Back to Blog
It’s an understatement to say that Asia’s business landscape is constantly evolving. With rapid advancements in the tech sector, there are just too many unpredictable changes in industries like renewable energy.
Organisations must adapt quickly to these shifts, but traditional, rigid workforce models are often too slow and inflexible to keep up. These models typically involve long-term contracts, fixed staffing levels, and limited scalability—leaving businesses stuck with more employees than needed during downturns or scrambling to find qualified talent during surges in demand.
The answer? Flexible staffing solutions, like direct sourcing and Managed Service Providers (MSPs) that the CXC team provides.
The role of direct sourcing and MSPs in workforce agility
Direct sourcing helps businesses build their own pool of trusted workers who understand their specific needs—like a fintech company in Singapore having data scientists ready to start when needed. Think of it as having a contact list of pre-approved people who already know your company and are ready to work.
MSPs, meanwhile, handle all the behind-the-scenes work, from sorting out payments to making sure everything follows local laws. For example, when a renewable energy company needs engineers for a new solar farm in Vietnam, they can quickly bring in experts just for that project. An MSP then manages contracts and paperwork across different regions.
Together, these approaches let companies easily grow or shrink their workforce as needed, save money, and stay competitive. It’s a bit like having a well-organised team that can change size depending on the game being played. This is particularly useful for large companies working across different Asian countries, where an MSP can oversee hundreds of workers while keeping everything running smoothly.
Key challenges in scaling a workforce with flexible staffing solutions in Asia
Flexible staffing to scale a business sounds great, but it’s not without its hurdles. From navigating different labour laws to competing for top talent, businesses face several challenges, such as:
Navigating regional compliance and regulatory complexity
Labour laws and regulations differ across Asia, creating complex compliance requirements that shift with economic conditions. For instance, labour laws in China are completely different from those in Japan or Indonesia; what’s perfectly legal in one country might break the law in another. When companies try to manage these changing rules alone, they risk costly mistakes.
MSPs help by monitoring these regulatory shifts and automatically adjusting workforce strategies. They maintain updated databases of each country’s requirements, handle documentation, and ensure proper classification of workers—whether they’re contractors in Malaysia needing specific social security coverage or temp staff in Japan subject to strict overtime rules.
For example, if a solar panel manufacturer needs to quickly scale up production in multiple Asian countries, the CXC team can ensure each hire complies with local labour laws while adapting to changing economic policies.
Direct sourcing complements this by building pools of pre-vetted local talent who understand their market’s regulations. When economic factors trigger sudden needs (like a surge in renewable energy projects requiring specialised engineers) companies can quickly tap into these compliance-ready talent pools rather than rushing through potentially risky fast-track hiring.
Overcoming high dependency on third-party agencies
If your company relies on staffing agencies in Asia, you’ll end up spending between 15% to 25% of each permanent employee’s first yearly salary in agency fees. For temporary workers, these costs are even steeper—you could pay up to 75% on top of each worker’s hourly rate. Beyond the high costs, these agencies control your entire hiring process. This means you can’t build direct relationships with workers or ensure quality stays consistent. For example, an agency might send different temporary warehouse staff each time, forcing your managers to waste time training new people over and over.
Direct sourcing changes this by letting companies build their own talent pools and cut out middlemen. For example, if you’re a retail chain expanding in Indonesia, instead of paying agency fees every time you need store managers, you can create a pool of pre-vetted candidates who already know their business. You can then call on these candidates whenever needed, reducing costs while ensuring consistent quality.
Meeting talent demand in a competitive market
With industries like technology and renewable energy booming across Asia, the war for talent is fierce. Companies often struggle to fill crucial roles because they’re all fishing from the same small pool of active job seekers. The most successful companies are winning this war by offering flexible work arrangements, competitive benefits packages, and clear career progression paths, while also building strong employer brands on local platforms.
Here’s how direct sourcing and MSPs can help:
- Direct sourcing takes these strategies further by helping companies reach ‘passive’ candidates—skilled professionals who aren’t actively job hunting but might be interested in the right opportunity. For instance, a tech company might use direct sourcing to build relationships with developers through tech community events or professional networks, engaging them long before a position opens up.
- MSPs complement this by tracking market trends and salary benchmarks across different Asian regions, helping companies make competitive offers at the right time, like what CXC did for Medtronic. They can also suggest alternative talent sources—like hiring from adjacent industries or tapping into returning overseas talent pools—when traditional candidate pools run dry.
