2013/14 Randstad World of Work Report:
talent strategy game-changer series
The 2013/14 Randstad World of Work Report: Talent
Strategy Game-Changer Series stems from over 14,000
survey respondents (more than 7,000 employers and over
7,500 employees) across seven countries in Asia Pacific —
Australia, China, Hong Kong, India, Malaysia, New Zealand
and Singapore.
Randstad is a world-leading full service HR company,
providing services from temporary staffing and specialised
recruitment, through to sophisticated RPO and workforce
management solutions, across the broadest range of
industry sectors.
From over 4,500 offices in more than 40 countries,
Randstad employs over 580,000 people every day, with
the aim of ‘Shaping the world of work’. Through our
continued commitment to providing recruitment and HR
services across a range of markets and industry sectors,
our mission is to help people find the right career moves,
and businesses to connect with and develop the best
talent in the market.
Australia:www.randstad.com.au
China: www.randstad.cn
Hong Kong:
www.randstad.com.hk
India: www.randstad.in
Malaysia: www.randstad.com.my
New Zealand:
www.randstad.co.nz
Singapore: www.randstad.com.sg
Talent Strategy Game-Changer Series | 1
contents
4
game-changer #1: leadership will ignite to drive
talent strategy
34
in summary: the 10 new rules for talent strategy in the
dynamic Asia Pacific landscape
36
game-changer #2: the innovation economy will create
demand for new skills
60
in summary: the 10 new rules for talent strategy in
today’s innovation economy
62
game-changer #3: talent will drive the engagement
agenda
92
in summary: the 10 new rules for talent strategy when
employees are in the driving seat
94
game-changer #4: work will evolve from a place to
a collaborative process
122
in summary: the 10 new rules for talent strategy in the
new era of flexibility & collaboration
2013/14 Randstad World of Work Report
Today’s business leaders know success depends on their ability
to understand and adapt their workforce at warp speed, with
the pace of social and technological change greater than at any
time in modern working life.
The 2013/14 Randstad World of Work research —
tapping into the perspectives of over 7,000 employers
and more than 7,500 employees across Asia Pacific
— confirms we are not just witnessing incremental
shifts in the world of work, but game-changing
forces that require fresh thinking and new, innovative
approaches to building a sustainable talent strategy.
From talent analytics and ‘big data’, to strategic global
sourcing, digital communication and managing the
blended workforce; the 2013/14 Randstad World of
Work Report 4-part Talent Strategy Game-Changer
Series outlines what it takes to become a leader in
positive workforce change — and ride a wave of
competitive talent advantage.
As momentum continues to move from West to East,
the growing innovation economy in Asia Pacific will
demand new and adaptive skills — particularly as
work becomes increasingly knowledge intensive and
technology-enabled.
Our Talent Strategy Game-Changer Series explores:
In this new world of work, knowledge workers
will continue the transformation of work into a
collaborative process. Talented, creative thinkers and
those with specialised skills will hold the cards — as
the rules of the new game require leaders to develop
world-class talent strategies to find and attract them.
•
Game-Changer #1: Leadership will ignite to
drive talent strategy (released November 2013)
•
Game-Changer #2: The innovation economy
will create demand for new skills (released
December 2013)
•
Game-Changer #3: Talent will drive the
engagement agenda (released January 2014)
•
Game-Changer #4: Work will evolve from a place
to a collaborative process (released February 2014)
Talent Strategy Game-Changer Series | 3
game-changer
#1
leadership will
ignite to drive
talent strategy
2013/14 Randstad World of Work Report
Talent Strategy Game-Changer Series | 5
State of the Asia Pacific Region: Talent Strategy
Do business
leaders think they
have a world-class
talent strategy?
leadership will
ignite to drive
talent strategy
<10%
YES
How will APAC
employers unlock a
high performance
talent strategy over
the next 5 years?
60%
47%
strengthen employee
engagement &
collaboration
improve middle
management
capabilities
46%
33%
32%
better align their
workforce plan with
business strategy
pursue product
& service
innovation
invest in new
technology to drive
business efficiency
What’s keeping talent leaders awake at night?
The Top 3 Human Capital Challenges
increasing workforce performance & productivity
23%
retaining top performers16%
attracting new talent 15%
The Top 3 Productivity Challenges
developing leadership skills to drive business growth
46%
lack of a multi-skilled workforce to manage today’s speed of work
27%
filling critical vacancies27%
Why outsource
the talent strategy?
45%
35%
to access to hard-to-find
& specialised skills
to improve recruitment
process efficiency
24%
24%
to better align the workforce
with business strategy
to increase workforce
flexibility & scalability
Are business leaders
planning ahead?
56
%
will look to outsource all or
part of their talent strategy
& recruitment process in the
next 5 years
Or are they constantly
planning for change?
45%
72%
plan for their
workforce
12 months or
less in advance
of leaders devote 20%
or less of their strategic
planning time to future
workforce planning
How is ‘big data’ playing a role today?
34% use talent analytics
& ‘big data’ as part of their
talent strategy
more efficient workforce
planning is the #1 reason for of
54% employers
Talent Strategy Game-Changer Series | 7
To ignite
/ Ι g’n Λ Ι t /
to take fire; begin to burn
2013/14 Randstad World of Work Report
igniting the talent
strategy in Asia Pacific
The Asia Pacific region continues to lead global
economic growth and labour market development
— despite ongoing turmoil among many of its trading
partners, including the United States and Europe.
While this puts pressure on export growth for many
nations in the region, it has also brought about
unprecedented progress in intra-regional relations
between countries that share wide-ranging economic,
business and human capital challenges. From rising
inflation through to shrinking and booming markets,
and from the growing leadership crisis to ongoing
skills shortages; the region’s diverse community of HR
and business leaders is proving itself up to the task of
igniting to drive the talent strategy.
In this year’s Randstad World of Work Report, we see
power economies like China and India ignite in their
response to attract and retain talent in complex times.
We see mature economies such as Australia and
New Zealand ignite to tackle performance and
productivity issues in changing markets. We see
leaders ignite in buoyant markets like Hong Kong
and Singapore to attract hard-to-find skills via talent
analytics and in some cases, recruitment process
outsourcing (RPO); and we see organisations in
emerging markets like Malaysia ignite to attract the
talent they need to become a high income nation. It’s
this commitment to success that makes us proud to
partner with employers right across the Asia Pacific
region in support of their talent management goals
— today and in the future.
Talent Strategy Game-Changer Series | 9
understanding talent
leaders in Asia Pacific
%
40
15 %
%
45
Business leaders from every country in the Asia Pacific
region are well-represented in our 2013/14 Randstad
World of Work research. The majority (83%) of
employer respondents are responsible for recruitment
or HR management in their organisations. Their views
represent departmental leaders (40%), HR leaders
(37%) and CEOs (7%), in key commercial industries
such as banking and financial services, manufacturing,
government and information technology. From an
equal mix of men and women, almost half represent
Generation X (born 1965 to 1979), while the remaining
respondents comprise Baby Boomers (born 1946 to
1964) and Generation Y (born 1980 to 1994) in equal
measure. This shows, that while Generation X is now
the majority in leadership circles, there remains a strong
mix of generational influences shaping organisations
across Asia Pacific.
Baby Boomers
Generation X
While much has been written about differing leadership
styles among the generations, our findings show
many areas of agreement and a few key differences
— particularly when it comes to views about flexible
work, adaptability and technology. It makes sense that
a different focus or perception may well originate from
the different priorities or life experience of each cohort,
as well as the broader business realities in their industry
or country. What is clear is each generation of leaders
brings both common and unique values and skills to the
table to address one of the most important issues for
organisations right across Asia Pacific — creating and
implementing a game-changing talent strategy.
2013/14 Randstad World of Work Report
Generation Y
Generation Z
lia
tra
s
u
A
generational profile of Asia Pacific leaders
4% 4 % %
%
19
2
34
%
3
33
3 % %
17
%
59
%
44 % 60 % g
n
Ko
g
Hon
%
13
%
38
na
Chi
13 %
%
16
2
lay
Ma
sia
an
d
%
49
58 % %
34
%
6
53 %
ia
Ind
New
Ze
al
a
Sing
re
po
Talent Strategy Game-Changer Series | 11
what’s keeping talent
leaders awake at night?
Looking at the Asia Pacific region as a whole,
the top three human capital challenges for HR
and business leaders in the next 12 months
include increasing workforce performance and
productivity (23%), retaining top performers
(16%), and attracting new talent (15%). Yet, there
is a large divide between the biggest challenges
in Australasia and Asia. Around a quarter of
employers in the mature western markets of
New Zealand and Australia see the need to lift
employee performance and productivity as the
single biggest challenge, whereas similar numbers
in China, Hong Kong, Malaysia and Singapore say
attracting new talent for the next phase of growth
is the biggest challenge.
While this reinforces the two-speed nature of
economic growth across the region — it is also
a reminder that despite weaker growth over the
last year or two, knowledge workers and technical
specialists remain in strong demand across
Asia Pacific.
2013/14 Randstad World of Work Report
The growing confidence of the well-educated,
middle class employee in countries like China and
India makes it difficult for talent leaders to juggle
the challenges of stabilising profits and rising salary
expectations. Whatever the focus of their concerns,
more than half of the HR and business leaders in
the region rate their organisation’s ability to meet
these pressing human capital challenges as average
or poor.
This first installment of our 4-part Talent Strategy
Game-Changer Series shows how leaders across
Asia Pacific will ignite to drive talent strategy, to
ensure the success of their organisations in the
decade ahead.
the single biggest human capital challenge
in your organisation in the next 12 months
Increasing workplace
performance &
productivity
23%
16%
Retaining top performers
Attracting new talent for
the next phase of growth
15%
Managing internal
change problems
13%
Developing
talented leaders
11%
Managing wage pressure
& salary expectations
8%
Re-skilling your workforce
to drive innovation
6%
Addressing the skills
shortage by attracting top
talent to our industry
Other
6%
2%
Talent Strategy Game-Changer Series | 13
25%
25%
25%
22%
19%
19%
18%
17%
18%
15%
9%
Australia
2013/14 Randstad World of Work Report
China
Hong Kong
India
17%
human capital challenges by country
25%
23%
22%
17%
17%
16
18%
17%
%
14%
Attracting new talent
Retaining top performers
Malaysia
New Zealand
Singapore
Increasing workplace
performance & productivity
Talent Strategy Game-Changer Series | 15
the need to build a
world-class talent strategy
While the majority of employers surveyed across the
region represent large organisations with 200 or
more employees (60%), less than 10% describe their
talent strategy as world-class — and a striking 39%
say their talent strategy is limited or non-existent. This
highlights the scale of the talent challenge for many
organisations, but these figures look set to improve as
HR and business leaders across Asia Pacific affirm their
commitment to bolstering their talent strategies in our
2013/14 Randstad World of Work Report.
When asked what strategies they would undertake
over the next five years to address one of the region’s
biggest human capital challenges — improving
employee performance and productivity — employers
say they intend to strengthen employee engagement
and collaboration (60%), improve middle management
capabilities (47%), align their workforce plan with
business strategy (46%), seek innovation (33%), keep
up-to-date with new technology to drive business
efficiency (32%), and systematically measure
employee productivity (28%).
Our findings clearly show employers are ready to
invest in the talent management strategies and
systems needed to unlock the much sought-after
productivity gains.
2013/14 Randstad World of Work Report
which of the following will you undertake to
improve productivity over the next five years?
Strengthen employee
engagement & collaboration
60%
Improve middle
management capabilities
47%
46%
Align the workforce plan
with business strategy
Seek innovation
(product &/or service)
33%
Keep up-to-date with
new technology to drive
business efficiency
32%
Systematically measure
employee productivity
28%
Use talent analytics to
improve the supply of
new talent
Increase workforce
flexibility with temporary
& contract employees
Use recruitment process
outsourcing to improve
attraction & retention
17%
15%
14%
Talent Strategy Game-Changer Series | 17
the new paradigm:
planning for uncertainty
The time and energy required to tackle daily
recruitment and talent management issues is one of
the common reasons talent strategy falls down the
priority list for HR and business leaders. Nevertheless,
the 2013/14 Randstad World of Work research findings
demonstrate an alarmingly short-term focus when it
comes to workforce planning. Leadership teams in
almost three-quarters (72%) of organisations across
Asia Pacific devote 20% or less of their total strategic
planning time to workforce planning.
