This is the full version of "Enter the Dragon", a whitepaper by Anthony Raja Devadoss, which is exploring the new talent challenges for asian economies.
This paper will give you a deeper insight in how to:
• Finding and securing talent in a tight employment market
• Retaining and managing existing resources to best effect
• Building the kind of corporate culture that overcomes challenges in the APAC region
• Obtaining the right talent to shift from a cost focus to a quality focus
• Managing rising costs
2. 2 | enTer The Dragon
inTroDucTion
The world’s economic woes are not shared equally. In fact, signs of a slowdown
may be just what some Asian economies need right now.
As full-tilt growth subsides, governments can shift their focus to domestic
matters, including containing inflation—central banks in India, Korea, Taiwan and
Thailand raised rates in June 2011—and removing barriers to future growth.
From this relatively comfortable economic vantage point, Asian businesses can
begin to consider how they will tackle the barriers to future growth in 2012 and
beyond, including:
• Finding and securing talent in a tight employment market
• Retaining and managing existing resources to best effect
• Building the kind of corporate culture that overcomes challenges in the region
• Obtaining the right talent to shift from a cost focus to a quality focus
• Managing rising costs
In this three-part series, we walk you through these focus areas and provide
insights about how they might be managed effectively.
conTenTs
3 avoiDing The PiTfalls of a TighT TalenT markeT
10 global culTure, local minDseT: insighTs for reTenTion
19 making The shifT: qualiTy anD service in The new economy
3. 3 | enTer The Dragon | avoiDing PiTfalls of a TighT TalenT markeT
avoiDing
The PiTfalls
of a TighT
TalenT
markeT
asia has not become an economic
juggernaut by accident—the volume of
goods produced and the speed with
which they’re delivered is quite unlike
anywhere else in the world. maintaining
this now requires a fresh approach,
particularly when it comes to the region’s
most valuable natural resource: people.
anThony raja DevaDoss
4. 4 | enTer The Dragon | avoiDing PiTfalls of a TighT TalenT markeT
yes, iT’s hoT in here. As business shifts its focus ever
more to Asia, the competition for skilled talent is increasing. Employers
report they are having the most difficulty finding the right people to fill
jobs in Japan (80%), India (67%), Australia (54%) and Taiwan (54%)
employment is high across the region: standards, increasing pressure on HR teams emerging faster For employers in the region, the competition
to acquire, retain and develop scarce talent. The growth trend in emerging nations is for talent is strong and is likely to remain so
• The unemployment rate in singapore was
worldwide, not just in Asia. In fact, by 2018, for the foreseeable future, and local success
2.1% in June 2011 Perhaps one of the greatest contributors it’s predicted that emerging economies will stories will increasingly become major talent
• south korea’s jobless rate was just 3.3% over the medium term to further decreases overtake developed nations to generate competitors for large, global organizations.
in June 2011 in unemployment in the region is the flow- more than 50% of the world’s GDP. While
on effect of investment in China. Chinese this trend has been building for some time,
• Thailand has the second-lowest
wages are rising at around 17% per year the rate at which the change is occurring is
unemployment rate in the world at
and this now means that some of the about to pick up considerable pace. Not only
just 0.5%
benefits of outsourcing to China are are we seeing a shift in consumption, trade,
• indonesia’s unemployment rate is among diminishing. For China’s neighboring population and output away from developed
the highest in the region at 6.8% in economies, there is a significant upside nations, we are seeing the shift accelerate—
February 2001, but much of the workforce to this trend. Some of the jobs that would and this means that businesses in both
is unskilled have been based in China are now flowing developed and emerging economies
into countries like Vietnam, Thailand and have less time to prepare for the shift in
Economic slowdown or not, the job market Indonesia and intra-regional outsourcing is talent requirements.
in Asia is likely to remain enviable by world becoming increasingly attractive.
5. 5 | enTer The Dragon | avoiDing PiTfalls of a TighT TalenT markeT
local versus global. Already, almost one-quarter of the
Fortune Global 500 firms come from emerging markets; in 1995 it was just
four per cent. As the economic locus of the world changes, so too does the
way in which potential employees weigh up career options, and the large,
foreign company will no longer be the lone font of opportunity in the region.
