8 Signs Talent Retention Strategies are faltering - APAC


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This ebook is extracted out of the report Acquisition and Retention in the War for Talent. It belongs to the Kelly Global Workforce Index, a global questionnaire of the workforce solution company Kelly Services across 30 countries with more than 165,000 participants.

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8 Signs Talent Retention Strategies are faltering - APAC

  1. 8signs talentretentionstrategiesare falteringkelly Global workforce index ™Dhirendra shantilalAustralia, China, India, Indonesia,Malaysia, New Zealand,Singapore & Thailand
  2. Talent retention declines as opportunity grows in APACOver the past three years, something entirely counter- are seeking to move from one opportunity to the nextintuitive has occurred regarding employee retention to maximise their potential and expand their skill andacross the Asia-Pacific region. Despite unprecedented experience base.global economic turmoil over this period, the proportionof employees intending to leave their current job has For the most part, employees have created a newincreased. In uncertain times, employers generally career template for themselves that doesn’t include oneexpect to see an upswing in loyalty, yet the opposite employer for long periods of time. This poses a greathas occurred. challenge for HR professionals, recruiters and hiring managers across the region, and indeed the world. HowWhy? do you hold on to talent when talent has already decided to keep moving?In our latest survey of some 35,000 people across theregion, one thing is clear: employees are taking their Here, we explore the results of the latest Kelly Globalcareers into their own hands. They’re not waiting for Workforce Index in an attempt to provide some insights,the employment market to improve, for employers to a reality check, and some tangible ways forward.promote them, nor increase their salaries. Instead, theyKelly Global Workforce Index™ 2
  3. 1 / Voluntary attrition increasesMost employees are looking to move organisations, and despiteongoing economic turmoil, loyalty has not increased.Employees in the Asia-Pacific region have seen a job switchingslight increase in voluntary, planned exits from current Job Switching APAC Do you intend to look for a job with another organization within the next year? (% Yes, by region)employers over the past three years. 100 66% 58% 61% 71% 58% 68% 57% 65%Six in ten workers in the region say they intend to look 90for a job with another organization, and employees in 80Indonesia, Australia and New Zealand lead this trend.Significantly fewer employees in China and Malaysia say 70they intend to move jobs in the next 12 months (both58%) but still well above half the workforce in these 60countries. 50It appears that employees plan to move organizations 40as part of a broader career strategy—perhaps inresponse to decreasing career prospects in their current 30roles, increased opportunity externally, and the need to 20acquire new skills in a rapidly evolving market. 10 0 Australia China India Indonesia Malaysia New Zealand Singapore ThailandKelly Global Workforce Index™ 3
  4. 2 / Exits are now well-planned, strategic decisionsWhile voluntary attrition plans are on the rise, unplannedexits driven by personal frustration are low.The responses from employees in Asia-Pacific reveal “I quit!”that relatively few feel the “I quit” urge despite having I Quit! APAC Do you frequently think about quitting your current job and leaving your employer? (% Yes, by region)already planned their exits from their current employers. 100Many employees are seeking greater opportunities 33% 40% 30% 56% 41% 30% 37% 43%to develop and excel in their field, and the chance to 90use their existing skills and experience. They want a 80challenge and few feel that their current employer canoffer it. 70Around four in ten respondents in the region (39%) 60say they frequently think about quitting their job. This 50is highest in Indonesia (56%) and Thailand (43%), andlowest in India and New Zealand (both 30%). In fact, 40Indonesia and Thailand present a significant counter 30trend in the region—both report higher than averageintent to quit, yet higher than average satisfaction with 20employers. This could well be an indicator that a large 10proportion of what’s driving turnover is about the newopportunities that are opening up in these markets. 0 Australia China India Indonesia Malaysia New Zealand Singapore ThailandKelly Global Workforce Index™ 4
  5. 3 / Few employees feel their role is ‘meaningful’A sense of meaning and achievement is critical to retention—without itemployees are looking elsewhere in spite of economic uncertainty.Just half of employees (49%) feel that they have a sense job fulfillmentof ‘meaning’ in their work across Asia-Pacific. While Job Fulfillment APAC Does your current employment provide you with a sense of “meaning”? (% Yes, by region)both Australia, China, New Zealand, Singapore and 100Malaysia report lower levels of ‘meaning’ in their work 41% 44% 48% 80% 46% 40% 41% 71%than the global average, more than eight in ten (80%) in 90Indonesia and seven in ten (70%) in Thailand feel they 80have genuine job fulfilment. 70 60 50 40 30 20 10 0 Australia China India Indonesia Malaysia New Zealand Singapore ThailandKelly Global Workforce Index™ 5
