HayGroup_Mind The Gap_ Managing Across Generations_Feb2013
What does it take to lead Indonesia's inter-generational tribes towards 2020?
By 2020, Indonesia will have the third fastest-growing workforce in the world. Our population will stand at 262 million; 60% of whom will be living in cities. As such, the workplace in Indonesia is facing a generational adjustment of values, learning and working styles that will have a huge impact on how leaders think and act.
In preparation for this seismic shift, what can companies in Indonesia do to ensure continued growth? What are the gaps between employee expectations and our HR tools? How can these gaps be bridged?
3Figure 1: Why employees joined the companyBaby Boomers Generation X Generation Y Opportunity to learn newCompany reputation Company reputation skillsInternational Opportunity to learn new Company reputationassignments skillsCompetitive pay Competitive pay Competitive payOpportunity to learn new Work-life balance Work-life balanceskillsEmployer branding Employer branding Employer brandingFigure 2: Why employees stay with the companyBaby Boomers Generation X Generation Y Opportunity to learn new Opportunity to learn newCompetitive pay skills skillsLeadership accessibility Competitive pay Competitive payMentoring programs Retention bonus Work-life balance Accelerated careerInternational Long-term incentives developmentassignments opportunitiesOpportunities to learn Leadership accessibility Retention bonusnew skillsLeadership accessibility is also competitive to the market to ensure it isimportant to Generation X, but not able not only to attract, but to retain thementioned at all by Generation Y. This is best talent.not surprising as the older group ofemployees want to work in As for Generation Y, what is crucial isorganizations where their contribution their career development path – it hasis valued and recognized by top to be clear and it has to be accelerated.management. So while money is important to them,Interestingly enough, three out of the learning and career opportunities andtop five reasons why Generation X stay work-life balance are also important toon at the company have to do with them. In other words, if a competitorreward: competitive pay, retention were to offer more career opportunitiesbonus and long-term incentive. Over without significantly more pay, chancesthe past few years, the company has are, they will go.adopted a policy of making itself www.haygroup.com/id
7Managing multiple generationsThe company’s employee survey sheds Not only must there be a Careersome very interesting insights on Management System, there must bemanaging employees in Indonesia. clear communications to employees about the objectives, measurements, Benefits are a very important motivat- and expectations from them. ing factor for all three generations. Awards and recognition, be it a This is a phenomenon seldom report- certificate of appreciation or a ed in other countries and seems to be restaurant voucher, needs to be a peculiarity of the Indonesian market. instantaneous and consistently The reasons employees join you delivered across the organization. are usually not the same reason for Engage employees in discussions their leaving. With the exception of about their career aspirations and competitive pay, employees join a development needs – today’s younger company because they are attracted generation want an active hand in to the employer brand or corporate planning their future rather than reputation. However, once they are being passive recipients of onboard, competitive pay becomes a management’s will. hygiene factor. The leadership skills of managers and The experience of our older the climate they generate are of generation is a valuable resource. paramount importance in motivating Tap on their willingness to share and and retaining employees. mentor their younger colleagues and we will be assured that institutional knowledge is kept within our companies. www.haygroup.com/id