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The growing demand for staffing companies in Asia
Staffing companies in Asia are seeing a surge in demand as businesses face economic uncertainty, talent shortages, and rapid changes in how people want to work. Instead of committing to long-term hires, more companies are using staffing partners like CXC to stay flexible, reduce costs, and access talent faster.
According to a report from Deloitte, 80% of executives say they plan to increase or maintain their outsourcing investments, including staffing and contingent workforce solutions. This shows the growing reliance on external partners like staffing companies to manage complex areas like compliance and digital transformation.
Why businesses in Asia are relying on staffing companies
As business needs become more project-based and specialised, companies across Asia are rethinking how they build teams. More and more organisations are teaming up with staffing companies to stay agile and find highly skilled professionals.
You’ll see businesses relying on staffing companies across Asia. In Singapore, tech and logistics companies rely on staffing companies to bring in extra support during busy periods. In India, IT companies often hire contract workers to get through intense project phases without expanding their full-time teams.
Moreover, staffing companies also help in handling the administrative and legal side of hiring talent, which allows organisations to focus on other strategic priorities.
Sectors driving the need for flexible staffing
A major reason for the growing reliance on flexible staffing is the difficulty many companies face in finding highly skilled talent. According to a ManpowerGroup report, 77% of employers in Asia are struggling to fill positions, especially in sectors like technology, engineering, and healthcare. As a result, businesses are looking for more flexible ways to meet their workforce needs.
In the Philippines, for example, we’re seeing clear trends where demand for talent is surging, especially in the IT sector. According to CXC’s workforce data, IT roles have skyrocketed by 215%. This isn’t just entry-level hiring; it includes senior developers, IT analysts, project managers, and solution architects. There is a clear focus on experienced tech professionals who can lead digital transformation projects and support ongoing technology investments.
Across Asia, several industries are heavily relying on staffing companies to stay agile and meet their unique demands:
- Technology and IT: From software development to cybersecurity, tech companies often need project-based talent on short notice.
- Healthcare: The need for contract nurses and healthcare workers has risen, particularly after the pandemic, to fill gaps in hospitals and clinics.
- Manufacturing and logistics: Seasonal peaks and supply chain fluctuations make temporary staffing essential to meet changing demands.
That means the shift toward flexible staffing is being driven by both talent shortages and the need for businesses to stay adaptable in fast-changing industries.
How the workforce landscape is changing in Asia
The way people want to work is also changing, with many professionals opting for flexible or freelance arrangements over traditional full-time roles. Younger workers, in particular, are prioritising work-life balance and shorter contracts that offer a variety of experiences.
In fact, the recent CXC’s Global Contingent Workforce Experience Survey reveals 66% of contractors in Asia now have the option to work remotely or onsite, which signals that flexibility is becoming a standard, not just a perk.
The growing preference of workers towards flexible work is making staffing companies more valuable than ever. With the demand for flexible work rising, businesses are turning to staffing companies to help them find the right talent quickly, whether for short-term projects or roles that require specialised skills.
Benefits of partnering with a staffing company in Asia
Partnering with a staffing company in Asia offers numerous advantages that can help businesses stay competitive in a fast-evolving market. As industries in Asia continue to grow and diversify, a staffing company can provide access to a wide range of skilled professionals across various sectors, from IT and healthcare to logistics and finance. This allows businesses to tap into talent pools they might not have access to otherwise, especially in specialised fields where the demand for skilled workers is high.
Access to a wide talent pool across different industries
One of the most significant benefits of working with a staffing company in Asia is access to a diverse and vast talent pool across multiple industries. A staffing company can source skilled professionals for a wide range of roles, from IT and engineering to healthcare, finance, and customer service.
In today’s competitive job market, finding the right candidates can be time-consuming and challenging. Staffing companies in Asia have the expertise to identify top talent quickly, even in specialised fields where the talent shortage is more evident. This helps businesses fill positions with qualified candidates faster and more efficiently, whether they need full-time staff, temporary workers, or project-based contractors.
Cost-effective workforce solutions for businesses
Partnering with a staffing company in Asia can also offer businesses cost-effective solutions. Hiring and maintaining a full-time workforce can be expensive, especially when considering salaries, benefits, training, and other overhead costs.
