Boosting wellbeing and driving productivity for APAC frontline employees

frontline workers in the Asia-Pacific region

of employee turnover in frontline organisation in SEA

Frontline workers are key to the labour force in the Asia-Pacific (APAC) region. In key frontline sectors in Southeast Asia (SEA), they make up almost half of the entire workforce. These employees work fully on-site, with most of them in public-facing roles, typically in industries such as retail, healthcare, and manufacturing. They are essential to the day-to-day operations of businesses and services, and are often the first point of contact for customers and clients.

Conventionally, there has been greater focus on employee engagement and workplace design for office-based employees. However, with a skill gap growing for the frontline workforce in particular, a weightier emphasis should be given to addressing the needs and challenges of the frontline workforce. Due to their front-facing nature of work, the frontline worker faces additional challenges such as a lack of career development opportunities, feeling undervalued in the workplace, and limited work flexibility.

In addition, many countries in the APAC region are also seeing the trend of a rapidly aging population. The ratio of population aged 65 years and above to 15-64 years is projected to double in APAC from 0.15 in 2023 to 0.31 in 2050. Japan and South Korea are projected to have the highest ratios, while the latter, along with Singapore and Thailand, will see the largest increases. However, South Asian countries like India buck this trend with one of the world’s largest and youngest workforce.

As such, it is even more critical to address the drivers behind the frontline workforce attrition leading to high turnover rates, especially for companies operating in countries facing a shrinking frontline talent pool. Frontline organisations in Southeast Asia have highlighted employee turnover as a top issue for them, with turnover rates reaching up to 48% annually. This not only leads to significant costs and time wasted in retraining and replacement but also creates a vicious cycle of workforce instability.

The healthcare sector is especially vulnerable due to the rapidly aging population in APAC leading to a surge in demand for healthcare workers. Japan anticipates a shortage of half a million caregivers by fiscal 2040. The global competition for healthcare workers has also intensified, exacerbated by the COVID-19 pandemic. Singapore, for example, has seen the attrition rate for foreign public sector nurses nearly double from 8.2% in 2017 to 14.5% in 2022.

This staffing shortage is having a cascading effect on the remaining workforce. Employees face higher stress levels and increased risk of burnout due to heightened workloads, further contributing to the attrition problem. A survey of retail workers in Singapore revealed that 82% cited understaffing as the primary cause of burnout.

With the competition for frontline talent intensifying, organisations must implement comprehensive strategies aimed at mitigating the main challenges of the frontline workforce, in order to attract and retain top talent. This article will explore three key strategies that organisations in APAC should implement:

Offering career development and upskilling opportunities is becoming increasingly crucial for attracting and retaining frontline workers, especially as these industries face significant skill gaps and labour shortages. For instance, China projects a shortage of 30 million skilled blue-collar workers in manufacturing by 2025, while Vietnam struggles to find workers with specialised skills like high-precision engineering.

Frontline workers themselves see the importance in upskilling, especially in technology and AI. A survey of retail workers in Singapore found that 96% of those not currently using AI would welcome its integration if it improved their day-to-day work experience. One way to do this would be to equip frontline workers with the tech skills needed to use digital systems which can minimise time spent on monotonous tasks. This would not only reduce tedious workload for frontline workers, but also increase overall efficiency and productivity for the organisation, a win-win situation for both.

Career stagnation concerns in frontline positions often deter younger workers from staying for the long term, as these roles are viewed as having limited advancement opportunities. This perception of constrained professional growth contributes significantly to higher employee turnover rates in the industry. As such, career development initiatives like mentorship programs and clear job progression paths can serve to attract and retain frontline workers. Malaysia's Subang Jaya Medical Centre has implemented a strong mentorship and training program for new nurses, which not only accelerates their learning process but also improves job satisfaction and retention. Similarly in the manufacturing industry, North Vietnam companies that offer stability and advancement opportunities in their factories have seen increased employee loyalty, even in the face of slightly lower wages. This highlights the importance of providing opportunities for training and career advancement in retaining employees.

