This article is brought to you by BIPO.
One of the biggest asks from employees in this post-disruption era is around being rewarded transparently, fairly, and seamlessly. Can employers deliver?
While not solely due to the pandemic, major focal shifts have impacted HR leaders across the world in the past three years. New trends and challenges have since come into the spotlight, and are showing no signs of receding.
As highlighted by industry pundit Josh Bersin in his HR Predictions for 2022 report, the intense focus on employee experience will become “mainstream”. As they balance work, family, and personal commitments in their list of priorities, employees are now looking forward to the future of hybrid work arrangements. In fact, seven in 10 employees surveyed across Asia say not being able to work remotely is a “deal breaker”.
In uncovering perspectives on this contentious topic, HRO spoke to BIPO’s Yury Karp, Global Account Director, based in Shanghai, who explains that when the pandemic first started, businesses could avoid headcount reductions through pay cuts and mandatory time off, given the tightening employment market. However, fast-track to 2022 and he does find employees in Asia willing to forgo pay increases in favour of flexible work arrangements, second only to wellbeing benefits.
“From our experience working with global enterprises on the ground, the general view is that while this is a genuine issue, many business and HR professionals do not know how to deal with the challenges and the long-term effects such a mass exodus of employees will have on business operations.”
This mass exodus that Karp cites is often referred to as the 'Great Resignation', where many employees are seeking jobs that align with their renewed values, wants, and needs. In a world where wellbeing and work-life balance are the new rules, work is no longer "worshipped". In turn, several progressive employers strive to provide initiatives to ensure employees' wellbeing needs are being cared for holistically.
Taking a deeper look at Singapore, a report observed that the top five reasons employees choose to stay in a job are, or put differently, what retains employees includes, in order of priority:
- Job security
- Competitiveness of pay/rewards
- Vacation/time off policies
- Fair pay/responsible rewards practices
- Organisation/brand reputation
Paired with hiring optimism in Singapore reaching a record high for the third quarter of 2022, more organisations are doubling down on their efforts to attract and retain talent. Organisations that fail to keep up with employees’ shifting priorities may suffer the full extent of such a phenomenon – and employers are preparing hard to keep up.
Chiming in to the conversation is BIPO’s Shirman Li, Client Solutions Director, based in Singapore, who says: “It is time for a reality check. There is now an urgent need for employers to evaluate the compensation package and how to pro-actively manage the process.
“Businesses need to respond quickly and address the changing needs of employees, now accustomed to hybrid and remote work, and the flexibility offered.”
One of the employers that is listening and responding to the needs of its employees is, in fact, Schneider Electric, where Nathalie Huynh, Country HR Director, Singapore, Malaysia, Brunei shares with HRO how the group is “always on the lookout for the right talent to join us in our mission to drive digital transformation for sustainability and efficiency.”
The global specialist in energy management and automation expects competition for talent to take on green and tech jobs to become stiffer, as more companies look to accelerate their sustainability journeys. According to Schneider’s Green Pulse survey conducted in March, 70% of business leaders say their companies intend to create more green jobs in the next 12 months – which has, to date, remained a niche category of jobs that is now expected to join the mainstay of in-demand roles.
In retaining and attracting talent, Schneider Electric ensures that existing employees can grow the relevant skills needed, while fresh hires get good exposure through job-rotation, with a focus on sustainability. This ensures that its employees will be well-equipped to take on their roles effectively and help create real impact for a sustainable world.
Meanwhile, in Malaysia, the 2022 Employer Brand Research revealed the top 10 EVP factors employees seek for the year. Topping the list, salary & benefits received 74% of the votes from respondents in the nation – a 2% increase from 2021. This was closely followed by work-life balance (70%) and strong management (64%).
Amidst these preferences, hiring sentiment remains optimistic in the nation. In fact, the growing demand for talent across industries has presented job seekers with the opportunity to negotiate for higher salaries and better benefits, so that they can improve their work-life balance and have a higher standard of living.
The strong demand for fair compensation, better work-life balance, and finding an employer with a ‘purpose’ are values arguably common to talent across Asia nations.
Among the many ways you can take action to these causes, one is having the right compensation management system as the foundation to a dynamic yet sound people strategy. The right industry partner, or the use of seamless technology, can ease the role of CHROs into taking data-driven decisions that demonstrate a clear link between what motivates employees and what drives business results.
BIPO’s Li noted that in his conversations with HR teams, increasingly, businesses are looking for a unified SaaS-based HR solution that integrates with payroll and finance functions. Of particular interest is its compensation management module, which offers the flexibility to configure salary budget guidelines by country and per performance rating (or compa ratio).
Highlighting the need to leverage technology to manage administrative HR processes effectively, Li reiterated that designing an employee-centric compensation and benefits strategy against today’s hybrid business landscape requires a multi-pronged and forward-thinking approach.
To find out more about BIPO’s award-winning global payroll and people solutions, including its compensation management module, connect with the team at www.biposervice.com
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