where they work,” she stressed. 

Compliance is a non-negotiable part of this experience. “Compliance is a must,” Chuah emphasised. “Any inaccuracies with payroll and benefits can hurt the employee experience and the organisation’s reputation.” 

Beyond technology, she advocates for embracing asynchronous work through clear communication and well-documented workflows, allowing teams across different time zones to collaborate effectively. Flexibility is no longer a perk but a powerful retention tool. As Remote’s 2024 Global Workforce Report found, 73.3% of organisations have lost employees to competitors offering more flexibility in the last six months alone. 

As organisations in Asia-Pacific continue to expand their global footprint, the message is clear: the future of work is distributed, flexible, and powered by technology. Organisations that embrace a unified approach to global HR will not only navigate the complexities of international hiring but will also position themselves to attract and retain the best talent the world has to offer. 

To gain deeper insights and explore detailed market statistics, download the full 2024 Remote Asia-Pacific Report.

In our next article, we will delve into Remote’s 2024 Global Workforce Report to explore the rising trend of engaging contractors across the Asia-Pacific region and discuss strategies for designing competitive, flexible benefits packages to retain top talent in this diverse area.

This is the first article in a six-part series on global talent strategy brought to you by Remote. This series will provide actionable insights for HR leaders and professionals navigating the complexities of building and managing international teams. Stay tuned for more.