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The TalenT challenges for asia-Pacific in 2012anThony raja DevaDoss
enTer The Dragon:
conTenTs3 avoiDing The PiTfalls of a TighT TalenT markeT
10 global culTure, local minDseT: insighTs for reTenTion
19 making The shifT: qualiTy anD service in The new economy
inTroDucTionThe world’s economic woes are not shared equally. In fact, signs of a slowdown may be just what some Asian economies need right now.
As full-tilt growth subsides, governments can shift their focus to domestic matters, including containing inflation—central banks in India, Korea, Taiwan and Thailand raised rates in June 2011—and removing barriers to future growth.
From this relatively comfortable economic vantage point, Asian businesses can begin to consider how they will tackle the barriers to future growth in 2012 and beyond, including:
• Findingandsecuringtalentinatightemploymentmarket
• Retainingandmanagingexistingresourcestobesteffect
• Buildingthekindofcorporateculturethatovercomeschallengesintheregion
• Obtainingtherighttalenttoshiftfromacostfocustoaqualityfocus
• Managingrisingcosts
In this three-part series, we walk you through these focus areas and provide insights about how they might be managed effectively.
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asia has not become an economic juggernaut by accident—the volume of goods produced and the speed with which they’re delivered is quite unlike anywhere else in the world. maintaining this now requires a fresh approach, particularly when it comes to the region’s most valuable natural resource: people.
avoiDing The PiTfalls of a TighT TalenT markeT
anThony raja DevaDoss
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3 | enTer The Dragon | avoiDing PiTfalls of a TighT TalenT markeT
employment is high across the region:
• Theunemploymentrateinsingaporewas
2.1%inJune2011
• south korea’sjoblessratewasjust3.3%
inJune2011
• Thailandhasthesecond-lowest
unemploymentrateintheworldat
just0.5%
• indonesia’sunemploymentrateisamong
thehighestintheregionat6.8%in
February2001,butmuchoftheworkforce
isunskilled
Economicslowdownornot,thejobmarket
inAsiaislikelytoremainenviablebyworld
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yes, iT’s hoT in here. As business shifts its focus ever more to Asia, the competition for skilled talent is increasing. Employers report they are having the most difficulty finding the right people to fill jobs in Japan (80%), India (67%), Australia (54%) and Taiwan (54%)
standards,increasingpressureonHRteams
toacquire,retainanddevelopscarcetalent.
Perhapsoneofthegreatestcontributors
overthemediumtermtofurtherdecreases
inunemploymentintheregionistheflow-
oneffectofinvestmentinChina.Chinese
wagesarerisingataround17%peryear
andthisnowmeansthatsomeofthe
benefitsofoutsourcingtoChinaare
diminishing.ForChina’sneighboring
economies,thereisasignificantupside
tothistrend.Someofthejobsthatwould
havebeenbasedinChinaarenowflowing
intocountrieslikeVietnam,Thailandand
Indonesiaandintra-regionaloutsourcingis
becomingincreasinglyattractive.
emerging faster
Thegrowthtrendinemergingnationsis
worldwide,notjustinAsia.Infact,by2018,
it’spredictedthatemergingeconomieswill
overtakedevelopednationstogenerate
morethan50%oftheworld’sGDP.While
thistrendhasbeenbuildingforsometime,
therateatwhichthechangeisoccurringis
abouttopickupconsiderablepace.Notonly
areweseeingashiftinconsumption,trade,
populationandoutputawayfromdeveloped
nations,weareseeingtheshiftaccelerate—
andthismeansthatbusinessesinboth
developedandemergingeconomies
havelesstimetopreparefortheshiftin
talentrequirements.
Foremployersintheregion,thecompetition
fortalentisstrongandislikelytoremainso
fortheforeseeablefuture,andlocalsuccess
storieswillincreasinglybecomemajortalent
competitorsforlarge,globalorganizations.
Smallerorganizationstypicallyprovidefaster
careerprogression(providedtheycontinueto
grow)andtheyhavetheadvantageofinsider
knowledgeandrelationshipssotheycantap
intotalentthroughinformalnetworks.This
head-startthatlocalbusinesseshaveover
othersisgoingtobeagrowingproblemfor
non-localorganizationslookingtoincrease
headcountintheregion.Itisalsowell-known
thatrecruitingthroughinformalnetworks
oftendeliversbetterretentionoutcomes,so
companieswilleitherneedtobuildthese
networks(fast),orlookforstrategichuman
resourcingalliancesandpartnershipsto
deliverthesamebenefits.
