Forum 7th hr_expo_20121211_nidthiac

The facts and figures

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

© 2012 Hay Group. All rights reserved 3

We help organizations
work. We provide insight
into how individuals,
skills and jobs connect
to strategic goals.

We use that connection
to transform business
strategies into
organizational solutions.

We are passionate about
people and solutions
and we pride ourselves
on identifying issues and
challenges that others
don’t.

How we organize our business

Our purpose Helping organizations work

Our practice Building effective Leadership and
Reward services
clusters organizations talent

Our service BEO solutions Leadership Executive
lines transformation rewards

Job
evaluation

Hay Group online
Capability
assessment Reward Information

diagnostics
Performance
Services
management
Talent Reward
management strategies

Hay Group Insight: employee and customer surveys


Facts and figures

More than 1,400 respondents from 80 countries

46%
operate in
more than
5 countries

61% regional or
global role

more than

55% 1,000
employees
revenues of

71% more than
£100million


Key themes it explored...

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


How has the business environment
changed in the last 5 years?

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

Global 35% 57% 8%

Africa 18% 65% 18%

Asia 13% 77% 10%

Europe 51% 43% 6%

North America 39% 51% 10%

Pacific 37% 51% 12%

Latin America 19% 77% 4%


Asia: The business environment that
organizations are operating in is…

13%

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

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

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

77%


What impact have economic conditions
had on business performance?

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

Global 51% 31% 13% 4%

Africa 24% 29% 18% 29%

Asia 42% 33% 20% 5%

Europe 49% 34% 14% 3%

North America 55% 28% 13% 4%

Pacific 51% 44% 2% 2%

Latin America 61% 27% 9% 3%


Testing times

Austerity vs. growth

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

The rules of business have changed…

Organizations now
realize that people are
the difference
between long-term
success and failure

A shift from structures to talent

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

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


Top 5 priorities

Past five years Now Next five years

Improving employee
Complying with HR legislation Developing future leaders
engagement

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

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

Reducing people-related costs Attracting talent Efficient workforce planning

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


A new way of working

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


Indonesia is next…

6
Efficiency-driven

Innovation-driven
Factor-driven

5.9 Stages of Economic Development
5.8

5.7
Global Competitive Index

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

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

4.6 ESTONIA
KUWAIT

4.5 THAI
UAE

4.4
Indonesia 2010
INDIA
4.3 BRAZIL
VIETNAM
4.2

4.1

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

GDP per capita (USD’000)
© 2012 Hay Group. All rights reserved Source: Global Competitiveness Report 2010 20

Indonesia’s 2045 economic vision

Source: MP3EI


Innovation-based economy

Knowledge worker Appropriate knowledge
and technology

01
Entrepreneurship R&D
02

© 2012 Hay Group. All rights reserved
03 04
22

56% of respondents
in Asia are not
confident they have
the right people in the
right roles

If a business is to perform
at its best then it’s critical
to have the right people,
in the right roles, doing
the right work

Attrition rates in Indonesia

Source: Hay Group Indonesia PayNet, 2012


How soon they leave? (average)

Source: Hay Group PayNet, 2010

Why employees leave you?

% of % of % of
Baby Boomers response Generation X response Generation Y response
Limited growth
External inequity of
Lack of recognition 48% 59% opportunities in 65%
compensation
the organisation
Limited growth
Direct supervisor's External inequity of
42% opportunities in 59% 62%
management style compensation
the organisation
Lack of career
Performance
39% Lack of recognition 55% development 57%
assessments
program
Lack of career
Business instability 36% development 51% Lack of recognition 49%
program
External & Internal
Direct supervisor's Direct supevisor's
inequity of 35% 41% 43%
management style management style
compensation

Why employees join you?

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

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

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

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

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

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


How they stack up? (US=base)

© 2012 Hay Group. All rights reserved Source: Hay Group PayNet 200929

Difficulties in filling vacancies by
sector

Source: Indonesia’s skills report, World Bank, May 2010 31

Difficulties in filling vacancies by
export orientation

Source: Indonesia’s skills report, World Bank, May 2010 32

Big pay differentials across job grades
USD
China Singapore Indonesia
250,000

225,000

200,000

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

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

50,000
Two steps increase
25,000
in Indonesia is 75%
-
11 12 13 14 15 16 17 18 19 20 21 22 23
Hay Group Reference Level
© 2012 Hay Group. All rights reserved Source: Hay Group PayNet, 2010 33

Average age of employees

Source: Hay Group Indonesia PayNet, 2012

Are Indonesians ready?

Employee Engagement

LOW HIGH

Global = 28% Global = 39%
Employee Enablement

HIGH

DETACHED EFFECTIVE
Asia = 35% Asia= 16%

Global = 12% Global = 21%
LOW

INEFFECTIVE FRUSTRATED
Asia = 20% Asia = 29%


What motivates your employees?

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

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


Leadership best practices

Source: Hay Group Best companies for Leadership 2011 37

Innovation best practices

Source: Hay Group Best companies for Leadership 2011 38

Total Reward: - Competitive vs Effective?
Rewarding/ Recruiting Retention Personal Business Operation Organization
Reinforcing talent in development Contribution Excellence Commitment
market
Base Salary D
Base Salary
Increment
I I I

Annual Incentives R D D I
Sales Incentives/
Commission
D I

Equity D D
Recognition I I
Medical Benefits R
Life & Accident
Coverage
R

Promotion D R R
Training &
Development
R D I

Supplementary
retirement plan
R

D: Directly I: Indirectly R: Remotely

TOP TEN – A leader’s to-do list
10 Win hearts and minds
9 Bring your strategy to life
8 Solve the globalization puzzle
7 Don’t just throw money at the problem
6 Don’t hold your people back
5 Keep your costs in shape
4 Reward for the right reasons
3 Pace yourself
2 Spot talent (and keep hold of it)
1 Talk to Hay Group
(We can help you with 10 to 2)


Thank You
Nidthia Chelvam
nidthia.chelvam@haygroup.com

Forum 7th hr_expo_20121211_nidthiac

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