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Staff retention in the Asia-Pacific region is at an all-time low. Turnover is perhaps the biggest obstacle for future growth for many businesses, but there are ways to stem the tide.
GlobAl culTure, locAl mindSeT
AnThony rAjA devAdoSS
• employment rates across Asia remain
exceptionally highandmostmarketsare
operatingat,ornear,fullemployment.
• china is now operating at close to
peak capacity,anditsentirecostbase—
property,wagesandcommodities—
isrising.
• The talent required to take businesses
to the next level is scarceandturnover
isexceptionallyhigh(ofteninexcess
of40%).
Thesetwindemandsofthehighgrowthand
extremecompetitionfortalentdemands
newapproachestoresourcingthatdonot
applyinotherdevelopedmarkets.Thisis
whyretentionofstaffincompaniesacrossthe
Asianregioncontinuestobeakeystrategic
issue.
Unfortunately,traditionalapproachesto
retainingstaffdon’tnecessarilyworkhere,
andglobalorganizationswiththeirlessons
learnedelsewherearefindingthisoutthe
hardway.
2 | enTer The drAGon | GlobAl culTure, locAl mindSeT
The imPAcT of hiGh GrowTh on workforce STrATeGy.
Operating in a market with high growth and scarce talent, such as Asia, brings with it significant challenges for HR. Many businesses operating in the Asian region are recognizing that their expansion strategies will need refining, and that workforce development is critical to their sustainability.
Thefirstissueisaplainandsimple
consequenceofever-increasingopportunity
andinvestment.Foremployees,expansion
andinvestmentbringsopportunity.With
opportunitycomesknowledgeand
experience.Withmoreknowledgeand
experiencecomesmoreopportunity—right
whenemployersneedtheirstaffthemost,
employeesaregaininggreateroptionsand
incentivestoleave.
InAsia,theopportunitycurvehasbeen
exponentialandthiscreatespressure,
bothfromwithinandfromcompetitors,
fororganizationstopromoteandputstaff
inpositionswithgreaterresponsibility,
faster.Theboomissuchthatpoachingand
3 | enTer The drAGon | GlobAl culTure, locAl mindSeT
TrAdiTionAl APProAcheS To reTenTion cAn increASe Turnover. Take any organization in the world on any day of the week and estimates are that most of its workforce (up to 76%) is seeking alternative employment opportunities. However, employers in the Asian region have two unique factors to add to this retention challenge.
head-huntingofstaffcanbeamatterof
survival.Andpromotingstaffwithrelatively
littleexperienceandtrainingcanbethe
onlyoptionwhenothercandidatesare
unavailable.
Ofcourse,thishasseriousconsequences
forbusinesseslookingtogrowandadapt
toongoingchange,notleastofallthe
competencyandnumberofresources
availabletomanagesuchtransitions.
Swiftcareerdevelopmentisoftenseenasthe
answertoretaininggoodpeople,butitisn’t
alwayspossible.Whenyoucan’taffordto
letanemployeewalk,yetyoucan’tpromote
theminternallyforlackofexperience,more
innovativesolutionsareneeded.
Foraregionwithastrongrecenthistory
ofcountriesoutsourcingtoit,andthe
perceptionofaplentifulpopulationof
availableworkers,itishardtoimaginewe’ve
alreadycometothetimewhereexternal
resourcesinAsiamightbeneeded.But
hiringintemporaryexpertisetostemthese
issuescanbethefastest,mostefficientand
cost-effectivewaytomanageworkforce
constraints.OutsourcingwithinAsiaisnow
well-established,andasthecostadvantages
insomemarketsreducewithrisingcosts,a
region-wideapproachtolaborisneededto
solveatleastsomeoftheseissues.
Hiringintemporaryexpertisetomanagethe
transitionoflessexperiencedworkers,and
expandingHRoversight,canavoidthedrag
onproductivityandgrowththattheseunique
factorsintheregionhavecreated.
Formostorganizationslookingtoincrease
retentionandloyaltyfromexisting
employees,arangeofmethodsand
incentivesareoftenused,includingcareer
developmentandtrainingopportunities.
Inatightemploymentmarketwherefull
employment(above95%)iscommonplace,
trainingandcareerdevelopmentcanactually
increaseturnover,particularlyamonglow-
skilledworkers.Itisnottheup-skillinginitself
that’stheissue,it’sthecareerprogression
thatmustfollow.Ifappropriaterewardisn’t
forthcomingoncethenewskillsareacquired,
employeeswillstarttolookelsewhere,and
veryquickly.