  6. 4 / They believe having multiple employers is an advantageWhile some still believe its possible to have one employer for life,most see multiple employers is a career asset.While four in ten employees in India still believe in the one employer for lifeconcept of ‘one employer for life’ (41%), which is well One Employer for Life APAC To what degree do you agree or disagree that a “career-for-life” with one employer is relevant? (Total ‘agree’)ahead of those who still hold this view in Indonesia 100and Thailand (20% and 28% respectively), it seems it is 32% 34% 41% 20% 31% 29% 29% 28%becoming less and less likely in reality. Most employees 90now believe that staying with a single employer is a 80limitation on their career prospects. 70In APAC, some 70% of workers feel that gainingexperience with multiple employers is an asset to their 60careers. This is highest in some rapidly developing 50markets in the region such as Indonesia (81%), Thailand(81%), although India has the lowest rate of believing 40that multiple employers is an advantage (61%). Many of 30the developed markets in the region are somewhere inthe middle on this count: Australia (65%), New Zealand 20(66%) and Singapore (68%). 10 0 Australia China India Indonesia Malaysia New Zealand Singapore ThailandKelly Global Workforce Index™ 6
  7. 5 / Counter offers are unlikely to change their mindsFew employees are keen to have an open dialogue with their employers about theirdesire to move on, which signals their minds are already made up.People in APAC align with the global trend of not likely to share quitting plansintending to share their quitting plans with their How likely are you to share your potential plans to move to another organization with your employer, withemployers—just 29% say they would do so. However, Likely to share quitting plans APAC the thought that this may result in changes that may motivate you to stay? (Total ‘likely’, by region)employees in China are significant outliers on this 100 29% 42% 32% 19% 29% 30% 26% 21%count. Four in ten (42%) say they would share their 90intentions with their employer in the hope that it willresult in changes or counter-offers that will enable them 80to stay put. 70While there are large differences across the region, a 60large number of employees seem set on their plansto move organizations regardless of their managers’ 50response to their resignation. Given that most counter 40offers are usually just a rise in pay, employees are againindicating that financial incentives are not the only kind 30of change they’re looking for. 20 10 0 Australia China India Indonesia Malaysia New Zealand Singapore ThailandKelly Global Workforce Index™ 7
  8. 6 / Employees feel under-valuedand under-utilisedJust half of employees in Asia-Pacific (51%) feel realising potentialvalued by their current employer. This is the highest Realising potential APAC Do you feel that our current employer is realising the full benefits of your potential? (% Yes, by region)proportion in the world, and significantly ahead of those 100in Europe, yet still represents a less-than-ideal picture 29% 29% 46% 69% 38% 29% 30% 62%for employers. 90 80The sense of being valued is lowest in Singapore (41%)with similar results in Australia (43%) and New Zealand 70(43%). Yet, Thailand and Indonesia represent majoroutliers on this count. The majority of employees in 60these countries say they feel valued, and this is partly 50explained by the fact that they report far higher rates offeeling fully utilised in their roles. 40While just 29% of employees in Australia, New Zealand 30and China report that their full potential is being 20realised by their current employer, this figure is 62% inThailand and higher again in Indonesia (69%)—both 10exceptionally high by world standards. 0 Australia China India Indonesia Malaysia New Zealand Singapore ThailandKelly Global Workforce Index™ 8
  9. 7 / They are looking for personaladvancement first and foremostWhat really keeps employees engaged— enjoyable and challengingwork—is often difficult for managers to respond to.Personal growth and advancement is the number one Factors that drive job choice factors that drive job choicefactor in deciding whether to accept a role. The two Which of the following factors would drive your decision to accept one job/position over another? (By region)issues of personal fulfilment and personal growth/ 100advancement account for around three-quarters (75%)of all responses across Asia-Pacific, signalling againthat rapid development and promotion is the key to 80retention in the region.When compared with financial incentives, personaladvancement far outweighs pay as a driver of job 60acceptance in every country across the region. 40 20 0 Australia China India Indonesia Malaysia New Zealand Singapore Thailand Personal fulfillment/growth/advancement Compensation/benefitsKelly Global Workforce Index™ 9
