Solid recovery for Indonesia’s job market in 2022; demand for tech, digital talent

In 2021, companies in Indonesia remained cautious in the first half of the year, but hiring restrictions eased up as time went on. After streamlining and stabilising their businesses, many companies are now actively hiring again.

Eric Mary, Country Manager of Robert Walters Indonesia, shares, “Some industries in Indonesia saw a consistent level of recruitment activity. These include Chemicals, Logistics, Transportation and Warehousing, Agriculture and Mining. The same goes for the Tech industry – specifically the e-commerce, insurance, education and financial technology spaces.”

“Companies with overseas headquarters have also noticed the recovery of the COVID-19 situations in their home countries, and this has influenced their decisions to relaunch recruitment process in other offices around the world,” he adds.

Read on as Eric shares his expectations about Indonesia’s labour market in 2022.

Active hiring market amid companies’ digital transformations and rising turnover

Looking ahead at 2022, Eric expects three key hiring trends for Indonesia’s job market. He says, “We expect to see a solid recovery, making for an active hiring market in 2022. Now that there is a vaccine that is safe and widely distributed, companies will be less conservative with hiring for new or replacement positions.”

Two other trends will be prominent in 2022. “First, companies will accelerate their digital transformation programs and processes. Secondly, companies will face a higher risk of turnover. After months spent working from home and navigating this unprecedented situation, many people are feeling the need for a fresh start. They will seek new beginnings, even with their jobs and careers,” Eric notes.

Demand for tech, digital talent in 2022

When it comes to in-demand skill sets, Eric elaborates, “With companies continuing with their digital transformation in 2022, they will need tech and digital professionals to support them in doing so. At the same time, companies are restructuring and upskilling their employees for a new digital era. We expect to see targeted recruitment of professionals in functions such as HR and Finance.”

Advice on recruiting and retaining employees

For 2022, our advice to companies looking to recruit is to first, focus on speeding up recruitment processes. “Learn to accept that your chosen candidates may not be perfect, but you can always train and develop them along the way. This also improves retention as it helps employees feel valued by the company,” Eric points out.

Eric also highlights, “Sell your story well. What is the company’s vision? What do you want to achieve, and how can the potential hire contribute? Communicate this clearly and dynamically.”

“Companies should also adapt to a new world of work. More and more, employees and potential hires now expect a resource-oriented model, where they work based on trust and accountability. Flexible or hybrid work arrangements are now essential for recruitment and retention,” Eric reveals.

“Lastly, always remember that you have the option of hiring overseas-based Indonesians. This is a talent pool that offers specialised skill sets and international work experience. Many companies have found great candidates in returning Indonesians through our Pulang Kampung campaign.”

Remember you have the option of hiring overseas-based Indonesians. This is a talent pool with specialised skill sets and international work experience. Many companies have found great candidates in returning Indonesians through our Pulang Kampung campaign.

Niche skills, senior positions to see higher salary jumps

In terms of salaries, Eric mentions, “Professionals with niche skillsets could expect salary increments of 20-30% on average when moving jobs. The same goes for more senior positions which require strategic oversight and planning experience. Candidates in these roles can expect salary increments of 30 – 35%.”

“However, for generalist roles such as sales and key accounts, job seekers could expect less salary increment, as more of them will be available in the market since they are now open to new job opportunities with the pandemic under control,” he concludes.

Find out more

Request access to our 2022 Salary Survey to benchmark salaries and find out the latest hiring and talent trends in Indonesia’s job market.