Over a third of organisations plan their workforce
a year in advance (36%), and almost half (45%) plan
less than 12 months in advance — giving them little
chance to benefit from more long-term talent
attraction strategies.
2013/14 Randstad World of Work Report
Less than 12 months in advance
12 months in advance
Over 2 years in advance
workforce planning lead-time
45%
Australia
48%
China
Hong Kong
35%
31%
51%
45%
Malaysia
46%
New Zealand
40%
19%
21%
46%
India
Singapore
36%
34%
35%
33%
43%
19%
15%
20%
21%
17%
Talent Strategy Game-Changer Series | 19
Some boards and CEOs subscribe to the notion
that business requirements are changing too fast
for workforce planning to be meaningful. At a
tactical level there may be some truth to this — but
the sheer rate of change in markets and the skills
required to compete and succeed, makes planning
for uncertainty a critical discipline for today’s talent
leaders. How effectively leaders consult with their
workforce in the process is also critical to achieving
talent management goals. In 65% of organisations
surveyed, the senior leadership team contributes to
workforce planning, but only 56% include their HR
team and 45% consult management at all levels.
As the two latter groups are responsible for the
majority of hiring decisions in most organisations
today, a mismatch between business needs and
recruitment can easily arise if these stakeholders
are not involved in this critical part of the process.
Experts agree the most effective talent planning
comes from a fluid and inclusive approach.
Leading employers have realised one of the best
ways to achieve this is to focus on making their
organisations ‘talent ready’ — so they can find
skilled knowledge workers and technical specialists,
and move quickly to attract and retain them.
This is generally done by adopting adaptive
workforce planning models, improving HR
systems and refining recruitment selection
processes. Modern workforce planning is less
about implementing a three-year plan and more
about having a range of enablers that give you the
business flexibility and talent agility you need
— tools, systems and strategies in place to attract,
develop and retain an increasingly mobile, skilled
workforce whose demands are growing.
How will your workforce plan incorporate the need
to attract local and international talent from an
increasingly mobile workforce?
No
Yes
64
35
%
36
65
%
lia
tra
Aus
2013/14 Randstad World of Work Report
talent mobility: employees who intend to leave
their job in the next 12 months
38%
62%
35%
41%
65%
59%
Australia:
Yes
36%
No
64%
g
on
gK
n
Ho
35%
65%
sia
lay
Ma
49%
51%
ia
Ind
35%
65%
an
d
na
Chi
New
Ze
al
Sing
ap
e
or
Talent Strategy Game-Changer Series | 21
talent analytics
/ ’tal Ә nt/a n Ә ’ I t I k s /
The process of analysing internal
organisational data about recruitment,
staffing, training, development,
employee performance, compensation
and benefits; as well as standard ratios
that consist of time-to-fill, cost per
hire, accession rate, retention rate, add
rate, replacement rate, time-to-start,
offer acceptance rate and attrition.
When external publicly available data is
analysed it is referred to as ‘big data’.
2013/14 Randstad World of Work Report
Talent Strategy Game-Changer Series | 23
using talent analytics
to improve the odds
HR and business leaders looking to improve strategic
workforce planning and create talent-ready
organisations will find talent analytics a powerful
enabler. Organisations large and small, private and
public, hold vast amounts of data that can help them
find, engage and keep the most talented employees.
Following the principle that past outcomes are the
best predictor of future success, organisations are
beginning to use employee data — such as resumé
and exit interview data — to improve their employee
attraction and selection process. For example, reviewing
10 years of resumé data for an organisation’s salesforce
may show patterns in education, experience or job
history that continuously influence employee success
or tenure in a sales role. This data can then be used
to improve selection criteria when recruiting new
sales professionals — ensuring these business critical,
revenue generating roles are filled with the right
talent in the shortest possible timeframes. The 2013/14
Randstad World of Work research shows around a
third employers across the Asia Pacific region are using
workforce analytics and ‘big data’, but adoption rates
vary by country.
2013/14 Randstad World of Work Report
percentage of organisations who use workforce
analytics as part of their talent strategy
24%
61%
35%
39%
39%
23%
33%
Australia
China
Hong Kong
India
Malaysia
New Zealand
Singapore
Talent analytics take-up is greater in Asian countries.
This may be due to the prevalence of talent strategy
of multinationals and global corporations that operate
on a larger scale in Asia, and the dominance of newer
cloud-based HR systems with in-built talent analytics
capabilities in high volume markets like China and India.
More mature markets, such as Australia and New
Zealand, see the benefits of talent analytics but often
face the barrier of using data from multiple legacy
systems in large organisations — while SMEs may
be unsure how to take advantage of the technique
and have less HR management resources at their
disposal. Our advice is to start small — think of one
human capital challenge you need to address and
ask yourself whether the data available within your
organisation can help.
Talent Strategy Game-Changer Series | 25
talent analytics in action
Half of employers surveyed in the 2013/14 Randstad World
of Work Report tell us employee turnover is a significant
or business critical concern — and the problem is serious
for both large corporates (59%) and SMEs (52%) alike. This
could be the perfect place to start reviewing meaningful
talent analytics.
Many organisations (47%) conduct employee exit
interviews, but how often does the data go beyond the
employee file to look for patterns about what is driving
turnover? For example, a medium-sized accounting firm
may try to attract the best talent by looking for multiple
qualifications in their selection process. But exit interview
data could indicate turnover is higher because accountants
are more highly skilled, and therefore more ambitious
— looking to quickly build experience and move on.
Over-qualified staff can also have a negative impact on
employee culture. If they feel too qualified for the role,
or the organisation is not the right fit for their career
stage, they may undermine management programs
and initiatives. To improve culture and attrition rates
as a result of analysing the data, this accounting firm
might decide to hire people with a single professional
qualification to work alongside support staff who will
achieve formal qualifications as part of their remuneration
package. This would in turn have knock-on effects to the
recruitment methods they use to attract this type
of candidate, and their employer brand strategy
would evolve to reach out to and engage the new
talent required.
2013/14 Randstad World of Work Report
This is just one example of talent analytics
deployed on a small scale, but the 2013/14
Randstad World of Work research found employers
across Asia Pacific are using the technique to craft
their talent strategy in a number of different
ways. Half (54%) of the respondents currently
use talent analytics to deliver more efficient
workforce planning, along with more accurate
talent mapping and addressing of skills gaps (43%).
Demonstrating the wide variety of applications for
talent analytics, 38% are also using talent analytics
to more closely link employee performance
and remuneration or to identify high potential
employees for development.
Now is the time to focus on talent analytics to
improve your workforce planning — giving you
the visibility, transparency and insight to build a
world-class talent strategy. Here’s some more advice
on where to get started:
• Employee retention – what creates high levels of
engagement and retention?
• Sales performance – what factors drive
high-performing sales professionals?
• Performance analysis – why are some offices
delivering higher levels of productivity and what
causes the variation?
• Leadership pipeline – who are the most successful
leaders, what makes them successful and what’s the
profile of potential leadership talent?
• Customer retention – what talent factors drive
higher levels of customer satisfaction and retention?
• Expected talent gaps – where are talent gaps in the
organisation and what gaps can be expected in
coming years? Where can this talent be found?
• Candidate pipeline – what is the quality of the talent
pipeline and how does the organisaton better
attract and select people who will be successful?
Talent Strategy Game-Changer Series | 27
outsourcing the talent strategy:
the increasing adoption of recruitment
process outsourcing (RPO)
So what tools lie at the disposal of employers to build
a world-class talent strategy? As globalisation and
the speed of work makes the talent equation more
complex, outsourcing key elements of recruitment
and talent management to experts in strategic
planning, talent mapping and resource management
is becoming an increasingly appealing solution.
Once driven by a desire to consolidate recruitment
costs, recruitment process outsourcing (RPO) is now
seen as a far more strategic response to the biggest
talent management issues organisations face. The
need to hire specialised individuals with hard-to-find
skills, improve recruitment efficiency, and increase
workforce scalability and flexibility, are now the main
reasons more than half (56%) of HR and business
leaders surveyed say they are somewhat or highly
likely to consider RPO in the next five years.
2013/14 Randstad World of Work Report
Sophisticated RPO solutions can provide access
to niche skills through work-ready candidate
networks, reduce hiring times on the most critical
roles, and help organisations manage a blended
workforce of permanent, temporary and contract
staff. RPO providers can also manage complex and
time-consuming cross-border legal and regulatory
requirements that can be a barrier to finding,
attracting and retaining the best talent.
The decision to outsource calls for taking
a complete approach to talent acquisition
and management inside and outside of the
organisation — using the external expertise
and right talent analytics and metrics to attract,
identify, develop and retain the high potential
talent that drives business impact, agility
and success.
employers likely to outsource all or
part of their talent strategy & recruitment
process in the next five years
49%
Australia
72%
China
53%
Hong Kong
70%
India
66%
Malaysia
New Zealand
Singapore
45%
57%
Talent Strategy Game-Changer Series | 29
tackling the growing
leadership chasm
For years, recruitment experts, organisational strategists
and business commentators have been talking about
bridging the growing leadership gap in organisations
across Asia Pacific, but the 2013/14 Randstad World of
Work research reveals the gap is better described as a
gaping chasm.
Almost half (46%) of those surveyed say developing
leadership skills for the next phase of business growth
is a key productivity challenge for their organisations,
making it the stand-out No.1 productivity challenge
for business leaders right across Asia Pacific in the
next 12 months.
When asked what strategies they will undertake to
improve productivity in the next five years, nearly
half (47%) intend to improve middle-management
capabilities. This is reinforced by findings about specific
gaps in the leadership pipeline that show employers
are most concerned about a lack of talented middle
managers and high potential employees.
2013/14 Randstad World of Work Report
Lack of specialist skills to drive innovation
Lack of multi-skilled workforce to manage
today’s speed of work
Filling critical vacancies
Down-time & knowledge loss created by
increased employee turnover
Lack of skills to benefit from rapid
advancements in technology
Developing leadership skills for the next phase
of business growth
Government legislation impacting workforce
flexibility & costs
Lack of talent/workforce analytics to
effectively workforce plan
what are the key productivity challenges your
organisation will face over the next 12 months?
Australia
21%
23%
24%
23%
12%
46%
26%
17%
China
33%
31%
15%
12%
15%
41%
9%
28%
Hong Kong
23%
27%
38%
24%
11%
48%
10%
23%
India
22%
37%
31%
19%
13%
49%
11%
21%
Malaysia
30%
36%
36%
27%
14%
49%
10%
35%
New
Zealand
22%
28%
39%
21%
17%
49%
14%
14%
Singapore
26%
28%
37%
27%
13%
52%
18%
22%
APAC
24%
27%
27%
21%
13%
46%
18%
21%
Talent Strategy Game-Changer Series | 31
are organisations
across the region doing
enough to make good
leaders great?
Less than half (48%) of employers rate their organisation’s
leadership capabilities today as good, while only 14%
rate them as excellent. Thirty-nine percent rate their
organisation’s commitment to investing in the development
of their own leadership skills and capabilities as average
or poor — a clear indicator that investment in tomorrow’s
leaders must come from the very top of the organisation.
how do you rate your organisation’s leadership capabilities?