Smaller organizations typically provide faster resourcing alliances and partnerships to
career progression (provided they continue to deliver the same benefits.
grow) and they have the advantage of insider
knowledge and relationships so they can tap Local firms and new entrants to the
into talent through informal networks. This labor market will be increasingly strong
head-start that local businesses have over competition for global companies looking for
others is going to be a growing problem for growth. To grow, you need talent, but you
non-local organizations looking to increase need talent that wants to work for you above
headcount in the region. It is also well-known anyone else. Without the right connections
that recruiting through informal networks and networks this is always a challenge. In
often delivers better retention outcomes, so a region with cultural values rooted firmly
companies will either need to build these in community and family values, it’s an even
networks (fast), or look for strategic human tougher ask.
6. 6 | enTer The Dragon | avoiDing PiTfalls of a TighT TalenT markeT
Take your TemPeraTure. As markets continue
to seesaw and analysts pore over mountains of economic data
for any sign of slowdown they can find, it’s hardly surprising that
business should catch at least a mild case of the jitters.
It is tempting, even for firms that are doing skilled and valuable people than consequences that might result from talent lead to a loss of business value that is difficult
well through the uncertainty, to put growth during uncertainty, and possibly even departure, such as: (or impossible) to regain.
plans on ice, to maintain margins and reduce during downturn. This is when businesses
debt at the expense of expansion. Typically, should focus their efforts of what’s • loss of key clients/disrupted relationships When everyone else starts running at full
when executives start talking about ‘building fundamentally right in their strategy and pace again, it will be harder to make up
• loss of key business knowledge and skills ground that you’ve lost, particularly in a labor
reserves’, ‘consolidating’ and ‘reviewing’ what’s working well.
strategy, HR managers can find themselves market that looks as difficult to negotiate as
• job dissatisfaction if workloads
reaching for the retrenchment policy. Resisting the urge to follow when the herd Asia’s. So, even if financial pressures do begin
increase for remaining employees
seems to be heading in the opposite direction to bite, companies should look to alternative,
Cost-cutting, first and foremost, has is tough, and this is usually when jobs are • loss of knowledge and flexible staffing solutions instead of just
employee numbers in its sights, and this is shed in panic—where good people are let go business expertise reducing their workforce in one blunt move.
where companies in strong and growing along with underperformers. The best 20%
markets throughout Asia could find of employees are able to raise operational • Broader reputational damage
themselves falling into what could become an productivity, profit and sales revenue—these
The difference between cost and value can
irreversible talent trap. are the people you want to retain.
be critical when it comes to employees. What
losing what you can’t get back In any economic climate, but particularly an employee is ‘worth’ can be difficult to
At no point in the business or economic cycle during this period of consolidation quantify, but it’s rarely just equivalent to their
is it more prudent to hold on to your most rather than growth in Asia, consider the salary, and cost savings from terminations can
7. 7 | enTer The Dragon | avoiDing PiTfalls of a TighT TalenT markeT
firsT, have a TalenT ‘check uP’. If we take the
“glass half full” approach for a moment and assume that any slowdown
that does occur across Asia might just provide a chance to regroup
and retool, now is the time businesses should be focusing on the
strength of their talent assessment and management strategies.
These strategies include: performance planning process, but two other Talent identification Every organization has talent gaps, it’s what
1. Documenting the core competencies of elements are often overlooked: There is of course the job, and then there’s they do about them that counts. Short-term
every position in the organization the individual in it. Even if you have a great gains need to be weighed up against longer-
• what new skills have each individual job description and you know what makes term consequences. Simply asking workers
2. understanding how those core developed and that may not be being that role a success, how visible are talented to do more with less will impact on quality,
competencies relate to executing the used in their current roles, particularly as individuals on the organizational radar? customer service and staff turnover, and in a
company strategy new training and education is completed? highly competitive market, someone else will
Relying on individual managers to recognize be waiting to capitalize on job satisfaction
3. identifying and managing the talent
• what new talents and skills does and manage talented employees without
you have issues like these.
