SEA’s CEOs want innovation, but employees feel stuck in execution mode

A new report by AI-powered HR platform Omni HR reveals a disconnect between Southeast Asian CEOs and their employees when it comes to innovation. While CEOs consider innovation critical to their business strategy, only 32.5% of employees feel confident in the skills necessary for innovation, such as influencing others, collaborating across teams, and going beyond routine execution.

The gap becomes more pronounced when considering disengagement patterns, as employees often show decreasing engagement over 12-18 months before it becomes evident in output metrics. This disconnect is most likely due to performance management systems that prioritize task completion and mistake avoidance over creativity and risk-taking.

Companies in the region are operating in a time of rapid change, with generative AI reshaping job design, investors demanding efficient growth, and businesses facing pressure to compete with both local rivals and global platforms. However, current performance systems may be discouraging employees from taking calculated risks needed for innovation.

The report highlights three key gaps: inadequate coaching and mentoring from managers, lack of career growth planning, and insufficient guidance on future skills. These issues could be exacerbated by AI's impact on the workforce, as employees may struggle to adapt their roles in response to changing job requirements.