Asia’s Increased Competitive Landscape - HR Implications on Talent Attraction and Retention by...

Asia’s Increased Competitive Landscape HR Implications on Talent Acquisition and Retention

http://www.flickr.com/photos/jorgecancela/8009593783/ Flickr Creative Commons

The Rise of Asia What is the new diversified workforce?

Pop Quiz Name this Country:

• Largest Military • Currency is the Global

Standard for Commercial Transactions

• Center of World Business • One of Richest in the World • One of the Highest

Standards of Living • Center of Innovation and

Invention

England at end of 19th Century

http://office.microsoft.com/en-us/images/results.aspx?qu=brittain&ex=1#ai:MP900422830| Used with permission of Microsoft

USA at end of 20th Century

http://office.microsoft.com/en-us/images/results.aspx?qu=Old%20Glory#ai:MP900400667|mt:2| Used with permission of Microsoft

China at end of 21st Century?

http://office.microsoft.com/en-us/images/results.aspx?qu=china+flag&ex=1#ai:MP900400801|mt:2| Used with permission of Microsoft

What does “the rise of Asia” mean?

http://office.microsoft.com/en-us/images/results.aspx?qu=Asian#ai:MP900430918|mt:2| Used with permission of Microsoft

If you are 1 in a million...

http://office.microsoft.com/en-us/images/MP900439324.aspx?redir=0 Used with permission of Microsoft

In China, there are 1,350 people just like you

http://www.flickr.com/photos/dailuo/6759469363/ Flickr Creative Commons

In India, there are 1,240 more

http://www.flickr.com/photos/56796376@N00/3059483658/ Flickr Creative Commons

The top 10% of the population in Asia...

Top 10%

Is greater than the entire population of the United States

http://en.wikipedia.org/wiki/File:USA_orthographic.svg

There are more honors students in Asia...

Flickr Creative Commons http://www.flickr.com/photos/98195299@N00/296747958/

...than all students in the USA combined

Flickr Creative Commons http://www.flickr.com/photos/pinksherbet/6961676525/

There are more English-speaking people in Asia...

...than there are English people

Flickr Creative Commons http://www.flickr.com/photos/tinou/380129764/

...or Americans

Flickr Creative Commons http://www.flickr.com/photos/kevcole/4762409528/

If you took every job in the USA and shipped it to Asia...

http://office.microsoft.com/en-us/images/results.aspx?qu=jobs#ai:MP900442205|mt:2| Used with permission of Microsoft

...Asia would still have a labour surplus

Flickr Creative Commons http://www.flickr.com/photos/downeym/4550576962/

But...

No Asian company among top-10 largest publically traded companies

http://en.wikipedia.org/wiki/List_of_corporations_by_market_capitalization Up to date as of December 31, 2013.

Chevron Corporation

Hoffman-La Roche

Wal-Mart Stores

Johnson & Johnson

General Electric

Berkshire Hathaway

Google

Microsoft

Exxon Mobile

(Switzerland)

Talent remains a critical pressure point for Asia businesses

Singapore low population growth is creating a labour shortage

http://oliveventures.com.sg/act/wp-content/uploads/2013/02/population-of-singapore-infographic.png

Cost of living is increasing

http://www.straitstimes.com/breaking-news/money/story/singapore-most-expensive-city-the-world-study-20140304

Compensation is rising to grab scarce talent

Education strategies not matched to talent demands

Shortage of qualified managers in fast-growing Asia economies

Diversified workforce is challenging conventional performance models

http://www.flickr.com/photos/kodomut/3274861957/ Flickr Creative Commons

Majority of CEOs plan to increase Asia headcount in 2014

Hiring levels in Asia are twice as high as in US and Europe

http://www.pwc.com/saratoga Breaking out of the talent spiral - Key human capital trends in Asia-Pacific

10% 11%

Asia USA Europe

But...

20% of new hires leave within the 1st year

Flickr Creative Commons http://www.flickr.com/photos/michaelduxbury/5004921106/

Turnover rates in Asia are twice as high as US and Europe

7.0% 6.6%

Asia USA Europe

Your business needs to nurture and hold close what you have – it’s hard to fill the bath with the plug out. Michael Rendell PricewaterhouseCoopers, Global Head of HR Service Practice

Finding and retaining critical talent is more challenging and expensive

Flickr Creative Commons http://www.flickr.com/photos/jseita/5407005494//

Global 43%

Asia 60%

It’s even more challenging in Asia

CEOs who say it is more difficult to hire talent

Where do we go from here?