13%
50%
30%
7%
20%
Australia
9%
45%
40%
38%
37%
5%
China
6%
9%
48%
35%
8%
Excellent 53%
32%
4%
Singapore
2013/14 Randstad World of Work Report
62%
21%
4%
27%
4%
India
17%
Malaysia
Hong Kong
11%
13%
52%
New Zealand
Good Average Poor
So what can CEOs do to boost their organisation’s
leadership capabilities? Common strategies such
as talent management programs to identify
high potential employees (49%), and structuring
remuneration and rewards to attract and retain top
leadership talent (40%), have an important role
to play. But CEOs must continuously look to new
methods and tools that will give them an advantage
when it comes to attracting and developing
high-performing leaders.
As the human capital challenges facing local
companies, global corporations and public sector
organisations across Asia Pacific converge, so too do
traditional leadership styles. Innovative companies
in emerging sectors can benefit from the rigour
of process-driven leadership that comes from a
career in government or the corporate arena, while
corporations in traditional sectors seek the adaptive
abilities and creativity of more entrepreneurial
leaders to drive new competitive edge.
Similarly, the blend of leadership backgrounds and
experience is changing across the region. Expatriate
leaders are increasingly making way for local leaders
coming through the talent pipeline in countries
like Hong Kong, Singapore, China and India — but
often these same leaders find their Asian knowledge
and experience in demand back in the West, with
companies across many sectors looking to reach new
markets among the growing Asian middle class.
For most CEOs, these changes mean it will be
necessary to make more leadership hires outside
their organisations to accommodate for opportunistic
hires as they arise. Good use of external partners,
academic and industry networks, talent analytics and
technology, look set to play a key role in supporting
CEOs to be more agile in their leadership acquisition
and development efforts in the years ahead.
what strategies does your organisation
currently use to build its leadership pipeline?
49%
Talent management
programs to identify high
potential employees
43%
Future leaders development
programs to fast-track high
potential employees
18%
Partnering with
recruitment firms to
find leadership talent
16%
Partnering with
universities to attract
management students
40%
8%
Structuring remuneration
& rewards to attract &
retain top leadership talent
Partnering with an external HR
consultancy to determine the
leadership development strategy
Talent Strategy Game-Changer Series | 33
in summary:
the 10 new rules for talent
strategy in the dynamic
Asia Pacific landscape
Organisations across the region need to
make meaningful, inclusive workforce
planning a priority to ensure their
survival and success when it comes to
attracting global and local talent.
2
#
#
1
Skilled talent shortages are
expected to persist across the Asia
Pacific — even in countries where
growth is slowing — due to the
restructuring of many economies
and labour markets.
Randstad World of Work Report 2013/14
3
#
The critical need for specialist
professional and technical skills is driving
organisations to consider outsourcing
to experts in strategic planning, talent
mapping and talent management.
4
#
Effective workforce planning in
this decade means using a mix
of enabling tools, systems and
strategies to attract, develop
and retain an increasingly
mobile and skilled workforce.
5
#
High-end recruitment process
outsourcing (RPO) can provide access
to niche, hard-to-find skills, improve
recruitment efficiency, and increase
workforce scalability and flexibility.
9
#
8
#
Start small when it comes to talent
analytics — choose one human
capital problem you need to address
and determine how the employee
data within your organisation can
help you to solve it.
Talent analytics can help
organisations understand the
behavioural patterns and desires of
top professionals, enabling them
to attract and retain them for the
leadership pipeline.
6
#
7
#
The Asia Pacific region faces nothing
short of a leadership crisis — it’s
time for organisations to re-think
their approach to attracting and
developing leadership talent.
Organisations who need creative,
adaptive leaders must find professionals
with wide-ranging experience across
multiple sectors or functions — who are
confident with risk and uncertainty.
#
10
Achieving measurable success on a key
human capital challenge will help HR
and business leaders build the case for
greater investment in talent analytics
and big data in the future.
Talent Strategy Game-Changer Series | 35
game-changer
#2
the innovation
economy will
create demand
for new skills
2013/14 Randstad World of Work Report
Talent Strategy Game-Changer Series | 37
State of the Asia Pacific Region: Skills in Demand
knowledge workers
specialist technical workers
leaders
Who will organisations hire in the next 12 months
51%
34%
32%
Workers needed most in the next five years
34%
19%
29%
Skills most critical to
organisational competitiveness
5 years from now:
the innovation
economy will create
demand for new skills
33%
leadership skills
15%
creative/innovating skills
12%
technical skills
12%
sales/business development skills
12%
problem solving skills
The ability to motivate &
inspire others is the most
prized leadership skill
41%
Are business leaders confident
the education system will
deliver the required skills?
58%
say they are not very
or at all confident
How do employers build
the leadership pipeline?
49%
talent management programs to
identify high potential employees
43%
future leaders development programs
40%
structuring remuneration & rewards to
attract & retain top leadership talent
Employer concerns about gaps in
the leadership pipeline:
75% talented middle managers
72% high potential employees
68% executive successors
67% senior managers
46% top graduates
Talent Strategy Game-Changer Series | 39
To innovate
/ ’Ιn
ә v er t /
to introduce something new;
make changes in anything established
2013/14 Randstad World of Work Report
Talent Strategy Game-Changer Series | 41
rise of the
innovation economy
It’s well documented that economic power is
shifting from West to East — as the European and
North American economies stall under the weight
of recession and from widespread complacency
in the boom decades preceding it. Yet this shift
is evident in more than just economic indicators
like GDP growth, unemployment and income per
capita. It’s clear emerging economies in Asia Pacific
have also picked up the baton on innovation. A
single-minded focus on economic development
and the opportunity to utilise new technologies
from start-up phase are creating some of the
world’s most innovative businesses.
Organisations across the region are innovating
in fields as diverse as consumer electronics,
energy, food production and life sciences to
meet the needs of a burgeoning middle class at
home — while also addressing the environmental
challenges of global warming, and providing
healthcare to ageing populations. According to
OECD (Organisation for Economic Cooperation
and Development) figures, Asia will represent
66% of the world’s middle class population and
2013/14 Randstad World of Work Report
59% of middle class consumption by 2030 —
clearly demonstrating the growth opportunity
that lies in developing innovative new products
and services specifically to serve this market.
Four of the top 10 global investments in research
and development are being made by Asian
nations — and China is set to overtake the US
during this decade, with 11% annual growth in
R&D investment. Further evidence the innovation
economy has arrived can be found in share
market valuations. In the last 10 years, the value
of intangible assets in Fortune 500 companies has
grown from 17% to 80%, with patents derived
from the R&D process contributing strongly
to valuations. Clearly the market is backing
innovation as the best bet for global economic
growth. As a result, business leaders in industries
and nations across the Asia Pacific region, in both
emerging and mature markets, increasingly realise
investing in innovation is the only way to build
the tools, knowledge and expertise to ensure
economic survival, growth and development in
a fast-changing world.
the impact on
talent strategy
According to the 2013/14 Randstad World of Work
Report, the biggest problem for the region’s leading
organisations is not making a commitment to
innovation — but finding the talent to deliver it. The
biggest human capital challenge across Asia Pacific
is the need to increase workforce performance and
productivity, followed by attracting and retaining
top talent. Twenty-four percent of employers say a
lack of specialist skills to drive innovation will be a
key productivity challenge in the next 12 months. A
similar number is also concerned about the lack of a
multi-skilled workforce to manage today’s speed of
work (27%), as organisations struggle to keep pace
with rapidly evolving technology. This, the second
installment of our Talent Strategy Game-Changer
Series, explains what is driving the need for a new
kind of skilled worker, and how employers across
Asia Pacific can find, develop and retain them.
talent definitions
Leaders: enterprising, multi-skilled
professionals who can lead organisational
change, development and innovation
Knowledge workers: skilled professionals
with hard-to-duplicate expertise such
as salespeople, accountants, analysts,
digital marketers
Specialist technical workers: use specialist
training to perform their work such as
nurses, teachers, computer programmers,
technicians
Skilled trade workers: employees with
specific trade qualifications such as
electricians, plumbers, mechanics
Task workers: make use of information but
do not create ideas/knowledge such as call
centre operators, administration assistants,
accounts clerks
Process workers: require no specific skills
or training such as labourers, machinists,
production line workers
Talent Strategy Game-Changer Series | 43
innovation breeds
new jobs
In a competitive world driven by rapid social
and technological change, it makes sense that
innovation will breed new jobs growth in sectors
on the cutting edge of science and technology.
Yet, that alone doesn’t explain the shift in the
skills profile required for today’s world of work.
The way we work in every professional field is
being transformed by the combined forces of
globalisation, technological advancement and
new generations of talent joining the workforce.
Globalisation is also making skilled knowledge
workers more mobile, condensing the available
talent pools individual countries have to choose
from. Growing consumer demand in emerging
markets means international companies may
seek local, native-speaking talent in Asian
countries, while rising Asian firms will look to the
international leadership pool to recruit leaders who
can help take their brands to new markets in the
West. At the same time, rapid technological change
is influencing every aspect of how we do business.
Cloud computing, ‘big data’, social media and the
prevalence of mobile devices are changing the way
we analyse business performance, market brands,
communicate with customers, and deliver products
and services. As a result, organisations need
2013/14 Randstad World of Work Report
more skilled people to fill roles that simply didn’t
exist a few years ago, but will become increasingly
critical in the years ahead —
­ like social community
managers, digital media strategists, app developers,
content creators and curators, data miners and chief
technology officers.
Traditional roles that survive the transformation
— accountants, administrators, sales representatives,
business operations managers and business
analysts — will also change as they make use of
new cloud-based technology, mobile devices and
virtual collaboration tools to bring about the more
productive and creative work practices employers
demand. The business environment will continue to
change so rapidly that a multi-dimensional
skills-set in a single hire will become the new norm.
Structured training will give way to on-demand
skills ‘augmentation’, where online peer-to-peer
collaboration and mentoring support will be used
to continuously boost employee capabilities. The
2013/14 Randstad World of Work Report supports
this, finding 60% of business and HR leaders
will strengthen employee engagement and
collaboration to improve productivity over the
next five years, while 47% will look to boost
middle management capabilities.
keeping pace with rapidly
evolving technology to enhance
workforce productivity &
performance will be a challenge
22%
managing a multi-generational
workforce is one of the biggest
challenges we face
Strongly agree
15%
51%
60%
Agree
30%
17%
Disagree
Strongly disagree
Talent Strategy Game-Changer Series | 45
new leadership
is required
With the emergence of a new class of global
professional talent comes the need for a new style
of leadership. According to the 2013/13 Randstad
World of Work research, business leaders and
employees agree the ability to motivate and inspire
others is the single biggest attribute of successful
leaders (41%). Challenging times have, however,
tested the employee-manager relationship in the
five years since the global financial crisis —
two-thirds of HR and line managers surveyed
rate their CEO’s ability to motivate and inspire as
good (43%) or excellent (23%), while just half of
employees surveyed rate their CEO’s performance as
good (36%) or excellent (17%) in the same area.
2013/14 Randstad World of Work Report
Compare the top three attributes managers and
employees consider most important in a leader and it’s
clear the ability to build trusted relationships is more
important to employees, while a complex operating
environment sees leaders prioritise the ability to
adapt to changing or competing business demands.
Across Asia Pacific, 66% of employees say overall
they trust their organisation’s leaders. While trust is
higher in more mature markets where HR and talent
management practices are potentially more embedded,
some would argue the gap is not as significant as it
should be — highlighting the need for a new style of
leadership focused on accountability, transparency and
meaningful employee engagement.
A new, more inclusive and open style of leadership
will also be driven by increased market regulation,
as well as technological and generational change.
Visibility of corporate results and employee practices
has never been greater or more accessible, ensuring
employers who engage in untrustworthy practices
will lose the war for talent. At the same time, a new
generation of employees has joined the workplace
in entry and mid-level roles. Generation Y may be
the most analysed generation in history, yet some
attributes are both consistent and relevant to
employers across the region. In markets as diverse
as Australia and China to Singapore and Hong
Kong, cohorts of Generation Y are demanding more
collaboration and less hierarchy in the workplace.
