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HayGroup
  Since 1943
The facts and figures




    84                                  2600                  8000                    $450m
    Offices in 48 countries             Employees worldwide   International clients   Turnover


© 2012 Hay Group. All rights reserved                                                            3
We help organizations
work. We provide insight
into how individuals,
skills and jobs connect
to strategic goals.
We use that connection
to transform business
strategies into
organizational solutions.
We are passionate about
people and solutions
and we pride ourselves
on identifying issues and
challenges that others
don’t.
How we organize our business

   Our purpose                                    Helping organizations work

   Our practice                   Building effective    Leadership and
                                                                                            Reward services
   clusters                       organizations         talent

   Our service                    BEO solutions         Leadership                          Executive
   lines                                                transformation                      rewards

                                                                                            Job
                                                                                            evaluation




                                                                         Hay Group online
                                                        Capability
                                                        assessment                          Reward Information




                                                                         diagnostics
                                  Performance
                                                                                            Services
                                  management
                                                        Talent                              Reward
                                                        management                          strategies

                                           Hay Group Insight: employee and customer surveys

© 2012 Hay Group. All rights reserved                                                                            7
Indonesia
  Since 1991
Next generation HR
Connecting strategy, people and work

                                       Nidthia Chelvam
Facts and figures

         More than 1,400 respondents from 80 countries




         46%
                                        operate in
                                        more than
                                        5 countries


                                                        61%   regional or
                                                              global role


                                                 more than

                            55%                  1,000
                                                 employees
                                                                        revenues of

                                                             71%        more than
                                                                        £100million

© 2012 Hay Group. All rights reserved                                                 10
Key themes it explored...



                               01                02                03
                                                         What does next
     How has                            To what extent   generation HR look
     the business                       has the role     like and how do we
     world changed?                     of HR changed?   get there?




© 2012 Hay Group. All rights reserved                                         11
How has the business environment
         changed in the last 5 years?

                                        More austere than 5   More growth than 5   No different to 5
     Region                                 years ago             years ago           years ago

     Global                                    35%                   57%                 8%

     Africa                                    18%                   65%                 18%

     Asia                                      13%                   77%                 10%

     Europe                                    51%                   43%                 6%

     North America                             39%                   51%                 10%

     Pacific                                   37%                   51%                 12%

     Latin America                             19%                   77%                 4%

© 2012 Hay Group. All rights reserved                                                                  12
Asia: The business environment that
         organizations are operating in is…


                                        13%




                   10%                               More dynamic/experiencing more
                                                    More austere/stagnant than 5
                                                     growth than five years ago
                                                    years ago

                                                    Moredifferent / experiencing more
                                                     No dynamic to five years ago
                                                    growth than 5 years ago

                                                    No different to 5 years ago than five
                                                    More austere/stagnant
                                                    years ago



                                              77%




© 2012 Hay Group. All rights reserved                                                       13
What impact have economic conditions
         had on business performance?

                                        Performance is Performance is Performance is
     Region                                on target    below target   above target    N/A

     Global                                 51%             31%            13%         4%

     Africa                                 24%             29%            18%         29%

     Asia                                   42%             33%            20%         5%

     Europe                                 49%             34%            14%         3%

     North America                          55%             28%            13%         4%

     Pacific                                51%             44%            2%          2%

     Latin America                          61%             27%            9%          3%

© 2012 Hay Group. All rights reserved                                                        14
Asia: Performance expectations

                                        5%



                        20%                         Business performance is on
                                                    target this year
                                                   Business performance is on target this year
                                             42%
                                                     Business performance is
                                                   Business performance is below target this
                                                     below target this year
                                                   year
                                                   Business performance is above target this
                                                     Business performance is
                                                   year
                                                    above
                                                   N/A        target this year

                                                    N/A



                                33%




© 2012 Hay Group. All rights reserved                                                            15
Testing times

         Austerity vs. growth



                      01                       02               03                04
                                                         International     Technological
     Exploiting                         Customer         borders are       innovation has
     growth                             expectations     coming down       become an
     opportunities                      have increased   and global        essential
     and improving                      and must be      competition has   competitive
     efficiencies                       met              intensified       requirement


