The Future of Recruiting in Southeast Asia report by LinkedIn revealed that only 12% of employers resorted to increasing salaries enough to keep pace with inflation.

The report said recruiting will have more say over pay and employers will have to focus on branding, learning and development (L&D), diversity and inclusion (DEI) and other perks to lure in talent.

With employees expected to retain the upper hand over the next five years, employers will have to re-examine their branding to make sure it aligns with what today’s candidates are looking for.

About 57% of in-house recruiting professionals predict their recruiting budget will increase this year, whereas 67% believe branding investments will increase.

While less hiring typically means less power for workers, LinkedIn’s recruiting teams saw that dynamic swinging back in the opposite direction over time with 78% predicting that the future of recruiting will be more favourable to candidates and employees as opposed to employers over the next five years.

LinkedIn said the walls that once divided recruiting and L&D are no longer there, with companies preferring to upskill their existing workforce rather than hiring outside. In fact, 67% of experts report L&D as the priority moving forward.

On the other hand, flexible working has become increasingly enticing for employees with 44% of candidates and 63% of recruiters reporting it as a priority.

The report also confirmed that DEI is a priority for the next generation of employees, who are committed to it in the long term and not just during times of social crises.

Despite hiring headwinds, 73% of companies still reported not lowering the priority of DEI hiring.

Overall, the most important priority was still compensation with 65% followed by career growth at 55%, work life balance at 47%, flexibility at 44% and opportunities to learn a new skill at 38%.