th08 successfully juggling the generations in china and india

8/8/2019 TH08 Successfully Juggling the Generations in China and India

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Successfully Juggling theGenerations in China & India

Mark Frederick, Ph.D.

Director, Global Performance Consulting

www.iorworld.comxx


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Session Objectives

Explore the generational talentchallenges in China and India

Discover the dominant valuesand behaviors shapinggenerational differences in

each country

Examine what companies aredoing to respond to these

challenges

Share talent strategies thathelp with recruitment,

engagement and retention


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Generation Y (Millennials) in the U.S.

Sense of entitlement

Prefer an open, collaborativestyle in the workplace

Jobs should fit their lifestyles,

not the other way around Strong need for constant

feedback

Desire to be involved indecision making


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Generations & Globalization

With globalization, some

similar traits are shared inthe emerging youngergenerations in China and

India Yet cultural differences

have not been erased andsome traditional values stillmanifest in the workplace


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Studying Starbucks in China

China has an ancient tea drinkingculture dating back nearly 5,000

years Not doing as the Chinese do.

Since 1999, Starbucks has

grown to over 400 stores

Changing consumer tastes, tea

at home, but Starbucks inpublic.

Conspicuous consumption in the

younger generation


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Generational Differences in China

The Little Emperors

Chinas one child policyaggressively enforced throughoutthe 80s and 90s, particularly in

urban areas along the coast Created a very different set of

values for the young generation,

most of whom are now in theworkforce


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Generational Differences in China

Hofstedes research indicates alarge values gap between the U.S.

and China on Individualism vs.Collectivism

U.S. individualism: 91 highest inthe world

China: 20 far more grouporiented

Little Emperors are significantly

more individualistic than theirparents

Many feel stronger connection withyouth of southern California than

Chinese elders


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Talent Management Challenges in ChinaTalent Management Challenges in China

Percentage of Organizations Experiencing Talent

Shortages in China

Not

Experiencing

Shortages,

12%

ExperiencingShortages,

88%

Talent shortage is acuteamong managers &

executives!

Source: Corporate Leadership Council 2006 Agenda-Setting Survey

9 out of 10 HR executivesreport a shortage of qualified

talent in the Chinese labormarket.


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Talent Management Challenges in China

Young generation Chinese notalways so individualistic in theworkplace

Most IOR client frustrationsinvolve a reported lack of

initiative

Expatriate managers areassuming too much self directed,

proactive behavior leading tounder management lack ofguidance and development


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Talent Management Challenges in China

Lack of developmentopportunities is the top reason

cited for Chinese employeeturnover by both exitingemployees and HR

(SHRM 2007 Employee Retention inChina)

I was too familiar with the job.There was no new empowerment

or job change. I couldnt learnnew things

Chinese Employee, customer contact

company


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Talent Management Solutions in China

Intels solution to talent challenges

Align plant with the local university

Assess professors and invite them tothe plant

Add courses and textbooks to theuniversity curriculum

Shape and train their own hires

Cultural alignment

Relationship orientation

Long term commitment


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Generational Differences in India

50% of the population is

under the age of 25 Most young workers are

incredibly optimistic and

ambitious Highest ratings in 32 country

Grant Thornton survey. 97%

bullish about the businessclimate


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Commonly referred to as the ina hurry generation

Sense of urgency to seizeopportunities given the pace ofeconomic growth

Older generation Indian workers(50+) sought security andstability in employment

Its a very different generation.They want immediate rewards

- S. Gopalakrishnan, Chief Executive of Infosys


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Younger generation relates moreto western work values

Pew Global Attitudes Survey:71% of Indians had a favorableimpression of the U.S.

Open to change and learningnew processes

More individualistic than parents,but parents are still influential

Hofstede score for Individualismis 48


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Organizational Culture at Sasken

Multinational Indian company of 3,000headquartered in Bangalore

Lifetime HRD Excellence Award fromthe NHRD Programme

32% of new recruits come throughInternal Referral Program

PeopleFirst corporate credo respect for the individual

Single Status policy: same

workspace, leave time, benefits Flex-time, no enforced dress code

Salary based on performance


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Tata Steel and Retention

Established in 1907

6th largest steel company in the world

Fortune 500 company Bring your parents to work Day

Link home and workplace together

Parents shape and guide the employeesattitude


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Strategic Talent Management

Organizational cultureshould be at the heart of

the process This may or may not

reflect national cultural

values and behaviors Young generations in both

China and India are very

brand conscious andassess the appeal of anorganizations culture

Attracting

Selecting

Onboarding

Developing

Retaining

Promoting

Sourcing

CULTURE


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Talent Management Solutions

Effective retention starts with theselection process

Average growth rate of 30% over thepast 5 years in Shanghai

Turnover was highest among salespeople and leaders

Selection efforts dramaticallyimproved retention rates (kept steadyat 20%)

Special recruiting programs atuniversities

Behavior based interviewing

Assess candidate fit with company

culture


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Talent Management Solutions

Over 800% growth in India from2003 2009

Approximately 100,000 employeesthroughout India with headquartersin Bangalore

Challenged by lack of management

talent Developed in-house mini MBA

program called ProPel to identify,develop and engage management

talent Consists of seminars; on-the-job

training; shared databases of

management tips; email quizzes


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Talent Strategies that are not as Effective

Many common strategies thatwork well for recruiting and

engaging younger U.S.employees dont work as well inChina & India:

Stock optionsFlexible work schedules

Telecommuting / virtual

workspaceRelaxed dress code

Involvement in decision making


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Successful Talent Strategies

Dont rely on one or two strategies, the mostsuccessful companies incorporate a broadrange

Develop a robust selection process thatassesses cultural fit (too many focus only onskills)

Link pay to performance, which satisfies the

ambition and drive for material success of theyounger generations

Establish succession management programswith an emphasis on development and learning

opportunities

Safeguard your key management talent whichis the most highly poached. Have clear careerpaths that include valuable rotationalassignments (international)


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THANK YOU!

[email protected]

www.iorworld.comxx

th08 successfully juggling the generations in china and india

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