each role need in order to deliver on a guiding strategy and oversight can
4. figuring out where the gaps are future growth? be fraught. Not only do managers have
preferences for certain ways of working,
Updating and reviewing job descriptions If performance planning and goal setting
their own workload and interactions can limit
can seem like a low-value task, that is, does not take into account the new skills that
how they see individuals perform. Talent
until you need to figure out where your may have been developed but are not being
recognition and management must be able
talent gaps are. utilized, or the new skills a role requires that
to identify not only who’s doing a great job
the existing occupant doesn’t have, career
now, but who has potential for the future.
Many organizations say that they review planning and talent management across
job descriptions annually as part of the the entire organization will fall short of
strategic goals.
8. 8 | enTer The Dragon | avoiDing PiTfalls of a TighT TalenT markeT
focus now on recovery. Focusing on future constraints
can be especially important during a period of slower economic activity—
it can provide one of the few opportunities to reflect and plan ahead.
Although overall levels of recruitment may Focusing now on what a business or even Consider other ways talented people that
level-out or even fall during this period of an entire industry may look like in two or come onto the market can be engaged. Are
lower confidence, the quality of talent could even five years’ time will help organizations temporary or contract projects possible?
rise if the pool of displaced talent increases. evaluate how candidates might impact Building relationships with the talent you
Somebody, somewhere will have a job for the organization in the mid-term and desire can at least open up a relationship for
a talented person, even when times are long-term. And of course, this means the future.
less than perfect. That’s why it’s particularly being able to identify today’s talent as
prudent to assess all new hires in terms well as tomorrow’s throughout the
of current and future need. When natural recruitment process.
attrition does occur and a role becomes
vacant, now is the time to look long and Now is not the time to shelve big ideas
hard at what that role should look like for or to focus purely on the present—even if
tomorrow, not just what it looks like today. circumstances mean investment is limited,
Simply replacing ‘like’ with ‘like’ doesn’t make thinking about the future, planning for it
the most of the opportunity that hiring in a and implementing the small changes
slower market can provide. and ideas when possible are critical to
staying competitive.
9. 9 | enTer The Dragon | avoiDing PiTfalls of a TighT TalenT markeT
raPiD, ongoing growTh is what we all think
we want, but it certainly creates pressures all of its own.
For businesses in Asia, utilizing any Competition for talent is strong and is likely
slowdown to look at the bigger picture of the to remain so for the foreseeable future. Being
organization is perhaps the best way to make more disciplined than ever about talent
use of this uncertainty. management and recruitment, and looking
to alternative and innovative approaches to
Understanding how each role in the continually develop networks, relationships
organization contributes to strategy, where and opportunities for the future will be key
the gaps are and who might be the leaders across the region.
of the future are key pieces of the Human
Resources puzzle to work out before pace
picks up again.
10. 10 | enTer The Dragon | global culTure, local minDseT
global
culTure,
local minDseT
staff retention in the asia-Pacific region is at
an all-time low. Turnover is perhaps the biggest
obstacle for future growth for many businesses,
but there are ways to stem the tide.
anThony raja DevaDoss
11. 11 | enTer The Dragon | global culTure, local minDseT
The imPacT of high growTh on workforce sTraTegy.
Operating in a market with high growth and scarce talent, such as Asia, brings
with it significant challenges for HR. Many businesses operating in the Asian
region are recognizing that their expansion strategies will need refining,
and that workforce development is critical to their sustainability.
• employment rates across asia remain These twin demands of high growth and
exceptionally high and most markets are extreme competition for talent demands
operating at, or near, full employment. new approaches to resourcing that do not
apply in other developed markets. This is
• china is now operating at close to why retention of staff in companies across the
peak capacity, and its entire cost base— Asian region continues to be a key strategic
property, wages and commodities— issue.
is rising.
Unfortunately, traditional approaches to
• The talent required to take businesses retaining staff don’t necessarily work here,
to the next level is scarce and turnover and global organizations with their lessons
is exceptionally high (often in excess learned elsewhere are finding this out the
of 40%). hard way.
