global culture, local mindset

2

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


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.


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.


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.


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,


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.


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.


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.

http://my.linkedin.com/in/anthonyraja

http://twitter.com/anthonyraja

http://www.kellyocg.com

http://my.linkedin.com/in/anthonyraja

http://twitter.com/anthonyraja

global culture, local mindset

Career

local mindsetstaff retention

asiapacific region

dragon global culture

workforce strategy

future growth

workforce development

retention challenge

scarce talent