Indonesian employers struggle to close talent gap despite 'relaxed work culture'

More than half of Indonesian employers are struggling to attract and hire the right candidates to expand their businesses. This is despite the foreign direct investment into Indonesia that has introduced new ways of working and a more relaxed culture to better appeal to local talent.A "Talent in Asia" report by RGF International Recruitment said bilingual talent fluent in both English and Bahasa Indonesian are in high demand currently, largely for skilled technical roles that stretch across international borders. But while talent have high expectations of salaries, company culture and career development, 50% of employers say they are struggling to close the talent gap.Bilingual talent fluent in both English and Bahasa Indonesian are in high demandWith the talent shortage weighing on employers’ minds, employers surveyed said they also have to tend with low hiring budgets (19%) and the struggle to find talent to fit their company culture (14%) when recruiting talent. More than anything, employers are looking for talent with strong industry expertise (58%), but are equally as concerned about “agility” (17%) and a strong sense of accountability (13%).Nonetheless, in Indonesia, the industrial and technology, Internet and telecommunications sectors emerged as the most desirable industries to work in. In addition, about 76.5% of talent consider competitive salary and compensation to be the most important factor when searching for a job. The report said that 90% of local talent expect a pay rise when switching jobs - with the average salary jump coming in at 22%.Other than financial compensation, the next most important factors for talent are working with “top calibre colleagues” (8.3%), career advancement opportunities (7.2%) and having good health benefits (6.9%). Meanwhile on the employer side, business growth and hiring sentiments are still positive, with only 3% Indonesian respondents stating a “pessimistic” outlook. Apart from that, 69% were optimistic, with 28% taking a neutral viewpoint. According to the report, this translates into strong hiring plans for 59% of local respondents who aim to expand headcounts.Peter Chong, managing director of RGF executive search Indonesia said as foreign investors continue to focus on Indonesia’s various sectors, talent must be flexible with their expectations of company culture and work demands, as many startups are still developing their culture and approach in the market. However, he added that flexible working, relaxed attire and a less corporate office environment is generally welcomed by local talent who want to get ahead.According to Chong, to increase their employment opportunities, talent must exhibit strong English and Bahasa Indonesian skills. Whereas, businesses have to focus on employer branding and showcasing why they would be deemed as an attractive employer - beyond financial compensation."Talent acquisition teams must invest in training programs to extend learning, as well as curate a culture that inspires a growth mindset and high-performing teams. Another trend we see is talent in the mid-late 20’s increasingly looking at working with new-age companies in start-ups and technology organisations," he said.The report surveyed 3,500 respondents across 11 countries and markets in Asia, both employers and candidates from various industry sectors. The report aims to better understand the needs, demands and expectations of both candidates and employers in Asia.