Asia’s Increased Competitive Landscape - HR Implications on Talent Attraction and Retention, by Eric Pesik. Presented at the Crown Leadership International Group: Compensation and Benefits Asia Congress, March 2014, Orchard Parade Hotel, Singapore: (1) The rise of Asia and the new diversified workforce; (2) Winning Companies: What sets them apart? (3) Performance & Pay: What else is new? (4) Performance & Development: Who is a Talent? (5) From HR Programs to Reality: What makes the difference?
4. • Largest Military
• Currency is the Global
Standard for Commercial
Transactions
• Center of World Business
• One of Richest in the World
• One of the Highest
Standards of Living
• Center of Innovation and
Invention
5. England at end of 19th Century
http://office.microsoft.com/en-us/images/results.aspx?qu=brittain&ex=1#ai:MP900422830|
Used with permission of Microsoft
6. USA at end of 20th Century
http://office.microsoft.com/en-us/images/results.aspx?qu=Old%20Glory#ai:MP900400667|mt:2|
Used with permission of Microsoft
7. China at end of 21st Century?
http://office.microsoft.com/en-us/images/results.aspx?qu=china+flag&ex=1#ai:MP900400801|mt:2|
Used with permission of Microsoft
8. What does
“the rise of Asia” mean?
http://office.microsoft.com/en-us/images/results.aspx?qu=Asian#ai:MP900430918|mt:2|
Used with permission of Microsoft
9. If you are 1 in a million...
http://office.microsoft.com/en-us/images/MP900439324.aspx?redir=0
Used with permission of Microsoft
10. In China, there are
1,350 people just like you
http://www.flickr.com/photos/dailuo/6759469363/
Flickr Creative Commons
11. In India, there are
1,240 more
http://www.flickr.com/photos/56796376@N00/3059483658/
Flickr Creative Commons
12. The top 10% of the
population in Asia...
Top 10%
13. Is greater than the entire
population of the United States
http://en.wikipedia.org/wiki/File:USA_orthographic.svg
14. There are more
honors students in Asia...
Flickr Creative Commons
http://www.flickr.com/photos/98195299@N00/296747958/
15. ...than all students
in the USA combined
Flickr Creative Commons
http://www.flickr.com/photos/pinksherbet/6961676525/
16. There are more
English-speaking people in Asia...
Flickr Creative Commons
http://www.flickr.com/photos/41087714@N00/253197253/
17. ...than there are English people
Flickr Creative Commons
http://www.flickr.com/photos/tinou/380129764/
19. If you took every job in the USA
and shipped it to Asia...
http://office.microsoft.com/en-us/images/results.aspx?qu=jobs#ai:MP900442205|mt:2|
Used with permission of Microsoft
20. ...Asia would still
have a labour surplus
Flickr Creative Commons
http://www.flickr.com/photos/downeym/4550576962/
22. No Asian company among top-10
largest publically traded companies
http://en.wikipedia.org/wiki/List_of_corporations_by_market_capitalization
Up to date as of December 31, 2013.
$240
$241
$255
$258
$284
$292
$310
$312
$442
$505
Chevron Corporation
Hoffman-La Roche
Wal-Mart Stores
Johnson & Johnson
General Electric
Berkshire Hathaway
Google
Microsoft
Exxon Mobile
Apple
(Switzerland)
23. Talent remains a critical pressure
point for Asia businesses
Flickr Creative Commons
http://www.flickr.com/photos/46560341@N05/7022614653/
24. Singapore low population growth is
creating a labour shortage
http://oliveventures.com.sg/act/wp-content/uploads/2013/02/population-of-singapore-infographic.png
25. Cost of living is increasing
http://www.straitstimes.com/breaking-news/money/story/singapore-most-expensive-city-the-world-study-20140304
26. Compensation is rising
to grab scarce talent
Flickr Creative Commons
http://www.flickr.com/photos/84292292@N00/8623291417/
27. Education strategies not
matched to talent demands
Flickr Creative Commons
http://www.flickr.com/photos/48889125739@N01/112866960/
28. Shortage of qualified managers
in fast-growing Asia economies
Flickr Creative Commons
http://www.flickr.com/photos/76029035@N02/6829422155/
30. Majority of CEOs plan to increase
Asia headcount in 2014
Flickr Creative Commons
http://www.flickr.com/photos/74818532@N00/4911826885/
31. Hiring levels in Asia are twice as
high as in US and Europe
http://www.pwc.com/saratoga
Breaking out of the talent spiral - Key human capital trends in Asia-Pacific
22%
10%
11%
Asia USA Europe
33. 20% of new hires
leave within the 1st year
Flickr Creative Commons
http://www.flickr.com/photos/michaelduxbury/5004921106/
34. Turnover rates in Asia are twice
as high as US and Europe
http://www.pwc.com/saratoga
Breaking out of the talent spiral - Key human capital trends in Asia-Pacific
15.2%
7.0% 6.6%
Asia USA Europe
35. Your business needs to nurture
and hold close what you have –
it’s hard to fill the bath with
the plug out.
