UK firm: Skilled Thais a scarcity
Local and multinational companies in Thailand are moving to replace expatriate workers with Thais in leadership roles, but there is still a shortage of Thais with appropriate communication and leadership skills, says British recruiting firm Michael Page.
“A key employment trend is the rising emphasis on recruiting Thais over expatriates,” said Kristoffer Paludan, director of Michael Page Thailand. Thai professionals bring to the table “incredible” technical skills, he said, but in many cases still need to develop the leadership and communication capacities necessary to perform at the top levels of large companies.
Foreign-educated and trained Thais are a very small pool, and getting them on board can prove to be a very competitive process, said Paul Cooper, managing director of Michael Page’s Malaysia and Thailand office.
Multinational companies are looking for Thai executives aged 33 and older to replace expatriates, he said.
China offers large compensation packages (in some cases larger than those offered in the West) to attract returning talent.
“We are observing the same trend in Thailand, but only for very niche positions,” Mr Cooper said.
“A lot of overseas Thais want to return to be with their families, and as the country develops they are increasingly finding they can also work at a global level here in positions that fit their skills,” he said.
Roles like computer programming and data science are in high demand across industries. Companies at the top of hot sectors like finance and telecom will have little trouble filling in those roles, but those in less-sexy industries like manufacturing and insurance may have a much harder time attracting talent, Mr Cooper said.
There is strong demand in jobs related to artificial intelligence, internet of things (IoT), digital industries and engineering this year, as these careers align with the government’s S-curve economic model.
Mr Cooper said some digitally skilled workers are attracted to industries like manufacturing, and other industries that are relatively low on the digitisation scale, because of the opportunity to produce a greater impact on the industry. According to global consultancy McKinsey, IoT will have a US$1.2-3.7 trillion (37.7-116 trillion baht) impact on factories by 2025.
As labour shortages increase, especially in tech-related functions, the traditional relationship between employer and employee has flipped.
As candidates gain the upper hand in recruitment, companies are taking steps to ensure that they are attractive enough to compete for high-skilled labour.
In Thailand, companies like Siam Commercial Bank (SCB) have formed separate entities that are more agile, innovative and youthful to attract global talent.
SCB Abacus, the digital arm of SCB, has lured more than 30 tech experts from Silicon Valley and elsewhere through this strategy.
Insurer Allianz formed a joint venture with the digital arm of the Boston Consulting Group, which, like SCB Abacus, is more attractive to top talent than its parent company.
This shortage can to a certain extent be addressed by embracing the “gig economy”, in which workers are hired for relatively short periods for specific projects. “The gig economy will have an important impact on the supply and demand of talent,” Mr Cooper said. “Workers are increasingly flexible in their careers, sometimes holding 2-3 jobs at the same time. Companies like Uber and Lyft are portending this trend.”