8 signs talent retention strategies are faltering - apac

signs talent retention strategies are falteringkelly Global workforce index™8DhirenDra shantilal

australia, China, inDia, inDonesia, Malaysia, new ZealanD, singapore & thailanD

2Kelly Global Workforce Index™

Over the past three years, something entirely counter-

intuitive has occurred regarding employee retention

across the Asia-Pacific region. Despite unprecedented

global economic turmoil over this period, the proportion

of employees intending to leave their current job has

increased. In uncertain times, employers generally

expect to see an upswing in loyalty, yet the opposite

has occurred.

Why?

In our latest survey of some 35,000 people across the

region, one thing is clear: employees are taking their

careers into their own hands. They’re not waiting for

the employment market to improve, for employers to

promote them, nor increase their salaries. Instead, they

talent retention DeClines as opportunity grows in apaC

are seeking to move from one opportunity to the next

to maximise their potential and expand their skill and

experience base.

For the most part, employees have created a new

career template for themselves that doesn’t include one

employer for long periods of time. This poses a great

challenge for HR professionals, recruiters and hiring

managers across the region, and indeed the world. How

do you hold on to talent when talent has already decided

to keep moving?

Here, we explore the results of the latest Kelly Global

Workforce Index in an attempt to provide some insights,

a reality check, and some tangible ways forward.



Employees in the Asia-Pacific region have seen a

slight increase in voluntary, planned exits from current

employers over the past three years.

Six in ten workers in the region say they intend to look

for a job with another organization, and employees in

Indonesia, Australia and New Zealand lead this trend.

Significantly fewer employees in China and Malaysia say

they intend to move jobs in the next 12 months (both

58%) but still well above half the workforce in these

countries.

It appears that employees plan to move organizations

as part of a broader career strategy—perhaps in

response to decreasing career prospects in their current

roles, increased opportunity externally, and the need to

acquire new skills in a rapidly evolving market.

1 / Voluntary attrition inCreasesMost employees are looking to move organisations, and despite ongoing economic turmoil, loyalty has not increased.

66% 58% 61% 71% 58% 68% 57% 65%

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ThailandSingaporeNew ZealandMalaysiaIndonesiaIndiaChinaAustralia

Job Switching APACjob switchinGDo you intend to look for a job with another organization within the next year? (% yes, by region)


The responses from employees in Asia-Pacific reveal

that relatively few feel the “I quit” urge despite having

already planned their exits from their current employers.

Many employees are seeking greater opportunities

to develop and excel in their field, and the chance to

use their existing skills and experience. They want a

challenge and few feel that their current employer can

offer it.

Around four in ten respondents in the region (39%)

say they frequently think about quitting their job. This

is highest in Indonesia (56%) and Thailand (43%), and

lowest in India and New Zealand (both 30%). In fact,

Indonesia and Thailand present a significant counter

trend in the region—both report higher than average

intent to quit, yet higher than average satisfaction with

employers. This could well be an indicator that a large

proportion of what’s driving turnover is about the new

opportunities that are opening up in these markets.

2 / exits are now well-planneD, strategiC DeCisionsWhile voluntary attrition plans are on the rise, unplanned exits driven by personal frustration are low.

“i quit!”Do you frequently think about quitting your current job and leaving your employer? (% yes, by region)

33% 40% 30% 56% 41% 30% 37% 43%

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I Quit! APAC


Just half of employees (49%) feel that they have a sense

of ‘meaning’ in their work across Asia-Pacific. While

both Australia, China, New Zealand, Singapore and

Malaysia report lower levels of ‘meaning’ in their work

than the global average, more than eight in ten (80%) in

Indonesia and seven in ten (70%) in Thailand feel they

have genuine job fulfilment.

3 / few eMployees feel their role is ‘Meaningful’ A sense of meaning and achievement is critical to retention—without it employees are looking elsewhere in spite of economic uncertainty.

job fulfillmentDoes your current employment provide you with a sense of “meaning”? (% yes, by region)

41% 44% 48% 80% 46% 40% 41% 71%

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Job Fulfillment APAC


While four in ten employees in India still believe in the

concept of ‘one employer for life’ (41%), which is well

ahead of those who still hold this view in Indonesia

and Thailand (20% and 28% respectively), it seems it is

becoming less and less likely in reality. Most employees

now believe that staying with a single employer is a

limitation on their career prospects.

