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SIGNS TALENT RETENTION STRATEGIES ARE FALTERING KELLY GLOBAL WORKFORCE INDEX 8 DHIRENDRA SHANTILAL AUSTRALIA, CHINA, INDIA, INDONESIA, MALAYSIA, NEW ZEALAND, SINGAPORE & THAILAND

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  • signs talent retention strategies are falteringkelly Global workforce index8DhirenDra shantilal

    australia, China, inDia, inDonesia, Malaysia, new ZealanD, singapore & thailanD

  • 2Kelly Global Workforce Index

    Over the past three years, something entirely counter-

    intuitive has occurred regarding employee retention

    across the Asia-Pacific region. Despite unprecedented

    global economic turmoil over this period, the proportion

    of employees intending to leave their current job has

    increased. In uncertain times, employers generally

    expect to see an upswing in loyalty, yet the opposite

    has occurred.

    Why?

    In our latest survey of some 35,000 people across the

    region, one thing is clear: employees are taking their

    careers into their own hands. Theyre not waiting for

    the employment market to improve, for employers to

    promote them, nor increase their salaries. Instead, they

    talent retention DeClines as opportunity grows in apaC

    are seeking to move from one opportunity to the next

    to maximise their potential and expand their skill and

    experience base.

    For the most part, employees have created a new

    career template for themselves that doesnt include one

    employer for long periods of time. This poses a great

    challenge for HR professionals, recruiters and hiring

    managers across the region, and indeed the world. How

    do you hold on to talent when talent has already decided

    to keep moving?

    Here, we explore the results of the latest Kelly Global

    Workforce Index in an attempt to provide some insights,

    a reality check, and some tangible ways forward.

    2Kelly Global Workforce Index

  • 3Kelly Global Workforce Index

    Employees in the Asia-Pacific region have seen a

    slight increase in voluntary, planned exits from current

    employers over the past three years.

    Six in ten workers in the region say they intend to look

    for a job with another organization, and employees in

    Indonesia, Australia and New Zealand lead this trend.

    Significantly fewer employees in China and Malaysia say

    they intend to move jobs in the next 12 months (both

    58%) but still well above half the workforce in these

    countries.

    It appears that employees plan to move organizations

    as part of a broader career strategyperhaps in

    response to decreasing career prospects in their current

    roles, increased opportunity externally, and the need to

    acquire new skills in a rapidly evolving market.

    1 / Voluntary attrition inCreasesMost employees are looking to move organisations, and despite ongoing economic turmoil, loyalty has not increased.

    66% 58% 61% 71% 58% 68% 57% 65%

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    ThailandSingaporeNew ZealandMalaysiaIndonesiaIndiaChinaAustralia

    Job Switching APACjob switchinGDo you intend to look for a job with another organization within the next year? (% yes, by region)

  • 4Kelly Global Workforce Index

    The responses from employees in Asia-Pacific reveal

    that relatively few feel the I quit urge despite having

    already planned their exits from their current employers.

    Many employees are seeking greater opportunities

    to develop and excel in their field, and the chance to

    use their existing skills and experience. They want a

    challenge and few feel that their current employer can

    offer it.

    Around four in ten respondents in the region (39%)

    say they frequently think about quitting their job. This

    is highest in Indonesia (56%) and Thailand (43%), and

    lowest in India and New Zealand (both 30%). In fact,

    Indonesia and Thailand present a significant counter

    trend in the regionboth report higher than average

    intent to quit, yet higher than average satisfaction with

    employers. This could well be an indicator that a large

    proportion of whats driving turnover is about the new

    opportunities that are opening up in these markets.

    2 / exits are now well-planneD, strategiC DeCisionsWhile voluntary attrition plans are on the rise, unplanned exits driven by personal frustration are low.

    i quit!Do you frequently think about quitting your current job and leaving your employer? (% yes, by region)

    33% 40% 30% 56% 41% 30% 37% 43%

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    I Quit! APAC

  • 5Kelly Global Workforce Index

    Just half of employees (49%) feel that they have a sense

    of meaning in their work across Asia-Pacific. While

    both Australia, China, New Zealand, Singapore and

    Malaysia report lower levels of meaning in their work

    than the global average, more than eight in ten (80%) in

    Indonesia and seven in ten (70%) in Thailand feel they

    have genuine job fulfilment.

