Asia’s Increased Competitive Landscape - HR Implications on Talent Attraction and Retention by @EricPesik

Asia’s Increased
Competitive Landscape
HR Implications on
Talent Acquisition and Retention
http://www.flickr.com/photos/jorgecancela/8009593783/
Flickr Creative Commons

The Rise of Asia
What is the new diversified workforce?

• 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

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

USA at end of 20th Century
http://office.microsoft.com/en-us/images/results.aspx?qu=Old%20Glory#ai:MP900400667|mt:2|

China at end of 21st Century?
http://office.microsoft.com/en-us/images/results.aspx?qu=china+flag&ex=1#ai:MP900400801|mt:2|

What does
“the rise of Asia” mean?
http://office.microsoft.com/en-us/images/results.aspx?qu=Asian#ai:MP900430918|mt:2|

If you are 1 in a million...
http://office.microsoft.com/en-us/images/MP900439324.aspx?redir=0

In China, there are
1,350 people just like you
http://www.flickr.com/photos/dailuo/6759469363/

In India, there are
1,240 more
http://www.flickr.com/photos/56796376@N00/3059483658/

The top 10% of the
population in Asia...
Top 10%

Is greater than the entire
population of the United States
http://en.wikipedia.org/wiki/File:USA_orthographic.svg

There are more
honors students in Asia...

...than all students
in the USA combined
http://www.flickr.com/photos/pinksherbet/6961676525/

There are more
English-speaking people in Asia...

...than there are English people
http://www.flickr.com/photos/tinou/380129764/

...or Americans
http://www.flickr.com/photos/kevcole/4762409528/

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|

...Asia would still
have a labour surplus
http://www.flickr.com/photos/downeym/4550576962/

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)

Talent remains a critical pressure
point for Asia businesses

Singapore low population growth is
creating a labour shortage
http://oliveventures.com.sg/act/wp-content/uploads/2013/02/population-of-singapore-infographic.png

Cost of living is increasing
http://www.straitstimes.com/breaking-news/money/story/singapore-most-expensive-city-the-world-study-20140304

Compensation is rising
to grab scarce talent

Education strategies not
matched to talent demands

Shortage of qualified managers
in fast-growing Asia economies

Diversified workforce is challenging
conventional performance models
http://www.flickr.com/photos/kodomut/3274861957/

Majority of CEOs plan to increase
Asia headcount in 2014

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

20% of new hires
leave within the 1st year
http://www.flickr.com/photos/michaelduxbury/5004921106/

Turnover rates in Asia are twice
as high as US and Europe
15.2%
7.0% 6.6%
Asia USA Europe

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

Finding and retaining critical talent
is more challenging and expensive
http://www.flickr.com/photos/jseita/5407005494//

Global
43%
Asia
60%
It’s even more challenging in Asia
CEOs who say it is more difficult to hire talent

Less emphasis on structure
http://www.todayonline.com/singapore/play-important-early-childhood-education-heng-swee-keat

More emphasis on creativity
http://news.insing.com/feature/creativity-must-be-a-national-priority-nmp-janice-koh/id-f83b3101

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

Re-think HR’s role in how companies
attract and retain talent
http://flickr.com/photos/u-suke/7613586712

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

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

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

http://www.todayonline.com/singapore/more-locals-hired-last-year-growth-foreign-employment-slows

Winning Companies
What sets them apart?

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|

Priorities for Businesses
1. Attracting talent
2. Retaining talent
Priorities for business

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

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
The Corporate Executive Board Company., February 2014
Most frequently selected by employees in Singapore as reasons to join a new organization

Not all factors are equal
Rewards
WorkOrganization
Opportunity
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

But EVP is not enough

Facebook’s $19 Billion Mistake?
https://twitter.com/brianacton/status/3109544383

Overly-narrow job specifications
http://www.flickr.com/photos/kheelcenter/5279251361/

HR does the recruiting
http://office.microsoft.com/en-us/images/results.aspx?qu=MP900431736&ex=1#ai:MP900431736|

Traditional recruiting processes
http://www.flickr.com/photos/cushinglibrary/3738556077/

Failure to prep the candidate
http://www.flickr.com/photos/jyri/996063332/

Failure to prep hiring manager
http://office.microsoft.com/en-us/images/results.aspx?qu=MP900442211&ex=1#ai:MP900442211|

Failure to leverage the interview

Inadequate reference checks

Decision process too long

Job offer process too long

Performance & Pay
What else is new?