12. 12 | enTer The Dragon | global culTure, local minDseT
TraDiTional aPProaches To reTenTion
can increase Turnover. Take any organization
in the world on any day of the week and estimates are that most
of its workforce (up to 76%) is seeking alternative employment
opportunities. However, employers in the Asian region have
two unique factors to add to this retention challenge.
The first issue is a plain and simple head-hunting of staff can be a matter of For a region with a strong recent history Hiring in temporary expertise to manage the
consequence of ever-increasing opportunity survival. And promoting staff with relatively of countries outsourcing to it, and the transition of less experienced workers, and
and investment. For employees, expansion little experience and training can be the perception of a plentiful population of expanding HR oversight, can avoid the drag
and investment brings opportunity. With only option when other candidates are available workers, it is hard to imagine we’ve on productivity and growth that these unique
opportunity comes knowledge and unavailable. already come to the time where external factors in the region have created.
experience. With more knowledge and resources in Asia might be needed. But
experience comes more opportunity—right Of course, this has serious consequences hiring in temporary expertise to stem these
when employers need their staff the most, for businesses looking to grow and adapt issues can be the fastest, most efficient and
employees are gaining greater options and to ongoing change, not least of all the cost-effective way to manage workforce
incentives to leave. competency and number of resources constraints. Outsourcing within Asia is now
available to manage such transitions. well-established, and as the cost advantages
In Asia, the opportunity curve has been in some markets reduce with rising costs, a
exponential and this creates pressure, Swift career development is often seen as the
region-wide approach to labor is needed to
both from within and from competitors, answer to retaining good people, but it isn’t
solve at least some of these issues.
for organizations to promote and put staff always possible. When you can’t afford to
in positions with greater responsibility, let an employee walk, yet you can’t promote
faster. The boom is such that poaching and them internally for lack of experience, more
innovative solutions are needed.
13. 13 | enTer The Dragon | global culTure, local minDseT
Training anD Turnover. There is another reason
turnover is high in the region, which is perhaps more counter-
intuitive. Again, organizations will need to employ innovate solutions
to combat it if they plan on stemming the tide of turnover.
For most organizations looking to increase In markets with steadily increasing Think global, act local
retention and loyalty from existing opportunity and high competition for scarce It’s true that globalization and local traditions
employees, a range of methods and talent, such as Asia-Pacific, strategic human don’t always fit neatly together. There are
incentives are often used, including career resourcing discipline is critical. Managing the tensions that come with change, particularly
development and training opportunities. attainment and use of new skills and showing in this context of global companies with
appropriate reward to help employees western roots taking up residence in rapidly
In a tight employment market where full grow and develop at the pace they expect developing economies with different and
employment (above 95%) is commonplace, is the only way to stop competitors getting diverse values. In Asia, successful organizations
training and career development can actually the benefit of training and education that are looking to retain the best people
increase turnover, particularly among low- investments. will need to understand the context they’re
skilled workers. It is not the up-skilling in itself operating, gain insight about how their
that’s the issue, it’s the career progression Understanding how the issues of increased employees think and feel about working there,
that must follow. If appropriate reward isn’t opportunity and training is contributing to and use specific strategies that reflect these
forthcoming once the new skills are acquired, high turnover in the region is the first step, local insights. In short, successful organizations
employees will start to look elsewhere, and and putting in place those mechanisms to will need to ensure they have an inclusive,
very quickly. combat them will go some of the way to global culture that is flexible enough to reflect
maintaining competitive advantage, but there a local mindset. Relying purely on a reputation
are also other insights and tools employers built elsewhere is not going to work.
can use to stem the tide of turnover.
14. 14 | enTer The Dragon | global culTure, local minDseT
caPTure The mooD. Across Asia, and particularly
in China, growth has been rapid and social change has been
vast. The sense of excitement and nation-building that’s
occurring in many countries in the region is palpable.
The economic shift from west to east has • what is the company’s purpose in doing
immense local impacts for the way whole business here?
nations see themselves and companies must
consider how they fit into this picture and • what specific role does company X
make this part of their ongoing proposition to have to play that no one else can play in
employees. the region?