Localfirmsandnewentrantstothe
labormarketwillbeincreasinglystrong
competitionforglobalcompanieslookingfor
growth.Togrow,youneedtalent,butyou
needtalentthatwantstoworkforyouabove
anyoneelse.Withouttherightconnections
andnetworksthisisalwaysachallenge.In
aregionwithculturalvaluesrootedfirmly
incommunityandfamilyvalues,it’saneven
tougherask.
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local versus global. Already, almost one-quarter of the Fortune Global 500 firms come from emerging markets; in 1995 it was just four per cent. As the economic locus of the world changes, so too does the way in which potential employees weigh up career options, and the large, foreign company will no longer be the lone font of opportunity in the region.
Itistempting,evenforfirmsthataredoing
wellthroughtheuncertainty,toputgrowth
plansonice,tomaintainmarginsandreduce
debtattheexpenseofexpansion.Typically,
whenexecutivesstarttalkingabout‘building
reserves’,‘consolidating’and‘reviewing’
strategy,HRmanagerscanfindthemselves
reachingfortheretrenchmentpolicy.
Cost-cutting,firstandforemost,has
employeenumbersinitssights,andthisis
wherecompaniesinstrongandgrowing
marketsthroughoutAsiacouldfind
themselvesfallingintowhatcouldbecomean
irreversibletalenttrap.
losing what you can’t get back
Atnopointinthebusinessoreconomiccycle
isitmoreprudenttoholdontoyourmost
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Take your TemPeraTure. As markets continue to seesaw and analysts pore over mountains of economic data for any sign of slowdown they can find, it’s hardly surprising that business should catch at least a mild case of the jitters.
skilledandvaluablepeoplethan
duringuncertainty,andpossiblyeven
duringdownturn.Thisiswhenbusinesses
shouldfocustheireffortsofwhat’s
fundamentallyrightintheirstrategyand
what’sworkingwell.
Resistingtheurgetofollowwhentheherd
seemstobeheadingintheoppositedirection
istough,andthisisusuallywhenjobsare
shedinpanic—wheregoodpeopleareletgo
alongwithunderperformers.Thebest20%
ofemployeesareabletoraiseoperational
productivity,profitandsalesrevenue—these
arethepeopleyouwanttoretain.
Inanyeconomicclimate,butparticularly
duringthisperiodofconsolidation
ratherthangrowthinAsia,considerthe
consequencesthatmightresultfromtalent
departure,suchas:
• loss of key clients/disruptedrelationships
• loss of key businessknowledgeandskills
• job dissatisfaction ifworkloads
increaseforremainingemployees
• loss of knowledge and
businessexpertise
• Broader reputational damage
Thedifferencebetweencostandvaluecan
becriticalwhenitcomestoemployees.What
anemployeeis‘worth’canbedifficultto
quantify,butit’srarelyjustequivalenttotheir
salary,andcostsavingsfromterminationscan
leadtoalossofbusinessvaluethatisdifficult
(orimpossible)toregain.
Wheneveryoneelsestartsrunningatfull
paceagain,itwillbehardertomakeup
groundthatyou’velost,particularlyinalabor
marketthatlooksasdifficulttonegotiateas
Asia’s.So,eveniffinancialpressuresdobegin
tobite,companiesshouldlooktoalternative,
flexiblestaffingsolutionsinsteadofjust
reducingtheirworkforceinonebluntmove.
These strategies include:
1. Documentingthecorecompetenciesof
everypositionintheorganization
2. understandinghowthosecore
competenciesrelatetoexecutingthe
companystrategy
3. identifying and managingthetalent
youhave
4. figuring out wherethegapsare
Updatingandreviewingjobdescriptions
canseemlikealow-valuetask,thatis,
untilyouneedtofigureoutwhereyour
talentgapsare.
Manyorganizationssaythattheyreview
jobdescriptionsannuallyaspartofthe
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firsT, have a TalenT ‘check uP’. If we take the “glass half full” approach for a moment and assume that any slowdown that does occur across Asia might just provide a chance to regroup and retool, now is the time businesses should be focusing on the strength of their talent assessment and management strategies.
performanceplanningprocess,buttwoother
elementsareoftenoverlooked:
• what new skills have each individual
developedandthatmaynotbebeing
usedintheircurrentroles,particularlyas
newtrainingandeducationiscompleted?
• what new talents and skills does
each role needinordertodeliveron
futuregrowth?