                  The rules of business have changed…
© 2012 Hay Group. All rights reserved                                                       16
Organizations now
realize that people are
the difference
between long-term
success and failure
A shift from structures to talent



       70%
       60%
       50%
       40%
       30%
       20%
       10%
         0%
                      Talent            Succession   Performance    Roles and      Pay and      Organization
                   management             plans      management      grading       reward         model /
                    programs                          programs                                   structure


                                    We plan to make significant changes over the next 5 years
                                    There have been significant changes in the last 5 years

© 2012 Hay Group. All rights reserved                                                                          18
Top 5 priorities


                   Past five years                   Now                      Next five years

                                            Improving employee
       Complying with HR legislation                                    Developing future leaders
                                                 engagement

                                        Enhancing individual and team   Ensuring greater return on
        Reducing employee turnover
                                                  performance            investment through people


          Increasing productivity and    Increasing productivity and
                                                                             Attracting talent
               ‘doing more with less’         ‘doing more with less’

       Reducing people-related costs          Attracting talent         Efficient workforce planning

                                                                         Enhancing performance /
            Creating more effective
                                                                           Creating more effective
            performance management        Developing future leaders
                                                                          performance management
                     programs
                                                                                  programs

© 2012 Hay Group. All rights reserved                                                                  19
A new way of working



                               01                   02                      03
     The business                       If an organization is     The importance of
     landscape is                       to perform at its         human capital
     complex, it’s                      best – it is crucial to   issues has put HR
     unpredictable and                  unlock the power of       firmly in the
     it’s challenging                   its people                spotlight…




© 2012 Hay Group. All rights reserved                                                 20
Questions?
Indonesia is next…

                               6
                                                                               Efficiency-driven




                                                                                                                                                    Innovation-driven
                                        Factor-driven


                              5.9                                                                                                                                                 Stages of Economic Development
                              5.8

                              5.7
   Global Competitive Index




                              5.6
                                                                                                                                                                                                                     SWEDEN
                              5.5                                                                                                                                                                      SINGAPORE
                                                                                                                                                                                                          G'MANY          US
                              5.4
                                                                                                                                                                                                           JAPAN      FINLAND
                                                                                                                                                                                                                                NETHERLAND
                              5.3                                                                                                                                                                          CANADA
                                                                                                                Transition Stage
                                                        Transition Stage




                                                                                                                                                                                                  UK
                              5.2
                                                                                                                                                                                                                   AUSTRALIA
                                                                                                                                                                                                                   FRANCE
                              5.1
                                                                                                                                                                                                                    BELGIUM
                               5
                                                                                                                                        KOREA REP                            NZ
                              4.9                                                                  MALAYSIA
                                                                           CHINA
                              4.8                                                                                                            Indonesia 2025
                                                                                                                                                                                                                                      IRELAND
                              4.7                                                                       CHILE                                                                                           ICELAND

                              4.6                                                                                                  ESTONIA
                                                                                                                                                                                       KUWAIT

                              4.5                                          THAI
                                                                                                                                                                                       UAE

                              4.4
                                                              Indonesia 2010
                                                INDIA
                              4.3                                                                    BRAZIL
                                                VIETNAM
                              4.2

                              4.1

                               4
                                    0                                      5                           10                          15         20                        25        30         35           40         45          50          55



                                                                                                                                    GDP per capita (USD’000)
© 2012 Hay Group. All rights reserved                                                                                                                                                             Source: Global Competitiveness Report 2010      22
Innovation-based economy

                           Knowledge worker   Appropriate knowledge
                                              and technology




                                        01
                           Entrepreneurship   R&D
                                                          02

© 2012 Hay Group. All rights reserved
                                        03                04
                                                                      23
56% of respondents
in Asia are not
confident they have
the right people in the
right roles
If a business is to perform
at its best then it’s critical
to have the right people,
in the right roles, doing
the right work
Are Indonesians ready?

