05 andrew chan presentation
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The War for Talent“Secrets to Attracting, Motivating and Retaining the Best”
About Us
Specialist Executive Search, Recruitment and training firm 100% DEDICATED solely to the Travel & Hospitality sector
ACIACI HR Solutions is the largest travel & HR Solutions is the largest travel & hospitality HR Solutions and Consultancy hospitality HR Solutions and Consultancy firm in the Asian region…firm in the Asian region…
• Foreign visitors to China went from 300,000 in 1978 to almost overtaking number one position from France by 2014, attracting 200 million visitors per year
• Total of 800 star rated hotels, over 4000 non-rated hotels
• 25,000 jobs created almost overnight
• Macau 30,000+ jobs almost overnight
• Exceeds Las Vegas in gaming revenue by almost double
The Talent Crunch
• Over the next 3 years, shortage of specialist skills in every Asian country is the greatest single challenge facing Managers
• Continued emphasis on people as much as profits
• We are in a TALENT short market, this is unlikely to change in the near future. “The War For Talent is REAL”
• The Labour pool is shrinking!
• Working age population across Asia to contract (more people are leaving the workforce than entering)
• 67% of all new jobs created Globally will be in ASIA by 2020
• The reality is that there are not enough Gen Y’ers entering the workforce to replace the retiring Baby Boomers
Fast Facts
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Contraction in working age population begins 2017
Fact - Singapore
1950 2013 2050
Source: KPMG Property Advisory, UN Statistics Division
Net growth in working age population (15-64)
60,000
Fact - China
2013
Fact - Japan
• Other key Asian countries due for contraction:-
– South Korea by 2015– Thailand by 2025– Indonesia by 2035
Fact - Asia
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1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 20052000 20152010 20252020 2030 20402035 20502045
1950 2012 2050
Net growth in working age population (15-64) over 100 years
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India
• The Key to Retaining them is to ENGAGE THEM!
Engagement
Remember today’s talents accept a job because they WANT to, not because they HAVE to
Why is Engagement Important?
• Replacing staff is an expensive exercise
• Staff retention/attrition impact directly to the bottom line
• Staff retention is the single greatest threat facing SMEs today
• FACT - average cost of losing an employee equals their annual salary (higher for Executive level & Sales staff!)
This includes funds spent on recruitment, hiring, training, orienting, and supporting new employees
Related costs; lost management time/energy spent replacing staff
What it’s costing you?
• A company with 300 employees, average annual employee salary of $50,000, turnover rate of 15%
• This company is losing $2,250,000 per year just in turnover costs.
• If turnover rate is cut by two-thirds, this company could save $1,500,000 per year.
$2.25 million
Today’s Talents
• They are financially smarter After witnessing financial insecurities of early generations, Gen Y are savvy when it comes to money and savings
• They expect/demand work-life balance More interested in making job accommodate family and personal lives. Want jobs with flexibility
• Change, change, changeThe average Gen Y changes jobs an average of 29 times and the average time in one job is 1.1 years
Major Change
Moving into the labor force during a time of major demographic change; companies face an ageing workforce…
• Change careers faster, creating frustration for employers struggling to retain/recruit talented high-performers
• Pampered; nurtured and programmed with a slew of activities since toddlers
• Both high-performance and high-maintenance
• Wants to be CEO at 26… but only prepared to do 35hrs a week to get there
Understanding Today’s Talents
• Unlike Baby Boomers and Gen X– GY ‘work to live’ as opposed to ‘live to work’
• Much less likely to respond to traditional command-&-control type of management still popular in much of today's workforce
• Grew up questioning parents, and now they're questioning YOU (their employers)
• The ‘immediate generation’ wants everything now – training on demand, recognition & rewards at the time that it’s deserved and up-to-date technology…
Understanding Today’s Talents
A.
B.
Example
• Think McDonalds, not home cooked meals to understand Generation Y
• For $5.95 at McDonalds you can get a “good” meal in five minutes. Compare this with two hours of shopping, cooking and washing up for your “great” home cooked meal
GenY will take the good offer now, over a great one tomorrow…
Old Paradigm:
Pay your dues, work hard and then you will be rewarded
New Paradigm: “Reward me now and then I will work hard”
Paradigm Shift
• Marketing efforts should not only be focused on customers, but to potential employees– Improve the quality of web & social media sites –
today’s talents form first impressions of organizations via these sites
• Do you have a CSR program/policy? – Today’s talents wants to make a positive difference to
society; are appealed by Socially Responsible companies
– 88% of today’s talents said they will choose employers who have CSR values that reflect their own
– 86% would consider leaving an employer if CSR values no longer matched their expectations.
Attracting Today’s Talents
• Be prepared to be interviewed by today’s talents!
• Move fast in the recruitment process – make employment decisions on the spot
• 100% flexibility? In the U.S., and already some here in Asia, companies have started offering full flexibility to employees. Less attrition and higher productivity.