Ifperformanceplanningandgoalsetting
doesnottakeintoaccountthenewskillsthat
mayhavebeendevelopedbutarenotbeing
utilized,orthenewskillsarolerequiresthat
theexistingoccupantdoesn’thave,career
planningandtalentmanagementacross
theentireorganizationwillfallshortof
strategicgoals.
Talent identification
Thereisofcoursethejob,andthenthere’s
theindividualinit.Evenifyouhaveagreat
jobdescriptionandyouknowwhatmakes
thatroleasuccess,howvisiblearetalented
individualsontheorganizationalradar?
Relyingonindividualmanagerstorecognize
andmanagetalentedemployeeswithout
aguidingstrategyandoversightcan
befraught.Notonlydomanagershave
preferencesforcertainwaysofworking,
theirownworkloadandinteractionscanlimit
howtheyseeindividualsperform.Talent
recognitionandmanagementmustbeable
toidentifynotonlywho’sdoingagreatjob
now,butwhohaspotentialforthefuture.
Everyorganizationhastalentgaps,it’swhat
theydoaboutthemthatcounts.Short-term
gainsneedtobeweighedupagainstlonger-
termconsequences.Simplyaskingworkers
todomorewithlesswillimpactonquality,
customerserviceandstaffturnover,andina
highlycompetitivemarket,someoneelsewill
bewaitingtocapitalizeonjobsatisfaction
issueslikethese.
Althoughoveralllevelsofrecruitmentmay
level-outorevenfallduringthisperiodof
lowerconfidence,thequalityoftalentcould
riseifthepoolofdisplacedtalentincreases.
Somebody,somewherewillhaveajobfor
atalentedperson,evenwhentimesare
lessthanperfect.That’swhyit’sparticularly
prudenttoassessallnewhiresinterms
ofcurrentandfutureneed.Whennatural
attritiondoesoccurandarolebecomes
vacant,nowisthetimetolooklongand
hardatwhatthatroleshouldlooklikefor
tomorrow,notjustwhatitlooksliketoday.
Simplyreplacing‘like’with‘like’doesn’tmake
themostoftheopportunitythathiringina
slowermarketcanprovide.
Focusingnowonwhatabusinessoreven
anentireindustrymaylooklikeintwoor
evenfiveyears’timewillhelporganizations
evaluatehowcandidatesmightimpact
theorganizationinthemid-termand
long-term.Andofcourse,thismeans
beingabletoidentifytoday’stalentas
wellastomorrow’sthroughoutthe
recruitmentprocess.
Nowisnotthetimetoshelvebigideas
ortofocuspurelyonthepresent—evenif
circumstancesmeaninvestmentislimited,
thinkingaboutthefuture,planningforit
andimplementingthesmallchanges
andideaswhenpossiblearecriticalto
stayingcompetitive.
Considerotherwaystalentedpeoplethat
comeontothemarketcanbeengaged.Are
temporaryorcontractprojectspossible?
Buildingrelationshipswiththetalentyou
desirecanatleastopenuparelationshipfor
thefuture.
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focus now on recovery. Focusing on future constraints can be especially important during a period of slower economic activity— it can provide one of the few opportunities to reflect and plan ahead.
ForbusinessesinAsia,utilizingany
slowdowntolookatthebiggerpictureofthe
organizationisperhapsthebestwaytomake
useofthisuncertainty.
Understandinghoweachroleinthe
organizationcontributestostrategy,where
thegapsareandwhomightbetheleaders
ofthefuturearekeypiecesoftheHuman
Resourcespuzzletoworkoutbeforepace
picksupagain.
Competitionfortalentisstrongandislikely
toremainsofortheforeseeablefuture.Being
moredisciplinedthaneverabouttalent
managementandrecruitment,andlooking
toalternativeandinnovativeapproachesto
continuallydevelopnetworks,relationships
andopportunitiesforthefuturewillbekey
acrosstheregion.
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raPiD, ongoing growTh is what we all think we want, but it certainly creates pressures all of its own.
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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
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• 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%).
Thesetwindemandsofhighgrowthand
extremecompetitionfortalentdemands
newapproachestoresourcingthatdonot
applyinotherdevelopedmarkets.Thisis
whyretentionofstaffincompaniesacrossthe
Asianregioncontinuestobeakeystrategic
issue.
Unfortunately,traditionalapproachesto
retainingstaffdon’tnecessarilyworkhere,
andglobalorganizationswiththeirlessons
learnedelsewherearefindingthisoutthe
hardway.
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The imPacT of high growTh on workforce sTraTegy.
