PwC Asia Pacific Hopes and Fears 2023: Indonesian employees are bullish about AI's potential in their careers

Jakarta, 1 August 2023 - PwC released the Hopes and Fears Global Workforce Survey 2023 for the Asia Pacific region. Around 19,500 Asia Pacific employees participated and the results highlight the challenges our region is facing today. Of those surveyed, 39% believe their organisation will not survive more than 10 years if it continues on its current course - comparable to 53% of Asia Pacific CEOs who shared this sentiment in our 2023 CEO survey. This has reaffirmed the urgency for business leaders to act now on long-term transformation.

Raymund Chao, PwC Asia Pacific and China Chairman, commented, “The new reality has taught us that change is constant. Competition continues to intensify, risks of disruption remain and societal expectations are rising, which collectively, challenges the viability of every business. To truly flourish in an environment that is continuously evolving, organisations must transform and adapt at speed. It’s encouraging to see that business leaders and employees in the region share this vision. No transformation is alike but at the core, people always matter. We need to come together in new,  interconnected ways, to build trust and deliver sustained outcomes.”

Transformation is complex, especially in an environment where businesses are tackling short-term crises while trying to transform for long-term sustainable outcomes. The fact that workers recognise the need for transformation is a perfect starting point to put people at the heart of that transformation.  It is encouraging to see that workers not only acknowledge the need for transformation but also prioritise their job satisfaction. 

The need for organisational transformation and the importance of employee job satisfaction are two intertwined imperatives in the Asia Pacific region. While job satisfaction levels are generally steady, there is a noticeable inclination among workers to pursue improved compensation or career prospects.

Marina R. Tusin, PwC Consulting Indonesia Leader, emphasised that “Job satisfaction levels have remained stable. Around 57% of Asia Pacific respondents express moderate to high satisfaction, consistent with global averages. However, satisfaction varies across the region. Japan, South Korea, Hong Kong SAR, and Taiwan reported lower levels (29% to 45%), while Thailand, Indonesia, the Philippines, China, and India show higher levels (70% to 79%). To be specific, 75% of Indonesian employees are very or moderately satisfied with their jobs, which is 18% higher than the Asia Pacific. 

‘The Great Resignation’ is far from over in Asia Pacific

Employees in the region are even more likely to quit now than they were last year — back when everyone thought ‘The Great Resignation’ was at its peak. About 30% say they are likely to change jobs in the next 12 months (up 10% from 2022). The number is higher for the younger generation (Gen Z and Millennials), employees at senior levels and those working in larger organisations. In addition, roughly 40% express an intention of asking for a pay raise or promotion within the same timeframe.

Skills in the workplace are evolving, but human skills matter most

The ever-changing landscape has proved that workers’ skills will be disrupted significantly in the future, yet our surveyed employees may see things differently. Just 44% of respondents believe that the skills required for their jobs will undergo significant changes within the next five years and only 48% have a clear sense of how. If employees do not anticipate or understand how their job requirements might change, they may not be adequately prepared for the future. 

Employees in the region rank people skills such as adaptability/flexibility (69%), collaborative skills (67%) and critical thinking (66%) above technical or core business skills. However, skills are hiding in plain sight. Less than half (48%) feel that their employers will provide them with opportunities where they can apply their skills effectively in the next five years. It suggests there may be untapped capacity within the existing workforce.

Norah Seddon, PwC Asia Pacific Workforce Leader, commented: “The persistent and widening skill gap in the region demands urgent action. Forward-thinking companies must make skills the focal point of their talent strategies, from recruitment, training, and development to benefits and compensation. This strategic shift not only addresses the burning issue of talent attraction and retention but also prepares organisations for the demands of tomorrow's jobs.”

Asia Pacific workers are largely bullish on artificial intelligence (AI)

The benefits of AI are becoming understood across the region with 41% saying it will increase productivity and efficiency at work, and 34% viewing it as an opportunity to learn new skills. However, 22% lack confidence in their ability to acquire new AI-related skills. 16% of respondents believe that AI will replace their roles and an equal percentage feel that AI will have no impact. 

Workers in Vietnam, Indonesia, and India are more inclined to see AI as an opportunity for acquiring new skills, whereas those in New Zealand, Australia, and Japan are less concerned about the impact of AI on their job prospects.

However, Indonesian employees are bullish about AI's potential in their careers. They prioritise digital skills, with 56% believing AI will enhance their productivity (Asia Pacific: 41%), and 51% seeing it as an opportunity to acquire new skills (Asia Pacific: 34%). 30% anticipate new job opportunities from AI (Asia Pacific: 25%), while only 8% believe AI won't affect their jobs (Asia Pacific: 16%). Additionally, 71% consider digital skills crucial for their careers (Asia Pacific: 59%).

Industries such as Technology, Media and Telecommunications, as well as Financial Services, see the greatest potential for improved productivity through AI. In contrast, employees in Health and Government and the Public Sector express the most confidence that AI will not replace their roles.

As the workforce continues to evolve and employee attitudes shift, a new style of leadership is needed to steer the organisation on a path of reinvention. Our report includes several considerations for employers and leaders to better understand their people, unlock greater capability and accomplish bolder goals. 

These results should be a wake up call for companies across the region, many of whom have already been grappling with a skill and talent shortage for years.