HOW TO ATTRACT AND RETAIN THE RIGHT TALENT TO GROW YOUR BUSINESS INTERNATIONALLY A GUIDE FOR ASIAN COMPANIESCONTENTSAbout Robert Walters 01Introduction 02Part 1 - Going global: the Asian 03 business perspectivePart 2 - Acquisition strategies 06 to attract international talentPart 3 - Motivate and retain 13 your international talent Conclusion 20 Contact us 21 ROBERT WALTERS IS A SPECIALIST PROFESSIONAL RECRUITMENT CONSULTANCY, WORKING WITH BUSINESSES OF ALL SIZES AS A TRUSTED RECRUITMENT PARTNER.ABOUT ROBERT WALTERS Our story begins in 1985 when the Group opened its first office in central London. Since then we have developed into a global specialist professional recruitment group, operating in a diverse range of markets worldwide. For over 30 years, businesses across the globe have relied on us to find the very best specialist professionals, talented executives have trusted us to help build their careers, and companies have outsourced their recruitment processes to us. Its a success story were proud of and one thats built on the strength and passion of our people. As the business continues to expand, we operate with the same commitment to service and quality. Every candidate is treated as an individual with a focus on advising and consulting. It means we continually have the best candidates on the market to offer you. Although our reach is global we remain committed to hiring local talent so our people have a deep understanding of the local market and culture. Its what makes us unique and helps us remain a trusted recruitment partner of the worlds leading firms. FOR OVER 30 YEARS, BUSINESSES ACROSS THE GLOBE HAVE RELIED ON US TO FIND THE VERY BEST SPECIALIST PROFESSIONALS. ROBERT WALTERS 02 INTRODUCTION This growth in influence has not yet peaked. Oxford Economics 1predicts the expansion of Asian businesses as international players will continue steadily over the coming decade, with urban economic power shifting eastwards. This scenario is not without its challenges, however, not least the need for businesses to recruit and retain the global talent they need to grow their international footprint and keep one step ahead of the competition. Companies that are used only to operating within Asia often struggle when working to expand across borders. In this whitepaper we identify and analyse the human resources challenges faced by Asian companies looking to grow internationally. We also hear from the talent about their experiences and opinions on working for Asian businesses and recommend measures employers can take to optimise their ability to attract and retain the best people. We hope the guidelines we provide can serve as a blueprint to help you equip your business to find the talent you need. 1 Future trends and market opportunities in the worlds largest 750 cities - How the global urban landscape will look in 2030 (Oxford Economics, 2012) ASIAN COMPANIES ARE GROWING IN INTERNATIONAL STATUS AND CHANGING THE GLOBAL BUSINESS LANDSCAPE. IN FACT, THE REGION IS HOME TO MORE GLOBAL GIANTS THAN ANY OTHER CONTINENT. IN THE LATEST GLOBAL FORTUNE 500 LIST, 40% OF THE COMPANIES NAMED (197) WERE ASIAN, COMPARED TO JUST 24% IN THE 2006 REPORT. TERMINOLOGY In this report, the term international talent refers to home-grown or returning professionals who have worked for Western companies, whether overseas or in their home countries. Asia refers to eight fast-growing markets in East and South East Asia covered by our research, namely: Mainland China, Indonesia, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam. Asian companies are defined as companies headquartered in these eight countries or regions. Western companies are defined as companies headquartered outside Asia. METHODOLOGY This whitepaper was published in May 2018 and is based on a survey conducted by Robert Walters. It gathered the views of more than 5,000 HR professionals, hiring managers and candidates working in Asian and Western companies across Mainland China, Indonesia, Malaysia, Philippines, Singapore, Thailand, Taiwan and Vietnam. Additional interviews and research were collated to complement the survey findings.PART 1 GOING GLOBAL: THE ASIAN BUSINESS PERSPECTIVE Asian companies continue to press ahead with globalisation, including through mergers and acquisitions. The speed of change is faster than ever. Of the Asian companies we surveyed, 70% state they plan to internationalise their businesses in the coming three years. International expansion is an exciting and challenging prospect, but for emerging businesses in Asia it can be a significant undertaking and risks disruption to existing operations. One of the key issues is how to acquire and retain talent; Asian companies are constantly looking for people with the skills and experience they need to make their global growth strategies a success. 