Operatinginamarketwithhighgrowthandscarcetalent,suchasAsia,bringswithitsignificantchallengesforHR.ManybusinessesoperatingintheAsianregionarerecognizingthattheirexpansionstrategieswillneedrefining,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
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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.
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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.
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caPTure The mooD. Across Asia, and particularly in China, growth has been rapid and social change has been vast.Thesenseofexcitementandnation-buildingthat’soccurring 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.
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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
ofthisisNarayanaHrudayalayahealthcityin
India,whichhasbuiltscaleandspecialization
intomedicinetodramaticallyreducecosts.
“Wedecided,giventheshortageofsurgeons
inIndia,tohireexpatIndiansfromoverseas.
Toattractthemwesoldavision.Comeback
andbepartofbuildinganewIndia....Work
forusandyou’llbeabletohelpandcureso
manymorepeopleinaweekthanyoucan
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,
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Double haPPiness. Retentionstrategiesmustdotwothingssimultaneously 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
notjusttothebusinessofturningaprofit,
butalsotoretainingstaff.
Theprocessofdevelopmenthasmeant
thattheonlywaytogetaheadhasbeento
getplentyofeducationandworkharder
thaneveryoneelse,andevenincurrent
generationswhohaveitsignificantlyeasier
thantheirparentsdid,theseattitudeshave
lingeredon.Now,theneedtoattractand
retainworkersisseeingflexibilitybecome
partoftheworkplaceculture.
AccordingtotheWorldatWorkreport,just
7%oforganizationsquantifythereturnon
investmentfromflexibilityprograms.Despite
howfeworganizationsmeasuretheirworth,
theanecdotalevidenceisstrong—people
wantandneedmoreflexibility,andyounger
generationsparticularlyexpectthisto
balanceworkwithotherinterests
andcommitments.
Andmanycountriesintheregionare
discoveringthebenefitsofthisapproach.
DespiteSouthKorea’shistoryofverylong
workinghours,SamsungTescohastapped
intoyoungergenerations’desiretohave
betterwork-lifebalanceandhavedeveloped
anumberofinitiativestohelppeoplework
moreefficiently,suchasflexibleworking.In
unstabletimes,lookingatflexibleworking
optionsandcontingentworkers,insteadof
workforcereductionorreducedbenefits,
canbeamorestrategicalternativeto
manageworkforcecosts.
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The imPorTance of fleXibiliTy.
With typically fewer annual leave entitlements and a longer working week than many western nations, Asia has not beenthepreserveofworkplaceflexibilityinthepast.
• 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.
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mainTaining conTinueD high growTh faces several significant people challenges in Asia.
cheap goods fast: that was the basis of the asian manufacturing revolution. but the shape of the economy is fast evolving. making the move towards better service and higher quality requires a new type of ‘harmonious’ thinking, and a different approach to workforce strategy.
making The shifT: qualiTy anD service in The new economy
anThony raja DevaDoss
3
19 | enTer The Dragon | making The shifT: qualiTy anD service in The new economy
Theamountandspeedofproductionis
goingtotakeanawfullotforanyotherregion
tobeat,andtheunderlyingmechanisms
ofthemanufacturingindustryareunlikely
tochangetoquickly,asevidencedby
somejaw-droppingfactssuchas:
• china will soon manufacture more steel
thantheentireworldcombined
• chinese exports hit $us162 billion in
juneand$US874billioninthefirsthalfof
theyear,bothupnearly20%year-on-year
• in 2010, china made 64% of all toys,
and$US4outofevery$US10worthof
knitapparelexportedintheworld
20 | enTer The Dragon | making The shifT: qualiTy anD service in The new economy
a Diversifying economy. Nobody is predicting the end the manufacturing boom in Asia, yet.
ThelistofimpressivedataforChinagoes
on,andon.Andclearly,theflow-on
effectsacrosstheregionaresignificant,as
Australia’srobusteconomyandthegrowing
manufacturingindustriesofVietnamand
Indonesiacantestify.
Foranyothercountryintheworld,the
manufacturingstatisticsforChinaare
justsimplyinconceivable.WhileChina’s
governmentwouldbehappytoseesome
lowerexportfiguresinfavorofagreater
focusonthedomesticeconomy,eventhose
analyststhatarepredictingadownwardtrend
inChinesedominanceinthemanufacturing
sectorknowthatsignificantchangewilllikely
takeagenerationormore—nothingdrasticis
goingtohappenquickly.