Rather than just ‘doing business’ in Asia, • what will be the effects of this purpose
companies will increasingly need to sell their on the broader community?
company purpose to employees—not just
• how will company X contribute
why they’re doing business in the region,
positively to the process of development?
but how they’re doing it. If businesses don’t
satisfactorily answer questions like these, • why should employees feel proud to be
retention will likely remain an ongoing issue: involved in this?
Why, as much as how, business is done in the
region is relevant to staff retention.
15. 15 | enTer The Dragon | global culTure, local minDseT
ConneCting Company purpose with
Community benefit. Much is made of the differences
between western and eastern culture, not least of all the greater import
that eastern cultures place on community, family and the greater good.
There are examples on both sides to the Being part of change for the better is a key Perhaps one of the most inspiring examples Creating a vision that’s relevant to the
contrary, as no culture is homogenous, but motivator and loyalty-building hook for of this is Narayana Hrudayalaya health city in region is something many companies will
the less individualistic tendencies of eastern workers in the Asian region, particularly in still India, which has built scale and specialization not be accustomed to. Visions that center
culture are a source of significant competitive developing economies such as China. In fact, into medicine to dramatically reduce costs. around “being the world leader in…” need
advantage if companies understand how to a recent Kelly survey found that a full 61% to seriously consider their local relevance.
operate within that context. of employees across China said they would “We decided, given the shortage of surgeons Turning company vision into a retention tool
take a less or lower paid role if they felt it in India, to hire expat Indians from overseas. is possible here, but for many organizations,
This is not to say that the secret to retaining contributed to something more important To attract them we sold a vision. Come back it will need some tweaking to get there.
people in Asia is to present a ‘soft’ culture or meaningful to the organization. This is and be part of building a new India. ... Work
with no specific focus on the individual— compared with just 27.5% in Russia, 33.5% in for us and you’ll be able to help and cure so
workers everywhere do have individual South Africa and 47.9% across all countries many more people in a week than you can
goals and needs. However, it is to say that surveyed. There are differences across Asia in Europe or America. And because of the
something big is happening in the region and too (people feel far less ‘stirred’ by the vision doctors come back to India – to work
almost everyone feels it. It’s an historic time nation-building cause in Asian countries that far longer hours and for much less money
and retention does require companies to are already developed, such as Singapore) than they did before.... We were brave
communicate and deliver a kind of inclusivity but change is happening all over the region, enough to think bigger than anyone else
in the nation-building wave. and generally, they want to understand and and passionate enough to get others to
see their contribution to it. back our vision.”
16. 16 | enTer The Dragon | global culTure, local minDseT
Double haPPiness. Retention strategies must do two things
simultaneously to be successful: keep people working for an organization
for longer, and make the most of the people that are retained.
If we already know that company culture we’ve already seen how this needs to be retention. A 2011 Kelly survey reveals that live and deliver upon the core values of the
and country culture need to work together conceived of and communicated in light more employees here than anywhere else organization, to demonstrate a responsibility
to form a cohesive, local story and value of social change, community and in the world are likely to cite ‘management to them, their community and society at
proposition to employees, what of how development. A clear purpose might get issues’ as the main reason they are looking large. For managers who are used to focusing
employees feel about the work they’re people in the door and it might get them elsewhere for work, which could indicate only on the bottom line, this will require a
actually doing? excited about making a contribution, but two things: significant cultural change.
much more needs to follow.
People who are happy at work put in far • employees here are more sensitive to Being open, and concentrating on
more effort, work longer hours, and are ‘Happiness’ is also dependent upon feedback management relationships harmonious interactions is far more important
more productive than those who aren’t. and recognition, and this fundamentally not just to the business of turning a profit,
They are also more likely to stay with you comes down to the way people are • managers here are grappling more with but also to retaining staff.
longer and be more receptive to change. managed. Research and surveys into the demands of high growth
So, what elements of work contribute to what makes people satisfied in their jobs
Research shows that employees in this part
happiness and is there a specific story to consistently turns up the same answer: good
of the world are also looking for a different
tell about what makes employees in the relationships with managers.
kind of relationship with their managers. They
Asia-Pacific region ‘happy’?