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)

It’s not about the money

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

Training
http://www.inc.com/abigail-tracy/onboarding-new-hires-dont-care-about-perks.html

HR needs more levers and dials
http://www.flickr.com/photos/boedker/93511050/

The factors that lead to
extreme job satisfaction are
separate and distinct
from the factors that lead to
dissatisfaction

-35%
-20%
-10%
-10%
-8%
-4%
-6%
-5%
-3%
-2%
-11%
-4%
-13%
-9%
-11%
3%
4%
5%
2%
7%
1%
4%
4%
2%
1%
18%
20%
21%
30%
40%
Company Policy and
Administration
Supervision
Relationship with
Supervisor
Work Conditions
Salary
Personal Life
Relationship with Peers
Relationship with
Subordinates
Status
Security
Growth and Advancement
Responsibility
Work Itself
Recognition
Achievement
It’s not about the money
One More Time: How Do You Motivate Employees?
Frederick Herzberg Harvard Business Review Reprint 87057

Normally we think of
satisfaction/dissatisfaction as
opposites. But job satisfaction
is not the opposite of job
dissatisfaction

Motivators
-11%
-4%
-13%
-9%
-11%
18%
20%
21%
30%
40%
Growth and
Advancement
Responsibility
Work Itself
Recognition
Achievement

Extreme job satisfaction
http://office.microsoft.com/en-us/images/results.aspx?qu=joy&ex=1#ai:MP900431739|mt:2|

Demotivators
-35%
-20%
-10%
-10%
-8%
3%
4%
5%
2%
7%
Company Policy
and Administration
Supervision
Relationship with
Supervisor
Work Conditions
Salary

Extreme job dissatisfaction
http://office.microsoft.com/en-us/images/results.aspx?qu=dispair&ex=1#ai:MP900431223|

Neutral factors
-4%
-6%
-5%
-3%
-2%
1%
4%
4%
2%
1%
Personal Life
Relationship with
Peers
Relationship with
Subordinates
Status
Security

Neither satisfied nor dissatisfied
http://office.microsoft.com/en-us/images/results.aspx?qu=boring&ex=1#ai:MP900442297|mt:2|

Instead of giving employees
raises, bonuses, and
promotions...

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|

Increase accountability of
individuals for their own work
http://office.microsoft.com/en-us/images/results.aspx?qu=Asian%20men#ai:MP900442502|mt:2|

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|

Grant additional authority and
job freedom in their activities
http://www.flickr.com/photos/mishism/5371077178/

Feedback reports directly to
workers rather than supervisors
http://office.microsoft.com/en-us/images/results.aspx?qu=thinking#ai:MP900430900|mt:2|

Offer new and more difficult
tasks not previously handled
http://office.microsoft.com/en-us/images/results.aspx?qu=thinking&ex=1#ai:MP900422989|mt:2|

Enable individuals to become
experts through specialized roles
http://office.microsoft.com/en-us/images/results.aspx?qu=presentations#ai:MP900427762|

How does HR Compensation
and Benefits fit in here?

supervision
status
security
work itself
recognitionsalary
personal life
achievement
responsibilitywork conditions
relationship with peers
growth and advancement
relationship with supervisor
relationship with subordinates
company policy and administration
HR Issues?

The motivators and
demotivators are not just
management issues.
They are HR issues.

Empower HR to change the
workplace environment
http://office.microsoft.com/en-us/images/results.aspx?qu=gestures#ai:MP900431153|mt:2|

Flexible work schedules
http://www.todayonline.com/singapore/raise-productivity-let-more-employees-work-home

Performance & Development
Who is a talent?

Reframe the discussion on talent
http://office.microsoft.com/en-us/images/results.aspx?qu=gestures#ai:MP900407401|mt:2|

Weak managers hire skills
http://office.microsoft.com/en-us/images/results.aspx?qu=bosses#ai:MP900448685|mt:2|

Strong managers hire talent
and teach specific skills
http://office.microsoft.com/en-us/images/results.aspx?qu=professionals#ai:MP900422122|mt:2|

To avoid talent shortages, hire
talented managers
http://office.microsoft.com/en-us/images/results.aspx?qu=motivations#ai:MP900435893|mt:2|

Apprenticeship and mentoring
http://office.microsoft.com/en-us/images/results.aspx?qu=teach&ex=1#ai:MP900427658|mt:2|

Technology undermines
search and retention of talent
Logos are trademarks of their respective companies

Application Tracking Systems
http://www.flickr.com/photos/enerva/9153746729/

HR is becoming database admins
http://www.flickr.com/photos/hunter0405/6396994487/

Successful candidates
from job boards
1.3% 1.2%

Screening out the best talent?

How to retain innovators?
http://www.forbes.com/sites/johnkotter/2013/08/21/googles-best-new-innovation-rules-around-20-time/

From HR Programs to Reality
What makes the difference?

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

Destined to Fail?
http://www.flickr.com/photos/fdecomite/388303700/

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%

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%

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

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

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

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

Barriers to transformation
http://www.flickr.com/photos/rob-young/2954535776/

How to get past key barriers
• 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

The question isn’t
who’s going to let me?
Its who’s going to stop me?
Paraphrasing Howard Roark
Ayn Rand
The Fountainhead

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

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
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
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.

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
Creative Commons Attribution License
You are free to share, copy, distribute, and transmit this work; to
remix or adapt this work; and to make commercial use of this
work, under the condition that you must attribute this work to me
(but not in any way that suggests that I endorse you or your use
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before reusing, you must obtain the original images from the
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restrictions imposed by the original source.
http://creativecommons.org/licenses/by/3.0/
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Asia’s Increased Competitive Landscape - HR Implications on Talent Attraction and Retention by @EricPesik

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