                                                       Employee Engagement

                                                 LOW                         HIGH

                                             Detached                     Effective
            Employee Enablement


                                  HIGH




                                         North America = 11%        North America = 50%
                                         South-east Asia = 16%      South-east Asia = 52%
                                         North-east Asia = 18%      North-east Asia = 41%


                                             Ineffective                 Frustrated
                                  LOW




                                         North America = 25%        North America = 14%
                                         South-east Asia = 25%      South-east Asia = 8%
                                         North-east Asia = 31%      North-east Asia = 10%

© 2012 Hay Group. All rights reserved                                                       26
Why employees leave you?

                                          % of                              % of                              % of
       Baby Boomers                     response      Generation X        response      Generation Y        response
                                                                                     Limited growth
                                                   External inequity of
 Lack of recognition                      48%                               59%      opportunities in         65%
                                                   compensation
                                                                                     the organisation
                                                   Limited growth
 Direct supervisor's                                                                 External inequity of
                                          42%      opportunities in         59%                               62%
 management style                                                                    compensation
                                                   the organisation
                                                                                     Lack of career
 Performance
                                          39%      Lack of recognition      55%      development              57%
 assessments
                                                                                     program
                                                   Lack of career
 Business instability                     36%      development              51%      Lack of recognition      49%
                                                   program
 External & Internal
                                                   Direct supervisor's               Direct supevisor's
 inequity of                              35%                               41%                               43%
                                                   management style                  management style
 compensation
© 2012 Hay Group. All rights reserved                                                                               27
Why employees join you?

                                          % of                           % of                           % of
       Baby Boomers                                   Generation X                   Generation Y
                                        response                       response                       response

 Company reputation                       77%      Competitive pay       79%      Competitive pay       84%

                                                   Opportunity to                 Opportunity to
 Long term incentive                      69%                            56%                            61%
                                                   learn new skills               learn new skills

                                                   Company's                      International
 Competitive pay                          63%                            56%                            55%
                                                   reputation                     assignments

 Leadership
                                          61%      Work life balance     48%      Employer branding     51%
 accessibility

                                                   Leadership
 Employer branding                        45%                            47%      Work life balance     43%
                                                   accessibility

© 2012 Hay Group. All rights reserved                                                                         28
How they stack up? (US=base)




© 2012 Hay Group. All rights reserved   Source: Hay Group PayNet 200929
Premium of Management vs Clerical




    (Base = Clerical)


© 2012 Hay Group. All rights reserved        Source: Hay Group PayNet2009
                                                                            30
Big pay differentials across job grades
               USD
                                                  China    Singapore        Indonesia
  250,000

  225,000

  200,000

  175,000                                                        Two steps increase in
  150,000                                                          Singapore is 46%

  125,000
                                                     Two steps increase
  100,000                                             in China is 85%
    75,000

    50,000
                                                                                                Two steps increase
    25,000
                                                                                                in Indonesia is 75%
          -
               11          12           13   14      15    16      17      18         19   20        21         22        23
                                                          Hay Group Reference Level
© 2012 Hay Group. All rights reserved                                                           Source: Hay Group PayNet, 2010 31
How soon they leave? (average)




© 2012 Hay Group. All rights reserved                                    32
                                        Source: Hay Group PayNet, 2010
What motivates your employees?

                                          % of                           % of                         % of
       Baby Boomers                                  Generation X                    Generation Y
                                        response                       response                     response

                                                   Development
 Benefits provided                       59%                            58%       Cash reward        77%
                                                   opportunities
 Ability to make                                                                  Development
                                         54%       Benefits provided    58%                          64%
 decisions                                                                        opportunities
 Respect from
                                                                                  Management
 senior leadership                       51%       Cash reward          54%                          56%
                                                                                  style
 team
                                                   Respect from
 Company culture                         47%       senior leadership    54%       Flexibility        53%
                                                   team
 Recognition and                                   Ability to make                Recognition and
                                         38%                            47%                          43%
 appreciation                                      decisions                      appreciation

© 2012 Hay Group. All rights reserved                                                                      33
Questions?
Thank You

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Forum bole 20120802_nidthia_c

