The global labour market has been turbulent ever since the COVID-19 pandemic, induced by other factors such as the rising cost of living, new climate policies, technological developments, and geopolitical frictions. These shifts in the market have caused various recruitment challenges for countries worldwide, changing how businesses need to restructure their hiring strategies to cater to emerging jobs and skill sets. Talent shortages, shifting workforce expectations, and complex hiring regulations make recruitment challenging, particularly in fast-growing regions like Asia-Pacific (APAC). Especially in the energy sector, businesses struggle to secure the specialised talent they need to keep pace with industry demands.
However, these challenges are not exclusive to the APAC region. Businesses in Europe, North America, and the Middle East also encounter issues such as demographic shifts and increasing competition for skilled professionals. Additionally, cultural and linguistic barriers and variations in regional labour laws further complicate global hiring strategies.
To address these, businesses must adopt more agile, data-driven, and scalable recruitment strategies. One solution gaining traction is project RPO (recruitment process outsourcing), a flexible, short-term talent acquisition model. It provides targeted hiring support on a project-by-project basis without the long-term commitment of a traditional RPO programme, which is ideal for businesses tackling seasonal hiring spikes, market expansions, or specialised hiring initiatives.
This blog explores the global recruitment challenges businesses face and how a strategic approach through project RPO can provide the necessary edge in a competitive talent market.
Top Global Hiring Challenges
According to the World Economic Forum, the global unemployment rate has declined to a historic low of 4.9%. Although this trend is generally favourable, it hides significant disparities. While middle-income countries have witnessed reductions in unemployment rates, low-income countries have experienced an increase, from 5.1% in 2022 to 5.3% in 2024. Furthermore, persistent gender imbalances exist in certain regions.
Adding to this complexity, businesses are dealing with:
Talent Scarcity and Skills Gap
A skills gap threatens business growth across industries, with 66% of large businesses struggling to recruit employees with the necessary skills. APAC is particularly affected, as leadership roles are becoming increasingly difficult to fill due to a lack of soft skills among available talent. According to LinkedIn, 79% of regional HR decision-makers report hiring senior leaders is a significant challenge, and 61% are pessimistic about the next five years.
This issue is further exacerbated by many businesses relying on expatriates to fill positions that require specialised skill sets. Notably, 39% of companies report that less than half of their leadership roles are filled by individuals from the local population. This trend is also evident among US-based multinational companies (MNCs), with at least half of their employees outside the US. For example, Johnson & Johnson and GE comprise 65.6% and 67.8% of foreign workers, respectively.
The demand for skilled engineers, renewable energy specialists, and digital transformation experts far outstrips the supply. This situation is compounded by structural labour market changes, with 92 million jobs expected to be displaced globally by 2030.
In key regional markets:
- Japan faces an ageing workforce, resulting in only two applicants per job opening, leaving many roles unfilled.
- Australia and New Zealand, though slightly better positioned, face growing shortages in engineering, life sciences, and renewable energy. The World Economic Forum reports that demand for green skills is outpacing supply, with job postings requiring these skills rising by nearly 22% between 2022 and 2023.
- The US and India lead in AI and GenAI training enrolments but still need extensive upskilling to meet industrial needs.
- Talent shortages are a concern in the Middle East. In a survey conducted by PwC, 75% of employees in Kuwait, 60% in Qatar, 58% in Saudi Arabia, and 46% in the UAE believe their country lacks individuals with specialised skills.
Changing Workforce Expectations
A general shift in workforce expectations is complicating recruitment efforts worldwide. Younger professionals, particularly those from Gen Z, in high-pressure economies such as China and Japan, are increasingly rejecting long working hours in favour of better work-life balance. This has contributed to the global trend known as “quiet quitting”.
Simultaneously, there is a growing preference for hybrid and remote work arrangements in North America and Europe, which is reshaping how companies approach hiring. Many professionals now consider these important benefits when exploring new job roles.
More often than not, employers advertise job roles with extended tenure requirements at previous positions. However, modern career progression trends indicate that switching jobs every 2 to 4 years may benefit professional growth. Consequently, this focus on long tenure may inadvertently lead employers to overlook highly qualified applicants. To effectively attract and retain top talent, businesses must consider adopting flexible hiring models, invest in reskilling initiatives, and implement innovative employee engagement strategies.
