enter the dragon

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.

2 | enTer The Dragon

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

1

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


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.


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


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


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.


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.


raPiD, ongoing growTh is what we all think we want, but it certainly creates pressures all of its own.

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


10 | enTer The Dragon | global culTure, local minDseT

• 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.


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


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.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.


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,


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.


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.


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


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


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


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.


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.


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.


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.

eXit

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

http://twitter.com/anthonyraja

http://www.kellyocg.com

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

http://twitter.com/anthonyraja

enter the dragon

Career

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