Michael Rendell
PricewaterhouseCoopers, Global Head of HR
Service Practice
36. Finding and retaining critical talent
is more challenging and expensive
Flickr Creative Commons
http://www.flickr.com/photos/jseita/5407005494//
37. Global
43%
Asia
60%
It’s even more challenging in Asia
CEOs who say it is more difficult to hire talent
http://www.pwc.com/saratoga
Breaking out of the talent spiral - Key human capital trends in Asia-Pacific
39. Less emphasis on structure
http://www.todayonline.com/singapore/play-important-early-childhood-education-heng-swee-keat
40. More emphasis on creativity
http://news.insing.com/feature/creativity-must-be-a-national-priority-nmp-janice-koh/id-f83b3101
41. G.P.A.’s are worthless as a
criteria for hiring, and test
scores are worthless.
We found that they don’t
predict anything
Laszlo Bock
Senior Vice President of People Operations
Google
42. Re-think HR’s role in how companies
attract and retain talent
Flickr Creative Commons
http://flickr.com/photos/u-suke/7613586712
43. Bringing in more expats
is not the solution
http://singaporeseen.stomp.com.sg/singaporeseen/this-urban-jungle/anton-casey-furore-his-employers-currently-investigating-the-comments-and-will
44. Expats in senior management
roles at MNCs
http://management.fortune.cnn.com/2013/06/24/leadership-diversity-multinationals/
56%
12%
1990s 2000s
Proportion of expatriates in senior management roles at
multinationals in China, India, Brazil, Russia, and the Middle East
45. Western MNCs are loosing the
advantage attracting local talent
http://www.executiveboard.com/blogs/5-key-asia-hr-trends-heading-into-2014/
Prefer MNCs
24%
Prefer
Domestic Firms
47%
Other 29%
China labor preference for working for a domestic company versus Western MNCs
51. Employment Value Proposition (EVP) Framework
The set of attributes that the labor market and employees perceive as the
value they gain through employment in the organization
Rewards
Compensation Health Benefits
Opportunity
Development
Opportunity
Future Career
Opportunity
Growth Rate Meritocracy
Stability
Organization
Customer
Prestige
Empowerment
Environmental
Responsibility
Ethics/Integrity
Formality of
Work Env.
‘Great Employer’
Inclusion /
Diversity
Industry
Desirability
Market Position
Product or
Service Quality
Respect Risk Taking
Organization
Size
Social
Responsibility
Technology
Level
Well-Known
Product Brand
People
Camaraderie
Collegial Work
Environment
Co-Worker
Quality
Manager Quality
People
Management
Sr. Leadership
Reputation
Work
Business
Travel
Innovative
Work
Job–Interests
Alignment
Level of
Impact
Location Recognition
Work–Life
Balance
Employee Workforce Insights for Singapore - Engagement and Retention of Talent in Singapore
The Corporate Executive Board Company, February 2014
52. Singapore EVP
Employment
Value
Proposition
Rewards
• Health Benefits
• Compensation
Opportunity
• Stability
• Development
• Future Career
Organization
• Respect
Work
• Location
• Work-Life Balance
• Job Interest Align
• Recognition
People
Employee Workforce Insights for Singapore - Engagement and Retention of Talent in Singapore
The Corporate Executive Board Company., February 2014
Most frequently selected by employees in Singapore as reasons to join a new organization
53. Not all factors are equal
Rewards
WorkOrganization
Opportunity
Employee Workforce Insights for Singapore - Engagement and Retention of Talent in Singapore
The Corporate Executive Board Company, February 2014
Employment
Value
Proposition
EVP Attraction Benefits
Reduces compensation
premium needed to hire
by 50%
Rewards are Important
Employees in Singapore
are least likely to be
satisfied with value of
rewards
Rewards
•Health Benefits
•Compensation
54. But EVP is not enough
Flickr Creative Commons
http://www.flickr.com/photos/76029035@N02/6829385031/
60. Failure to prep the candidate
Flickr Creative Commons
http://www.flickr.com/photos/jyri/996063332/
61. Failure to prep hiring manager
http://office.microsoft.com/en-us/images/results.aspx?qu=MP900442211&ex=1#ai:MP900442211|
Used with permission of Microsoft
62. Failure to leverage the interview
Flickr Creative Commons
http://www.flickr.com/photos/76029035@N02/6829510801/
69. High EVP satisfaction leads to
high performance and retention
The Corporate Executive Board Company.CEB Employee Workforce Insights for Singapore
8.7%
33.6%
5.5%
17.6%
Low EVP
High EVP
Low EVP
High EVP
High Intent to Stay (4x)
High Discretionary Effort (3x)
70. It’s not about the money
Flickr Creative Commons
http://www.flickr.com/photos/36495803@N05/8463683689/
71. We hired experienced, talented
people and gave them large salaries.