For these reasons and more, tomorrow’s leaders will
need the ability to motivate and inspire, create and
innovate, influence and engage. Many leadership
experts argue the analytical, process-driven style of
leadership that saw companies run by accountants,
lawyers and economists thrive in the 20th century
won’t work in this one — because process-driven
leadership depends on a level of certainty that
simply doesn’t exist anymore.
Talent Strategy Game-Changer Series | 47
47%
45%
29% 29%
27
%
21%
19
19
%
%
19
%
16%
18%
18%
15%
8%
9%
8%
7
%
5%
Australia
2013/14 Randstad World of Work Report
5%
China
Hong Kong
India
8%
single biggest attribute of a successful leader
49%
Ability to motivate
& inspire others
42%
Ability to adapt to changing or
competing business demands
42%
Ability to create an engaging
vision for the future
Ability to blend the best
practices & cultural strengths
of different markets
Ability to build trusted relationships
20%
20%
21%
18%
16%
14%
12
%
9%
7
%
6%
7%
3%
Malaysia
New Zealand
Singapore
Talent Strategy Game-Changer Series | 49
building skills for the
leadership pipeline
The 2013/14 Randstad World of Work Report
provides a snapshot of how countries across Asia
Pacific are building their leadership pipeline. We
look at what skills and talent will be most crucial
in five years and see how each country plans to
tackle this challenge in the next 12 months. The
declining relevance of traditional analytical and
communication skills is confirmed by a quick glance
at the chart of skills employers consider most
critical to organisational competitiveness in the
next five years — where in most countries they are
generally considered least important.
Further proof of the scale of the leadership
challenge in Asia Pacific can also be found here.
It’s by far the most critical skill-set needed in the
region, followed by creative/innovating skills and
technical skills. Sales and business development
skills are more critical in mature professional
markets such as Singapore, Hong Kong and
Australia; while problem-solving skills are more
critical in nations experiencing pronounced
economic transition such as China, India and
New Zealand. All countries agree knowledge
workers will be needed most in the next five years
— except for India and Malaysia, who face the
greatest challenge when it comes to attracting
leadership talent in the region.
What is striking is that despite the varying levels
of market maturity across the countries surveyed,
knowledge intensive, professional talent will be
most important in the next five years. Skilled,
qualified professionals in demand will be leaders,
innovators, creative and technical specialists, and
business developers. Demand will be low for task
workers and process workers, demonstrating that
even the manufacturing economies in the region
will be moving to high-skilled models in areas like
high-end consumer electronics, alternative energy
and life sciences.
% Leadership skills
% Analytical skills
% Problem solving skills
% Technical skills
s
% Creative/innovating skills
% Communication skills
% Sales/business development skills
% Marketing/brand management skills
2013/14 Randstad World of Work Report
skills most critical to competitiveness
in the next five years
36 5
22 33 4
11
1
7
6
1
3
12
31 1
4
5
6
5
15
16
1
7
11
5
22
10
10
13
13
g
10
na
Chi
36 10
4
34 ia
Ind
38 3
16
4
4
3
1
10
on
gK
n
o
H
9
15
14
8
lia
tra
s
u
A
7
14
17
18
12
3
7
an
d
10
New
Ze
al
8
13
13
sia
8
lay
Ma
Sing
ap
e
or
Talent Strategy Game-Changer Series | 51
8
Australia
talent
needed
most in
the next
five years
2013/14 Randstad World of Work Report
China
Hong Kong
India
Malaysia
New Zealand
Singapore
talent needed most in the next five years
Knowledge workers
Leaders
Specialist technical
workers
Skilled trade
workers
26%
31%20%
9%
30%
33%19%
9%
31%
38%17%
7%
33%
28%20%
8%
37%
36%14%
6%
22%
37%23%
6%
36%
42%13%
3%
Talent Strategy Game-Changer Series | 53
the gap between
supply & demand
The change in the nature of work from more labour
intensive, low-skilled work to more knowledge intensive
and technology-enabled skilled work is ensuring
prolonged skills shortages across Asia Pacific. In the
decades preceding globalisation and the economic shift
from West to East, demand for skilled talent used to
rise and fall in line with unemployment. Strong demand
for talent would be expected in full employment
markets like Singapore and Hong Kong (with around
2-3% unemployment), while weaker demand would
be expected in markets like Australia, facing rising
unemployment at around 6%.
Yet, economic restructuring across the region has
interrupted this traditional employee demand pattern.
Unemployment may be rising in Australia, but it is
manual, low-skilled jobs like process workers that are
declining as Australia develops its technology, research,
medical and services sectors. As a result, demand for
qualified professionals remains high despite rising
underlying unemployment. Similar restructuring of
industries across Asia Pacific is producing the same result,
compounded by the need to source professional skills
from an increasingly mobile talent pool that no longer
lives and works in one country. These regional challenges
are causing employer concerns about talent gaps
throughout the leadership pipeline.
2013/14 Randstad World of Work Report
employer concerns about specific gaps
in the leadership pipeline
Top
graduates
High potential
employees
Talented middle
managers
Senior
management
Executive
successors
Australia
38%
63%
67%
59%
61%
China
63%
89%
89%
85%
80%
Hong Kong
43%
77%
83%
69%
70%
India
56%
82%
83%
70%
80%
Malaysia
66%
84%
88%
79%
83%
New
Zealand
33%
61%
64%
58%
63%
Singapore
46%
76%
80%
65%
69%
Talent Strategy Game-Changer Series | 55
the challenge for the
education system
The pace of economic, social and technological
change in the region is a fairly recent phenomenon
that makes it difficult for institutions like
governments and academia to respond — but
there is a growing gulf between the skills
graduates possess and the business-ready skills
employers need. The 2013/14 Randstad World of
Work Report shows just 42% of employers across
Asia Pacific are confident schools, colleges and
universities will deliver the skills they need. As the
‘employer confidence’ data shows, the level of
confidence rises in line with market development
and maturity, although the gap between
confidence in an advanced economy like Australia
and an emerging economy like India is surprisingly
small. However, it does illustrate the reality of the
professional skills gap in every market, relative
to the particular challenges each nation faces in
response to the pressures of globalisation.
2013/14 Randstad World of Work Report
employer confidence that required skills
will be delivered by the education system
46%
37%
Australia
China
22%
48%
Malaysia
New Zealand
33%
Hong Kong
41%
India
40%
Singapore
Talent Strategy Game-Changer Series | 57
getting to know the
talent gate-keepers
Concerns about growing gaps in the leadership pipeline
and the ability of the education sector to respond,
means employers have to take matters into their own
hands when it comes to sourcing the skills they need
for future competitiveness. They will need to invest
in training and development to make new graduates
business-ready, create powerful talent management
and leadership development programs, and reach out
to talent networks through universities, management
schools and recruiters. These talent ‘gate-keepers’ know
where to find the best people — and how to attract
and retain them. Yet across the region, just 16% of
employers are partnering with universities, and only
18% with recruitment firms, to find and cultivate future
leadership talent.
2013/14 Randstad World of Work Report
Organisations are more focused on internal talent
management and development programs to fast-track
high potential talent into leadership. While these
programs play an important role in developing and
retaining top talent, unprecedented skills shortages
and wage pressures creating higher employee
mobility means employers can no longer rely on
‘grow your own’ talent strategies alone. Half the
professional employees surveyed across Asia Pacific
(53%) intend to leave their job in the next 12 months,
while 83% expect to receive a salary increase — and
almost a third expect that increase to be 10% or more.
Under these circumstances, employers will struggle to
increase productivity without tapping into new talent
with fresh skills.
what strategies does your
organisation currently use to build
its leadership pipeline?
Australia
44%
39%
41%
11%
13%
7%
China
48%
36%
43%
23%
23%
9%
Hong Kong
Partnering with
recruitment firms to
find leadership talent
Partnering with
an external HR
consultancy
to determine
your leadership
development
strategy
60%
43%
45%
19%
22%
6%
India
Partnering with
universities to
attract management
students
53%
47%
43%
16%
17%
14%
Malaysia
Future leaders
development
programs to
fast-track high
potential employees
60%
42%
47%
15%
15%
9%
New
Zealand
Structuring
remuneration &
rewards to attract
& retain top
leadership talent
48%
39%
45%
14%
18%
6%
Singapore
Talent management
programs to identify
high potential
employees
67%
44%
50%
26%
30%
12%
Talent Strategy Game-Changer Series | 59
in summary:
the 10 new rules for talent
strategy in today’s innovation
economy
Organisations need creative,
innovative leadership and skilled
knowledge workers to create new
products and services, and remain
competitive in the face of rapid social
and technological advancement. This
investment in innovation for the next
phase of growth will ensure strong
demand for skilled professionals in
the year ahead and beyond.
2
#
#
1
Skilled talent shortages are
expected to persist across Asia
Pacific — even in countries where
growth is slowing — due to the
restructuring of many economies
towards high-value industries
that create innovation to drive
economic growth.
Randstad World of Work Report 2013/14
3
#
Demand will be high for talented
knowledge workers and leaders with
proven cross-cultural skills, as global
and local organisations develop new
products and services for Asia’s growing
middle class and Asian companies seek
to export innovation to the West.
4
#
Investment in research and
development is growing across
Asia Pacific in industries as diverse
as consumer electronics, financial
services, food production and life
sciences — creating new jobs for
scientists, technicians, researchers
and analysts.
5
#
Asian language skills and cultural
knowledge will become more important
for Western expats living and working
in international business hubs such as
Hong Kong and Singapore, as global
organisations increasingly use these
locations as a product innovation launch
pad into China and South East Asia.
9
#
8
#
The talent pools who will drive constant
innovation can no longer be seen through
a national lens. As talent flows grow and
change with the economic and academic
fortunes of different nations, employers now
compete for talent on a global basis. The
growth of concepts like ‘crowd-sourcing’ will
allow organisations to tap into freelance
talent anywhere and anytime for specific
projects and short-term assignments.
Organisations throughout the region
need to create stronger ties and
tap into skilled, expat talent living
and working around the world.
Their experience of international
innovation, research and development
projects can be shared to replicate
their success back home.
6
#
7
#
As the education system struggles
to keep pace with change and
employer confidence in its ability to
deliver business-ready skills remains
low, organisations will need their
own learning programs to quickly
upskill graduates in areas like critical
thinking — so crucial to innovation.
#
10
A multi-faceted approach to talent management
that considers the mix of human capital challenges
specific to each country or industry will be essential.
Organisations will partner with talent management
experts to plan and source short-term international
talent, while nurturing local talent for the future
leadership pipeline.
Globalisation and the rate of
technological change mean innovation
will need to increase exponentially
to keep pace. We are witnessing
the beginning of the innovation
investment curve in Asia Pacific, and
it will become increasingly important
for organisations seeking to remain
relevant and competitive in the next
five years. Most importantly, they will
need the talent to drive it.
Talent Strategy Game-Changer Series | 61
game-changer
#3
talent will drive
the engagement
agenda
2013/14 Randstad World of Work Report
Talent Strategy Game-Changer Series | 63
State of the Asia Pacific Region: Talent Engagement
talent will drive the
engagement agenda
23% of employees say they are ‘very
happy’ in their current job — challenged,
motivated & mentored to learn new skills
The biggest motivators for employees to perform
well & stay in a job are:
26%
a strong feeling of being valued & recognised
23%
a strong understanding of how their role
contributes to achieving organisational goals
54
%
rate investment by
their employer in
developing their skills as average or poor
53%
Why are they looking
to change jobs?
plan to leave their job
in the next 12 months
64%
46%
30%
The top 5
reasons why 47%
will stay:
advance their career
earn more money/benefits
better learning &
development opportunities
1
Good work/life balance 51%
2
Good opportunity for growth
& advancement 46%
3
Well-matched to the job 40%
4
Flexible work options 38%
5
Competitive salary &
remuneration 36%
63% would recommend
their current workplace
to a friend
The top 3
avenues they’ll use to
find their next job:
1
Headhunting/recruitment
agency 68%
2
Online job boards 66%
3
Directly approach companies 49%
Talent Strategy Game-Changer Series | 65
To engage
/ Ι n ’ ge Ι d , 3 n- /
to establish a meaningful contact
or connection with
2013/14 Randstad World of Work Report
Talent Strategy Game-Changer Series | 67
the history of
talent-led success
Just before the turn of the century, ‘war for
talent’ was coined as a powerful metaphor for
the growing challenges organisations were facing
to attract and retain skilled talent. Despite the
internet being in its infancy during the late 1990’s,
it was already clear it was going to change the
way companies did business and a different set
of skills would be needed to navigate this new
world of work. At the same time, HR and business
leaders became aware of demographic changes in
Western economies that would significantly impact
the number of new entrants to the workforce and
cause millions to opt out of it.
