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Struggling Companies Hold onto New Employees: Survey Results Revealed

Connecting Taiwan Globally and Globalizing Taiwan

, and Administrator

2025 September 4 . 5:08 PM

2 min read

Struggling Retention of New Employees: Survey Results Revealed

Struggling Companies Hold onto New Employees: Survey Results Revealed

Addressing Labor Challenges in Taiwan: Key Strategies for Service and IT Sectors

Taiwanese companies are grappling with labor shortages and rising recruitment cycles, particularly in the service and information technology (IT) sectors. A recent survey by the 104 Job Bank revealed that the average time to fill vacancies has increased by 5.7 days, with more than one-third of new hires leaving within six months [1]. To address these issues, companies are adopting a range of strategies to attract, retain, and develop talent.

1. Expanding Recruitment and Inclusive Labor Programs

Taiwan is increasing the recruitment of migrant workers, particularly from Southeast Asia, while improving protections, rights, and integration support for these workers. This helps cover labor shortages in various sectors, including manufacturing and high-tech [2].

2. Re-engaging Middle-aged and Elderly Workers

Promoting programs that encourage older workers to remain in or rejoin the workforce offsets shortages and taps underutilized talent pools [1].

3. Improving Compensation and Working Conditions

The Ministry of Labor encourages companies to raise pay and improve workplace environments to attract and retain local workers, reducing turnover rates and shortening recruitment cycles [2].

4. Government Subsidies and Training Support

Wage subsidies during reduced working hours, training allowances, job redesign grants, and youth-targeted training rewards motivate skill development and retention while preventing layoffs [2].

5. Career Development and Engagement Initiatives

Data from the Robert Walters Talent Trends 2025 report shows that 94% of employees stay longer at firms investing in career development. Taiwanese companies winning HR excellence awards implement deep engagement assessments (TEAM model) and tailor programs to meet diverse employee needs, fostering retention particularly significant amid Taiwan’s projected labor shortfall [4].

6. Talent Development in Emerging Technologies

Taiwan is investing heavily to train 200,000 AI and high-tech talents to meet industry demand, especially in the semiconductor and IT sectors, shortening hiring cycles by building local talent pipelines [5].

7. Focus on Critical Roles

The sharp increase in demand for production, quality control, R&D, and technical support roles in semiconductors requires targeted recruitment combined with better retention programs and skill upgrading [3].

AI is becoming a core competency across industries, particularly for human resources and marketing roles. Candidates in electronics, semiconductors, finance, manufacturing, and retail are expected to demonstrate proficiency with AI tools. Service providers can focus on workplace productivity, comfort, and overall satisfaction to support new employees.

To improve retention, Weber Chung, a 104 Job Bank human resources officer, suggested companies should fully disclose salaries and job responsibilities [1]. Managerial roles, which take even longer to fill, average 77.9 days [1].

By implementing a combination of these strategies—from leveraging migrant labor and older workers to enhancing career growth and work conditions, supported by government incentives—Taiwanese companies can effectively alleviate labor shortages, reduce recruitment timelines, and improve new hire retention in their service and IT sectors.

[1] https://www.104.com.tw/ [2] https://www.mol.gov.tw/ [3] https://www.digitimes.com/ [4] https://www.robertwalters.com.tw/ [5] https://www.taiwannews.com.tw/