Inmarketswithsteadilyincreasing
opportunityandhighcompetitionforscarce
talent,suchasAsia-Pacific,strategichuman
resourcingdisciplineiscritical.Managingthe
attainmentanduseofnewskillsandshowing
appropriaterewardtohelpemployees
growanddevelopatthepacetheyexpect
istheonlywaytostopcompetitorsgetting
thebenefitoftrainingandeducation
investments.
Understandinghowtheissuesofincreased
opportunityandtrainingiscontributingto
highturnoverintheregionisthefirststep,
andputtinginplacethosemechanismsto
combatthemwillgosomeofthewayto
maintainingcompetitiveadvantage,butthere
arealsootherinsightsandtoolsemployers
canusetostemthetideofturnover.
Think global, act local
It’struethatglobalizationandlocaltraditions
don’talwaysfitneatlytogether.Thereare
tensionsthatcomewithchange,particularly
inthiscontextofglobalcompanieswith
westernrootstakingupresidenceinrapidly
developingeconomieswithdifferentand
diversevalues.InAsia,successfulorganizations
thatarelookingtoretainthebestpeople
willneedtounderstandthecontextthey’re
operating,gaininsightabouthowtheir
employeesthinkandfeelaboutworkingthere,
andusespecificstrategiesthatreflectthese
localinsights.Inshort,successfulorganizations
willneedtoensuretheyhaveaninclusive,
globalculturethatisflexibleenoughtoreflect
alocalmindset.Relyingpurelyonareputation
builtelsewhereisnotgoingtowork.
4 | enTer The drAGon | GlobAl culTure, locAl mindSeT
TrAininG And Turnover. There is another reason turnover is high in the region, which is perhaps more counter-intuitive. Again, organizations will need to employ innovate solutions to combat it if they plan on stemming the tide of turnover.
Theeconomicshiftfromwesttoeasthas
immenselocalimpactsforthewaywhole
nationsseethemselvesandcompaniesmust
considerhowtheyfitintothispictureand
makethispartoftheirongoingpropositionto
employees.
Ratherthanjust‘doingbusiness’inAsia,
companieswillincreasinglyneedtoselltheir
companypurposetoemployees—notjust
whythey’redoingbusinessintheregion,
buthowthey’redoingit.Ifbusinessesdon’t
satisfactorilyanswerquestionslikethese,
retentionwilllikelyremainanongoingissue:
• what is the company’s purposeindoing
businesshere?
• what specific role does company X
have to playthatnooneelsecanplayin
theregion?
• what will be the effects of this purpose
onthebroadercommunity?
• how will company X contribute
positivelytotheprocessofdevelopment?
• why should employees feel proudtobe
involvedinthis?
Why,asmuchashow,businessisdoneinthe
regionisrelevanttostaffretention.
5 | enTer The drAGon | GlobAl culTure, locAl mindSeT
cAPTure The mood. Across Asia, and particularly in China, growth has been rapid and social change has been vast. The sense of excitement and nation-building that’s occurring in many countries in the region is palpable.
Thereareexamplesonbothsidestothe
contrary,asnocultureishomogenous,but
thelessindividualistictendenciesofeastern
cultureareasourceofsignificantcompetitive
advantageifcompaniesunderstandhowto
operatewithinthatcontext.
Thisisnottosaythatthesecrettoretaining
peopleinAsiaistopresenta‘soft’culture
withnospecificfocusontheindividual—
workerseverywheredohaveindividual
goalsandneeds.However,itistosaythat
somethingbigishappeningintheregionand
almosteveryonefeelsit.It’sanhistorictime
andretentiondoesrequirecompaniesto
communicateanddeliverakindofinclusivity
inthenation-buildingwave.
6 | enTer The drAGon | GlobAl culTure, locAl mindSeT
ConneCting Company purpose with Community benefit. Much is made of the differences between western and eastern culture, not least of all the greater import that eastern cultures place on community, family and the greater good.