Less emphasis on structure

http://www.todayonline.com/singapore/play-important-early-childhood-education-heng-swee-keat

More emphasis on creativity

http://news.insing.com/feature/creativity-must-be-a-national-priority-nmp-janice-koh/id-f83b3101

G.P.A.’s are worthless as a criteria for hiring, and test scores are worthless. We found that they don’t predict anything Laszlo Bock Senior Vice President of People Operations Google

Re-think HR’s role in how companies attract and retain talent

Flickr Creative Commons http://flickr.com/photos/u-suke/7613586712

Bringing in more expats is not the solution

http://singaporeseen.stomp.com.sg/singaporeseen/this-urban-jungle/anton-casey-furore-his-employers-currently-investigating-the-comments-and-will

Expats in senior management roles at MNCs

http://management.fortune.cnn.com/2013/06/24/leadership-diversity-multinationals/

1990s 2000s Proportion of expatriates in senior management roles at

multinationals in China, India, Brazil, Russia, and the Middle East

Western MNCs are loosing the advantage attracting local talent

http://www.executiveboard.com/blogs/5-key-asia-hr-trends-heading-into-2014/

Prefer MNCs 24%

Prefer Domestic Firms

Other 29%

China labor preference for working for a domestic company versus Western MNCs

http://www.todayonline.com/singapore/more-locals-hired-last-year-growth-foreign-employment-slows

Winning Companies What sets them apart?

Upgrading HR to C-Suite

Used with Permission of Microsoft http://office.microsoft.com/en-us/images/results.aspx?qu=meetings&ex=1#ai:MP900422638|

Priorities for Businesses

1. Attracting talent 2. Retaining talent

Priorities for business

Attracting talent

Employment Value Proposition (EVP) Framework The set of attributes that the labor market and employees perceive as the

value they gain through employment in the organization

Rewards

Compensation Health Benefits

Opportunity

Development Opportunity

Future Career Opportunity

Growth Rate Meritocracy

Stability

Organization

Customer Prestige Empowerment

Environmental Responsibility Ethics/Integrity

Formality of Work Env. ‘Great Employer’

Inclusion / Diversity

Industry Desirability

Market Position Product or Service Quality

Respect Risk Taking

Organization Size

Social Responsibility

Technology Level

Well-Known Product Brand

People

Camaraderie Collegial Work Environment

Co-Worker Quality Manager Quality

People Management

Sr. Leadership Reputation

Business Travel

Innovative Work

Job–Interests Alignment

Level of Impact

Location Recognition

Work–Life Balance

Employee Workforce Insights for Singapore - Engagement and Retention of Talent in Singapore The Corporate Executive Board Company, February 2014

Singapore EVP

Employment Value

Proposition

Rewards • Health Benefits • Compensation

Opportunity • Stability • Development • Future Career

Organization • Respect

Work • Location • Work-Life Balance • Job Interest Align • Recognition

People

Employee Workforce Insights for Singapore - Engagement and Retention of Talent in Singapore The Corporate Executive Board Company., February 2014

Most frequently selected by employees in Singapore as reasons to join a new organization

Not all factors are equal

Rewards

Work Organization

Opportunity

Employee Workforce Insights for Singapore - Engagement and Retention of Talent in Singapore The Corporate Executive Board Company, February 2014

Employment Value

Proposition

EVP Attraction Benefits Reduces compensation premium needed to hire by 50%

Rewards are Important Employees in Singapore are least likely to be satisfied with value of rewards

Rewards •Health Benefits •Compensation

But EVP is not enough

Facebook’s $19 Billion Mistake?

https://twitter.com/brianacton/status/3109544383

What went wrong?

Overly-narrow job specifications

Flickr Creative Commons http://www.flickr.com/photos/kheelcenter/5279251361/

HR does the recruiting

http://office.microsoft.com/en-us/images/results.aspx?qu=MP900431736&ex=1#ai:MP900431736| Used with permission of Microsoft

Traditional recruiting processes

Flickr Creative Commons http://www.flickr.com/photos/cushinglibrary/3738556077/

Failure to prep the candidate

Flickr Creative Commons http://www.flickr.com/photos/jyri/996063332/

Failure to prep hiring manager

http://office.microsoft.com/en-us/images/results.aspx?qu=MP900442211&ex=1#ai:MP900442211| Used with permission of Microsoft

Failure to leverage the interview

Inadequate reference checks

Decision process too long

Job offer process too long

Priorities for Businesses

1. Attracting talent 2. Retaining talent

Priorities for business

Retaining talent

Performance & Pay What else is new?