But did we retain them? No.
Dr. Sun Mingbo
President and Chairman of Board
Tsingtao Brewery Co. Ltd., China
76. Normally we think of
satisfaction/dissatisfaction as
opposites. But job satisfaction
is not the opposite of job
dissatisfaction
77. Motivators
One More Time: How Do You Motivate Employees?
Frederick Herzberg Harvard Business Review Reprint 87057
-11%
-4%
-13%
-9%
-11%
18%
20%
21%
30%
40%
Growth and
Advancement
Responsibility
Work Itself
Recognition
Achievement
79. Demotivators
One More Time: How Do You Motivate Employees?
Frederick Herzberg Harvard Business Review Reprint 87057
-35%
-20%
-10%
-10%
-8%
3%
4%
5%
2%
7%
Company Policy
and Administration
Supervision
Relationship with
Supervisor
Work Conditions
Salary
81. Neutral factors
One More Time: How Do You Motivate Employees?
Frederick Herzberg Harvard Business Review Reprint 87057
-4%
-6%
-5%
-3%
-2%
1%
4%
4%
2%
1%
Personal Life
Relationship with
Peers
Relationship with
Subordinates
Status
Security
82. Neither satisfied nor dissatisfied
http://office.microsoft.com/en-us/images/results.aspx?qu=boring&ex=1#ai:MP900442297|mt:2|
Used with permission of Microsoft
85. Remove controls
while retaining accountability
Used with Permission from Microsoft
http://office.microsoft.com/en-us/images/results.aspx?qu=offices#ai:MP900402508|mt:2|
86. Increase accountability of
individuals for their own work
Used with Permission from Microsoft
http://office.microsoft.com/en-us/images/results.aspx?qu=Asian%20men#ai:MP900442502|mt:2|
87. Give employees a complete
natural unit of work
Used with permission from Microsoft
http://office.microsoft.com/en-us/images/results.aspx?qu=executives#ai:MP900448494|mt:2|
88. Grant additional authority and
job freedom in their activities
Flickr Creative Commons
http://www.flickr.com/photos/mishism/5371077178/
89. Feedback reports directly to
workers rather than supervisors
Used with Permission from Microsoft
http://office.microsoft.com/en-us/images/results.aspx?qu=thinking#ai:MP900430900|mt:2|
90. Offer new and more difficult
tasks not previously handled
Used with permission from Microsoft
http://office.microsoft.com/en-us/images/results.aspx?qu=thinking&ex=1#ai:MP900422989|mt:2|
91. Enable individuals to become
experts through specialized roles
Used with permission from Microsoft
http://office.microsoft.com/en-us/images/results.aspx?qu=presentations#ai:MP900427762|
92. How does HR Compensation
and Benefits fit in here?
97. Empower HR to change the
workplace environment
http://office.microsoft.com/en-us/images/results.aspx?qu=gestures#ai:MP900431153|mt:2|
Used with permission of Microsoft
102. Reframe the discussion on talent
http://office.microsoft.com/en-us/images/results.aspx?qu=gestures#ai:MP900407401|mt:2|
Used with permission of Microsoft
103. Weak managers hire skills
http://office.microsoft.com/en-us/images/results.aspx?qu=bosses#ai:MP900448685|mt:2|
Used with permission of Microsoft
104. Strong managers hire talent
and teach specific skills
http://office.microsoft.com/en-us/images/results.aspx?qu=professionals#ai:MP900422122|mt:2|
Used with permission of Microsoft
105. To avoid talent shortages, hire
talented managers
http://office.microsoft.com/en-us/images/results.aspx?qu=motivations#ai:MP900435893|mt:2|
Used with permission of Microsoft
106. Apprenticeship and mentoring
Used with permission from Microsoft
http://office.microsoft.com/en-us/images/results.aspx?qu=teach&ex=1#ai:MP900427658|mt:2|
114. We decided to start over. We had
struggled for so long to improve
HR’s effectiveness in Asia, business
leaders just got fed up. We brought
in a whole new HR leadership team
to turn things around.