    3 / few eMployees feel their role is Meaningful A sense of meaning and achievement is critical to retentionwithout it employees are looking elsewhere in spite of economic uncertainty.

    job fulfillmentDoes your current employment provide you with a sense of meaning? (% yes, by region)

    41% 44% 48% 80% 46% 40% 41% 71%

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    ThailandSingaporeNew ZealandMalaysiaIndonesiaIndiaChinaAustralia

    Job Fulfillment APAC

  • 6Kelly Global Workforce Index

    While four in ten employees in India still believe in the

    concept of one employer for life (41%), which is well

    ahead of those who still hold this view in Indonesia

    and Thailand (20% and 28% respectively), it seems it is

    becoming less and less likely in reality. Most employees

    now believe that staying with a single employer is a

    limitation on their career prospects.

    In APAC, some 70% of workers feel that gaining

    experience with multiple employers is an asset to their

    careers. This is highest in some rapidly developing

    markets in the region such as Indonesia (81%), Thailand

    (81%), although India has the lowest rate of believing

    that multiple employers is an advantage (61%). Many of

    the developed markets in the region are somewhere in

    the middle on this count: Australia (65%), New Zealand

    (66%) and Singapore (68%).

    4 / they belieVe haVing Multiple eMployers is an aDVantageWhile some still believe its possible to have one employer for life, most see multiple employers is a career asset.

    one employer for lifeto what degree do you agree or disagree that a career-for-life with one employer is relevant? (total agree)

    32% 34% 41% 20% 31% 29% 29% 28%

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    One Employer for Life APAC

  • 7Kelly Global Workforce Index

    People in APAC align with the global trend of not

    intending to share their quitting plans with their

    employersjust 29% say they would do so. However,

    employees in China are significant outliers on this

    count. Four in ten (42%) say they would share their

    intentions with their employer in the hope that it will

    result in changes or counter-offers that will enable them

    to stay put.

    While there are large differences across the region, a

    large number of employees seem set on their plans

    to move organizations regardless of their managers

    response to their resignation. Given that most counter

    offers are usually just a rise in pay, employees are again

    indicating that financial incentives are not the only kind

    of change theyre looking for.

    5 / Counter offers are unlikely to Change their MinDsFew employees are keen to have an open dialogue with their employers about their desire to move on, which signals their minds are already made up.

    likely to share quittinG planshow likely are you to share your potential plans to move to another organization with your employer, with the thought that this may result in changes that may motivate you to stay? (total likely, by region)

    29% 42% 32% 19% 29% 30% 26% 21%

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    ThailandSingaporeNew ZealandMalaysiaIndonesiaIndiaChinaAustralia

    Likely to share quitting plans APAC

  • 8Kelly Global Workforce Index

    Just half of employees in Asia-Pacific (51%) feel

    valued by their current employer. This is the highest

    proportion in the world, and significantly ahead of those

    in Europe, yet still represents a less-than-ideal picture

    for employers.

    The sense of being valued is lowest in Singapore (41%)

    with similar results in Australia (43%) and New Zealand

    (43%). Yet, Thailand and Indonesia represent major

    outliers on this count. The majority of employees in

    these countries say they feel valued, and this is partly

    explained by the fact that they report far higher rates of

    feeling fully utilised in their roles.

    While just 29% of employees in Australia, New Zealand

    and China report that their full potential is being

    realised by their current employer, this figure is 62% in

    Thailand and higher again in Indonesia (69%)both

    exceptionally high by world standards.

    6 / eMployees feel unDer-ValueD anD unDer-utiliseD

    29% 29% 46% 69% 38% 29% 30% 62%

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    Realising potential APACrealisinG potentialDo you feel that our current employer is realising the full benefits of your potential? (% yes, by region)

  • 9Kelly Global Workforce Index

    Personal growth and advancement is the number one

    factor in deciding whether to accept a role. The two

    issues of personal fulfilment and personal growth/

    advancement account for around three-quarters (75%)

    of all responses across Asia-Pacific, signalling again

    that rapid development and promotion is the key to

    retention in the region.

    When compared with financial incentives, personal

    advancement far outweighs pay as a driver of job

    acceptance in every country across the region.

    7 / they are looking for personal aDVanCeMent first anD foreMostWhat really keeps employees engaged enjoyable and challenging workis often difficult for managers to respond to.

    factors that drive job choicewhich of the following factors would drive your decision to accept one job/position over another? (by region)

    Factors that drive job choice

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    Personal fulfillment/growth/advancement Compensation/benefits

  • 10Kelly Global Workforce Index

    Compared to the global average, more people in the

    Asia-Pacific region say they expect some formal reward

    for a job well done. However, there are vast differences

    across the region. In Australia and New Zealand, around

    one-in-five people say they dont expect any reward

    for high performance (20% and 17% respectively), yet

    across every other country this is very lowdown to just

    1% in China. So, for the most part, employees expect

    something. But promotion is high on their agenda and

    a very close second to financial reward.