High EVP satisfaction leads to high performance and retention

The Corporate Executive Board Company.CEB Employee Workforce Insights for Singapore

Low EVP

High EVP

Low EVP

High EVP

High Intent to Stay (4x)

High Discretionary Effort (3x)

It’s not about the money

We hired experienced, talented people and gave them large salaries. But did we retain them? No. Dr. Sun Mingbo President and Chairman of Board Tsingtao Brewery Co. Ltd., China

Training

http://www.inc.com/abigail-tracy/onboarding-new-hires-dont-care-about-perks.html

HR needs more levers and dials

Flickr Creative Commons http://www.flickr.com/photos/boedker/93511050/

The factors that lead to extreme job satisfaction are separate and distinct from the factors that lead to dissatisfaction

Company Policy and Administration

Supervision

Relationship with Supervisor

Work Conditions

Salary

Personal Life

Relationship with Peers

Relationship with Subordinates

Status

Security

Growth and Advancement

Responsibility

Work Itself

Recognition

Achievement

It’s not about the money

One More Time: How Do You Motivate Employees? Frederick Herzberg Harvard Business Review Reprint 87057

Normally we think of satisfaction/dissatisfaction as opposites. But job satisfaction is not the opposite of job dissatisfaction

Motivators

Growth and Advancement

Responsibility

Work Itself

Recognition

Achievement

Extreme job satisfaction

http://office.microsoft.com/en-us/images/results.aspx?qu=joy&ex=1#ai:MP900431739|mt:2| Used with permission of Microsoft

Demotivators

Company Policy and Administration

Supervision

Relationship with Supervisor

Work Conditions

Salary

Extreme job dissatisfaction

http://office.microsoft.com/en-us/images/results.aspx?qu=dispair&ex=1#ai:MP900431223| Used with permission of Microsoft

Neutral factors

Personal Life

Relationship with Peers

Relationship with Subordinates

Status

Security

Neither satisfied nor dissatisfied

http://office.microsoft.com/en-us/images/results.aspx?qu=boring&ex=1#ai:MP900442297|mt:2| Used with permission of Microsoft

What does this mean to HR?

Instead of giving employees raises, bonuses, and

promotions...

Remove controls while retaining accountability

Used with Permission from Microsoft http://office.microsoft.com/en-us/images/results.aspx?qu=offices#ai:MP900402508|mt:2|

Increase accountability of individuals for their own work

Used with Permission from Microsoft http://office.microsoft.com/en-us/images/results.aspx?qu=Asian%20men#ai:MP900442502|mt:2|

Give employees a complete natural unit of work

Used with permission from Microsoft

http://office.microsoft.com/en-us/images/results.aspx?qu=executives#ai:MP900448494|mt:2|

Grant additional authority and job freedom in their activities

Flickr Creative Commons http://www.flickr.com/photos/mishism/5371077178/

Feedback reports directly to workers rather than supervisors

Used with Permission from Microsoft http://office.microsoft.com/en-us/images/results.aspx?qu=thinking#ai:MP900430900|mt:2|

Offer new and more difficult tasks not previously handled

Used with permission from Microsoft http://office.microsoft.com/en-us/images/results.aspx?qu=thinking&ex=1#ai:MP900422989|mt:2|

Enable individuals to become experts through specialized roles

Used with permission from Microsoft http://office.microsoft.com/en-us/images/results.aspx?qu=presentations#ai:MP900427762|

How does HR Compensation and Benefits fit in here?

supervision

status

security

work itself

recognition salary personal life

achievement

responsibility work conditions

relationship with peers growth and advancement

relationship with supervisor relationship with subordinates

company policy and administration

HR Issues?

supervision

status

security

work itself

achievement

HR Issues?

supervision

status

security

work itself

achievement

HR Issues?

The motivators and demotivators are not just management issues. They are HR issues.

Empower HR to change the workplace environment

http://office.microsoft.com/en-us/images/results.aspx?qu=gestures#ai:MP900431153|mt:2| Used with permission of Microsoft

Flexible work schedules http://www.todayonline.com/singapore/raise-productivity-let-more-employees-work-home

Less emphasis on structure

More emphasis on creativity

Performance & Development Who is a talent?