70% OF ASIAN COMPANIES PLAN TO INTERNATIONALISE THEIR BUSINESSES IN THE COMING THREE YEARS03We hire home-grown talent with international working experience for our new geographies because they can offer knowledge of the local market, the laws and regulations; some of them might even offer relationships with potential partner organisations or knowledge of local market opportunities. Hiring manager, a Singaporean real estate companyA CANDIDATE-DRIVEN MARKET There is a special value in securing the services of returning and home-grown talent who have gained international experience working with Western companies. They can be a crucial asset when your company seeks to globalise, as they can provide an ideal combination of understanding local market and cultural issues and having wider knowledge gained from working in an international environment. It is not surprising that talent with such capabilities are targeted by foreign multinationals as well as local companies. In this high demand environment, the fight for international talent in Asia is expected to be fierce. TOP TALENT ACQUISITION/RETENTION CHALLENGES FACED BY ASIAN COMPANIES Our survey found that: of Asian companies questioned expect to increase their international talent headcount in the next 12 months. of these Asian companies believe it is more difficult to recruit international talent compared to talent with no international working experience. The greatest challenges they identify are: Applicants expected salaries are much higher than our budget Candidates are not a good cultural fit with the company There are not enough quality applications to choose from It is difficult to find candidates with skills that match our business requirements 44% 60% 04 57% OF COMPANIES AGREE HIRING INTERNATIONAL TALENT IS VERY IMPORTANT OR SOMEWHAT IMPORTANT TO THEM ONLY 10% OF COMPANIES INDICATE THAT HIRING INTERNATIONAL TALENT IS NOT IMPORTANT TO THEM 57% 10%ROBERTWALTERS 03 Professionals who have both local and international experience, whether home-grown or returning to the region, are valuable assets to Asian companies with global expansion plans and can be in high demand. This makes it essential for companies wanting to secure future success to have robust recruitment and talent management strategies in place.6% NO 37% MAYBE 57% YES 06 PART 2 ACQUISITION STRATEGIES TO ATTRACT INTERNATIONAL TALENT If your business is to succeed in attracting international talent in a highly competitive marketplace, you need to understand the key factors that influence these professionals when considering employment opportunities. This can help your company design a strategy that addresses the expectations of the best candidates. IS INTERNATIONAL TALENT OPEN TO WORKING IN AN ASIAN COMPANY? It is encouraging that more than half (57%) of the international professionals we surveyed say they are open to work for Asian companies in the future. At the same time, more than one third (37%) of these candidates might consider such opportunity. The challenge is how to motivate these passive candidates (i.e. those not actively searching for a new role in an Asian company) to become active candidates, giving you access to a much wider pool of professionals. Just because candidates might not be openly looking for a job in Asian company doesnt mean that they are unavailable to you. If you feel you lack the connections you need to tap into this potential talent pool, you might benefit from working with a partner who can help you gain access. JOANNE CHUA Regional Client Development Director South East Asia and Greater China, Robert Walters 07 DETERMINING SALARY The majority (68%) of international talent indicate pay and benefits as one of the top motivators. Therefore, offering competitive compensation is key when competing for top talent. If you are recruiting for a role that has not previously existed within your business, it may be difficult to determine what a competitive salary should be. Market reports such as the Robert Walters Salary Survey accurately track pay scales for professionals around the world, at all levels across a wide range of business sectors, providing valuable data, insights and analysis into local markets. 1 2 3 4 5 PAY AND BENEFITS BRAND NAME/REPUTATION OF THE COMPANY SENSE OF ENTREPRENEURSHIP CAREER PROSPECTS/PROMOTION OPPORTUNITIES BELIEF IN THE COMPANYS GROWTH POTENTIAL UNDERSTANDING THE TOP MOTIVATORS FOR TALENT ATTRACTION These are the top five factors that our survey found would motivate international professionals to take up a job opportunity with an Asian company.08 COMMUNICATE THE SUCCESS AND HIGH POTENTIAL OF YOUR COMPANY FOCUS ON WHAT YOU CAN OFFER THAT YOUR BUSINESS RIVALS CANT Western companies often impress candidates with a big brand name and opportunities to work overseas. In fact, our research shows that 64% of international talent would consider working in Asian companies that can demonstrate genuine growth potential and