Beingpartofchangeforthebetterisakey
motivatorandloyalty-buildinghookfor
workersintheAsianregion,particularlyinstill
developingeconomiessuchasChina.Infact,
arecentKellysurveyfoundthatafull61%
ofemployeesacrossChinasaidtheywould
takealessorlowerpaidroleiftheyfeltit
contributedtosomethingmoreimportant
ormeaningfultotheorganization.Thisis
comparedwithjust27.5%inRussia,33.5%in
SouthAfricaand47.9%acrossallcountries
surveyed.TherearedifferencesacrossAsia
too(peoplefeelfarless‘stirred’bythe
nation-buildingcauseinAsiancountriesthat
arealreadydeveloped,suchasSingapore)
butchangeishappeningallovertheregion,
andgenerally,theywanttounderstandand
seetheircontributiontoit.
Perhapsoneofthemostinspiringexamples
ofthisNarayanaHrudayalayahealthcityin
India,whichhasbuiltscaleandspecialization
intomedicinetodramaticallyreducecosts.
“Wedecided,giventheshortageofsurgeons
inIndia,tohireexpatIndiansfromoverseas.
Toattractthemwesoldavision.Comeback
andbepartofbuildinganewIndia....Work
forusandyou’llbeabletohelpandcure
somanymorepeopleaweekthanyoucan
inEuropeorAmerica.Andbecauseofthe
visiondoctorscomebacktoIndia–towork
farlongerhoursandformuchlessmoney
thantheydidbefore....Wewerebrave
enoughtothinkbiggerthananyoneelse
andpassionateenoughtogetothersto
backourvision.”
Creatingavisionthat’srelevanttothe
regionissomethingmanycompanieswill
notbeaccustomedto.Visionsthatcenter
around“beingtheworldleaderin…”need
toseriouslyconsidertheirlocalrelevance.
Turningcompanyvisionintoaretentiontool
ispossiblehere,butformanyorganizations,
itwillneedsometweakingtogetthere.
Ifwealreadyknowthatcompanyculture
andcountrycultureneedtoworktogether
toformacohesive,localstoryandvalue
propositiontoemployees,whatofhow
employeesfeelabouttheworkthey’re
actuallydoing?
Peoplewhoarehappyatworkputinfar
moreeffort,worklongerhours,andare
moreproductivethanthosewhoaren’t.
Theyarealsomorelikelytostaywithyou
longerandbemorereceptivetochange.
So,whatelementsofworkcontributeto
happinessandisthereaspecificstoryto
tellaboutwhatmakesemployeesinthe
Asia-Pacificregion‘happy’?
Oneelementofemployeehappiness,and
thereforeretention,ispurpose.InAsia,
7 | enTer The drAGon | GlobAl culTure, locAl mindSeT
double hAPPineSS. Retention strategies must do two things simultaneously to be successful: keep people working for an organization for longer, and make the most of the people that are retained.
we’vealreadyseenhowthisneedstobe
conceivedofandcommunicatedinlight
ofsocialchange,communityand
development.Aclearpurposemightget
peopleinthedooranditmightgetthem
excitedaboutmakingacontribution,but
muchmoreneedstofollow.
‘Happiness’isalsodependentuponfeedback
andrecognition,andthisfundamentally
comesdowntothewaypeopleare
managed.Researchandsurveysinto
whatmakespeoplesatisfiedintheirjobs
consistentlyturnsupthesameanswer:good
relationshipswithmanagers.
ForbusinessesoperatingintheAsia-
Pacificregion,theredoesseemtobea
specificelementtomanagement-related
retention.A2011Kellysurveyrevealsthat
moreemployeesherethananywhereelse
intheworldarelikelytocite‘management
issues’asthemainreasontheyarelooking
elsewhereforwork,whichcouldindicate
twothings:
• employees here are more sensitiveto
managementrelationships
• managers here are grappling more with
thedemandsofhighgrowth
Researchshowsthatemployeesinthispart
oftheworldarealsolookingforadifferent
kindofrelationshipwiththeirmanagers.They
wantandexpectanopenness,honestyand
authenticitythatisn’tascriticalelsewhere.
Aboveall,theywantandneedmanagerswho
liveanddeliveruponthecorevaluesofthe
organization,todemonstratearesponsibility
tothem,theircommunityandsocietyat
large.Formanagerswhoareusedtofocusing
onlyonthebottomline,thiswillrequirea
significantculturalchange.
Beingopen,andconcentratingon
harmoniousinteractionsisfarmoreimportant
notjusttothebusinessofturningofprofit,
butalsotoretainingstaff.
