5. Data Sources
2011 Mercer “What’s Working” Survey
- Compensation Planning 2012 report
- India: What’s Working Summary
- China: What’s Working Summary
2011 Community Business - Bring the best of Asian talents
2010 Hay Group – Rewarding China
2011 Towers Watson – Incentive Plan Design Practices (Summary Results from
2011 Asia Incentive Plan Design Survey)
2011 Worldatwork - Leading the next wave of growth in Asia
2011 Blessingwhite - Employee Engagement Report
2011 Hewit Consulting – Trends of Global Employee Engagement
7. Talent Strategy _ Attracting Talents
Employee Perception of MNCs
India China
Professionalism: streamlined processes Flat org, democratic leadership:
and structured organizational hierarchy Advance based on performance
Emphasis on training and development Opportunities for training and
Positive for fresh graduates development: fast-track programs for
Exposure to international practice HIPO staff
Interacting with people from different Exposure to international best
cultures and backgrounds practice
Constant need to educate HQ staff
Policies made by people without good about China: given that MNCs
understanding of Indian market frequently change staff structure
Negative Slow decision-making process Glass ceiling to long-term career
Training provided through collective success
programs, not by hands-on experience Sense of missing out the immerse
growth of China
9. Talent Strategy _ Attracting Talents (Cont’d)
India China
Clear Preference for MNCs No Clear Preference for MNCs
Gen Y – Choosing Future Employees
10. Talent Strategy _ Engaging Talents
According to Blessing White’s Employee Engagement Report 2011:
Only 31% of workers worldwide are engaged;
India has the most engaged (37%);
China has the least (17%).
11. Talent Strategy _ Engaging Talents (Cont’d)
Employee Value Proposition (2011)
India China
Career advancement Career advancement
Base pay Base pay
Training opportunities Supplemental retirement savings plan
Type of work Bonus or other incentives
Working for a respectable Supplemental medical
organization insurance coverage
Bonus or other incentives Working for a respectable org.
Retirement savings plan Wellness programs
Flexible work schedule Type of work
12. Talent Strategy _ Rewarding Talents
Benefits & Compensation: India and China are quite similar
Rapid economic growth
India
Inflation rate: 9.5% (3/2012)
9.5%
Rapid economic March 2012
growth
Rapid economic growth
Inflation China
Inflation rate: 9.5% (3/2012)
3.6%
March 2012
Skyrocketing Pay Increase
& Pay progression
13. Talent Strategy _ Rewarding Talents (Cont’d)
Two-step pay progression trends
Another reason for high turnover: Pay Dispersion
- China: 300% (200% for US)
- India: N/A, but figured third in 2008
14. Talent Strategy _ Rewarding Talents (Cont’d)
Poor Implementation of “Pay for performance”
- No distinct difference in pay between high and average
performers
- Paying poor performers wage increase
* Top companies pay high performers twice the increase as
average performers and poor performance is not rewarded
MNC’s
Challenge “Internal equity” Problem
- Hiring new people at higher wages than most of the loyal
employees receive leads to de-motivation and encourages
disloyalty
- Fair pay between old employees and new hires
15. Conclusion
Common Talent Management practices for India and China
• Ensure Asian representation at senior levels to show the company’s strong
Career/
commitment to Asian market
Leadership
• Localize low/mid-management to create a pipeline for senior leadership
• Market pay alignment is essential to attract the right people in highly
competitive labor market.
• However, to retain people, MNCs need to look at total reward elements,
such as career, work-life balance and benefit.
Comp &
• Increase the pay gap between high performers and average performers to
Benefits
over 20% (the minimum threshold for bonus differentiation to be effective)
• To balance pay-for-performance and internal fairness, MNCs should
manage transparent processes to justify pay differences like job sizing and
grading, and communicate compensation policy openly with employees
16. Conclusion (Cont’d)
Specific Practices for India
• Offer more opportunities of overseas assignments, and build global work
Globality environment to attract Gen Y in India
• Enlarge employees’ exposure to global best practices
Empower- • Allow decentralized decision-making and wherever possible involve
ment local managers in India.
Non-financial • Despite financial factors, pay great attention to employees’ engagement
Engagement factor such as career advancement, meaningful and challenging job,
Factors and training development opportunities.
17. Conclusion (Cont’d)
Specific Practices for China
• Emphasize internal promotion and training opportunities instead of
Internal
overseas assignment, to attract and retain talents
Promotion
• Brand the company with strong commitment to Chinese market
• Provide language and culture training for key local talents
Culture
• Sign long-term expatriate contract
Diversity
• Reflect Chinese culture on recruiting and evaluation standards
Financial • Address financial engagement factors (base pay, retirement benefits
Engagement and incentives) and career prospect to motivate employees
Factors
Hinweis der Redaktion
Talent management remains one of the most pressing and challenging issues for business leaders globally. With Asia Pacific being one of the fastest growing region and a rapidly ageing demographic, the war for talent is even more important to organizations in the region. Yet organizations are struggling to find the right approaches and solutions to implement a successful talent management strategy.
Talent management remains one of the most pressing and challenging issues for business leaders globally. With Asia Pacific being one of the fastest growing region and a rapidly ageing demographic, the war for talent is even more important to organizations in the region. Yet organizations are struggling to find the right approaches and solutions to implement a successful talent management strategy.
Talent management remains one of the most pressing and challenging issues for business leaders globally. With Asia Pacific being one of the fastest growing region and a rapidly ageing demographic, the war for talent is even more important to organizations in the region. Yet organizations are struggling to find the right approaches and solutions to implement a successful talent management strategy.
Talent management remains one of the most pressing and challenging issues for business leaders globally. With Asia Pacific being one of the fastest growing region and a rapidly ageing demographic, the war for talent is even more important to organizations in the region. Yet organizations are struggling to find the right approaches and solutions to implement a successful talent management strategy.
Talent management remains one of the most pressing and challenging issues for business leaders globally. With Asia Pacific being one of the fastest growing region and a rapidly ageing demographic, the war for talent is even more important to organizations in the region. Yet organizations are struggling to find the right approaches and solutions to implement a successful talent management strategy.
(Hay Group’s extensive research on Most Admired Companies has shown that top global organizations typically pay their high performers twice the increase compared to their average performers, and that poor performance is not rewarded, but penalized with zero increases).
(Hay Group’s extensive research on Most Admired Companies has shown that top global organizations typically pay their high performers twice the increase compared to their average performers, and that poor performance is not rewarded, but penalized with zero increases).
(Hay Group’s extensive research on Most Admired Companies has shown that top global organizations typically pay their high performers twice the increase compared to their average performers, and that poor performance is not rewarded, but penalized with zero increases).