Increasing Tech and Renewable Energy Jobs
Technology and sustainability are changing global employment trends as industries characterised by high carbon emissions, such as mining and chemicals, intensify their decarbonisation efforts. This transition requires upskilling and reskilling to facilitate employee’s movements into alternative job roles. The global renewable energy sector has witnessed increased job opportunities, reaching 16.2 million, with approximately half of these positions concentrated in Eastern Asia. Notably, China accounts for 46% of all renewable energy jobs. At the same time, North America and other regions in APAC have experienced new job creation within this domain, as reported by the International Labour Organization.
Moreover, a marked surge in AI and automation investments drives job creation in data science, robotics, and machine learning, particularly in China, Japan, and South Korea. These industries demand professionals such as Big Data Specialists and FinTech Engineers. This growth in the tech and renewables sectors has outpaced workforce development, leaving critical skills gaps. Not only are hard technical skills in demand, but this market shift also requires professionals with soft skills such as resilience, agility, creative thinking, and self-awareness, making upskilling and reskilling crucial for workforce transitions.
Complexities of Hiring Regulations
Operating in multiple regions necessitates understanding various labour laws, taxation policies, and visa/work permit requirements. While numerous businesses seek to hire foreign talent to strengthen their workforce, this approach presents increasing challenges related to global mobility and the processes involved in relocating or transferring talent from abroad to specific project sites. Each nation has its regulations governing employment contracts, salaries, compensation packages, working hours, and the procedures for onboarding and offboarding employees. This complexity is yet another significant recruitment challenge that impacts businesses globally.
How Project RPO Solves These Challenges
Project RPO provides a targeted, high-impact recruitment model to address specific initiatives, such as large-scale hiring drives or new business ventures requiring targeted talent solutions. It allows businesses to leverage the benefits of a full RPO model without the commitment of a long-term arrangement. In this model, external recruitment consultants collaborate with your existing talent acquisition and HR team to achieve specific hiring goals, whether for a few weeks or months. This approach is an effective solution for successful project hiring across various markets.
Benefits of Project RPO for Global Recruitment Challenges
- Fast, Scalable Recruitment Solutions – Companies expanding into new markets or managing seasonal hiring peaks need speed and flexibility. Project RPO enables businesses to focus on specific problem areas and quickly address talent gaps and skills shortages.
- Cost-Effective Talent Sourcing – A strong recruitment strategy isn’t just about finding candidates and making informed hiring decisions. Project RPO utilises salary benchmarking and market intelligence to offer competitive yet realistic compensation, reducing turnover and improving retention on a project-by-project basis.
- Skills First Approach – Project RPO can effectively utilise a skills-first approach by prioritising candidates based on their competencies rather than their specific job titles or traditional qualifications, engaging a diverse talent pool that may have been overlooked due to conventional hiring practices. Globally, talent pipelines can increase by nearly ten times when using a skills-first approach to hiring.
- Succession Planning—Companies need proactive talent development strategies to counteract skills shortages. Project RPO integrates the reskilling of internal pipelines, workforce transition initiatives, leadership development, and workshops, helping businesses prepare for the future of work.
- Improving Employer Branding—Talent attraction is about more than just salary; brand perception is also important to address changing workforce expectations. A well-executed project RPO strategy enhances employer branding, improves candidate experiences, and positions companies as employers of choice.
- DEI Programmes – Diversity, equity, and inclusion (DEI) are integral to business success. Labour market disparities remain a concern, especially in APAC, where women’s unemployment rates are higher than those of men in middle-income countries. Project RPO ensures inclusive hiring processes that foster diverse, high-performing teams.
Why NES Advantage?
Partnering with an experienced and knowledgeable recruitment company is crucial for successfully navigating the complexities of global talent acquisition. NES Advantage offers comprehensive project RPO solutions tailored to the needs of the engineering and energy sectors.
Here’s how NES Advantage can help:
- Global Reach, Local Expertise—With offices worldwide and an extensive talent pool, we can source and attract high-calibre expatriates and local employees to remote locations and complex project sites.
- Industry Knowledge – Our specialist recruiters are discipline-specific, spanning various engineering and energy sectors, including IT, renewables, chemicals, and oil and gas.
- Tailored Recruitment Solutions – We create RPO programmes in close partnership with you, ensuring they scale alongside your short or long-term business objectives.
- Compliance and Regional Hiring Support—Our in-country compliance and legal teams ensure risk-free recruitment operations. Our experts secure top talent and facilitate their smooth transfer to your projects, regardless of your global location.
Contact us today to explore how NES Advantage’s project RPO solutions can support your hiring strategy.
