Business Insights
Attracting and Retaining Talent in the Asia Pacific STELLA J . GARCIA
A recent study conducted by Towers Watson reveals that a vast majority of companies in Asia Pacific continue to struggle with attracting and retaining the high-potential and critical-skill employeesnecessary to increase their global competitiveness . The Towers Watson Global Talent Management and Rewards Survey , a study of 1,605 companies globally , out of which 796 were from Asia Pacific found that 79 % of employers in Asia Pacificsaid they have problems attracting critical-skill employees , while more than seven in 10 employers ( 73 %) have difficulty attracting high-potential employees , compared to global figures of 72 % and 60 % respectively .
Talent attraction was found to be even more challenging in fast-growing Asia Pacific economies , where 84 % of employers are finding it difficult to attract critical-skill employees , with the figure being 80 % for high-potential employees . Philippine employers , on the other hand , experienced less difficulty in attracting talent , with 72 % finding it difficult to attract critical-skill employees , 48 % had a challenge looking for top-performing and high-potential employees , and 11 % had difficulty hiring recent university graduates .
Employers also encountered retention challenges with close to three quarters of respondents experiencing difficulties retaining critical-skill and high-potential employees at 70 % and 67 % respectively . Philippines ’ attrition rate was lower compared to the other fast growing countries in the region which include China , India , Indonesia , Malaysia , Thailand and Vietnam . Turnover was reported to have remained the same or increased over the last 12 months while hiring was greater than peers in the region . Hiring activity in the Philippines was higher compared to other countries .
The demand for key talent is as strong as ever , inspite of challenging economic conditions and heightened global competition . Furthermore , we find that many employers are not taking advantage of opportunities to attract , retain and engage key talent by offering a value proposition , work environment and the total rewards programs that are most important to them . In fact , there appears to be a mismatch between what employers are offering and what employees are looking for . According to the survey , employees in Asia Pacific are more focused on competitive base pay , job security and convenient work location . Employers , on the other hand , are emphasising other items , such as career advancement , challenging work , and the organisation ’ s mission , vision and values .
In the Philippines , aside from base pay and job security , employers perceived health care and wellness benefits among the
26 PEOPLE MANAGER I January 2013 top attraction drivers . However , in the eyes of employees , learning and development opportunities were more attractive .
When it comes to retaining talent , employers seem to have a better understanding , and are more aligned with the employee views , with the top three drivers being base pay , career advancement opportunities and relationship with their supervisors / managers . However , employers underestimate the impact of trust and confidence in senior leadership in retaining employees . Health and wellness benefits were perceived by employers as good retention tools , though employees reported that they preferred retirement benefits over these .
In today ’ s volatile global economy , where organizations face intense pressure to rein in cost while driving performance , it is not surprising that organisations are expecting higher levels of performance from their employees . However , the survey revealed that rewards have not kept pace with higher performance expectations – with 96 % of employers indicating that individual performance expectations have increased and / or stayed the same but bonus levels – as a percentage of on-target – is at 79 % for the most recently completed fiscal year ( 2011 ) and is projected to drop to 76 % for the current fiscal year .
The study also found that employees continue to experience high levels of stress at work . Close to half ( 45 %) of Asia Pacific respondents indicate that employees often experience excessive pressure in their job . Employers are essentially aspiring for higher levels of performance while at the same time depleting the fuel that powers the engine of the organisation . Asking employees to continue in this mode is unsustainable for individual employees as well as the organization itself . We are already seeing significant gaps in enabling and energizing of employees – both of which sustain engagement .
Our recent Global Workforce Studyrevealed that only 39 % of employees in Asia Pacific are highly engaged at work . This signals a critical tipping point and employers need to take concrete steps and strike the right balance between employee preferences and employee needs , and in crafting an employee value proposition that helps to attract and retain talented and critical-skill employees while also engaging the broader workforce . �
Ms . Garcia is from the Talent and Rewards business segment of Towers Watson . Towers Watson is a leading global professional services company that helps organizations improve performance through effective people , financial and risk management . For more information , please write to Ms . Garcia atstella . garcia @ towerswatson . com , call ( 02 ) 902-0757 or visit www . towerswatson . com