But honestly, two years later,
not much has changed.
Global Chief HR Officer
Manufacturing Company
116. 70% of all change initiatives fail
Cracking the Code of Change by Michael Beer and Nitin Nohria
http://hbr.org/2000/05/cracking-the-code-of-change/ar/1
Failure
70%
117. Less that 1/3 of business executives
think that Asia HR is creating value
Transforming Asia HR's Enterprise Impact
http://www.executiveboard.com/exbd/en-sg/human-resources/asia-hr-leadership/Asia-HR-Enterprise-Impact/index.page
Create
Value
31%
118. We implemented [HRIS software]
last year. We spent a fortune on it,
and it’s practically worthless.
It literally must be the most
expensive filing cabinet ever
purchased.
SVP HR, North Asia Global
119. Why do initiatives fail?
Failure Causes Statistics
http://www.it-cortex.com/Stat_Failure_Cause.htm
11%
12%
13%
17%
20%
26%
29%
34%
35%
39%
57%
Insufficent measurable outputs
Supplier under-resourced
Supplier skills outstretched
Overall poor management
Mismanagement of progress
Cost overruns
Inadequate coordination
Milestones not met
No quality control
Lack of planning
Bad communication
120. Our Head of HR was fired . . .
After three years of focus groups
and analysis, they basically told us
what we already knew.
We had nothing to show for
the investment.
VP of HR, International
Financial Services Company
121. HR shift from service provider
to enterprise enabler
Old Role:
Service Provider
HR Focus
Focusing on driving HR outcomes
Improve HR Activities
Providing more HR support and
services for higher line satisfaction
Skill Development
Being more “strategic” through
improved HR-line partnerships
New Role:
Enterprise Enabler
Enterprise Focus
Focus on HR’s role in building
enterprise capabilities.
Redefine HR Service Effectiveness
Rethink the way HR services create
business value
Functional Behaviour Change
Equipping the team to make
transformational shifts in day-to-day
behaviours and work
Transforming Asia HR's Enterprise Impact
http://www.executiveboard.com/exbd/en-sg/human-resources/asia-hr-leadership/Asia-HR-Enterprise-Impact/index.page
123. How to get past key barriers
Transforming Asia HR's Enterprise Impact
http://www.executiveboard.com/exbd/en-sg/human-resources/asia-hr-leadership/Asia-HR-Enterprise-Impact/index.page
• How can Asia HR reposition itself to
drive enterprise capabilities?
Asia HR is too focused on
HR or financial outcomes
• How can Asia HR’s services help
accelerate organizational
competitiveness and growth across
time?
Asia HR improvement
efforts typically target
incremental operational
improvements or HR
activities
• How can Asia HR executives re-
orient staff to enable their
enterprises?
Asia HR staff apply an HR
administrator or operators
mindset to their roles
125. Upgrading HR to C-Suite
Used with Permission of Microsoft
http://office.microsoft.com/en-us/images/results.aspx?qu=meetings&ex=1#ai:MP900422638|
126. Empower HR to change the
workplace environment
http://office.microsoft.com/en-us/images/results.aspx?qu=gestures#ai:MP900431153|mt:2|
Used with permission of Microsoft
127. The question isn’t
who’s going to let me?
Its who’s going to stop me?
Paraphrasing Howard Roark
Ayn Rand
The Fountainhead
128. Asia’s Increased
Competitive Landscape
HR Implications on
Talent Acquisition and Retention
http://www.flickr.com/photos/jorgecancela/8009593783/
Flickr Creative Commons
129. Ask The Headhunter
• The Talent Shortage Myth and
Why HR Should Get Out of the Hiring Business
http://www.pbs.org/newshour/making-sense/ask-the-headhunter-the-talent/
• Top Ten Stupid Hiring Mistakes
http://www.asktheheadhunter.com/hatenmistakes1.htm
http://www.asktheheadhunter.com/hatenmistakes2.htm
• Talent Shortage
http://www.asktheheadhunter.com/hatalentshortage1.htm
http://www.asktheheadhunter.com/hatalentshortage2.htm
CNN Money / Fortune
• World's biggest companies:
Still xenophobic, after all these years
http://management.fortune.cnn.com/2013/06/24/leadership-diversity-
multinationals/
Corporate Executive Board Co.
