Most small and medium enterprises (SME) owners in the Asia and Pacific region said the “Great Resignation” phenomenon is affecting them too, a report by human capital management SAP SuccessFactors found.
In its report titled “Transformational Talent: The impact of the Great Resignation on Digital Transformation in APJ’s SMEs,” nearly 64% of SME owners found it difficult with the mass resignation of employees.
The Great Resignation, a phrase coined in the United States, points to a global workforce trend where workers voluntarily leave their jobs in droves. Factors such as fewer job protections and pandemic-induced hardships have led to record-high numbers of workers quitting or changing careers, SAP said.
Looking for higher pay was the top reason for the talent crunch, followed by changing careers or roles, and leaving due to the pandemic’s harsh circumstances.
The report also found that 53% of respondents had difficulties when looking for replacements and filling job vacancies compared to a year ago. It’s either there were few to no qualified applicants or the applicants’ skills were not matched for the role.
How it affects SME owners
According to Asia Pacific Economic Cooperation, small and medium-sized enterprises account for over 97% of businesses and employ over 50% of the workforce in the region. But they were also more vulnerable to disruptions such as the COVID-19 pandemic, which has forced business closures and stunted the economy.
As more businesses pivot online for survival, the study said the Great Resignation could put SMEs’ efforts at digital transformation on the line.
Ninety-one percent of SME owners said workforce volatility, including the Great Resignation, has directly impacted their digital transformation plans.
“This study shows how the “Great Resignation” can be an existential challenge to organizations…Having the right people is important to ensuring digital transformation success,” said Rudy Abrahams, vice president of SAP SuccessFactors.
SMEs in the region focused on staff training, with 68% of respondents saying that upskilling is urgent to support digital transformation.
“As part of retention efforts, SMEs must invest in talent as much as they invest in innovation to thrive amid these uncertain times,” Abrahams added.
SAP also said that 43% of SME owners would improve their financial incentives and introduce flexible working arrangements to retain their staff.
The study polled 1,363 SME owners across eight countries in the region, including Australia, India, Indonesia, Japan, Korea, New Zealand, Singapore and Thailand from December 2021 to January 2022.