Recruiting Talent
Traditional Way• Newspaper• Online (Traditional) e.g.
JobsDB, Jobstreet, Monster
• Referral (word of mouth)
The Way Forward• Online (New Age) e.g.
Facebook, MySpace, Twitter, Blogs, Linked-In…
• Referrals linking to incentives• Search/ Recruitment Agencies
•Hardworking•Quick Learner•Trust worthy/ Honest•Integrity•Personable
Attributes!
Exercise - Your Best employee?
Attributes vs. Skills
Who are you hiring?
Select the right people! - Behavior-based testing and competency screening. (The right person, in the right seat, on the right bus)
• Staff management & development - ranked as more time consuming than engaging with suppliers/customers and strategic planning
• Strong people development skills will become more important for Managers in the next 3 years Seen as being as important as strong strategic thinking more important
than the ability to work across cultures or drive change
Manager 2.0
• Don’t try to change today’s talents, or condemn differences
• Accept this diversity!
Managing Today’s Talents
• Create lateral career paths; systems such as inter-department transfers (better yet International transfers)
• Build enough trust with Gen Y team members to tactfully realign expectations
• Set clear expectations up front; define achievable targets – offer different forms of career development that do not necessarily require promotion
• Want to be constantly learning; provide adequate training - GY gets bored easily and leaves at 90% learning capacity
• Challenge them constantly with meaningful projects; get them involved in the business, give them some sort of ownership
• Focus on work-life balance; offer flexible working hours• Today’s Talents want mentors, not managers!• MENTORING PROGRAM for high-potentials
Engaging Today’s Talents
“They want to be managed just as they were coached on the sporting field from the time they were five years old”
Coach
• FUN and work are not mutually exclusive
• Provide a fun, employee-centered environment – today’s talents want to enjoy work and make friends in their workplace
• Create fun learning environments, and use humor to keep their attention
• Think MTV not BBC!!
Create FUN!!
Create FUN!!
Fun Décor• Encourage staff to introduce fun into their own work-space
Visit the toy store• Introduce fun into the workplace with childish things
Make meetings fun!• Boring meetings is the enemy of effective, creative communication! • Make fun part of the proceedings • Finish your meetings with a touch of humor
Let staff get to know each other• Have a regular (monthly) function where staff get to know each other as
people, not just in their work roles. • It could be a Friday after-work barbecue, or just a few drinks. Do not be
tempted to use the occasion for business announcements – this will defeat the purpose.
Musical’ Fun• Hold a karaoke contest
Have a baby pictures contest
Create FUN!!
Create FUN!!
• Engagement and retention starts from the top
• Managers need to appreciate and understand staff and work constantly on keeping them
• Long term goals needs to be identified early - continue to work closely and help them gain the critical skills and experience needed to progress within the company
Engagement and Retention
•
• Create a network to support new employees• Identify high performers early; work continuously to
grow them• Link pay to performance; today’s talents prefers small
reward NOW over the promise of larger rewards later• Offer attractive, competitive, benefits packages with
variable & flexible components such as life/health insurance and flexible work hours
• Provide opportunities within the company for cross-training and career progression. Today’s talents like to know they have room for career development
• Provide career and personal growth through training and education, challenging assignments and more
Retention Strategies
• Entry level jobs will still call for GenY’ers• Restructure roles to make them more
challenging• Start by not having one person do mail
all week, and another on reception – rotate tasks to create variety
• Allow them to work together on such tasks – you may find they work twice as fast, have twice as much fun and are twice as nice to your clients in the process
Retention Strategies cont…
Why employees leave?
Career Development – 54%Work condition/ Boss – 21%Money – 16%New Experience – 7%Other – 2%
33% list Money as their 2nd Choice
Motivators
Motivators cont.
Why employees stay? (what do employees want)
Career Development – 44%Recognition – 33%Work condition/ Boss – 21%Other – 2%
Money – 0%
Motivators cont.
• 44% put Money last as their decision to stay
• According to research, the No.1 priority for employees across ALL generation is RESPECT
• Difference with today’s talents is they don’t respect people based on position. Today’s talents respects those who validate them for who they are now, and who they want to be. (Perhaps this is not too different from other Generations?)
• With more people soon leaving the workforce than entering, today’s talents can confidently move from job to job looking for this level of respect
• Meet the needs of today’s talents, and you meet the needs of talented people across all generations.
• The number one tip on Employee Engagement is simple – LOVE, LOVE, LOVE: treat each & every employee with dignity & respect
Final Thoughts
In Summary
• The “war for talent” is REAL• Staff attrition impacts directly to the
bottom line• Recognize/engage staff constantly• Mentor not manage• Have FUN!• It’s not your competitors you need
to watch, it’s other industries that you should be concerned about