Thatsaid,therearechangeshappening
acrosstheAsia-Pacificeconomy.Agrowing
shifttowardsqualitygoodsandservicesis
creatingnewopportunities.However,with
thesecomesomedifferentchallengesfor
businessintheregion.
Muchofthemanufacturingboomhasbeen
builtonthepromiseoflow-cost,disposable,
short-termgoods.However,aswagesbegin
torise,someoftheadvantageofoutsourcing
jobsandprocessestothesedeveloping
marketsisbeginningtobequestioned.In
fact,Chinesecompaniesarealreadymoving
jobswithinthecountrytoaccesslowerwages
innewprovinces.China’sbiggestcorporate
exporter,HonHaiPrecisionIndustryCo,
employsaboutamillionworkersinChina
tomakeAppleiPads,Hewlett-Packard
computersandSamsungElectronicspanels,
andisopeningupnewfactoriesinlow-wage
areasofinlandChina.
AndsomeofChina’sjobsarebeingmovedto
othercountriesentirely.Clothingproduction
21 | enTer The Dragon | making The shifT: qualiTy anD service in The new economy
is The cosT aDvanTage eroDing? Wages across many Asian countries are still low by the standards of developed nations. Therefore, theideaofquality(andexpensive)goodsintheseeconomieshasbeenpoorly understood—few people domestically could afford to buy them.
isincreasinglymovingtoBangladeshand
Indonesia,aswellasotherdeveloping
countriesoutsideofAsia.
Low-costproductioncanonlybemaintained
whilewagesandskill-basesarelow.As
greateropportunityhasenteredtheregion,
thiswaveofincreasingcostsisspreading,
andultimatelynewcompetitiveadvantages
needtobecreated.Increasingly,thisistaking
theshapeofproducinghigher-valuegoods
thatrelyonproductivityandtechnology
ratherthansimplyoncheaplabor.
CountriessuchasGermanyhavealready
recognizedthisinevitableshiftandarelooking
tocapitalizeontheopportunity.Manyof
Germany’slocallymadeexports(worth
aroundone-trilliondollars)comefromsmall-
to-medium-sizedbusinesses.Theirfocusison
qualityandspeedofdelivery.Theyusethe
besttechnologyandpaytheirworkerswellto
delivertheleanestpossibleproductionline.
InalmosteveryAsianmarket,competitionis
increasing,fuelledbybothlocalandforeign
businesses.Skillsshortagesareaconstraint
onmostfirmsintheregion,andareoneof
themajordriversofhighercosts.Jobscan
continuallymovetolower-costcountries,
andforsomeindustriesandpositionsthis
willmakesense.However,efficienciesand
smarterwaysofworkingwillalsobeneeded.
Thegrowingneedforservicesdomestically
hasledtotherecognitionthatthereareskills
shortagesinthisareaacrosstheregion.India
hasofcoursedevelopedacustomer-service-
ledmindsetandcapturedmarket-share,most
notablybutcertainlynotlimitedto,thecall
centerindustry.
Forathankfullyshortbutsignificantperiod,
India’scallcenterswerebecomingthe
sourceofcustomerfrustrationandattrition,
worldwide.Turningthisaroundrequired
anewfocusonqualityandempathy,as
welladifferentapproachtomanagement
engagementwithcustomerissuesrightup
theorganizationalchain.Whileproblems
undoubtedlyremain,customerservice
isswiftlybecomingamajorcompetitive
a culTure ThaT values qualiTy. Buildinga workplace culture that values and promotes quality will be key to increasing the quality of goods produced across Asia, but also to developing a greater focus on service.
22 | enTer The Dragon | making The shifT: qualiTy anD service in The new economy
advantageforIndiaandtheyareexpanding
theselessonsacrossmultipleindustries.
Forcompaniesinotherpartsoftheworld
thatwanttofollowthisexample,developing
acompanyculturethatvaluesandsustains
qualitycustomerservicewillrequirethem
tothinkdifferently.Afterall,aproductor
serviceisn’tgoodvalueunlessitdoeswhatit
promises.Costandvaluearenotthesame.
how the concept of harmony can help
TheConfucianconceptof‘harmony’provides
apotentiallyvaluabletoolforbusiness
intheregionlookingtoenhancequality
andservice.Bylookingatthevaluechain
betweenthecustomer,theemployerandthe
employee,it’spossibletounderstandhow
businessmightbedonedifferently.