For businesses operating in the Asia- want and expect an openness, honesty and
One element of employee happiness, and Pacific region, there does seem to be a authenticity that isn’t as critical elsewhere.
therefore retention, is purpose. In Asia, specific element to management-related Above all, they want and need managers who
17. 17 | enTer The Dragon | global culTure, local minDseT
The imPorTance of fleXibiliTy.
With typically fewer annual leave entitlements and a longer
working week than many western nations, Asia has not
been the preserve of workplace flexibility in the past.
The process of development has meant balance work with other interests
that the only way to get ahead has been to and commitments.
get plenty of education and work harder
than everyone else, and even in current And many countries in the region are
generations who have it significantly easier discovering the benefits of this approach.
than their parents did, these attitudes have Despite South Korea’s history of very long
lingered on. Now, the need to attract and working hours, Samsung Tesco has tapped
retain workers is seeing flexibility become into younger generations’ desire to have
part of the workplace culture. better work-life balance and have developed
a number of initiatives to help people work
According to the World at Work report, just more efficiently, such as flexible working. In
7% of organizations quantify the return on unstable times, looking at flexible working
investment from flexibility programs. Despite options and contingent workers, instead of
how few organizations measure their worth, workforce reduction or reduced benefits,
the anecdotal evidence is strong—people can be a more strategic alternative to
want and need more flexibility, and younger manage workforce costs.
generations particularly expect this to
18. 18 | enTer The Dragon | global culTure, local minDseT
mainTaining conTinueD high growTh
faces several significant people challenges in Asia.
• increasing opportunity has led to high Even here, with these challenges, there are
turnover; job-hopping and poaching from approaches that are working to attract and
other employers are significant issues retain the right people. Flexibility, a strong,
locally relevant culture and purpose, as well
• some traditional approaches to as the right kind of leadership for the times is
retention don’t work—up-skilling and more critical here than elsewhere.
training can actually contribute to
turnover Retention is, and will likely continue to be, a
major issue for businesses across the region.
• finding the right talent to manage the Gaining key insights into which elements
scale of businesses and expansion plans of business culture and workplace practice
amid high growth is getting harder actually contributes to retention will likely
be the difference between thriving or just
• employee expectations are changing,
surviving in this highly competitive talent
particularly among younger generations
market.
19. 19 | enTer The Dragon | making The shifT: qualiTy anD service in The new economy
making
The shifT:
qualiTy anD
service in The
new economy
cheap goods fast: that was the basis of the
asian manufacturing revolution. but the shape
of the economy is fast evolving. making the
move towards better service and higher quality
requires a new type of ‘harmonious’ thinking, and
a different approach to workforce strategy.
anThony raja DevaDoss
20. 20 | enTer The Dragon | making The shifT: qualiTy anD service in The new economy
a Diversifying economy. Nobody is
predicting the end the manufacturing boom in Asia, yet.
The amount and speed of production is The list of impressive data for China goes That said, there are changes happening
going to take an awful lot for any other region on, and on. And clearly, the flow-on across the Asia-Pacific economy. A growing
to beat, and the underlying mechanisms effects across the region are significant, as shift towards quality goods and services is
of the manufacturing industry are unlikely Australia’s robust economy and the growing creating new opportunities. However, with
to change to quickly, as evidenced by manufacturing industries of Vietnam and these come some different challenges for
some jaw-dropping facts such as: Indonesia can testify. business in the region.
• china will soon manufacture more steel For any other country in the world, the
than the entire world combined manufacturing statistics for China are
just simply inconceivable. While China’s
• chinese exports hit $us162 billion in government would be happy to see some
june and $US874 billion in the first half of lower export figures in favor of a greater
the year, both up nearly 20% year-on-year focus on the domestic economy, even those
analysts that are predicting a downward trend
• in 2010, china made 64% of all toys,
in Chinese dominance in the manufacturing
and $US4 out of every $US10 worth of
sector know that significant change will likely
knit apparel exported in the world
take a generation or more—nothing drastic is
going to happen quickly.