In APAC, some 70% of workers feel that gaining

experience with multiple employers is an asset to their

careers. This is highest in some rapidly developing

markets in the region such as Indonesia (81%), Thailand

(81%), although India has the lowest rate of believing

that multiple employers is an advantage (61%). Many of

the developed markets in the region are somewhere in

the middle on this count: Australia (65%), New Zealand

(66%) and Singapore (68%).

4 / they belieVe haVing Multiple eMployers is an aDVantageWhile some still believe its possible to have one employer for life, most see multiple employers is a career asset.

one employer for lifeto what degree do you agree or disagree that a “career-for-life” with one employer is relevant? (total ‘agree’)

32% 34% 41% 20% 31% 29% 29% 28%

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One Employer for Life APAC


People in APAC align with the global trend of not

intending to share their quitting plans with their

employers—just 29% say they would do so. However,

employees in China are significant outliers on this

count. Four in ten (42%) say they would share their

intentions with their employer in the hope that it will

result in changes or counter-offers that will enable them

to stay put.

While there are large differences across the region, a

large number of employees seem set on their plans

to move organizations regardless of their managers’

response to their resignation. Given that most counter

offers are usually just a rise in pay, employees are again

indicating that financial incentives are not the only kind

of change they’re looking for.

5 / Counter offers are unlikely to Change their MinDsFew employees are keen to have an open dialogue with their employers about their desire to move on, which signals their minds are already made up.

likely to share quittinG planshow likely are you to share your potential plans to move to another organization with your employer, with the thought that this may result in changes that may motivate you to stay? (total ‘likely’, by region)

29% 42% 32% 19% 29% 30% 26% 21%

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Likely to share quitting plans APAC


Just half of employees in Asia-Pacific (51%) feel

valued by their current employer. This is the highest

proportion in the world, and significantly ahead of those

in Europe, yet still represents a less-than-ideal picture

for employers.

The sense of being valued is lowest in Singapore (41%)

with similar results in Australia (43%) and New Zealand

(43%). Yet, Thailand and Indonesia represent major

outliers on this count. The majority of employees in

these countries say they feel valued, and this is partly

explained by the fact that they report far higher rates of

feeling fully utilised in their roles.

While just 29% of employees in Australia, New Zealand

and China report that their full potential is being

realised by their current employer, this figure is 62% in

Thailand and higher again in Indonesia (69%)—both

exceptionally high by world standards.

6 / eMployees feel unDer-ValueD anD unDer-utiliseD

29% 29% 46% 69% 38% 29% 30% 62%

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Realising potential APACrealisinG potentialDo you feel that our current employer is realising the full benefits of your potential? (% yes, by region)


Personal growth and advancement is the number one

factor in deciding whether to accept a role. The two

issues of personal fulfilment and personal growth/

advancement account for around three-quarters (75%)

of all responses across Asia-Pacific, signalling again

that rapid development and promotion is the key to

retention in the region.

When compared with financial incentives, personal

advancement far outweighs pay as a driver of job

acceptance in every country across the region.

7 / they are looking for personal aDVanCeMent first anD foreMostWhat really keeps employees engaged— enjoyable and challenging work—is often difficult for managers to respond to.

factors that drive job choicewhich of the following factors would drive your decision to accept one job/position over another? (by region)

Factors that drive job choice

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Personal fulfillment/growth/advancement Compensation/benefits


Compared to the global average, more people in the

Asia-Pacific region say they expect some formal reward

for a job well done. However, there are vast differences

across the region. In Australia and New Zealand, around

one-in-five people say they don’t expect any reward

for high performance (20% and 17% respectively), yet

across every other country this is very low—down to just

1% in China. So, for the most part, employees expect

something. But promotion is high on their agenda and

a very close second to financial reward.

The significant differences across all countries and

regions points to the fact that rewards and incentives

are very personal. Having a one-size-fits-all approach

is likely to miss the mark, as none of the suggested

performance rewards can claim to meet the desires of

the majority of any worker population.