  • 1.
  • 3. The facts and figures 84 2600 8000 $450m Offices in 48 countries Employees worldwide International clients Turnover © 2012 Hay Group. All rights reserved 3
  • 4. We help organizations work. We provide insight into how individuals, skills and jobs connect to strategic goals.
  • 5. We use that connection to transform business strategies into organizational solutions.
  • 6. We are passionate about people and solutions and we pride ourselves on identifying issues and challenges that others don’t.
  • 7. How we organize our business Our purpose Helping organizations work Our practice Building effective Leadership and Reward services clusters organizations talent Our service BEO solutions Leadership Executive lines transformation rewards Job evaluation Hay Group online Capability assessment Reward Information diagnostics Performance Services management Talent Reward management strategies Hay Group Insight: employee and customer surveys © 2012 Hay Group. All rights reserved 7
  • 9. Next generation HR Connecting strategy, people and work Nidthia Chelvam
  • 10. Facts and figures More than 1,400 respondents from 80 countries 46% operate in more than 5 countries 61% regional or global role more than 55% 1,000 employees revenues of 71% more than £100million © 2012 Hay Group. All rights reserved 10
  • 11. Key themes it explored... 01 02 03 What does next How has To what extent generation HR look the business has the role like and how do we world changed? of HR changed? get there? © 2012 Hay Group. All rights reserved 11
  • 12. How has the business environment changed in the last 5 years? More austere than 5 More growth than 5 No different to 5 Region years ago years ago years ago Global 35% 57% 8% Africa 18% 65% 18% Asia 13% 77% 10% Europe 51% 43% 6% North America 39% 51% 10% Pacific 37% 51% 12% Latin America 19% 77% 4% © 2012 Hay Group. All rights reserved 12
  • 13. Asia: The business environment that organizations are operating in is… 13% 10% More dynamic/experiencing more More austere/stagnant than 5 growth than five years ago years ago Moredifferent / experiencing more No dynamic to five years ago growth than 5 years ago No different to 5 years ago than five More austere/stagnant years ago 77% © 2012 Hay Group. All rights reserved 13
  • 14. What impact have economic conditions had on business performance? Performance is Performance is Performance is Region on target below target above target N/A Global 51% 31% 13% 4% Africa 24% 29% 18% 29% Asia 42% 33% 20% 5% Europe 49% 34% 14% 3% North America 55% 28% 13% 4% Pacific 51% 44% 2% 2% Latin America 61% 27% 9% 3% © 2012 Hay Group. All rights reserved 14
  • 15. Asia: Performance expectations 5% 20% Business performance is on target this year Business performance is on target this year 42% Business performance is Business performance is below target this below target this year year Business performance is above target this Business performance is year above N/A target this year N/A 33% © 2012 Hay Group. All rights reserved 15
  • 16. Testing times Austerity vs. growth 01 02 03 04 International Technological Exploiting Customer borders are innovation has growth expectations coming down become an opportunities have increased and global essential and improving and must be competition has competitive efficiencies met intensified requirement The rules of business have changed… © 2012 Hay Group. All rights reserved 16
  • 17. Organizations now realize that people are the difference between long-term success and failure
  • 18. A shift from structures to talent 70% 60% 50% 40% 30% 20% 10% 0% Talent Succession Performance Roles and Pay and Organization management plans management grading reward model / programs programs structure We plan to make significant changes over the next 5 years There have been significant changes in the last 5 years © 2012 Hay Group. All rights reserved 18
  • 19. Top 5 priorities Past five years Now Next five years Improving employee Complying with HR legislation Developing future leaders engagement Enhancing individual and team Ensuring greater return on Reducing employee turnover performance investment through people Increasing productivity and Increasing productivity and Attracting talent ‘doing more with less’ ‘doing more with less’ Reducing people-related costs Attracting talent Efficient workforce planning Enhancing performance / Creating more effective Creating more effective performance management Developing future leaders performance management programs programs © 2012 Hay Group. All rights reserved 19