  10. 8 / Their desire for reward is personalThey expect a reward, but don’t assume it’s all about more money.Compared to the global average, more people in the Rewarding Performance rewarding performanceAsia-Pacific region say they expect some formal reward What is your preferred way of being rewarded for good performance at work (By region)for a job well done. However, there are vast differences 100across the region. In Australia and New Zealand, aroundone-in-five people say they don’t expect any rewardfor high performance (20% and 17% respectively), yet 80across every other country this is very low—down to just1% in China. So, for the most part, employees expectsomething. But promotion is high on their agenda and 60a very close second to financial reward.The significant differences across all countries andregions points to the fact that rewards and incentives 40are very personal. Having a one-size-fits-all approachis likely to miss the mark, as none of the suggestedperformance rewards can claim to meet the desires of 20the majority of any worker population. 0 Australia China India Indonesia Malaysia New Zealand Singapore Thailand Financial Bonus None requiredKelly Global Workforce Index™ 10
  11. conclusionA global pattern has emerged in talent retention. Most finding ways to demonstrate the ways in which each role Ensuring that managers and HR departments have a clearpeople are planning to switch jobs this year, and they contributes to overall outcomes is key to retention and view of the skills that each employee has, and makinghave clear strategic reasons for doing so. Few employees productivity. Team recognition is fine, but individuals internal movement opportunities and project teams moreacross Asia-Pacific feel that their full potential is being (particularly highly talented ones) want to see how flexible will help both employer and employee access theutilised and many are seeing greater opportunities in their they impact results too, and this means finding ways to full spectrum of talent and skills available.local markets. This inevitably throws up a negative cycle measure and report on it. TIP #5 / Find ways to move employees internally:for employers: one employee leaves to pursue their goals allowing employees to choose projects and make a TIP #3 / Think like a contingent worker: even in marketselsewhere, another arrives in their place with the same case for being part of them, as well encouraging other such as Thailand and Indonesia where employees are moregoal. Instead of being locked into an endless, vicious departments/managers and teams to seek skills internally, satisfied with their current employer, movement intentionscycle, HR professionals, and managers must: will increase development and growth opportunities for are still high and are driven by the perception that newTIP #1 / Keep an eye on the competitive landscape: employers bring new opportunities. Therefore, employers internal talent.greater employment opportunities in Asia are driving in the region need to consider ways to offer the benefits TIP #6 / Ask how they want to be rewarded: pay anddecreasing retention despite improvements in pay and of contingent work to permanent employees. A growing benefits are clearly important to workers in the region,other employment conditions. Understanding the market, proportion of workers around the world are moving to yet each employee is different. Consider how you mightincluding specific skills shortages, will assist employers the free agent work-style, and around one-third of most provide employees with access to other projects, skills andto offer a competitive overall package to employees workforces are now made up of contingent labour, so new responsibilities when they reach their performance targets.seeking rapid promotion and skill development in the fast- retention strategies need to consider ways to increase the If we know employee movement is driven by the desire todeveloping markets. engagement and motivation of these employees too. access new skills, finding ways is critical to retention.TIP # 2 / Focus on ways to demonstrate the outcomes TIP #4 / Commit resources to document and track skills:and contribution of each employee’s role: meaning if employees feel their skills are being fully utilised in theirat work is critical to engagement and satisfaction, so role, they are more likely to feel valued by their employer.Kelly Global Workforce Index™ 11
  12. This ebook is extracted out of the report Acquisition and Retention in the War for Talent. Download your FREE copy today.About the AuthorWith over 30 years of experience in the recruitment industry, DHIRENdra shantilal oversees the entireoperations of Kelly Services for Asia Pacific across 12 countries and territories – Australia, China, Hong Kong,India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea and Thailand. Previouslya co-founder of Business Trends, he led the strategic integration of Business Trends with Kelly Services in theyear 2000. Dhiren holds an MBA from the University of Durham (UK) and a Diploma in Marketing awarded bythe Chartered Institute of Marketing (CIM).MethodologyThe Kelly Global Workforce Index was open to respondents around the globe and took the form of a questionnaire on the KellyServices website. Data was collated and analyzed by RDA Group. A number of questions have remained consistent over the courseof the survey and allow time-series analysis.About KellyKelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforce solutions. Kelly® offers a comprehensive array ofoutsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire and direct-hire basis. Servingclients around the globe, Kelly provides employment to more than 550,000 employees annually. Revenue in 2011 was $5.6 billion.Visit www.kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter. EXITKelly Global Workforce Index™