Reframe the discussion on talent

Weak managers hire skills

http://office.microsoft.com/en-us/images/results.aspx?qu=bosses#ai:MP900448685|mt:2| Used with permission of Microsoft

Strong managers hire talent and teach specific skills

http://office.microsoft.com/en-us/images/results.aspx?qu=professionals#ai:MP900422122|mt:2| Used with permission of Microsoft

To avoid talent shortages, hire talented managers

http://office.microsoft.com/en-us/images/results.aspx?qu=motivations#ai:MP900435893|mt:2| Used with permission of Microsoft

Apprenticeship and mentoring

Used with permission from Microsoft http://office.microsoft.com/en-us/images/results.aspx?qu=teach&ex=1#ai:MP900427658|mt:2|

Technology undermines search and retention of talent

Logos are trademarks of their respective companies

Application Tracking Systems

Flickr Creative Commons http://www.flickr.com/photos/enerva/9153746729/

HR is becoming database admins

Flickr Creative Commons http://www.flickr.com/photos/hunter0405/6396994487/

Successful candidates from job boards

1.3% 1.2%

Screening out the best talent?

https://twitter.com/brianacton/status/3109544383

How to retain innovators?

http://www.forbes.com/sites/johnkotter/2013/08/21/googles-best-new-innovation-rules-around-20-time/

From HR Programs to Reality What makes the difference?

We decided to start over. We had struggled for so long to improve HR’s effectiveness in Asia, business leaders just got fed up. We brought in a whole new HR leadership team to turn things around. But honestly, two years later, not much has changed. Global Chief HR Officer Manufacturing Company

Destined to Fail?

Flickr Creative Commons http://www.flickr.com/photos/fdecomite/388303700/

70% of all change initiatives fail

Cracking the Code of Change by Michael Beer and Nitin Nohria http://hbr.org/2000/05/cracking-the-code-of-change/ar/1

Failure 70%

Less that 1/3 of business executives think that Asia HR is creating value

Transforming Asia HR's Enterprise Impact http://www.executiveboard.com/exbd/en-sg/human-resources/asia-hr-leadership/Asia-HR-Enterprise-Impact/index.page

Create Value 31%

We implemented [HRIS software] last year. We spent a fortune on it, and it’s practically worthless. It literally must be the most expensive filing cabinet ever purchased. SVP HR, North Asia Global

Why do initiatives fail?

Failure Causes Statistics http://www.it-cortex.com/Stat_Failure_Cause.htm

Insufficent measurable outputs

Supplier under-resourced

Supplier skills outstretched

Overall poor management

Mismanagement of progress

Cost overruns

Inadequate coordination

Milestones not met

No quality control

Lack of planning

Bad communication

Our Head of HR was fired . . . After three years of focus groups and analysis, they basically told us what we already knew. We had nothing to show for the investment. VP of HR, International Financial Services Company

HR shift from service provider to enterprise enabler

Old Role: Service Provider

HR Focus Focusing on driving HR outcomes

Improve HR Activities Providing more HR support and

services for higher line satisfaction

Skill Development Being more “strategic” through improved HR-line partnerships

New Role: Enterprise Enabler

Enterprise Focus Focus on HR’s role in building

enterprise capabilities.

Redefine HR Service Effectiveness Rethink the way HR services create

business value

Functional Behaviour Change Equipping the team to make

transformational shifts in day-to-day behaviours and work

Barriers to transformation

Flickr Creative Commons http://www.flickr.com/photos/rob-young/2954535776/

How to get past key barriers

• How can Asia HR reposition itself to drive enterprise capabilities?

Asia HR is too focused on HR or financial outcomes

• How can Asia HR’s services help accelerate organizational competitiveness and growth across time?

Asia HR improvement efforts typically target

incremental operational improvements or HR

activities

• How can Asia HR executives re-orient staff to enable their enterprises?

Asia HR staff apply an HR administrator or operators

mindset to their roles

Why change?

Upgrading HR to C-Suite

Used with Permission of Microsoft http://office.microsoft.com/en-us/images/results.aspx?qu=meetings&ex=1#ai:MP900422638|

Empower HR to change the workplace environment

The question isn’t who’s going to let me? Its who’s going to stop me? Paraphrasing Howard Roark Ayn Rand The Fountainhead

Asia’s Increased Competitive Landscape HR Implications on Talent Acquisition and Retention

http://www.flickr.com/photos/jorgecancela/8009593783/ Flickr Creative Commons

Ask The Headhunter • The Talent Shortage Myth and

Why HR Should Get Out of the Hiring Business http://www.pbs.org/newshour/making-sense/ask-the-headhunter-the-talent/

• Top Ten Stupid Hiring Mistakes http://www.asktheheadhunter.com/hatenmistakes1.htm http://www.asktheheadhunter.com/hatenmistakes2.htm