8 / their Desire for rewarD is personal They expect a reward, but don’t assume it’s all about more money.

rewardinG performancewhat is your preferred way of being rewarded for good performance at work (by region)

Rewarding Performance

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Financial Bonus None required


A global pattern has emerged in talent retention. Most

people are planning to switch jobs this year, and they

have clear strategic reasons for doing so. Few employees

across Asia-Pacific feel that their full potential is being

utilised and many are seeing greater opportunities in their

local markets. This inevitably throws up a negative cycle

for employers: one employee leaves to pursue their goals

elsewhere, another arrives in their place with the same

goal. Instead of being locked into an endless, vicious

cycle, HR professionals, and managers must:

tip #1 / keep an eye on the competitive landscape:

greater employment opportunities in Asia are driving

decreasing retention despite improvements in pay and

other employment conditions. Understanding the market,

including specific skills shortages, will assist employers

to offer a competitive overall package to employees

seeking rapid promotion and skill development in the fast-

developing markets.

tip # 2 / focus on ways to demonstrate the outcomes

and contribution of each employee’s role: meaning

at work is critical to engagement and satisfaction, so

ConClusion

finding ways to demonstrate the ways in which each role

contributes to overall outcomes is key to retention and

productivity. Team recognition is fine, but individuals

(particularly highly talented ones) want to see how

they impact results too, and this means finding ways to

measure and report on it.

tip #3 / think like a contingent worker: even in markets

such as Thailand and Indonesia where employees are more

satisfied with their current employer, movement intentions

are still high and are driven by the perception that new

employers bring new opportunities. Therefore, employers

in the region need to consider ways to offer the benefits

of contingent work to permanent employees. A growing

proportion of workers around the world are moving to

the free agent work-style, and around one-third of most

workforces are now made up of contingent labour, so new

retention strategies need to consider ways to increase the

engagement and motivation of these employees too.

tip #4 / Commit resources to document and track skills:

if employees feel their skills are being fully utilised in their

role, they are more likely to feel valued by their employer.

Ensuring that managers and HR departments have a clear

view of the skills that each employee has, and making

internal movement opportunities and project teams more

flexible will help both employer and employee access the

full spectrum of talent and skills available.

tip #5 / find ways to move employees internally:

allowing employees to choose projects and make a

case for being part of them, as well encouraging other

departments/managers and teams to seek skills internally,

will increase development and growth opportunities for

internal talent.

tip #6 / ask how they want to be rewarded: pay and

benefits are clearly important to workers in the region,

yet each employee is different. Consider how you might

provide employees with access to other projects, skills and

responsibilities when they reach their performance targets.

If we know employee movement is driven by the desire to

access new skills, finding ways is critical to retention.


Kelly Global Workforce Index™

about the author

With over 30 years of experience in the recruitment industry, DHIRENDRa sHaNtIlal oversees the entire

operations of Kelly services for asia Pacific across 12 countries and territories – australia, China, Hong Kong,

India, Indonesia, Japan, Malaysia, New Zealand, Philippines, singapore, south Korea and thailand. Previously

a co-founder of Business trends, he led the strategic integration of Business trends with Kelly services in the

year 2000. Dhiren holds an MBa from the University of Durham (UK) and a Diploma in Marketing awarded by

the Chartered Institute of Marketing (CIM).

MethoDology

The Kelly Global Workforce Index was open to respondents around the globe and took the form of a questionnaire on the Kelly

Services website. Data was collated and analyzed by RDA Group. A number of questions have remained consistent over the course

of the survey and allow time-series analysis.

about kelly

Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforce solutions. Kelly® offers a comprehensive array of

outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire and direct-hire basis. Serving

clients around the globe, Kelly provides employment to more than 550,000 employees annually. Revenue in 2011 was $5.6 billion.

Visit www.kellyservices.com and connect with us on Facebook, LinkedIn, & Twitter.

exit

download your free copy today.

This ebook is extracted out of the report Acquisition

and Retention in the War for Talent.

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8 signs talent retention strategies are faltering - apac

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