Theprocessofdevelopmenthasmeant
thattheonlywaytogetaheadhasbeento
getplentyofeducationandworkharder
thaneveryoneelse,andevenincurrent
generationswhohaveitsignificantlyeasier
thantheirparentsdid,theseattitudeshave
lingeredon.Now,theneedtoattractand
retainworkersisseeingflexibilitybecome
partoftheworkplaceculture.
AccordingtotheWorldatWorkreport,
just7%oforganizationsquantifythereturn
oninvestmentfromflexibilityprograms.
Despitehowfeworganizationsmeasuretheir
worth,theanecdotalevidenceisstrong—
peoplewantandneedmoreflexibility,and
youngergenerationsparticularlyexpectthis
tobalanceworkwithotherinterestsand
commitments.
TheCEOofSamsungTescoinKorea,a
countrywithtraditionallyverylongworking
hours,hastappedintoyoungergenerations’
desiretohavebetterwork-lifebalancehas
ledanumberofinitiativestohelppeople
toworkmoreefficientlywithfamilysupport,
suchasflexibleworking.Ininstabletimes,
lookingatflexibleworkingoptionsand
contingentworkers,insteadofworkforce
reductionorreducedbenefits,canbea
morestrategicalternativetomanage
workforcecosts.
8 | enTer The drAGon | GlobAl culTure, locAl mindSeT
The imPorTAnce of fleXibiliTy.
With typically have fewer annual leave entitlements and a longer working week than many western nations, Asia has not been the preserve of workplace flexibility in the past.
• increasing opportunityhasledtohigh
turnover;job-hoppingandpoachingfrom
otheremployersaresignificantissues
• Some traditional approaches to
retentiondon’twork—up-skillingand
trainingcanactuallycontributeto
turnover
• finding the right talent tomanagethe
scaleofbusinessesandexpansionplans
amidhighgrowthisgettingharder
• employee expectationsarechanging,
particularlyamongyoungergenerations
Evenhere,withthesechallenges,thereare
approachesthatareworkingtoattractand
retaintherightpeople.Flexibility,astrong,
locallyrelevantcultureandpurpose,aswell
astherightkindofleadershipforthetimesis
morecriticalherethanelsewhere.
Retentionis,andwilllikelycontinuetobe,a
majorissueforbusinessesacrosstheregion.
Gainingkeyinsightsintowhichelements
ofbusinesscultureandworkplacepractice
actuallycontributestoretentionwilllikely
bethedifferencebetweenthrivingorjust
survivinginthishighlycompetitivetalent
market.
9 | enTer The drAGon | GlobAl culTure, locAl mindSeT
mAinTAininG And conTinued hiGh GrowTh faces several significant people challenges in Asia.
ThiS iS PArT 2 of enter the dragon, A whiTePAPer SerieS eXPlorinG
The new TAlenT chAllenGeS for ASiAn economieS.
eXit
AbouT The AuThor
Anthony RAjA DevADoss is currently the vice President—APAC with the
outsourcing & Consulting Group of Kelly services. From network services,
engineering to e-business solutions, Anthony Raja has worked in both India and
Malaysia, within technical roles to the Chief executive officer. he has received his
Bachelors degree in science and his MBA in Marketing & Postgraduate Diploma
in Computing. he holds membership in various local and international associations
such as the MIM, human Capital Institute & Association of Career Professionals International. he is
the head of Policy enablement & Government Liaison with outsourcing Malaysia and a member
of the Industry Advisory Board for the Graduate school of Business, UnIRAZAK. he has been
recently appointed to the hR Capacity Building task force by the Ministry of human Resources,
Govt of Malaysia. Anthony is also a member of the hRoA APAC Chapter Board.
http://my.linkedin.com/in/anthonyraja http://twitter.com/anthonyraja
AbouT kellyocG
KellyOCG is the Outsourcing and Consulting Group of Fortune 500 workforce solutions provider,
Kelly Services, Inc. KellyOCG is a global leader in innovative talent management solutions in the
areas of Recruitment Process Outsourcing (RPO), Business Process Outsourcing (BPO), Contingent
Workforce Outsourcing (CWO), including Independent Contractor Solutions, Human Resources
Consulting, Career Transition and Organizational Effectiveness, and Executive Search.
Further information about KellyOCG may be found at kellyocg.com.
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