Why the contractor boom in Asia-Pacific demands a rethink on talent strategy

Across Asia-Pacific, organisations are riding a global wave of flexible hiring, increasingly relying on contractors and freelancers to drive growth, agility, and access to specialised skills. Yet as this trend gains momentum, organisations are also confronting the limits—and risks—of a contractor-heavy workforce. From legal landmines to cultural complexities, navigating the flexible talent landscape in this region requires more than just short-term convenience—it demands long-term strategy. 

The 2024 Global Workforce Report by Remote highlighted a global pivot towards flexible employment, with contractors and freelancers becoming integral to workforce strategies. In Asia-Pacific, this shift is particularly significant for organisations expanding internationally for the first time. 

“For organisations in Asia-Pacific venturing globally, structuring employment as contractors is a very common practice,” Eli Chuah, Senior Solutions Consultant for Asia-Pacific at Remote, told HRM Asia. “Many of our customers come to us after engaging a sizable number of freelancers globally, realising that this model may not be sustainable long-term due to risks like losing institutional knowledge and high retraining costs.” 

However, engaging contractors in Asia-Pacific comes with unique considerations. The region encompasses a vast array of regulatory environments, from highly enforced labour laws in countries like China to more flexible frameworks elsewhere. “Countries with stricter contractor misclassification rules, high levels of enforcement, and stiff penalties—for example, China—require careful navigation,” Chuah explained. Key roles, such as IP creators or those with direct reports, carry individual risks that necessitate robust compliance strategies. 

Navigating this maze requires diligence and local expertise. As Chuah mentioned, “Remote offers advisory services and resources for customers to leverage so that they can assess their own misclassification risks and make the best decision for their teams per region.” 

For many, the most secure and scalable solution is partnering with an Employer of Record (EOR), which allows an organisation to legally hire employees in other countries without setting up a local entity. In fact, according to Remote’s research, 80% of surveyed organisations utilise an EOR solution to manage their global workforce and mitigate these risks. 

Once an organisation has a compliant foundation for hiring, the next challenge is winning the war for talent. In a region as diverse as Asia-Pacific, a one-size-fits-all benefits package simply would not work. The key, according to Chuah, is a dual approach: “Tailoring compensation to local markets while keeping global benefits consistent.” 

She breaks down this strategy into a few core pillars. First, it is essential to provide competitive salaries benchmarked to geographic locations to reflect differences in labour costs, living expenses, and market rates. For example, an employee in Singapore, where labour costs are high, may command a higher salary than a counterpart in a lower-cost region like Vietnam. 

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

While salaries may vary, core protections should be universal. Chuah advised that “core benefits—like healthcare, business travel insurance and mental health programmes—should meet or exceed local expectations while maintaining global standards.” The final layer involves embracing local customs, as the “consideration of standard-country specific benefits like 13th month, holiday bonus, parking allowances and mobile subsidies are also critical in crafting a robust benefits package.” 

While salary and traditional benefits are foundational, the modern employee values something more, something that often costs nothing to implement: flexibility. This has become a non-negotiable for top talent worldwide. 

“Additionally, offering flexibility as a benefit is a big plus for employees,” said Chuah. She pointed to a finding from the report: “According to our 2024 Global Workforce Report, 98.2% of over 4,100 business and HR leaders say flexibility is a key factor for job candidates nowadays and it does not incur any direct costs.” 

Unifying a global workforce with technology

Remote’s all-in-one HR platform is designed to address the complexities of hiring and managing talent in Asia-Pacific. “Our platform has built-in compliance features that automatically align with local labour laws across all regions,” Chuah explained. For example, when hiring in Thailand, Remote’s legal teams draft employee agreements that comply with local regulations, streamlining the process. The platform also handles payroll calculations, ensuring accurate contributions and deductions, which reduces the burden on internal teams. 

Beyond technology, Remote offers advisory and consulting services tailored to Asia-Pacific’s unique challenges. “We help customers navigate issues specific to an individual or country where they lack local expertise,” said Chuah. This holistic approach is particularly valuable in Asia-Pacific, where compliance with international labour laws is a significant hurdle for 43% of organisations, as noted in the report. Remote’s Compliance Watchtower keeps organisations ahead of regulatory changes, minimising legal risks and enabling seamless expansion. 

By combining an EOR with integrated tools for contractor management, HRIS, and global payroll, organisations can manage the entire lifecycle of their global team from a single platform. “In this way,” Chuah concluded, “Remote is a holistic partner not just from a technology standpoint but also in providing tailored solutions and advice.” 

The future of work in Asia-Pacific is flexible, distributed, and brimming with potential. For HR leaders, success will depend on building a workforce strategy that is both globally consistent and locally intelligent. By embracing compliant hiring models and designing benefits that truly resonate with regional talent, organisations can confidently navigate this new wave of work. 

To gain a deeper understanding of global hiring trends and build a resilient, future-ready workforce, download the full 2024 Global Workforce Report now.

This is the second article in a six-part series on global talent strategy brought to you by Remote. The next article will examine The Choose Remote Toolkit report, revealing how HR departments can proactively adopt flexible work principles to better understand employee needs. We will also explore the benefits of a well-designed remote onboarding strategy in boosting retention, as well as the steps organisations can take to gradually build a culture that embraces flexibility. Stay tuned for more.