In response, leading employers across the UK, US,
Europe and Australia set to work recalibrating
their HR strategies to reflect the importance
of talent attraction and retention as markets
2013/14 Randstad World of Work Report
boomed and talent was in short supply. Training
and development quickly became a priority,
white collar salaries soared, and organisations
realised they needed to actively promote the
benefits of a career with their company to
successfully compete for top talent — and
so ‘employer branding’ was born. These
early acknowledgments that organisational
success was becoming talent-led took place
largely in the West, with projections for talent
requirements focused on traditional markets.
Meanwhile, a quiet industrial revolution was
taking place in the East and globalisation was
just around the corner. The tiger economies of
India and China had awakened and as the new
century unfolded, economic development grew
at an unprecedented pace.
why talent remains
in the driver’s seat
As Asia continued its rapid expansion, the
broader forces of globalisation — connectivity
beyond borders, commoditisation of products and
services that could be sourced anywhere in the
world for the cheapest price, rapid technological
change and the growing need to innovate to
ensure competitiveness — created a common set
of challenges for businesses worldwide. Yet, as
highlighted in Talent Economics (Gyan Nagpal,
2013), while the global circumstances for business
have converged, those of the three billion strong
global workforce have not.
Nowhere is this imbalance more evident than
in the fastest growing region on earth — Asia
Pacific. Different rates of economic growth,
along with demographic and social change,
and access to high quality infrastructure and
education in different countries, means the talent
pool is still catching up with global demand for
standardised technical and professional skills in
the digital age. It’s clear those who meet the
demand for multilingual, technically proficient
and commercially astute talent will remain in the
driver’s seat for the foreseeable future.
This third installment of our Talent Strategy
Game-Changer Series aims to help organisations
big and small understand what talented
professionals across the region value most —
and how employers can develop better strategies
to attract and retain the people central to their
success on a global stage. It also aims to help
employers re-frame the way they employ talent to
achieve that success. Our research confirms those
who foster a state of ‘talent readiness’ in their
organisations will benefit from greater workplace
diversity, and a growing blended workforce
of contractors, freelancers and consultants
collaborating with the permanent workforce
in a critical capacity.
Talent Strategy Game-Changer Series | 69
getting to know the
talent pool in Asia Pacific
Almost half (46%) of the 7500 employees surveyed
across Asia Pacific for the 2013/14 Randstad World
of Work Report are members of Generation Y —
today’s entry-level workforce and the foundation
of tomorrow’s leadership pipeline, born between
1983-1999 and aged 12-30 years. At 34%, the second
biggest cohort Generation X, born 1965-1982 and
aged 31-48, are now entering senior roles as the
mentors and managers of Generation Y. Just 19% of
those surveyed represent Baby Boomers aged 49-67
— these are the experienced professionals of recent
decades who will largely leave the workforce over
the next 10 years.
Yet the demographic make-up of the regional
workforce and the related cultural impacts vary
greatly from country-to-country. Employers who are
serious about implementing a global or regional
talent strategy must understand and cater for these
individual market differences in their employer
branding, and talent attraction and retention plans.
2013/14 Randstad World of Work Report
Mature economies such as Australia face the
ongoing challenges of lower economic growth
and an ageing population, resulting in Baby
Boomers remaining in the workforce for longer
than first expected. Conversely, nations like
India and Malaysia are known for their young
workforces, while Generation X dominates the
ranks in the financial services and FMCG sectors
in Hong Kong and Malaysia.
China’s workforce sits somewhere in between
the mature and emerging economies. While
China has a large, well-educated youth
population, new workforce entrants have been
limited by the one-child policy of the last four
and a half decades. One thing is consistent
across the emerging region — youth career
expectations are high, so business and HR
leaders must be equipped and prepared to
manage them to shape their future workforce.
employee generational profile
by country
85%
60%
58%
48%
47%
36%
37%
34%
35%
37%
40%
41%
33
%
27
%
30%
12%
2%
Australia
Generation Y
China
10%
2
%
Hong Kong
Generation X
India
5%
Malaysia
11%
New Zealand
Singapore
Baby Boomers
Talent Strategy Game-Changer Series | 71
what influences
job satisfaction &
retention
The 2013/14 Randstad World of Work research found
there are differences in job satisfaction among the
generations and in different countries. Overall, Baby
Boomers are happiest in their jobs, perhaps because
they are more likely to have the work/life balance
many desire and their experience lends itself to more
realistic career expectations. Generation Y are less
satisfied due to rapidly growing aspirations and a
genuine concern their hard work in education may
not deliver their desired career path. Generation X
— often contending with both middle age and
middle management — are the least satisfied.
The happiest employees come from countries at
opposite ends of the development spectrum — India
and Australia — demonstrating that quality of life is
relative and a sense of achievement in advancement
universal. Job satisfaction is lowest in the booming
finance and business hubs of Hong Kong and
Singapore, where skilled talent is in short supply
and the demands placed on employees are
particularly high.
Very happy
I am challenged, motivated & mentored to
learn new skills
Satisfied
I am challenged as much as I want to be &
able to perform my duties
Neutral
I am satisfied but have no strong feelings
either way
Unhappy
I am not motivated & feel my skills aren’t
being used effectively
2013/14 Randstad World of Work Report
level of job satisfaction
28%
Australia
China
Hong Kong
21%
20%
33%
12%
39%
23%
17%
36%
35%
22%
20%
37%
24%
New Zealand
17
17%%
33%
30%
Malaysia
16%
29%
33%
India
Singapore
36%
25%
22%
25%
11%
15%
18%
23%
Talent Strategy Game-Changer Series | 73
An important factor underlying these findings —
and a constant theme in this year’s research — is the
growing importance of achieving balance between
work and life priorities right across the talent pool.
At 51%, our research found good work/life balance is
the number one reason 47% of those surveyed plan
to stay with their organisation in the next 12 months.
Similarly, a lack of flexibility and work-life balance are
main reasons people will leave their jobs. After a lack
of opportunity for growth and advancement (64%)
and uncompetitive salary (46%), stress from poor
work/life balance and lack of flexible work options
combined (35%) are the chief reasons employees
will leave. The sheer pace of work and the strain of
uncertain operating conditions due to slower growth
in some countries in the region, has taken its toll on
employees who have been asked to do more with less
— and often don’t receive the upskilling required to
achieve the productivity gains their employer desires.
Hard work without results is certainly demotivating,
and our findings reinforce the importance of building
new skills across existing teams. Employees say a lack
of learning and development opportunities (30%),
2013/14 Randstad World of Work Report
lack of feedback/recognition and appreciation (24%),
and poor internal communication (18%), are key
reasons they intend to leave their job in the next
12 months. Skills can be bolstered via training,
outsourcing recruitment of hard-to-find skills,
or hiring an expert freelancer to coach your team in
new disciplines or technologies. What employers can’t
do is wait for someone with the perfect skills to walk
through the door — increasing the risk that demoralised
and over-stretched team members will walk out of it.
No
Yes
64
35
%
36
65
%
lia
tra
s
u
A
job departure intentions in the
next 12 months
38%
62%
35%
41%
65%
59%
Australia:
Yes
36%
No
64%
g
n
Ko
g
Hon
35%
65%
lay
Ma
49%
sia
51%
ia
Ind
35%
65%
an
d
na
Chi
New
Ze
al
a
Sing
re
po
Talent Strategy Game-Changer Series | 75
the significance of
employee engagement
Communicating effectively about goals and progress
is also crucial to positive employee engagement.
Nearly half of the employees surveyed say a strong
feeling of being valued and recognised (26%) and a
strong understanding of how their role contributes
to achieving organisational goals (23%) are the
single biggest motivators to perform well and
remain in their roles.
With 53% of employees planning to leave their
jobs in the next 12 months, it is clear large
sections of the workforce across Asia Pacific have
the confidence to change roles to get what they
want. Overall, 31% of employees feel more secure
in their role than they did 12 months ago, with
confidence highest in India (43%), Malaysia (32%),
and New Zealand (32%).
Our research shows employee engagement has
declined over the last 12 months as cost-conscious
employers cut back on company events and forums,
while satisfaction surveys and exit interviews have
fallen in priority for stretched HR teams. While they
seem like easy targets for cost-cutting, forgoing
opportunities to connect with employees and listen
to their feedback comes at a high price — impacting
productivity, retention and reputation. The good
news is 60% of employers are ready to respond,
with plans to strengthen employee engagement
and collaboration to improve productivity in the
next five years.
The key message for employers? Markets may
change, but people fundamentally don’t. For the
51% of HR and business leaders who say employee
turnover is a significant or business critical concern,
our findings demonstrate why it’s imperative to
keep communicating, educating, recognising and
creating career paths for employees — despite
challenging and constantly changing times.
2013/14 Randstad World of Work Report
how organisations measure
employee engagement &
satisfaction 2012 vs. 2013
55%
Regular employee satisfaction surveys
51%
11%
A senior manager is dedicated to measuring &
maximising employee engagement
13%
31%
Regular performance reviews effectively capture
employee satisfaction feedback
28%
41%
Regular events to communicate strategic vision/goals
& listen to employee feedback
36%
56%
Exit interviews
47%
10%
We don’t do anything
10%
2012
2013
Talent Strategy Game-Changer Series | 77
level of job security 2012 vs. 2013
More secure
Unchanged
Less secure
Australia
28%
41%31%
China
31%
42%27%
Hong Kong
29%
47%24%
India
43%
41%16%
Malaysia
32%
45%23%
New Zealand
32%
44%24%
Singapore
25%
46%29%
2013/14 Randstad World of Work Report
good leadership in short supply
54%
rate their manager as either good or excellent at
motivating & inspiring their team
54%
rate their employer’s commitment to developing
their skills as either average or poor
28%
will stay in their job due to a strong relationship
with their direct manager
21%
will leave their job due to a lack of trust in
senior leaders
34%
don’t trust their organisation’s leaders
Talent Strategy Game-Changer Series | 79
what professionals
want
When it comes changing jobs, more money, benefits
and better work/life balance top the motivational list
for Baby Boomers, while Generation X and Y are more
likely to move to advance their careers. Their focus on
gaining experience and commercial skills, particularly
in light of concerns over education shortfalls across
the region, shows how important it is for employers
to offer meaningful training and development
programs to attract and retain these generations
of talent in the years ahead. Given the anticipated
pace of technological change, the need for industries
and individual employers to significantly augment
graduate skills will be the new norm.
The investment employers will need to make to
develop new employees only increases the importance
of retaining them long enough to achieve a solid
2013/14 Randstad World of Work Report
return. There’s no magic bullet for retention, but
having career development opportunities readily
available comes close. Many employers acknowledge
the problem, with 33% of HR and business leaders
across the region reporting a lack of opportunity
for growth and advancement is the biggest internal
reason employees leave their organisation, ahead of
uncompetitive salary (20%). The findings and their
implications are reinforced across the 2013/14 Randstad
World of Work research. Good opportunities for career
growth and advancement — or a lack thereof — are
repeatedly cited as the key reasons employees will
remain loyal to their current organisation (46%) or
leave to develop their career elsewhere (64%). Yet
less than a third of employees say leadership or career
development is on offer in their current role — and just
38% receive training and development of any kind.
strategic planning:
the key to career development
Career advancement also has strong appeal when
employees are deciding to move on. It comes ahead of
salary and benefits for employees in most markets,
except Australia and Malaysia, as the number one factor
that would persuade employees to consider another job.