help their future career prospects. That is why it is important for you to identify the strengths and advantages your company has over Western companies and highlight them when designing your employment propositions. When advertising your roles or brand, focus on the benefits that working for a local business can offer. While there will be some opportunities Western companies can provide that your company might not be able to at present (such as global mobility), it is important to emphasise any unique benefits you can offer, for example: Competitive compensation packages that are aligned with market rates Your companys expansion/internationalisation strategies for the next five to 10 years Fast track career development that comes with being part of an expanding business in a fast-growing economy The sense of entrepreneurship from helping a business internationalise its operations and status Closer relationship with senior members of staff, including the CEO and board-level directors More opportunities to provide feedback and exercise influence over new projects The benefits and opportunities that Asian companies can offer prospective employees are different from those Western companies can propose, but there are advantages to being a local business. In particular, you can be more flexible and less burdened by the bureaucracy associated with multinational companies. We strongly recommend that these competitive advantages are maximised when you are looking to find and retain the right talent for your business. TOBY FOWLSTON Managing Director South East Asia, Robert Walters 09 PREFERRED CHANNELS FOR RECRUITING NEW ROLES WESTERN VS ASIAN COMPANIES Western Companies Asian Companies Western Companies Asian Companies Western Companies Asian Companies Western Companies Asian Companies Western Companies Asian Companies Western Companies Asian Companies Western Companies Asian Companies Posting job adverts on a professional social networking site (e.g. LinkedIn) Seeking referrals from existing professional and personal networks Direct advertising on a company website Posting job adverts on a personal social media site 78% 57% 7% 65% 42% 48% 3% 66% 49% 27% 64% 43% 45% 29% Engaging a recruitment consultancy Posting on a job board OthersREACH OUT TO YOUR POTENTIAL CANDIDATES THROUGH EFFECTIVE TALENT ATTRACTION CHANNELS Although Asian companies tend to follow the example of Western businesses in preferring to use professional recruitment agencies, they are far more likely to source new talent through personal referrals (27%) and other channels (29%), including internal transfers, university recruitment and job fairs. By contrast, those channels were preferred by only 7% and 3% of Western companies respectively. We found that while only 7% of Western companies favour referrals, the figure for Asian businesses is significantly higher, at 27%. Experience shows that this method of recruitment can be effective for smaller businesses in Asia for staff retention. Its whats known as the “face” concept, in which the employee who makes the recommendation, and the person who takes up the post, feel an obligation to stay with the business, so long as one or other of them is still in the company (A. Manuti) 2 . Engaging a specialist recruitment agency, in particular one which operates globally, can be a good solution for Asian businesses looking to expand their global footprint. This can help them reach a wider pool of international talent, especially from outside their home country. Recruitment consultancies can help source international candidates and advise on the best way to attract them, making it more likely that the ideal talent can be found. At the same time, your existing employees, in particular those with international experience, can be a powerful resource for attracting new people to your company. Offering incentives to encourage members of staff to refer new professionals can be an effective way to attract top talent. This can be especially helpful for businesses that do not yet have a strong public profile. Remember that your employees are already connected to a diverse, qualified pool of candidates. 10 2 “Why Human Capital is Important for Organizations: People Come First”, 2014, edited by A. Manuti, P . de palma, Pasquale Davide de Palma. We use MBA graduates and senior staff to refer people from their international network, and make sure we have a referral reward scheme that incentivises staff to refer international colleagues. Hiring manager, a Singaporean real estate company 11 TRAIN YOUR HIRING MANAGERS Our research found that only 27% of Asian companies have given their hiring managers training in how to attract talent - an area where they face strong competition. These managers also have to deal with the challenge of interacting with diverse domestic and international talent, often from different backgrounds and cultur