How can organisations thrive in a complex world of risk?
In this regional analysis of Boyden's global report, Strengthening the human-centric core of Industry 5.0: How can organisations thrive in a complex world of risk?, we highlight findings and trends in Asia-Pacific with sector insight from Boyden partners.
Strengthening the human-centric core of Industry 5.0 is both an opportunity and a challenge in Asia-Pacific.
An opportunity, in that hiring new leadership talent, including more diverse executives, is a greater priority this year; competing for the right talent is a driver of structural change; leadership visibility is the top driver of culture shifts; and greater use of interim management solutions is expected.
A challenge, in that just 29% of respondents put human capital in their top three drivers of growth, below the global average; weak leadership teams are a top three risk; concerns over recruitment, retention, executive burnout and rising employee costs are high; and customer expectations as a growth driver are given less consideration compared with global peers.
Humans as customers, executives and leaders need a sharper focus in Industry 5.0.
Confidence in organisational growth potential is lower in Asia-Pacific than the global average, with 65% very confident/confident compared with 70%, and boosted by high levels of confidence in the healthcare & life sciences sector, where 88% are very confident/confident.
Again this year there is a gap in confidence between organisational growth potential and having the right talent to align with strategy, with 65% for the former and 47% for the latter. Asia-Pacific respondents are distinguished by persistent low levels of talent confidence compared with other regions.
Growth is expected to come from digital transformation, innovation and product or service diversification. External challenges are identified as geopolitical risk, supply chain disruption, global economic volatility and distinctive for Asia-Pacific, COVID/other viruses. Consequently, internal challenges are employee burnout, rising business costs and concerns over weak leadership teams.
Structural change is driven by industry transformation, digital advances and competing for the right talent; culture shifts are driven by leadership visibility, organisational agility and innovation.
Anticipated investment in talent is encouraging, with a strong majority planning leadership development for high potentials, hiring new leadership talent and hiring more diverse executives.
Competing for talent will be supported by sign-on bonuses, transport allowance and performance-related pay. Tactics for retention are led by leadership development, recognition of family care/responsibilities and stock options.
Today’s leaders have their work cut out following peak COVID years and now having to cope with geopolitical risk and economic volatility. In this environment, the most valuable soft skills for senior leaders are identified as inspiring teams, driving change and self-leadership.