Most organisations have good intentions when it comes to
developing talent and see the obvious benefits to retention
and productivity — but responding to the pace of change
and the growing cost of upskilling and re-skilling can be
significant obstacles to implementing training programs
that produce tangible business outcomes.
Training too often becomes a tactical issue managed
by central departments, rather than strategically driven by
senior leaders and their management team. When workforce
planning informs an organisation’s talent strategy, it creates
a powerful trickle-down effect that enables managers to
better align the skills of their team with organisational
objectives. Effective professional development is easier to
plan, implement and measure when all efforts are being
directed towards well-understood, shared goals.
Talent Strategy Game-Changer Series | 81
employee salary changes over the last 12 months
57
%
61%
62%
62%
59%
46%
40%
34%
38%
22%
Australia
9
%
China
Increased
29%
35%
32%
32%
16%
10%
9%
6%
3
%
Hong Kong
38%
India
Malaysia
New Zealand
Singapore
Decreased
Stayed the same
what you need to pay
Wages growth was a mixed picture across the region
in 2013. Salaries continued to rise off a low base
in high growth markets like Malaysia, India and
China, while already high salaries in Hong Kong
and Singapore also increased at pace. On the other
hand, salary growth has been limited in the mature
markets of Australia and New Zealand — producing
a dampening effect on the regional findings
which show approximately 52% of salaries have
increased, and 35% have stayed the same in the last
2013/14 Randstad World of Work Report
12 months. Thirteen percent have decreased —
likely in line with a decrease in hours reinforced
by rising underemployment in Australia and
New Zealand, where less full-time jobs are being
created. Employees in India, China and Malaysia are
expecting the highest increases in the year ahead.
While unbridled wages growth is challenging,
our findings show improving flexibility, trust and
recognition are powerful forces for attracting and
retaining talent in all markets.
employee salary expectations over the next 12 months
29%
Australia
China
8%
India
Malaysia
13%
12%
Hong Kong
4%
8%
39%
No increase
29%
28%
12%
57%
32%
48%
34%
21%
Up to 4% increase
13%
52%
20%
26%
12%
25%
27%
11%
New Zealand
Singapore
33%
24%
38%
5-10% increase
16%
29%
>10% increase
Talent Strategy Game-Changer Series | 83
11 7
8
5
4
4 1
19 26 3
16 8
16
21
us
tra
lia
hi
na
30 21 A
3
1
6
1
C
10 2
3 3
19 15
14
di
a
15
Ko
ng
on
g
28 34
2013/14 Randstad World of Work Report
16 30 H
In
single most significant factor influencing a change of job
31
5
13 7
2
5
8
4
7
26
ala
nd
17
Ze
32
al
ay
sia
ew
17
28 25 M
N
% To work for a well-known, trusted organisation
6
1
% To earn more money/benefits
13 % To advance career
% To have better work/life balance
18
4
2
25 ng
ap
o
re
% To work overseas
Si
% To work closer to home
% To work for/with someone I admire/respect
% Nothing would persuade me to consider another job
Talent Strategy Game-Changer Series | 85
31 the importance of
reputation & referral
Much has been written about the growing importance
of reputation and referral in a hyper-connected world
as the recommendations of peer-to-peer networks
become more influential.
As old world hierarchies give way to professional
social networks and communities — more than ever,
an organisation’s success will depend on its ability
to develop its reputation as a trusted, sought-after
employer among the talent pool.
Today, just over half of employers rate their
organisation’s ability to attract top talent as
either good (45%) or excellent (12%), and 46%
of those believe the strong reputation of their
employer brand is by far the single biggest
reason for their success. These employers
understand what people look for in a career
and how their job searching methods are
changing dramatically across Asia Pacific.
how organisations rate their
ability to attract top talent
Malaysia
Australia
10%
47%
34%
9%
7%
39%
43%
11%
13%
47%
34%
6%
New Zealand
China
20%
36%
39%
5%
10%
40%
40%
10%
9%
47%
36%
8%
13%
56%
26%
5%
Excellent
Good
Average
Poor
Singapore
Hong Kong
India
2013/14 Randstad World of Work Report
Directly
approach
companies
Headhunting
or recruitment
agencies
Industry
networking
events
Alumni
programs
Online job
boards
Social media
& professional
networks
Print media
Career fairs &
expos
Referral by a
friend
avenues employees will use to
find their next job
Australia
42%
62%
15%
3%
69%
28%
27%
10%
42%
China
36%
69%
12%
8%
48%
18%
4%
8%
34%
Hong Kong
52%
81%
20%
7%
76%
39%
14%
7%
45%
India
65%
49%
21%
11%
66%
48%
27%
19%
52%
Malaysia
51%
75%
15%
4%
65%
33%
30%
26%
47%
New
Zealand
48%
68%
18%
2%
77%
32%
28%
10%
47%
Singapore
58%
78%
18%
4%
69%
35%
28%
19%
48%
As friends and colleagues connect more easily and
frequently than ever before via social and professional
networks like Facebook, Sina Weibo and LinkedIn, peer
influence through recommendation now drives decision
making in many spheres of life — from what car we
buy, to what restaurants we go to, and where we’d like
to work. Where once employers controlled the timing
of messages about recruitment and careers through
advertising, the talent pool now observes company
values — usually via their actions and the shared
experience of their employees — and actively target
or rule them out before the ink is even dry on the
latest job advertisement.
When we asked the 53% of Asia Pacific employees
who intend to leave their job in the next 12 months
what avenues they will use to find their next job, the
change in their approach was evident. Almost half will
directly approach companies (49%) or seek a referral
from a colleague or friend (44%); while intended
use of online job boards has fallen 6% in the last
12 months to 66%. Use of headhunting/recruitment
agencies remains the most popular path for finding
a job for 68% of employees. Almost one third (32%)
will use social media and professional networks to
find their next job.
Talent Strategy Game-Changer Series | 87
adoption of online social & professional
networks to attract talent
64%
91%
74%
70%
Australia
China
Hong Kong
India
Employer adoption of social media is constantly
evolving. Almost three-quarters of employers
(73%) now use online social and professional
networks to attract talent — China and Malaysia
are the highest adopters, while Australia’s
adoption rate is the lowest in the region. Our
findings show employers across the Asia Pacific
are focused on using this media to attract passive
talent just as much as active jobseekers.
2013/14 Randstad World of Work Report
85%
73%
76%
Malaysia
New Zealand
Singapore
The number using social networks to promote
their employer brand (36%) is up 4% on
2012, while there has been a 10% decline in
HR and business leaders using the medium
to create professional networking groups for
thought leadership in their industry (14%) —
potentially missing a valuable opportunity to
strengthen their brand presence and connect
with passive top talent.
how organisations use online social &
professional networks to attract talent
56%
60%
52%
50%
46%
46%
46%
44%
42%
42
%
40%
40%
34%
35
%
40%
34%
38%
33%
30%
31%
38%
39%
33%
30%
25%
20%
10%
0
Australia
China
Hong Kong
These findings highlight the critical importance
of having a strong employer brand that’s open
for business — whenever and however talent
want to engage with your organisation, not just
when you are in recruitment mode. Some of the
strongest employer brands in the region still lack
the truly global engagement capability necessary
to reach a talent pool who may be working or
studying anywhere in the world. For multinationals
India
Malaysia
New Zealand
Singapore
in the region to succeed in delivering domestically
relevant product and services to both developed
and developing markets, they will need to engage
with local, regional and global talent in a whole
new way.
To screen job applicants
To advertise or broadcast jobs
To promote our employer brand
Talent Strategy Game-Changer Series | 89
tackling talent
scarcity
The reality of today’s global talent market means
even if you do all the right things — understand the
talent pool, align your workforce plan with business
strategy, strengthen your employer brand and
implement effective development programs — you
can slow turnover, but you can’t stop it. The talent
market has fundamentally shifted in response to
demographic, social and technological change, and
trade imperatives — meaning talent mobility is here
to stay. Successful organisations will accept this new
reality and find smarter, more flexible ways to source
and utilise talent.
The next decade will bring greater workforce
diversity and a wider variety of work styles as
workplaces continue to evolve — ‘Game-Changer
#4: Work will evolve from a place to a collaborative
process’ delves further into what the future
workplace will look like.
As a result, on-demand sourcing for project-based
outcomes will be a growing part of the talent
strategy for most organisations, further extending
today’s blended workforce of permanent employees,
freelancers, contractors and consultants.
2013/14 Randstad World of Work Report
In this environment, techniques like talent analytics
— utilising the vast store of employee data most
organisations hold to determine which style of
worker best meets a project requirement — will
become prevalent. The 2013/14 Randstad World
of Work research found over a third (34%) of
employers already use talent analytics and 81%
agree the ability to analyse employee data will play
a critical role in talent sourcing in the next five to
10 years.
At the same time, 56% of employers are likely to
outsource key elements of their talent strategy
to access hard-to-find skills, improve workforce
alignment, and build a total workforce solution
across temporary, contract and permanent hires.
Almost half (47%) believe talent scarcity will
increase the need to completely outsource talent
sourcing and attraction in the years ahead.
Recruit more people from
overseas
Recruit more people of
mature age (49+)
Recruit more people
from culturally diverse
backgrounds
Recruit more people with
disabilities
Recruit more people on
temporary or contract basis
Recruit more people
on flexible working
arrangements
Recruit more women
Recruit more graduates
Not applicable to my
business
recruitment strategies organisations will undertake
to address talent scarcity in the next five years
Australia
16%
18%
25%
7%
29%
35%
15%
18%
25%
China
14%
8%
34%
6%
13%
19%
6%
19%
19%
Hong
Kong
26%
8%
41%
7%
20%
20%
11%
23%
25%
India
7%
8%
33%
6%
26%
20%
13%
26%
22%
Malaysia
20%
10%
44%
3%
24%
21%
12%
31%
14%
New
Zealand
34%
18%
29%
5%
26%
39%
16%
22%
20%
Singapore
33%
15%
46%
5%
24%
20%
15%
27%
15%
Talent Strategy Game-Changer Series | 91
in summary:
the 10 new rules for talent strategy
when employees are driving the
engagement agenda
Organisations who provide tailored
work options, remuneration and
benefits to different workforce
segments will succeed in attracting
and retaining top talent.
2
#
#
1
Talent analytics will be a powerful
technique for understanding the
impact of different generations
and work arrangements in the
blended workforce.
2013/14 Randstad World of Work Report
3
#
As employees continue to
demand better work/life balance,
organisations will overcome
obstacles to flexible working to
attract and retain critical talent.
4
#
Resilient organisations will seek
new and innovative ways to
engage employs across their
blended workforce to meet key
business objectives.
5
#
Talented professionals will have
more alternatives to traditional work
than ever before — through access
to the growing freelance and
consulting markets.
9
#
8
#
In the digital age, employers are constantly
‘advertising’ — as the talent pool observes
their values and practices, and hear first-hand
feedback from their workforce through social
media and professional networks.
High wages won’t mitigate the
desire for flexibility, learning and
development among talented
professionals — who will move on if
their needs are not being met.
6
#
7
#
Winning organisations will
create a culture of continuous
learning and engagement to
ensure employees have the
skills and knowledge to drive
high performance.
Successful leaders will place
flexibility, trust, collaboration and
recognition at the top of their
human capital agenda to improve
productivity and innovation.
#
10
Talent mobility is here to stay.
Organisations will accept this new
reality and find smarter, more
flexible ways to source and utilise
talent.