Unhappyemployeesdeliverpoor
performance,andparticularly,poorcustomer
service.Byfocusingon‘harmonizing’the
relationshipbetweencustomer,employerand
employeeandseeinghoweachaffectsthe
other,HRpracticescantargetspecificissues
ofconcernforemployeestoimprovetheir
abilitytoprovidebetterqualitygoodsand
services.
Perhapsmostimportantly,HRwillneedto
focusongettingthebalancerightbetween
raisingpotentialproblemsintheorganization
withmaintainingharmony.Thetwoneed
notbemutuallyexclusive,andinfactthey
cannaturallycomplementeachother.The
raisingofcustomerissueswithmanagement
caninsteadbeframedasanopportunityto
increaseharmonybetweentheorganization
andthecustomer.
Somedeeplyheldculturalbeliefscanatfirst
bebarrierstochange,butunderstanding
theirintentandhowtheycanbe
incorporatedintonewwaysofthinkingand
behavingisincreasinglyachallengethat
globalizedbusinessesmustriseto.Being
awareofthepotentialbarrierstotheraising
ofqualityandservicestandardscanandwill
provideinsightstoovercomethem.
Thiswillmeanbeingveryselectiveabout
thepersonnelthatwillberecruitedinto
thisdynamicenvironmentandhiringthose
whocanthatcontributeimmediatelyto
transformation.Findingthoseindividualsthat
alreadyhavetherightskillsetisgoingtobe
achallengeinsuchatighttalentmarket,and
thisiswhereflexibleandcontingentworkers
arelikelytobeneeded.
Afocusoncreatingadiverseworkforcecan
alsobehelpful.
“Asia”ishardlyahomogenousregion.The
vagariesofdifferentmarketswithinmarkets,
oflocalandfragmentedregulationand
protocolscanbeincrediblycomplex,notto
mentiontheconvergenceofmanycultures
undersingleorganizationalbanners.
embracing DiversiTy To imProve skills.
Togetthemixoftheseissuesright,businesseswillneedtoaccessthe kind of talent that can make positive change happen, quickly.
23 | enTer The Dragon | making The shifT: qualiTy anD service in The new economy
Diversityofthismagnitudeinarapidly
growingmarketcaneitherhinderorenhance
businessinnovation,dependingonhowit
ismanaged.Thepotentialforinnovation,
growthandnewideasthatcomeswitha
diverseworkforceisenormous,providedthat
itsvalueisrecognized.
Diversityisnotjustaboutethnicityand
gender,it’salsoaboutvariedlevelsof
experienceandthekindsofskillsthat
differentpeoplebringtothetable.To
capturethebenefitsofatrulydiverse
workforce,employersmustlookateach
potentialhire,basedontheskillsitneedsto
executeitsstrategy.Ifincreasedqualityisthe
aim,whoandwherearetheseskillsgoingto
comefrom?
Hiringtoptalentisimportant,butan
organization’stalentportfoliomustbe
balanced—thechallengeisalwaystogetthe
rightpersonintherightjobattherighttime.
Workershavedifferentbenefitstoofferin
termsofage,experience,skills,education,
andflexibility,sobusinessesneedtobalance
long-termgoalswithday-to-daypressures
whenmakingrecruitmentdecisions.
Diversityisalsoalong-termstrategicproject.
Itcan’tbeachievedovernight,norshould
itbelookedatasanendinitself.Adiverse
workforceisaboutgettingtherightmixof
ideasandexperience,andifcompanies
arelookingtomakemajorleapsforwardin
quality,thespecificskillsrequiredtodothat
mustbethefirstconsideration.
as The region’s economic basebecomes more elaborate, a greater focus on quality over cost is inevitable.
24 | enTer The Dragon | making The shifT: qualiTy anD service in The new economy
Asiahasfundamentallybeenacost-intensive
market,andthatisevolvingtoaquality-
intensivemarket.Thechallengeforthe
regionisthatotherdevelopednations
alreadyhavetheexperience,educated
workforceandsometimestheglobalreach
that’srequiredtoexecutea‘quality’and
‘service’strategy.
Tomaketheshifttoqualitygoodsand
services,andtodososuccessfully,new
approachestotalentanddiversitywillbe
required.Andtoensuretherightpeoplestay
oninorganizationstomaintainqualityand
service,aculturethatvaluesandpromotes
thiswillbeneeded.
TheAsia-Pacificregionhassomecultural
advantagestoexecutethemovetowardsa
qualityandservicefocusinbusiness.How
thisisinterpretedandthespeedatwhichthe
righttalentisaccessedtomakethishappen
willmakeallthedifference.
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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