21. 21 | enTer The Dragon | making The shifT: qualiTy anD service in The new economy
is The cosT aDvanTage eroDing? Wages across many
Asian countries are still low by the standards of developed nations. Therefore,
the idea of quality (and expensive) goods in these economies has been
poorly understood—few people domestically could afford to buy them.
Much of the manufacturing boom has been is increasingly moving to Bangladesh and around one-trillion dollars) come from small-
built on the promise of low-cost, disposable, Indonesia, as well as other developing to-medium-sized businesses. Their focus is on
short-term goods. However, as wages begin countries outside of Asia. quality and speed of delivery. They use the
to rise, some of the advantage of outsourcing best technology and pay their workers well to
jobs and processes to these developing Low-cost production can only be maintained deliver the leanest possible production line.
markets is beginning to be questioned. In while wages and skill-bases are low. As
fact, Chinese companies are already moving greater opportunity has entered the region, In almost every Asian market, competition is
jobs within the country to access lower wages this wave of increasing costs is spreading, increasing, fuelled by both local and foreign
in new provinces. China’s biggest corporate and ultimately new competitive advantages businesses. Skills shortages are a constraint
exporter, Hon Hai Precision Industry Co, need to be created. Increasingly, this is taking on most firms in the region, and are one of
employs about a million workers in China the shape of producing higher-value goods the major drivers of higher costs. Jobs can
to make Apple iPads, Hewlett-Packard that rely on productivity and technology continually move to lower-cost countries,
computers and Samsung Electronics panels, rather than simply on cheap labor. and for some industries and positions this
and is opening up new factories in low-wage will make sense. However, efficiencies and
Countries such as Germany have already smarter ways of working will also be needed.
areas of inland China.
recognized this inevitable shiftand are looking
And some of China’s jobs are being moved to to capitalize on the opportunity. Many of
other countries entirely. Clothing production Germany’s locally made exports (worth
22. 22 | enTer The Dragon | making The shifT: qualiTy anD service in The new economy
a culTure ThaT values qualiTy. Building
a workplace culture that values and promotes quality will
be key to increasing the quality of goods produced across
Asia, but also to developing a greater focus on service.
The growing need for services domestically advantage for India and they are expanding Unhappy employees deliver poor increase harmony between the organization
has led to the recognition that there are skills these lessons across multiple industries. performance, and particularly, poor customer and the customer.
shortages in this area across the region. India service. By focusing on ‘harmonizing’ the
has of course developed a customer-service- For companies in other parts of the world relationship between customer, employer and Some deeply held cultural beliefs can at first
led mindset and captured market-share, most that want to follow this example, developing employee and seeing how each affects the be barriers to change, but understanding
notably but certainly not limited to, the call a company culture that values and sustains other, HR practices can target specific issues their intent and how they can be
center industry. quality customer service will require them of concern for employees to improve their incorporated into new ways of thinking and
to think differently. After all, a product or ability to provide better quality goods and behaving is increasingly a challenge that
For a thankfully short but significant period, service isn’t good value unless it does what it services. globalized businesses must rise to. Being
India’s call centers were becoming the promises. Cost and value are not the same. aware of the potential barriers to the raising
source of customer frustration and attrition, Perhaps most importantly, HR will need to of quality and service standards can and will
worldwide. Turning this around required how the concept of harmony can help focus on getting the balance right between provide insights to overcome them.
a new focus on quality and empathy, as raising potential problems in the organization
The Confucian concept of ‘harmony’ provides
well a different approach to management with maintaining harmony. The two need
a potentially valuable tool for business
engagement with customer issues right up not be mutually exclusive, and in fact they
in the region looking to enhance quality
the organizational chain. While problems can naturally complement each other. The
and service. By looking at the value chain
undoubtedly remain, customer service raising of customer issues with management
between the customer, the employer and the
is swiftly becoming a major competitive can instead be framed as an opportunity to
employee, it’s possible to understand how
business might be done differently.