Talent Strategy Game-Changer Series | 93
game-changer
#4
how work will evolve
from a place to a
collaborative process
2013/14 Randstad World of Work Report
Talent Strategy Game-Changer Series | 95
State of the Region: Evolution of Work Asia Pacific
views on workplace
flexibility
46%
of employers rate their
organisation’s performance in
creating flexible work options — variable
work hours, job-sharing or working from
home — as average or poor
31%
of employees currently have remote
working options
61%
say it gives them greater job satisfaction
64
without remote working options find
the idea appealing
41%
say 70% in the office
& 30% working at
home is the ideal
work week
%
Management concerns about employee productivity is the
#1 barrier to offering flexible work options (28%)...
What employers agree on:
86%
of organisations will increasingly manage a blended workforce of
permanent, contract & virtual teams
82%
believe keeping pace with rapidly evolving technology to enhance
workforce productivity will be a challenge
60%
say more women in leadership roles will be a critical success factor
...but
improving employee engagement &
satisfaction is the #1 benefit (36%)
How will the workplace
evolve in the next 5–10 years?
Flexibility will continue to drive
a blend of work modes:
The inter-cultural workforce
will grow:
31%
of employers will recruit more
people from culturally diverse
backgrounds
19%
more people from overseas
24%
of employers will recruit more people on a
temporary or contract basis
29%
more people on flexible working arrangements
Ageing populations & low birth rates dominate, yet
few employers intend to recruit more women (13%)
OR more people of mature age (14%)
Employee engagement &
collaboration in focus:
26%
of employees think workforce collaboration
is highly effective in their organisation
60%
43%
describe themselves as collaborators
of employers will strengthen employee engagement
& collaboration to improve productivity
45%
of employees say collaboration
within their immediate team or
function is most common
Talent Strategy Game-Changer Series | 97
To collaborate
/ ’K
ә' lab ә r er t /
to work together, particularly
in an intellectual effort
2013/14 Randstad World of Work Report
Talent Strategy Game-Changer Series | 99
the changing
global workforce
Over the last few years, Randstad research and
expert commentators have charted the rise of
the blended workforce — where contractors,
consultants and virtual teams work alongside
the permanent workforce in a critical capacity.
Findings from the 2013/14 Randstad World
of Work Report show a steady march toward
a blended workforce, driven by demand for
greater flexibility from both employees and
organisations. At the same time, global brands
in financial services, telecommunications, utilities
and IT, have moved their customer service and
shared service centres to Asia Pacific to improve
margins. This has fuelled the offshoring trend,
and increased the number of multicultural and
virtual teams who now work with permanent
employees across Asia Pacific to achieve critical
company objectives. The trend first began with
West-East outsourcing, but now includes
widespread outsourcing within Asia itself.
Increasingly borderless global markets — created
by technology gains, greater cross-cultural
cooperation by governments, international free
trade agreements and aligned international
regulatory frameworks — are driving increases in
workforce mobility, and this is only expected to
surge in the next decade. In a few short years, the
2013/14 Randstad World of Work Report
career diversity once frowned upon by employers
will become a huge advantage for many
professionals — as broad, multicultural experience
becomes more highly valued. Our research
confirms the intra-regional workforce is set to
grow, with 31% of employers looking to recruit
more people from culturally diverse backgrounds
or more people from overseas (19%) to address
talent scarcity in the next five years. During this
time, talent flows are expected to move from a
West-East orientation to a more global one, as
Asian companies look to develop new markets in
emerging Africa and South America.
As well as changes to modes of work and talent
mobility, demographic change means most
countries in Asia Pacific — with the exception
of India and Malaysia — face ageing populations,
a reduction in new workforce entrants and the
need to manage several generations with
wide-ranging expectations in the workforce at
once. Two-thirds of employers surveyed agree
managing a multi-generational workforce is one
of the biggest challenges they face over the
next decade. These converging changes in the
make-up of the global workforce create the
imperative for a new approach to effective
human capital management.
organisations will increasingly manage a blended
workforce of permanent, transient & virtual teams
88%
12%
84%
%
16
86%
%
14
on
89%
11%
Ze
ys
ia
w
Ne
la
Ma
aland
K
86%
%
14
ia
I nd
Hon g
a
Chin
ra
lia
86%
%
14
g
st
Au
91%
9%
ap
ore
No
Yes
g
Sin
Talent Strategy Game-Changer Series | 101
2013/14 Randstad World of Work Report
a new era of
collaboration
According to the 2013/14 Randstad World of Work
Report, HR and business leaders overwhelmingly
recognise a new era is upon us, and the command
and control organisational structures of the 20th
century must now give way to more inclusive and
collective workplaces and leadership styles. As such,
employers across Asia Pacific intend to strengthen
employee engagement to improve productivity
over the next five years.
Employees also report a desire for more flexible
and collaborative work options that may play a
key role in addressing some of the region’s biggest
human capital challenges: increasing workforce
performance and productivity, and attracting and
retaining top talent. This, the fourth installment
of our Talent Strategy Game-Changer Series, looks
at the cornerstones of this new era of employee
engagement and collaboration — job flexibility,
holistic people management, adaptive work styles
and remote work — to help employers create
enlightened workplaces that will attract, inspire
and retain talented professionals.
flexibility in
demand
Findings from this year’s report show strong
demand for greater flexibility from both employees
and organisations. Employees across Asia Pacific
increasingly value work/life balance over money,
causing them to seek more flexible work options.
Similarly, HR and business leaders see contract
and virtual workers as an opportunity to tap
into specialist skills on demand and reduce fixed
headcount costs. The research found 24% of
employers will look to recruit more people on
a temporary or contract basis to combat talent
scarcity in the next five years, while 29% will recruit
more people on flexible work arrangements.
Flexibility is more of a focus for organisations in
Australia (35%) and New Zealand (39%), who have
the weakest permanent employment expectations
in the region and are under the greatest pressure
to reduce employment costs. Yet, the findings show
around a fifth of employers in Asian countries
also intend to hire more people on flexible work
arrangements, such as part-time or job-share roles
to combat talent scarcity in the next five years.
Talent Strategy Game-Changer Series | 103
Despite good intentions, progress remains
slow. Forty-six per cent of Asia Pacific's HR and
business leaders rate their organisation’s current
performance in creating flexible work options —
such as variable work hours, job-sharing or working
from home — as average or poor. Management
concerns about employee productivity (28%)
is still the number one barrier to organisations
offering flexible work options in all countries, well
ahead of technology limitations or concerns about
team culture and communication (both 13%).
Yet, employers know increased flexibility is both
inevitable and an important part of the talent
management equation. More than a third (36%)
say improving employee engagement is the single
biggest benefit of adopting flexible work practices,
while 25% cite attraction and retention of talent.
2013/14 Randstad World of Work Report
It’s vital that organisations develop the culture
of trust, leadership support and sound middle
management capabilities required to reap the
benefits of workplace flexibility, without having
a negative impact on productivity. Interestingly,
employers in China say creating a culture of trust
(29%) is the biggest benefit of introducing flexible
work options, and 51% believe they are doing a
good (35%) or excellent (16%) job in creating such
opportunities — the top self-rated performance in
Asia. India, Malaysia and Hong Kong are further
behind with positive performance on flexibility
rated around 40%, while Australia and New
Zealand lead the region with approximately 60%
rating their performance in providing flexible
work positively.
how do you rate your orgnisation’s performance
in creating flexible work options
19%
Australia
40%
16%
China
Hong Kong
35%
13%
India
27%
11%
31%
10%
Malaysia
27%
42%
19%
New Zealand
14%
Singapore
31%
Excellent
Good
Talent Strategy Game-Changer Series | 105
Technology
limitations
Lack of support from
business managers
Australia
13%
10%
China
16%
14%
9%
14%
India
16%
4%
Malaysia
11%
7%
New Zealand
14%
6%
Singapore
10%
17%
Hong Kong
2013/14 Randstad World of Work Report
what is the single biggest barrier to
offering flexible work options?
Management concerns
about employee
productivity
Management concerns
about team culture &
communication
Lack of leadership to
champion flexible work
Health, safety
& legal concerns
26%
11%
11%
11%
24%
18%
18%
6%
34%
14%
13%
3%
34%
13%
11%
6%
48%
11%
13%
1%
26%
12%
9%
9%
27
17%
12%
2%
Talent Strategy Game-Changer Series | 107
2%
11%
3
5%
%
8%
41
1%
3%
7%
10%
6%
2%
10%
3%
4%
2%
18%
14%
3%
8%
7%
16%
29%
5%
9%
%
40%
20%
32%
18%
26%
30%
27%
23%
23%
16%
Australia
2013/14 Randstad World of Work Report
China
Hong Kong
India
Malaysia
what is the single biggest benefit of adopting
flexible work practices?
2%
12%
3%
3%
4%
7%
3%
4%
17%
7%
46%
36%
attraction & retention of top talent
Attraction
Improving employee engagement
& satisfaction
Creating a culture of trust
27%
23%
Reducing absenteeism
Reducing employment costs
Increasing workforce productivity
Improving employer brand
New Zealand
Singapore
Talent Strategy Game-Changer Series | 109
understanding the
‘whole’ worker
One of the clear drivers of employee demand for
flexible work options is the desire to balance work
with parenting, elder care, study, charity work or
other personal pursuits. While a lack of opportunity
for growth and advancement is still the main reason
64% plan leave their job, work/life balance is the
number one reason 51% of employees across
Asia Pacific intend to stay in their current role.
This trend has intensified in mature markets where
workers have been afforded a good lifestyle for
many decades, and in turn have become focused on
broader life fulfilment — seeing work/life balance
trump competitive salary as an employee retention
factor in Australia and New Zealand in recent years.
Over the same period, employees in emerging Asian
markets have been more focused on competitive
salaries and career advancement — but as job
security and lifestyles improve across many countries,
findings from the 2013/14 Randstad World of Work
Report show work/life balance is now second behind
competitive remuneration as a key factor to retaining
employees throughout Asia.
2013/14 Randstad World of Work Report
This growing region-wide trend is set to bring
about a new focus on understanding the ‘whole’
worker as a strategy for improving employee
satisfaction and engagement, retaining top
talent and improving productivity. It requires
organisations to consider their employees’ quality
of life in and outside of work, to understand
what motivates them to perform at a high level,
to support them in maintaining good mental and
physical health, and to know how to tap into their
discretionary effort to encourage the flow and
transfer of knowledge and ideas.
which of the following best matches your
ideal work week when it comes to working
in the office & working remotely?
Australia
17%
China
9%
Hong Kong
12%
India
27%
Malaysia
15%
New Zealand
18%
Singapore
13%
37%
12%
26%
38%
37%
51%
8%
29%
40%
33%
44%
46%
2%
14%
7%
22%
6%
16%
32%
24%
29%
1%
5%
4%
9%
9%
5%
3%
100% in the office
70% in the office & 30% working remotely
50% in the office & 50% working remotely
30% in the office & 70% working remotely
100% working remotely
Talent Strategy Game-Changer Series | 111
remote working
trends
Working remotely — away from a central
workplace — is increasingly seen as a way of
achieving the work/life balance employees desire.
Our findings show spending 70% of time in the
office and 30% working remotely represents the
ideal work week for 41% of employees ­— also the
preferred option for employees in every individual
country surveyed. Though in China and Malaysia, a
working week where 50% of time is spent working
remotely is equally as popular.
Interestingly, China (41%), and Malaysia (36%) also
have the highest numbers of remote workers in
the region, likely due to the fact many employees
work in locations far from their homes. China also
encourages teleworking initiatives as part of its
carbon reduction efforts. Australia has the fewest
employees with remote working options (21%)
— well behind its Australasian neighbour New
Zealand (35%) — bringing the regional figure to
under a third.
2013/14 Randstad World of Work Report
Importantly, 61% of those who have the
opportunity to work remotely say it makes them
more satisfied, compared with 35% who say it
makes no difference to their satisfaction.
The rapid growth of technology, in particular the
prevalence of internet-enabled devices across Asia
Pacific, is a significant driver of remote working.