• Talent Shortage http://www.asktheheadhunter.com/hatalentshortage1.htm http://www.asktheheadhunter.com/hatalentshortage2.htm

CNN Money / Fortune • World's biggest companies:

Still xenophobic, after all these years http://management.fortune.cnn.com/2013/06/24/leadership-diversity-multinationals/

Corporate Executive Board Co. • 5 Key Asia HR Trends Heading into 2014

http://www.executiveboard.com/blogs/5-key-asia-hr-trends-heading-into-2014/ • Employee Workforce Insights for Singapore -

Engagement and Retention of Talent in Singapore http://news.executiveboard.com/global-workforce-insights

• China: The Death of the Western Employer Brand Premium http://www.executiveboard.com/blogs/china-the-death-of-the-western-employer-brand-premium/

• Transforming Asia HR's Enterprise Impact http://www.executiveboard.com/exbd/en-sg/human-resources/asia-hr-leadership/Asia-HR-Enterprise-Impact/index.page

Source Acknowledgements Flickr Creative Commons Images • Images used under Creative Commons license

http://www.flickr.com/creativecommons/ Forbes • Google's Best New Innovation: Rules Around '20% Time'

http://www.forbes.com/sites/johnkotter/2013/08/21/googles-best-new-innovation-rules-around-20-time/

Harvard Business Review • One More Time: How Do You Motivate Employees?

http://hbr.org/2003/01/one-more-time-how-do-you-motivate-employees/ar/1 • Cracking the Code of Change

http://hbr.org/2000/05/cracking-the-code-of-change/ar/1 HR Boss Blog • HR Trends 2014 in Asia

http://hrboss.com/blog/hr-trends-2014-asia Inc. • Offer Your New Hires Training, Not Free Doughnuts

http://www.inc.com/abigail-tracy/onboarding-new-hires-dont-care-about-perks.html?cid=em01011week12day19b

InSing.com • Creativity must be a national priority: NMP Janice Koh

IT Cortex • Failure Causes Statistics

http://www.it-cortex.com/Stat_Failure_Cause.htm

Microsoft Office Online Images • Images from Microsoft Office Online are used with permission from

Microsoft; no rights to further license or distribute the media elements http://office.microsoft.com/en-us/images/

PricewaterhouseCoopers Saratoga • Breaking out of the talent spiral –

Key human capital trends in Asia-Pacific http://www.pwc.com/saratoga

Stomp • Anton Casey furore

http://singaporeseen.stomp.com.sg/singaporeseen/this-urban-jungle/anton-casey-furore-his-employers-currently-investigating-the-comments-and-will

Straits Times • Singapore most expensive city in the world

http://www.straitstimes.com/breaking-news/money/story/singapore-most-expensive-city-the-world-study-20140304

Source Acknowledgements Today Paper • ‘Play’ important in early childhood education: Heng Swee Keat

• More locals hired last year as growth in foreign employment slows http://www.todayonline.com/singapore/more-locals-hired-last-year-growth-foreign-employment-slows

• To raise productivity, let more employees work from home http://www.todayonline.com/singapore/raise-productivity-let-more-employees-work-home

Twitter • Brian Acton @brianacton

https://twitter.com/brianacton/status/3109544383 Wikipedia • List of public corporations by market capitalization

As of December 31, 2013 http://en.wikipedia.org/wiki/List_of_corporations_by_market_capitalization

Other Sources • Corporate logos are property of their respective companies. • All other sources and images are acknowledged where they appear.

Eric Pesik Eric Pesik is a frequent speaker on legal and compliance matters and has taught law school and business school in the USA and Singapore. Background Mr. Pesik is currently the Associate General Counsel and Compliance Officer for Seagate Singapore International Headquarters Pte Ltd. He has been a lawyer since 1997 and is a member of the State Bar of California, USA. He is also admitted to the US Court of International Trade in New York and the US Supreme Court in Washington, DC. Disclaimer This work represents the opinions of the author alone, and is not the opinion his employer. Other Presentations Many of Mr. Pesik’s presentations are available on SlideShare at: http://www.slideshare.net/ericpesik Creative Commons Attribution License You are free to share, copy, distribute, and transmit this work; to remix or adapt this work; and to make commercial use of this work, under the condition that you must attribute this work to me (but not in any way that suggests that I endorse you or your use of this work). Each slide contains source attributions and URL; before reusing, you must obtain the original images from the original sources, and you must comply with any applicable license restrictions imposed by the original source. http://creativecommons.org/licenses/by/3.0/

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Asia’s Increased Competitive Landscape - HR Implications on Talent Attraction and Retention by...

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