Maintaining agility in scaling workforce to market conditions
In Asia’s volatile markets, workforce needs can change overnight across many industries. During harvest season, farms need thousands of temporary workers. Tourist hotspots ramp up staff during peak seasons. Construction companies scale up in good weather and down during monsoons.
Perhaps the most dramatic example is eCommerce. During major festivals like Diwali or Chinese New Year, companies often hire tens of thousands of temporary workers within weeks, then scale back just as quickly when the festivals end. Without the right systems in place, this rapid scaling up and down can lead to costly delays, compliance issues, or overstaffing.
MSPs tackle this challenge by keeping track of your workers—permanent, temporary, and contract—across different locations. When you need to scale up quickly, they can instantly process multiple hires while handling all the paperwork, payroll, and compliance checks. When it’s time to scale down, they manage the entire offboarding process efficiently.
Direct sourcing complements this by keeping the aforementioned pool of pre-vetted candidates ready to start within days rather than weeks, significantly cutting down hiring time and costs. For example, if your semiconductor plant in Taiwan suddenly needs more engineers, you can quickly tap into a pool of qualified candidates who are already familiar with your company and requirements.
Managing costs and maximising ROI with flexible staffing
As mentioned earlier, companies often waste significant money on agency fees when managing their workforce. Flexible staffing through direct sourcing slashes these costs by eliminating these fees and reducing turnover.
A healthcare company in Taiwan might build its own pool of pre-vetted nurses and medical staff, saving on repeated agency fees while ensuring consistent quality. These workers can also be trained in company-specific skills and systems, making them more valuable over time. MSPs further boost ROI by handling all the back-office work—from payroll to compliance—letting your HR team focus on strategic tasks instead of paperwork.
The real value comes in how this approach helps organisations effectively reskill their workforce. Companies can identify skill gaps early through MSP workforce data, then use direct sourcing networks to find trainers or mentors.
Strategies for leveraging direct sourcing and MSPs for scalable workforce planning
If you’re considering direct sourcing or MSP solutions for scaling your company in Asia, here’s how to make these flexible staffing solutions work best for your business.
Building a sustainable talent pool with direct sourcing
To build a lasting talent pool in Asia’s tech industry, companies need to do more than just collect CVs.
- Start by creating a strong employer brand that resonates with tech talent—showcase your innovative projects, flexible work policies, and growth opportunities.
- Then, stay connected with these candidates through regular tech meetups, coding challenges, or webinars about new technologies. For example, a fintech company in Singapore might host monthly AI workshops, keeping data scientists engaged even when there aren’t immediate openings.
- Once you’ve built this community, use direct sourcing tools to organise candidates by skills, experience, and availability.
- Keep your talent pool fresh by regularly checking in with candidates, updating their skills profiles, and sharing company news. This way, when you need to hire quickly—say, for a new blockchain project—you’ll already have relationships with qualified developers who understand your company culture.
Enhancing workforce flexibility and compliance with MSP solutions
In Asia, managing a workforce across different countries means dealing with diverse cultural expectations. In East Asian countries like Japan and South Korea, employees expect formal titles and clear hierarchies, while Southeast Asian cultures often prioritise group harmony and consensus-building. These differences affect everything from how decisions are made to how feedback is given.
MSPs help navigate these cultural nuances while handling the practical side of workforce management. They’ll ensure your payroll meets local expectations—like 13th month pay in the Philippines or year-end bonuses in China. They manage compliance with each country’s labour laws, from working hours to holiday entitlements. For example, if there’s a manufacturing company that operates across China, India, and Malaysia, its MSP ensures every contractor’s arrangement respects both local laws and cultural norms, from communication styles to team dynamics.
Conclusion: Building a resilient workforce with flexible staffing in Asia
Asia’s business landscape demands a workforce that can adapt quickly, whether it’s scaling up for festive seasons, managing cultural differences across countries, or controlling costs. Flexible staffing through direct sourcing helps companies build their own talent pools and slash agency fees—while MSPs ensure everything runs smoothly behind the scenes, from payroll to compliance across different regions.
Ready to build a more resilient workforce? CXC’s direct sourcing and MSP solutions are designed specifically for Asia’s unique challenges. Our years of experience supporting global businesses provide the solid foundation for these services.
Whether you’re dealing with sudden market changes, expanding into new countries, or trying to reduce recruitment costs, contact us today to discover how we can help your business thrive in Asia’s dynamic markets.