So it’s not surprising that high-tech industries such
as IT and media & communications have greater
numbers of remote workers. India, with its huge
IT and software services market, has some of
the highest remote worker figures (38%), and
employees here find remote work most satisfying
(66%). It seems those who don’t yet have remote
working options will soon be driving for change
— two-thirds find the idea appealing (39%) or
very appealing (26%).
how does the ability to
work remotely impact
your job satisfaction?
is the option to work
remotely part of your
current employment
arrangements?
Australia
China
Hong Kong
60%
36%
4%
61%
Australia
YES 21%
NO 79%
YES 41%
NO 59%
China
32%
2%
India
Malaysia
YES 36%
NO 64%
YES 35%
NO 65%
32%
43%
6%
Hong Kong
5%
Malaysia
61%
35%
Singapore
Singapore
YES 30%
NO 70%
51%
New Zealand
63%
YES 38%
NO 62%
5%
YES 35%
NO 65%
66%
India
34%
65%
31%
4%
New Zealand
4%
It makes me
more satisfied
It doesn’t make
any difference
It makes me
less satisfied
Talent Strategy Game-Changer Series | 113
re-defining the
workspace
What is activity-based working?
Findings from the 2013/14 Randstad World of
Work Report show HR and business leaders are
most focused on the talent management benefits
of remote working options, such as improving
talent attraction, engagement, satisfaction and
retention. This is evidenced by low numbers of
people currently working remotely in countries
like Australia, which indicates the practice is
primarily used when required to source or retain
hard-to-find skills.
Yet as working remotely becomes more
widespread — as it already has in China — it
enables organisations to significantly reduce
business overheads like property, utilities and IT
infrastructure. It has the added benefit of reducing
transport congestion and carbon emissions in
population-dense urban cities across Asia Pacific.
Organisations who implement wide-spread
teleworking can also consider moving to more
sustainable, activity-based working environments,
as seen in new office developments around the
region. These state-of the-art workspaces rely on
high-speed connectivity to enable workers to use
portable devices to work in a variety of ‘zones’,
and often include facilities like standing work
stations, collaboration spaces, cafés, relaxation
areas and multimedia centres.
2013/14 Randstad World of Work Report
Activity-based working (ABW) is an office space design
concept that supports the individual work activities
employees need to undertake, rather than creating
permanent, individual spaces for each employee. ABW
can reduce costs as it enables the same amount of office
space to cater to more workers, but the primary benefit is
potential gains in employee engagement, collaboration
and productivity. It’s a particularly popular trend in
the professional services, financial services, property
development and consulting industries.
For companies considering their future office
requirements, our 2013/14 Randstad World of Work
Report found a range of workspace innovations are
appealing to employees across the region. Not surprisingly,
social and relaxation spaces (53%) and
café-style facilities are most appealing (39%), offering
further evidence of the need to consider the ‘whole’
worker when it comes to job satisfaction.
Demonstrating the growing importance of environmental
issues, 37% also find the paperless office appealing. The
convenience of BYOD (bring your own device) where
employees are able to access company network services
%
64own
35
using their
smartphone, tablet or laptop has appeal
for 32% overall, but is more popular in India (46%) and
China (42%). Indicating most employees still prefer to
sit at their own desks, few employees find the idea of
standing work stations (15%) or trading individual space
for collaborative space (19%) appealing.
which of the following workspace
innovations appeal to you?
Australia
21%
34%
52%
16%
15%
32%
China
42%
33%
34%
9%
23%
36%
Social/relaxation spaces
Hong Kong
32%
37%
60%
20%
17%
49%
Standing work stations
India
46%
48%
54%
19%
24%
35%
Trading individual space
for collaborative space
Malaysia
35%
44%
69%
18%
28%
43%
New
Zealand
28%
36%
58%
18%
17%
41%
Singapore
32%
41%
65%
12%
21%
48%
Bring your own mobile
device (BYOD)
Paperless office
Café-style facilities
Talent Strategy Game-Changer Series | 115
strengthening
employee engagement
& collaboration
59%
56
%
55%
49%
42%
29%
29%
15%
21%
20%
16%
9%
Australia
China
It may be some years before activity-based working becomes
mainstream, but most organisations will continue to make
incremental changes to their workplaces to improve employee
engagement and collaboration. With the continued growth
of smart devices and flexible working options like part-time,
staggered start and finish times, teleworking or phased
return from leave, employers must carefully consider how to
encourage greater workforce collaboration.
Our 2013/14 Randstad World of Work Report found just
26% of employees describe workforce collaboration in
their organisation as highly effective, while 56% say it is
somewhat effective. Employees in India, arguably the country
2013/14 Randstad World of Work Report
Hong Kong
India
with the most technology-enabled services sector, give
their employers the best rating on the effectiveness of
workforce collaboration.
Most regular collaboration takes place within an
employee’s immediate team or function (45%), while
29% collaborate across different project teams — and
just 15% collaborate with cross-cultural teams in other
countries. Even in foreign-owned companies, less than a
third of employees (29%) collaborate with international
colleagues. This is a lost opportunity for multinationals
that often have middle managers with different levels
of skills or experience in different markets.
how effective is workplace
collaboration in your organisation?
59%
59%
56%
24
28%
%
17%
23%
16
%
18%
Highly effective
Somewhat effective
Not at all effective
Malaysia
New Zealand
Better cross-cultural collaboration could go a long way to
improving middle management skills across the board.
So what initiatives should be at the top of the list to
strengthen employee engagement and collaboration?
Forty-seven per cent of employers plan to improve
middle management capabilities, which is a great place
to start. Leaders must ensure middle managers are
equipped with the skills to effectively communicate and
motivate teams with diverse work arrangements. Time
needs to be set aside for regular touchstone calls with
remote employees, in addition to group phone or video
meetings. Aim for the informal check-in conversation
that takes place between people in the same location.
Singapore
Go beyond project parameters to enquire about the
whole worker — health, family and general wellbeing
— as appropriate, depending on the cultural and
personal dynamics in a given situation.
Another important step is creating a dedicated IT project
to ensure your organisation is technically equipped to
support different work modes. Issues for consideration
include network and telephony infrastructure, BYOD
policies, and the efficacy and user knowledge of digital
conferencing equipment. Remember older workers, new
employees and remote workers may need more training
to get the most from enabling technologies.
Talent Strategy Game-Changer Series | 117
keeping pace with rapidly evolving
technology to enhance workforce productivity
& performance will be a challenge
Where possible, ensure reward and recognition
programs encompass all employees — including
contractors, entrenched consultants and remote
workers, and look for ways to unite these workers in a
common goal. Make use of cloud-based collaboration
tools that enable people to communicate, share and
collaborate in real time or across different time zones.
30 % 22 % %
67
20 %
14 %
19 %
%
6
18 %
21 % Improve cultural awareness by putting the clock face
of each market you operate in a prominent position
in every office. It will encourage employees to think
about what might be going on in their colleague’s
life on the other side of the world.
58 % 58 % 63 %
18 % %
57 % 60
22 %
%
19 %
18 %
ia
Ind
22 % 65
New
Ze
al
an
d
sia
lay
Ma
2013/14 Randstad World of Work Report
g
16 % Agree
Strongly disagree
na
Chi
Strongly agree
Disagree
on
gK
Hon
lia
tra
Aus
Sing
ap
e
or
how employees regularly collaborate at work
We collaborate with
our immediate team or
function
We collaborate across
different project teams
in our office
We collaborate with
different project teams
within our country
We collaborate with
cross-cultural teams in
other countries
Australia
60%
28%
8%
4%
China
28%
34%
16%
22%
Hong Kong
31%
31%
6%
32%
India
43%
33%
10%
14%
Malaysia
47%
25%
9%
19%
New Zealand
51%
28%
14%
7%
Singapore
39%
26%
6%
29%
Talent Strategy Game-Changer Series | 119
employees of foreign-owned companies
who collaborate with cross-cultural
teams in other countries
43%
Australia
35%
9%
China
28%
Hong Kong
India
Malaysia
16%
New Zealand
Singapore
2013/14 Randstad World of Work Report
23%
38%
the role of
diversity
One important way leaders can improve
collaboration and engagement is to encourage
and consider a wide-range of views from their
diverse workforce. An inclusive leadership team that
hires diverse talent has the best chance of dealing
with fluctuating global market environments,
increasing talent mobility and meeting changing
consumer needs. Organisations under-represented
by older workers, young graduates, women and
people from multicultural backgrounds, miss out
on access to much needed skills, and the ability to
better target products and services to those markets.
In addition, the demographic realities of ageing
populations and fewer new workforce entrants
across much of Asia Pacific, makes workplace
diversity critical to future growth and success.
There are understandable differences in how the
various cultures approach diversity. Australia,
New Zealand and Singapore will hire the most
women and mature-age workers in the next five
years; while cultural norms, the large number of
family businesses and differing social values see
China, Hong Kong, India and Malaysia less focused
on this area. Yet, despite these differences and the
well-documented benefits of diversity, less than
15% of employers in the region intend to recruit
more women or more people of mature-age.
Asian nations, who often have complex ethnic
diversity among their populations, lead the
region in their intentions to hire more talent from
culturally diverse backgrounds — more than 40% in
Singapore (46%), Malaysia (44%) and Hong Kong
(41%), compared with just 25% in Australia and
29% in New Zealand.
Employers — from large multinationals to private
or family businesses — operating in Asia Pacific
need to ensure hiring managers are equipped
with knowledge of the varying factors that impact
diversity in different countries. It’s also crucial they
have the policy support and cross-cultural sensitivity
to handle any diversity issues that may arise in the
recruitment process or workplace. CEOs can lead
the way by demonstrating a genuine awareness of
cultural differences and encouraging inclusiveness
at all levels.
Talent Strategy Game-Changer Series | 121
in summary:
the 10 new rules for talent
strategy in the new era
of flexibility & collaboration
Consider the ‘whole’ worker when
evaluating job satisfaction. Work/life
balance is important to employees
right across Asia Pacific. Are your
employees able to care for family
members, study or pursue other life
goals? If not, they will be open to job
offers from your competitors.
2
#
#
1
Embrace flexibility. Employees will
continue to demand flexibility
and will reward employers with
loyalty and engagement. Look
for opportunities to attract and
retain top talent by offering
job-sharing, staggered start and
finish times, remote working,
and phased leave or retirement.
2013/14 Randstad World of Work Report
3
#
Look to how you can remove barriers
to remote work. Review remote
work policies and consult with staff
and middle managers to cater for
the majority of employees who
would prefer to work remotely
30-50% of the time — and say it
makes their job more satisfying.
4
#
Make your office a hub for
communication and collaboration.
Empower people to work remotely
on project-based tasks where
possible and desired. Technology
like smart phones, tablets and
cloud-based services have made
the need to be in a central office
permanently unnecessary in many
industries and organisations.
5
#
Up-skill your middle managers and
supervisors. Effective management of
diverse, virtual and transient teams
requires cross-cultural sensitivity and
super-charged communication skills
to ensure optimal productivity from
all employees.
9
#
8
#
How can you improve cross-cultural collaboration?
Even in multinational organisations, collaboration
mostly occurs within existing teams or offices.
Establish global or regional project teams to gain
international input on key challenges and goals.
Champion diversity. Hire people from
a mix of ages, genders and cultural
backgrounds. The more diverse your
organisation, the better the likelihood
of sourcing niche skills, developing
successful teams and collaborating
across borders.
6
#
7
#
Develop a plan for optimising
flexible work. Ensure it aligns
with your business plan, is well
communicated and equitable. Give
employees shared responsibility for
reporting progress on tasks, and
communicating effectively with their
manager and other team members.
#
10
Ensure your technology strategy supports
collaboration. Provide your teams with the right
tools to encourage information flow across diverse
locations, work hours or time zones. Encourage
BYOD policies and utilise cloud-based collaboration
and sharing tools.
Make collaboration a priority.
Set up teams to create initiatives
to improve collaboration among
your blended workforce and
regularly review progress. Put it
on your 2014 talent management
scorecard and seek tangible
productivity improvements.
Talent Strategy Game-Changer Series | 123
2013/14 Randstad World of Work Report