Frontline workers in APAC face several challenges that contribute to job dissatisfaction. A prevalent issue is the perception among these employees that their efforts and opinions are not valued, particularly for customer-facing roles like retail workers, and many feel that they have little impact on organisational decision-making. In tandem with this is a perceived lack of recognition, which is a crucial element for fostering engagement and belonging. Employees who do not feel recognised for their contributions are likely to be less motivated and have lower morale. The situation is further exacerbated by insufficient compensation, especially when seen as disproportionate to workload.

Stress and burnout are also of concern among frontline staff, who regularly face challenging customer interactions and high-pressure situations on top of dealing with high workload. A global Workday survey highlighted that 8 in 10 frontline workers prioritise mental health and wellbeing at work, underscoring the importance of addressing these concerns. Organisations should proactively implement policies to mitigate this. In Singapore for instance, public healthcare workers have access to professional counselling services as well as peer support schemes and networks.

Employers must also focus on supporting their frontline workforce by providing safe, well-designed environments and actively incorporating employee feedback into workplace improvements. Even small improvements can help. A common complaint amongst retail staff in Singapore is the prolonged standing throughout the day, which can lead to health implications. In an effort to improve employee welfare, some retailers have added rest areas in their outlets to boost morale. This, in turn, can potentially translate to better customer service quality.

Importantly, organisations should recognise that a one-size-fits-all engagement strategy for both office-based and frontline employees is inadequate, given their distinct needs and challenges. By addressing these specific concerns for frontline workers, companies can create more satisfying work environments, potentially reducing turnover and improving overall productivity.

The pandemic-driven surge in hybrid work has primarily benefitted office-based employees, with frontline workers often overlooked. An Indeed study on Singapore employees highlighted this disparity, revealing that only 42% of retail employees felt their workplace offered flexibility, much lower than the average of 61% across industries surveyed.

Even though frontline workers are not able to work from home like office workers, this does not mean that they cannot enjoy alternative flexible work solutions. Singapore’s tripartite guidelines categorise flexible work arrangements into three themes, namely flexi-place (working from locations outside the office), flexi-load (choosing to work more or fewer shifts) and flexi-time (requesting to be rostered only for shifts fitting their availability). Flexi-place is unlikely to be relevant to frontline workers, but flexi-time and flexi-load options can be considered.

Implementing such flexibility in frontline industries presents challenges, such as rostering difficulties while also meeting operational staffing requirements, and potential cost increases for increasing the number of workers who work shorter hours. However, by offering more flexibility, organisations can improve work-life balance for frontline workers. This can result in an increase in employee retention and engagement, reduce turnover costs, and enhance the appeal of these industries to job seekers. Employers should consider incorporating tech solutions like scheduling or rostering software to manage staff schedules. Ultimately, this approach benefits both employees and employers, creating a more adaptable and resilient workforce in the face of changing work dynamics.

Addressing the distinct challenges confronted by frontline workers is essential for an organisation’s success. While this group share similar needs as office-based employees, they require customised solutions to address their unique challenges. To support their frontline workforce, organisations should introduce both employee-focused initiatives such as skill development programs and policies targeting engagement, as well as strategic workplace design modifications.

• Provide opportunities for upskilling, especially in tech/AI skills

  
  

• Establish communication channels to gather regular feedback from frontline employees

  
  

• Provide clear communication to frontline employees on organisational policies put in place for their wellbeing

  
  

• Provide access to mental health support services

  
  

• Offer flexible work options

• Establish clear job progression pathways

  
  

• Implement training programs to support new hires and mentoring programs for career development

  
  

• Implement recognition programs to focus on the unique contributions of frontline employees

  
  

• Equip managers with tools to support and recognise their subordinates

  
  

• Redesign the physical workplace to prioritise safety and promote employee wellbeing through enhanced amenities

  
  

• Integrate AI/tech tools/automation into the workplace to drive productivity and reduce repetitive workload