In today’s fast-paced, globalised economy, identifying emerging talent markets is crucial for companies that aim to stay competitive. With the rise of remote work, the global talent pool is more accessible than ever. Global employers are now focusing on identifying new regions where skilled professionals are available, especially in countries where competition for talent is lower, and costs are more affordable. Emerging talent markets, particularly in Southeast Asia, are becoming key areas of interest for global employers.

According to a recent survey by WTW, competition for talent is the top influence on benefit strategy for most employers in 2023, as companies strive to attract and retain top talent globally . This highlights the need to look beyond traditional talent hubs to emerging regions. With a focus on remote workers, Southeast Asia is increasingly seen as a goldmine for skilled professionals in fields like technology, digital marketing, and customer service.

The Importance of Identifying Emerging Talent Markets

As remote work continues to grow, businesses can now tap into global talent markets more easily. However, knowing where to focus your hiring efforts is critical. Emerging talent markets offer an opportunity to build diverse, high-performing teams. Companies outside of the traditional talent hotspots are increasingly winning the war for top talent , demonstrating that looking beyond established markets can yield excellent results.

Identifying the right markets requires an understanding of several factors, including education, internet infrastructure, government policies, and economic stability. By paying attention to these indicators, global employers can discover untapped pools of talent ready to join the global workforce.

What Defines an Emerging Talent Market?

An emerging talent market is characterised by an increasing number of skilled professionals, relatively low competition for talent, and favourable labour costs. These regions typically have rapidly growing economies, improving digital infrastructure, and a population that is increasingly educated in high-demand fields like technology and engineering.

A McKinsey report stresses the importance of localising global talent strategies to win the war for talent . Businesses that can adapt their hiring practices to local conditions are more likely to successfully tap into emerging markets. Countries such as Vietnam, Indonesia, and the Philippines exemplify this trend, as they offer a blend of affordability and expertise, particularly in IT and digital marketing.

Key Indicators for Identifying Emerging Talent Markets

Educational Attainment and Skill Development

Educational infrastructure is one of the strongest indicators of an emerging talent market. Countries that prioritise education in technology, science, and engineering often produce professionals well-suited for global industries. For instance, Vietnam has made substantial investments in its education system, particularly in IT and software development, making it a burgeoning hub for tech talent .

Internet Connectivity and Infrastructure

Reliable internet access is essential for remote work. Countries that have invested in expanding their internet infrastructure are more likely to produce remote-ready professionals. Southeast Asia, with nations like Indonesia and the Philippines, has improved its digital infrastructure significantly, allowing more workers to join the global economy. According to Mercer’s Global Talent Trends report, technology and digital transformations are accelerating across emerging markets , enabling companies to hire globally with ease.

Government Policies and Support for Remote Work

Countries with progressive policies that support digital nomadism and remote work are gaining attention. For instance, Thailand recently introduced a long-term visa for remote workers and digital nomads, positioning itself as a top destination for global talent. As noted by AshbyHQ’s global talent strategy guide, businesses must align their talent strategy with the country’s labour laws and visa policies to take full advantage of the local workforce .

Economic Growth and Stability

Emerging economies often generate a surplus of skilled workers looking for opportunities in the global market. Southeast Asian nations, particularly Malaysia and Vietnam, have seen stable economic growth, which has contributed to the rapid rise of their talent pools . These economies are creating a favourable environment for remote workers who can offer high-quality services at competitive costs.

Labour Costs

Lower labour costs are one of the most attractive features of emerging talent markets. As the INSEAD Global Talent Competitiveness Index highlights, countries in Southeast Asia provide an affordable but highly skilled workforce . This has led to a surge in demand for workers from this region, especially in sectors like IT, customer service, and digital marketing.

Technological Proficiency

As the world becomes more digital, proficiency in technology is a major factor in determining a market’s potential. Vietnam and Indonesia, for example, have developed robust tech sectors, with more and more professionals specialising in software development, AI, and cloud computing. This technological expertise makes them attractive talent pools for global companies .

Countries to Watch: Emerging Talent Markets in 2024

Vietnam

Vietnam is quickly becoming a top destination for tech talent, thanks to its growing investment in tech education and infrastructure. According to McKinsey, companies that successfully tap into local talent can gain a competitive edge . Vietnam’s tech sector is expected to continue expanding, making it a prime location for remote hiring in fields like software development and engineering.

Philippines

The Philippines has long been known for its strength in business process outsourcing (BPO), but it is now becoming a powerhouse in other industries as well. With a highly educated, English-speaking population, the country excels in digital marketing, graphic design, and tech support. Mercer’s insights highlight the Philippines as a key market for BPO and IT-related services , due to its strong service-oriented workforce.

Indonesia

As Southeast Asia’s largest economy, Indonesia is rapidly becoming a leader in e-commerce, marketing, and web development. Its youthful, tech-savvy workforce is a major asset for global employers. The WTW report notes that companies are expanding their benefit strategies to retain talent in emerging markets like Indonesia , indicating the growing demand for Indonesian professionals in various sectors.

Malaysia

With a strong emphasis on education and technical skills, Malaysia is emerging as a hub for remote workers in IT, data analytics, and engineering. As Forbes highlights, companies outside of traditional tech hubs are increasingly winning top talent , and Malaysia is well-positioned to become a key player in this space.

Thailand

Thailand is rapidly positioning itself as a talent market for remote workers. Government initiatives such as digital nomad visas have made the country more attractive to global companies looking to hire remotely. The AshbyHQ guide on global talent strategy notes that aligning with local policies can be a game-changer for companies expanding into new markets .

Emerging Sectors: Where Are the Skills?

Technology and Software Development

With the global demand for software developers skyrocketing, Southeast Asia is becoming a vital region for tech talent. Vietnam, in particular, is known for its software engineering professionals, while Indonesia is gaining recognition for its web development talent.

Digital Marketing and E-Commerce

The Philippines and Malaysia are emerging as strongholds in digital marketing and e-commerce, driven by their highly skilled and affordable workforce. Forbes reports that non-traditional markets are increasingly providing top-tier talent in digital sectors .

Challenges in Emerging Talent Markets

While the benefits of tapping into emerging markets are substantial, companies may face several challenges. These include managing cultural differences, navigating time zone barriers, and ensuring compliance with local laws. Deel’s practical guide to global talent strategy suggests that businesses should consider local legal frameworks when building a remote workforce.

Conclusion

As global competition for talent intensifies, identifying emerging talent markets is no longer optional but essential. By focusing on Southeast Asia, where the talent pool is expanding rapidly and labour costs remain competitive, global employers can gain a significant edge. Countries like Vietnam, the Philippines, and Indonesia are fast becoming vital players in the remote workforce. Leveraging these markets requires careful consideration of local conditions, including education, infrastructure, and government support.