23. 23 | enTer The Dragon | making The shifT: qualiTy anD service in The new economy
embracing DiversiTy To imProve skills.
To get the mix of these issues right, businesses will need to access
the kind of talent that can make positive change happen, quickly.
This will mean being very selective about Diversity of this magnitude in a rapidly Hiring top talent is important, but an
the personnel that will be recruited into growing market can either hinder or enhance organization’s talent portfolio must be
this dynamic environment and hiring those business innovation, depending on how it balanced—the challenge is always to get the
who can that contribute immediately to is managed. The potential for innovation, right person in the right job at the right time.
transformation. Finding those individuals that growth and new ideas that comes with a Workers have different benefits to offer in
already have the right skill set is going to be diverse workforce is enormous, provided that terms of age, experience, skills, education,
a challenge in such a tight talent market, and its value is recognized. and flexibility, so businesses need to balance
this is where flexible and contingent workers long-term goals with day-to-day pressures
are likely to be needed. Diversity is not just about ethnicity and when making recruitment decisions.
gender, it’s also about varied levels of
A focus on creating a diverse workforce can experience and the kinds of skills that Diversity is also a long-term strategic project.
also be helpful. different people bring to the table. To It can’t be achieved overnight, nor should
capture the benefits of a truly diverse it be looked at as an end in itself. A diverse
“Asia” is hardly a homogenous region. The workforce, employers must look at each workforce is about getting the right mix of
vagaries of different markets within markets, potential hire, based on the skills it needs to ideas and experience, and if companies
of local and fragmented regulation and execute its strategy. If increased quality is the are looking to make major leaps forward in
protocols can be incredibly complex, not to aim, who and where are these skills going to quality, the specific skills required to do that
mention the convergence of many cultures come from? must be the first consideration.
under single organizational banners.
24. 24 | enTer The Dragon | making The shifT: qualiTy anD service in The new economy
as The region’s economic base becomes
more elaborate, a greater focus on quality over cost is inevitable.
Asia has fundamentally been a cost-intensive required. And to ensure the right people stay
market, and that is evolving to a quality- on in organizations to maintain quality and
intensive market. The challenge for the service, a culture that values and promotes
region is that other developed nations this will be needed.
already have the experience, educated
workforce and sometimes the global reach The Asia-Pacific region has some cultural
that’s required to execute a ‘quality’ and advantages to execute the move towards a
‘service’ strategy. quality and service focus in business. How
this is interpreted and the speed at which the
To make the shift to quality goods and right talent is accessed to make this happen
services, and to do so successfully, new will make all the difference.
approaches to talent and diversity will be
25. abouT The auThor
Anthony RAjA DevADoss is currently the vice President—APAC with the
outsourcing & Consulting Group of Kelly services. From network services,
engineering to e-business solutions, Anthony Raja has worked in both India and
Malaysia, within technical roles to the Chief executive officer. he has received his
Bachelors degree in science and his MBA in Marketing & Postgraduate Diploma
in Computing. he holds membership in various local and international associations
such as the MIM, human Capital Institute & Association of Career Professionals International. he is
the head of Policy enablement & Government Liaison with outsourcing Malaysia and a member
of the Industry Advisory Board for the Graduate school of Business, UnIRAZAK. he has been
recently appointed to the hR Capacity Building task force by the Ministry of human Resources,
Govt of Malaysia. Anthony is also a member of the hRoA APAC Chapter Board.
http://my.linkedin.com/in/anthonyraja http://twitter.com/anthonyraja
abouT kellyocg
KellyOCG is the Outsourcing and Consulting Group of Fortune 500 workforce solutions provider,
Kelly Services, Inc. KellyOCG is a global leader in innovative talent management solutions in the
areas of Recruitment Process Outsourcing (RPO), Business Process Outsourcing (BPO), Contingent
Workforce Outsourcing (CWO), including Independent Contractor Solutions, Human Resources
Consulting, Career Transition and Organizational Effectiveness, and Executive Search.
Further information about KellyOCG may be found at kellyocg.com.
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