hr outlook 2015 - wordpress.com...business outlook 2015 | indonesia is the favourite of business...

HR Outlook 2015

Discussion with One HR Indonesia

10 December 2014

© 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.

The Need to Build a Superior Employment Deal

While employee views captured via our GWS, Global Talent

Management and Rewards Study (TMR 2014) focuses on

employers view…

towerswatson.com © 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.

2

Employee views:

Global Workforce Study

(Fielded April – May, 2014)

Employer views: TMR Study

Business Outlook 2015 | Indonesia is the favourite of

business expansion location in ASEAN-6 Region…

towerswatson.com

3 Source: ASEAN Business Outlook Survey 2015, AMCHAM

The 4th largest

population in the world

Accountable of more

than 75% of ASEAN

population

40% of ASEAN’s

economy

3 time middle

class growth in the

next 10-15 years

3rd fastest growing

country in social media

© 2013 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. towerswatson.com 4

Business Outlook 2015 | Business focus are growth and product expansion, while manage expense due to slowing of economic growth…

Sources: Towers Watson 2014 Global Talent Management and Rewards Study, Indonesia

Global Indonesia

Increasing 48% 68%

Remain the same 37% 21%

Decrease 15% 12%

68% Indonesian employer

reported increasing their hiring

activity compare to last year

Product expansion Revenue growth

Expense reduction


Attract Find the right employees

Retain

Engage

+

+ Keep the right employees

Drive incremental employee performance

Indonesia companies lack the ability to:

With cost effective, and align to business strategy

HR Outlook 2015 | Indonesia HR Management is not an effective profile!*)

*) Based on Towers Watson latest 2014’s

research; GWS, TMR and HRSD

Attraction and retention problem | Indonesia continue to face

challenges in attracting and retaining talent in key employee

segments

towerswatson.com

6


Attraction Retention

All employees 29% 34%

Critical-skill

employees 78% 75%

High-potential

employees 86% 75%

Top-

performing

employees

89% 79%

8-9 out of 10 Indonesian companies have

problems in attracting and

retaining, compare to global 5-6,

and not improved compare to last

year

42%- 46% Fewer than half of employees think their organization

does a good job of hiring and retaining highly qualified employees

Sources: Towers Watson 2014 Global Talent Management and Rewards Study, Global and Indonesia

towerswatson.com

Agree

Mixed

Disagree

34%

32%

34%

66% Indonesian employee likely to

leave organization within two years

Source: Towers Watson 2014 Global Workforce Study — Indonesia

and 2014 Total Rewards Survey


7

Retention risk is high | Indicated by both increasing

attrition/turnover and high levels of employees who intend to

leave their organization over the next two years

12-13% average turn over,

Higher (around 18-20%) for certain

industries and certain functions

Unfortunately employer does not know how to retain their

employee

towerswatson.com

8


Employee view – Global

Workforce Study

Employer view – Talent

Management and Rewards Study

1 Base pay/salary Base pay/salary

2 Career advancement Relationship with supervisor

3 Physical work environment Career advancement

4 Length of commute Short term incentives

5 Retirement benefits L&D Opportunities

Sources: Towers Watson 2014 Global Talent Management and Rewards Study, Global and Indonesia

There is a disconnect between what employees indicate are the most

likely reasons they would join or leave an organization and what

employers think employees want

© 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. towerswatson.com

Source: 2014 Towers Watson Total Rewards Surveys – Indonesia * Total Guaranteed Compensation : Base Salary 12 months + Guaranteed Bonus + Fixed Cash Allowance

Base Pay | Some industry pay premium their executive | Insurance now invest higher thank banking!

© 2014 Towers Watson. All rights reserved.

However, Indonesian fail in explaining pay programs…

Communication plays a key role in helping employees understand the competitive positioning of their base pay.

of the employees say they are aid fairly compared with

people in other organizations with similar positions

48%

of the employees say they are paid fairly compared with

people in my organization with similar positions

51%

of the employees say their company does a good job of

explaining their pay programs.

52%

Proprietary and Confidential. For Towers Watson and Towers Watson client use only. © 2014 Towers Watson. All rights reserved.

Career | Only half of employees believe their employers

provide useful career planning tools or opportunities to

advance

of employees

say their

organization

provides useful

career planning

tools.

56%

report that

their organization provides

opportunities to advance

career (promotion)

58%

Source: 2014 Towers Watson Global Workforce Study – Indonesia

11

Proprietary and Confidential. For Towers Watson and Towers Watson client use only. © 2014 Towers Watson. All rights reserved.

Four in ten employees believe they need to actually leave their

current employer in order to advance

of employees say they must join another firm in order to advance. 40%

Source: 2014 Towers Watson Global Workforce Study – Indonesia

12

They are employee with

good performance,

younger, and aspiration

for talent mobility

Proprietary and Confidential. For Towers Watson and Towers Watson client use only.

For business to grow | Key HR issues and themes 2015 and beyond

need to be addressed

Shift in company and employee relationship

–

employees become consumers

The war for top talent –

retaining and rewarding

Managing pay and

performance

© 2014 Towers Watson. All rights reserved.

towerswatson.com

Culture and organization

capability

13

Revisiting Employee Value Proposition

Talent mobility across Industry

Rewards optimization and wellness

Building a superior employment deal is a

must for HR to be more effective in 2015!

towerswatson.com

14


A superior employment deal drives desired outcomes…


15 Sources: Towers Watson 2014 Global Talent Management and Rewards Study,


Segmentation | Where do you currently fall on the continuum?

Granularity and sophistication have greatly evolved, allowing us to address key questions such as:

What employee behaviors does the business model require, and how can we effectively elicit those behaviors from different segments?

Where does exceptional talent really make a difference versus where does good enough suffice?

What behaviors do we need to change (e.g., healthier lifestyles, increased retirement savings) to improve program effectiveness and ROI?

Organization:

Pivotal versus proficiency roles

Key drivers and performance expectations Life stages Pivotal roles

Demographics Performance Job roles

Rank and File vs. Executives

Employee:

Preferences, values, behaviors

Lifestyles and life choices

Limited Traditional Segmentation: Two perspectives Emerging

towerswatson.com

16

Highly effective organizations take a science from

consumer marketing to categorize employees into

meaningful groups.

Prospective employees

New employees

Employees with long tenure

Employees with critical skills

High performing employees at our organization

My organization understands what messages resonate with:

High effectiveness Low effectiveness

83

93

85

96

98

26

48

40

48

42

17

Source: Towers Watson 2013-2014 Change and Communication ROI Study.

towerswatson.com © 2013 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 19

Immediate supervisor is the no 1 drivers sustainable

engagement in Indonesia

Source: Towers Watson 2014 Global Workforce Study — Indponesia

Global drivers are Leadership, Goals and objective,

Workload and work life, Image, Empowerment


THANK YOU

hr outlook 2015 - wordpress.com...business outlook 2015 | indonesia is the favourite of business...

Documents