A staffing company can provide businesses with temporary or contract workers who are only on-site when needed. This flexible staffing model allows businesses to manage costs by scaling their workforce according to demand, avoiding the expense of hiring full-time employees. Moreover, a staffing company in Asia takes care of the recruitment process, saving businesses time and money in terms of job advertisements, interviews, and background checks.
Navigating compliance and labour laws in Asia
Labour laws and compliance regulations vary across Asia, and understanding them can be challenging, particularly for companies new to the region. A staffing company in Asia can help businesses navigate these complexities.
A reliable staffing company like CXC is typically well-versed in local employment laws, including contracts, wages, working hours, and taxes. A staffing company also handles the intricacies of contract management, ensuring that both the employer and the worker meet all legal requirements. By working with a staffing company in Asia, businesses can focus on their core operations while leaving the legal complexities to the experts.
Reducing administrative burden with staffing expertise
Managing a workforce involves numerous administrative tasks, from payroll and benefits to employee management and compliance. For businesses operating in Asia, these tasks can quickly become overwhelming, especially if they lack local expertise.
A staffing company takes on these responsibilities, reducing the administrative burden on businesses. From sourcing candidates to managing payroll, a staffing company in Asia handles the operational side of staffing, allowing businesses to concentrate on growth and innovation. This not only saves businesses time but also ensures that all administrative tasks are handled efficiently and in compliance with local regulations.
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.
Choosing the right staffing company in Asia for Your business needs
Choosing the right staffing company in Asia is important to protect your business from legal and financial risks. Whether you’re looking to scale your team quickly or fill a specialised role, working with a reliable staffing company can make the process much easier.
However, not all staffing companies are created equal, so it’s important to consider several factors before making a decision.
Key factors to consider when selecting a staffing partner
When choosing a staffing company in Asia, it’s crucial to consider the following factors to help you choose the right partner for your business needs:
1. Industry expertise
A staffing company in Asia with experience in your industry will have a better understanding of the specialised skills and qualifications required for your roles.
Whether you’re in IT, healthcare, finance, or any other sector, working with a staffing company that understands the nuances of your industry ensures that they can find candidates who not only meet technical requirements but also fit your company’s culture and objectives.
2. Recruitment process and candidate quality
Look into how the staffing company in Asia recruits candidates. Do they have a robust vetting process? Do they perform background checks and skills assessments?
The quality of candidates a staffing company provides is critical, so make sure their process aligns with your hiring standards. A well-established staffing company in Asia will have a network of pre-vetted professionals ready to step in quickly.
3. Local knowledge and compliance
Asia’s diverse regulatory environment can make hiring challenging and overwhelming. Each country has its own labour laws, tax systems, and employment regulations.
A staffing company in Asia with local expertise will ensure that your hiring practices comply with all local laws, including contracts, wages, benefits, and taxes. This helps you avoid legal pitfalls and ensures that your workforce remains compliant.
4. Flexibility and agility
Your business needs may change quickly, and a staffing company in Asia that can offer flexibility and adapt to your evolving requirements is an invaluable partner. Look for a staffing company that can provide not just quick hires but also flexible workforce solutions, whether you need workers for a few months or on an ongoing basis.
5. Reputation and track record
Before committing to a staffing company, it’s important to research their reputation. Look for reviews, case studies, and testimonials from other businesses in your industry. A staffing company with a strong track record of success will be able to provide solid references and demonstrate their ability to meet your hiring needs efficiently.
The difference between temporary, contract, and permanent staffing
When partnering with a staffing company in Asia, understanding the different types of staffing arrangements is important to determine the best fit for your business. Here are the three main types of staffing options:
1. Temporary staffing
With temporary staffing, workers are hired for short-term roles to meet immediate business needs, such as seasonal demand or to cover for employees on leave. These workers are typically brought in for a specific period—weeks or months—and are often managed by the staffing company.
For businesses that experience fluctuating workloads or need quick help for a specific project, temporary staffing provides a flexible, cost-effective solution. It allows businesses to scale their workforce up or down without the long-term commitment.
2. Contract staffing
Contract staffing is a more specialised arrangement where workers are hired for a fixed term to complete a specific project or assignment. It is ideal for businesses that need highly skilled professionals for short-term work or projects, such as IT development, marketing campaigns, or consulting.