• 5 Key Asia HR Trends Heading into 2014
http://www.executiveboard.com/blogs/5-key-asia-hr-trends-heading-into-2014/
• Employee Workforce Insights for Singapore -
Engagement and Retention of Talent in Singapore
http://news.executiveboard.com/global-workforce-insights
• China: The Death of the Western Employer Brand Premium
http://www.executiveboard.com/blogs/china-the-death-of-the-western-
employer-brand-premium/
• Transforming Asia HR's Enterprise Impact
http://www.executiveboard.com/exbd/en-sg/human-resources/asia-hr-
leadership/Asia-HR-Enterprise-Impact/index.page
Source Acknowledgements
Flickr Creative Commons Images
• Images used under Creative Commons license
http://www.flickr.com/creativecommons/
Forbes
• Google's Best New Innovation: Rules Around '20% Time'
http://www.forbes.com/sites/johnkotter/2013/08/21/googles-best-new-
innovation-rules-around-20-time/
Harvard Business Review
• One More Time: How Do You Motivate Employees?
http://hbr.org/2003/01/one-more-time-how-do-you-motivate-employees/ar/1
• Cracking the Code of Change
http://hbr.org/2000/05/cracking-the-code-of-change/ar/1
HR Boss Blog
• HR Trends 2014 in Asia
http://hrboss.com/blog/hr-trends-2014-asia
Inc.
• Offer Your New Hires Training, Not Free Doughnuts
http://www.inc.com/abigail-tracy/onboarding-new-hires-dont-care-about-
perks.html?cid=em01011week12day19b
InSing.com
• Creativity must be a national priority: NMP Janice Koh
http://news.insing.com/feature/creativity-must-be-a-national-priority-nmp-
janice-koh/id-f83b3101
130. IT Cortex
• Failure Causes Statistics
http://www.it-cortex.com/Stat_Failure_Cause.htm
Microsoft Office Online Images
• Images from Microsoft Office Online are used with permission from
Microsoft; no rights to further license or distribute the media elements
http://office.microsoft.com/en-us/images/
PricewaterhouseCoopers Saratoga
• Breaking out of the talent spiral –
Key human capital trends in Asia-Pacific
http://www.pwc.com/saratoga
Stomp
• Anton Casey furore
http://singaporeseen.stomp.com.sg/singaporeseen/this-urban-jungle/anton-
casey-furore-his-employers-currently-investigating-the-comments-and-will
Straits Times
• Singapore most expensive city in the world
http://www.straitstimes.com/breaking-news/money/story/singapore-most-
expensive-city-the-world-study-20140304
Source Acknowledgements
Today Paper
• ‘Play’ important in early childhood education: Heng Swee Keat
http://www.todayonline.com/singapore/play-important-early-childhood-
education-heng-swee-keat
• More locals hired last year as growth in foreign employment slows
http://www.todayonline.com/singapore/more-locals-hired-last-year-growth-
foreign-employment-slows
• To raise productivity, let more employees work from home
http://www.todayonline.com/singapore/raise-productivity-let-more-employees-
work-home
Twitter
• Brian Acton @brianacton
https://twitter.com/brianacton/status/3109544383
Wikipedia
• List of public corporations by market capitalization
As of December 31, 2013
http://en.wikipedia.org/wiki/List_of_corporations_by_market_capitalization
Other Sources
• Corporate logos are property of their respective companies.
• All other sources and images are acknowledged where they appear.
131. Eric Pesik
Eric Pesik is a frequent speaker on legal and compliance matters
and has taught law school and business school in the USA and
Singapore.
Background
Mr. Pesik is currently the Associate General Counsel and
Compliance Officer for Seagate Singapore International
Headquarters Pte Ltd. He has been a lawyer since 1997 and is a
member of the State Bar of California, USA. He is also admitted to
the US Court of International Trade in New York and the US
Supreme Court in Washington, DC.
Disclaimer
This work represents the opinions of the author alone, and is not
the opinion his employer.
Other Presentations
Many of Mr. Pesik’s presentations are available on SlideShare at:
http://www.slideshare.net/ericpesik
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About the Author