    The significant differences across all countries and

    regions points to the fact that rewards and incentives

    are very personal. Having a one-size-fits-all approach

    is likely to miss the mark, as none of the suggested

    performance rewards can claim to meet the desires of

    the majority of any worker population.

    8 / their Desire for rewarD is personal They expect a reward, but dont assume its all about more money.

    rewardinG performancewhat is your preferred way of being rewarded for good performance at work (by region)

    Rewarding Performance

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    Financial Bonus None required

  • 11Kelly Global Workforce Index

    A global pattern has emerged in talent retention. Most

    people are planning to switch jobs this year, and they

    have clear strategic reasons for doing so. Few employees

    across Asia-Pacific feel that their full potential is being

    utilised and many are seeing greater opportunities in their

    local markets. This inevitably throws up a negative cycle

    for employers: one employee leaves to pursue their goals

    elsewhere, another arrives in their place with the same

    goal. Instead of being locked into an endless, vicious

    cycle, HR professionals, and managers must:

    tip #1 / keep an eye on the competitive landscape:

    greater employment opportunities in Asia are driving

    decreasing retention despite improvements in pay and

    other employment conditions. Understanding the market,

    including specific skills shortages, will assist employers

    to offer a competitive overall package to employees

    seeking rapid promotion and skill development in the fast-

    developing markets.

    tip # 2 / focus on ways to demonstrate the outcomes

    and contribution of each employees role: meaning

    at work is critical to engagement and satisfaction, so

    ConClusion

    finding ways to demonstrate the ways in which each role

    contributes to overall outcomes is key to retention and

    productivity. Team recognition is fine, but individuals

    (particularly highly talented ones) want to see how

    they impact results too, and this means finding ways to

    measure and report on it.

    tip #3 / think like a contingent worker: even in markets

    such as Thailand and Indonesia where employees are more

    satisfied with their current employer, movement intentions

    are still high and are driven by the perception that new

    employers bring new opportunities. Therefore, employers

    in the region need to consider ways to offer the benefits

    of contingent work to permanent employees. A growing

    proportion of workers around the world are moving to

    the free agent work-style, and around one-third of most

    workforces are now made up of contingent labour, so new

    retention strategies need to consider ways to increase the

    engagement and motivation of these employees too.

    tip #4 / Commit resources to document and track skills:

    if employees feel their skills are being fully utilised in their

    role, they are more likely to feel valued by their employer.

    Ensuring that managers and HR departments have a clear

    view of the skills that each employee has, and making

    internal movement opportunities and project teams more

    flexible will help both employer and employee access the

    full spectrum of talent and skills available.

    tip #5 / find ways to move employees internally:

    allowing employees to choose projects and make a

    case for being part of them, as well encouraging other

    departments/managers and teams to seek skills internally,

    will increase development and growth opportunities for

    internal talent.

    tip #6 / ask how they want to be rewarded: pay and

    benefits are clearly important to workers in the region,

    yet each employee is different. Consider how you might

    provide employees with access to other projects, skills and

    responsibilities when they reach their performance targets.

    If we know employee movement is driven by the desire to

    access new skills, finding ways is critical to retention.

    11Kelly Global Workforce Index

  • Kelly Global Workforce Index

    about the author

    With over 30 years of experience in the recruitment industry, DHIRENDRa sHaNtIlal oversees the entire

    operations of Kelly services for asia Pacific across 12 countries and territories australia, China, Hong Kong,

    India, Indonesia, Japan, Malaysia, New Zealand, Philippines, singapore, south Korea and thailand. Previously

    a co-founder of Business trends, he led the strategic integration of Business trends with Kelly services in the

    year 2000. Dhiren holds an MBa from the University of Durham (UK) and a Diploma in Marketing awarded by

    the Chartered Institute of Marketing (CIM).

    MethoDology

    The Kelly Global Workforce Index was open to respondents around the globe and took the form of a questionnaire on the Kelly

    Services website. Data was collated and analyzed by RDA Group. A number of questions have remained consistent over the course

    of the survey and allow time-series analysis.

    about kelly

    Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforce solutions. Kelly offers a comprehensive array of

    outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire and direct-hire basis. Serving

    clients around the globe, Kelly provides employment to more than 550,000 employees annually. Revenue in 2011 was $5.6 billion.

    Visit www.kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter.

    exit

    download your free copy today.

    This ebook is extracted out of the report Acquisition

    and Retention in the War for Talent.

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