A staffing company in Asia can help you secure professionals with the exact expertise needed for these time-bound roles. Contractors typically work for a set duration, and their contracts may be extended based on performance or project requirements.
3. Permanent staffing
Permanent staffing involves hiring employees for long-term positions, with the intent of offering full-time employment. A staffing company can help businesses find candidates who are looking for stability and are committed to a long-term role within the company. Permanent staffing is ideal for businesses that need employees to contribute to their company culture and provide ongoing value over time. This type of arrangement comes with the responsibility of providing full benefits, salaries, and legal compliance, but it ensures that you have dedicated professionals in place.
How to evaluate the track record of a staffing company
Before partnering with a staffing company in Asia, you must evaluate their track record and reputation. Look for a staffing agency with a history of successfully placing candidates in roles similar to yours.
You can start by checking client testimonials or case studies to see how they’ve helped other businesses in your industry. Also, consider how long the staffing company has been in operation and whether they have strong relationships with top talent pools. A reliable staffing agency should also have a transparent approach to their recruitment process and offer solid support throughout the hiring process.
[H3] The importance of industry-specific staffing expertise
Different sectors, such as IT, healthcare, or finance, have unique staffing needs and challenges. Partnering with a staffing company in Asia that specialises in your industry ensures they understand the technical skills, certifications, and qualifications required for the roles you’re trying to fill.
For example, a staffing company specialising in tech roles will have deep knowledge of the rapidly evolving IT industry, understanding the specific programming languages, certifications, and technical skills required for positions like software developers, data scientists, or cybersecurity experts. A staffing company in Asia with this expertise will be able to quickly identify candidates who not only meet the technical requirements but also understand the latest trends in digital transformation and innovation.
How CXC’s MSP solution enhances staffing in Asia
Whether you’re looking to scale your team quickly or navigate the intricacies of local labour laws, CXC’s MSP solution ensures you have the support and expertise you need. Our solution provides a streamlined and efficient way to manage your staffing needs, from sourcing and engagement up to supply chain management and compliance.
The advantage of CXC’s Managed Service Provider (MSP) model
At CXC, we offer a modular, à la carte MSP model, which means you can select the level of support you need across four key areas.
- Sourcing
- Engagement and Payment
- Supply Chain Management
- Compliance
With our à la carte model, there’s no need to pay for unnecessary services. You can tailor the solution to fit your exact needs, ensuring you get the most value for your investment. Within these areas, CXC offers a range of services, including multi-channel sourcing, supplier management, and worker onboarding and offboarding.
Moreover, CXC’s MSP solution includes comprehensive compliance checks for every contingent worker engagement, protecting your business from potential risks related to labour laws and regulatory requirements.
Whether you need help with one specific area or a complete end-to-end staffing solution, our flexible model ensures that you get the right level of support without paying for services you don’t need.
Seamless integration of staffing and workforce management
When you partner with CXC, we ensure that your staffing needs align with your overall workforce goals, and that a smooth transition is in place. During the transition process, CXC assigns a dedicated project manager to guide your business every step of the way. With a streamlined implementation, from initial setup to ongoing management, we can minimise any disruptions and allowing your team to stay focused on other important aspects of the business.
Leveraging CXC’s expertise for compliance and risk mitigation
We’ve been helping businesses across the globe mitigate the risks that come with hiring and managing contingent talent for over 30 years. Whether it’s about ensuring workers meet local employment standards or verifying their qualifications, our comprehensive compliance tools reduce the risk of legal disputes.
CXC’s deep expertise as a staffing company ensures that businesses stay updated on local labour laws, tax regulations, and compliance requirements. This includes critical compliance checks such as right-to-work checks, worker classification, and background checks, helping businesses avoid costly fines or penalties for non-compliance.
Get started with CXC’s MSP solution for scalable staffing success
Sourcing and engaging talent can be challenging, but it doesn’t have to be. With CXC’s expertise in staffing and compliance, businesses can respond to their workforce needs and scale their teams smoothly.
Whether you’re expanding into new markets, handling a surge in projects, or looking for specialised talent, CXC’s MSP solution gives you the flexibility to adapt without the usual HR headaches. Interested to learn more? Speak to our team today and see how CXC can simplify your staffing process.