  • 20. A new way of working 01 02 03 The business If an organization is The importance of landscape is to perform at its human capital complex, it’s best – it is crucial to issues has put HR unpredictable and unlock the power of firmly in the it’s challenging its people spotlight… © 2012 Hay Group. All rights reserved 20
  • 22. Indonesia is next… 6 Efficiency-driven Innovation-driven Factor-driven 5.9 Stages of Economic Development 5.8 5.7 Global Competitive Index 5.6 SWEDEN 5.5 SINGAPORE G'MANY US 5.4 JAPAN FINLAND NETHERLAND 5.3 CANADA Transition Stage Transition Stage UK 5.2 AUSTRALIA FRANCE 5.1 BELGIUM 5 KOREA REP NZ 4.9 MALAYSIA CHINA 4.8 Indonesia 2025 IRELAND 4.7 CHILE ICELAND 4.6 ESTONIA KUWAIT 4.5 THAI UAE 4.4 Indonesia 2010 INDIA 4.3 BRAZIL VIETNAM 4.2 4.1 4 0 5 10 15 20 25 30 35 40 45 50 55 GDP per capita (USD’000) © 2012 Hay Group. All rights reserved Source: Global Competitiveness Report 2010 22
  • 23. Innovation-based economy Knowledge worker Appropriate knowledge and technology 01 Entrepreneurship R&D 02 © 2012 Hay Group. All rights reserved 03 04 23
  • 24. 56% of respondents in Asia are not confident they have the right people in the right roles
  • 25. If a business is to perform at its best then it’s critical to have the right people, in the right roles, doing the right work
  • 26. Are Indonesians ready? Employee Engagement LOW HIGH Detached Effective Employee Enablement HIGH North America = 11% North America = 50% South-east Asia = 16% South-east Asia = 52% North-east Asia = 18% North-east Asia = 41% Ineffective Frustrated LOW North America = 25% North America = 14% South-east Asia = 25% South-east Asia = 8% North-east Asia = 31% North-east Asia = 10% © 2012 Hay Group. All rights reserved 26
  • 27. Why employees leave you? % of % of % of Baby Boomers response Generation X response Generation Y response Limited growth External inequity of Lack of recognition 48% 59% opportunities in 65% compensation the organisation Limited growth Direct supervisor's External inequity of 42% opportunities in 59% 62% management style compensation the organisation Lack of career Performance 39% Lack of recognition 55% development 57% assessments program Lack of career Business instability 36% development 51% Lack of recognition 49% program External & Internal Direct supervisor's Direct supevisor's inequity of 35% 41% 43% management style management style compensation © 2012 Hay Group. All rights reserved 27
  • 28. Why employees join you? % of % of % of Baby Boomers Generation X Generation Y response response response Company reputation 77% Competitive pay 79% Competitive pay 84% Opportunity to Opportunity to Long term incentive 69% 56% 61% learn new skills learn new skills Company's International Competitive pay 63% 56% 55% reputation assignments Leadership 61% Work life balance 48% Employer branding 51% accessibility Leadership Employer branding 45% 47% Work life balance 43% accessibility © 2012 Hay Group. All rights reserved 28
  • 29. How they stack up? (US=base) © 2012 Hay Group. All rights reserved Source: Hay Group PayNet 200929
  • 30. Premium of Management vs Clerical (Base = Clerical) © 2012 Hay Group. All rights reserved Source: Hay Group PayNet2009 30
  • 31. Big pay differentials across job grades USD China Singapore Indonesia 250,000 225,000 200,000 175,000 Two steps increase in 150,000 Singapore is 46% 125,000 Two steps increase 100,000 in China is 85% 75,000 50,000 Two steps increase 25,000 in Indonesia is 75% - 11 12 13 14 15 16 17 18 19 20 21 22 23 Hay Group Reference Level © 2012 Hay Group. All rights reserved Source: Hay Group PayNet, 2010 31
  • 32. How soon they leave? (average) © 2012 Hay Group. All rights reserved 32 Source: Hay Group PayNet, 2010
  • 33. What motivates your employees? % of % of % of Baby Boomers Generation X Generation Y response response response Development Benefits provided 59% 58% Cash reward 77% opportunities Ability to make Development 54% Benefits provided 58% 64% decisions opportunities Respect from Management senior leadership 51% Cash reward 54% 56% style team Respect from Company culture 47% senior leadership 54% Flexibility 53% team Recognition and Ability to make Recognition and 38% 47% 43% appreciation decisions appreciation © 2012 Hay Group. All rights reserved 33