Is Employee Loyalty a Long- Gone Myth in Hong Kong? · Reviving loyalty There are no hard and fast...

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Is Employee Loyalty a Long- Gone Myth in Hong Kong? Financial rewards, work-life balance and career prospects are key factors that Hong Kong employees consider when deciding whether to pursue a new position. Helping employees to discover meaning in work and addressing the needs of different generations are measures for enhanced employee engagement. 12 H UMAN R ESOURCES October 2014 Employee Engagement By Alan Wong, Managing Director, Kelly Services Hong Kong

Transcript of Is Employee Loyalty a Long- Gone Myth in Hong Kong? · Reviving loyalty There are no hard and fast...

Page 1: Is Employee Loyalty a Long- Gone Myth in Hong Kong? · Reviving loyalty There are no hard and fast rules to improving employee loyalty, and companies are exploring what works best

Is Employee Loyalty a Long-Gone Myth in Hong Kong?

• Financial rewards, work-life balance and career prospects are key factors that Hong Kong employees consider when deciding whether to pursue a new position.

• Helping employees to discover meaning in work and addressing the needs of different generations are measures for enhanced employee engagement.

12 HUMAN RESOURCES • October 2014

Employee Engagement

By Alan Wong, Managing Director, Kelly Services Hong Kong

Page 2: Is Employee Loyalty a Long- Gone Myth in Hong Kong? · Reviving loyalty There are no hard and fast rules to improving employee loyalty, and companies are exploring what works best

13HUMAN RESOURCES • October 2014

September 2012 • China FocusEmployee Engagement

Picture this scenario. In the

past six months, a Customer

Service Director of a Fortune

500 company experienced a turnover

rate of over 40% in her team. Her

greatest worry was how to alleviate

the situation. Her company already

owns an internationally reputable

brand that appeals to employees.

Pay was fair, according to the market

index. Performance reviews were

carried out systematically. And yet,

people were ready to jump ship for a

pay rise of as little as a few hundred

dollars a month.

What was happening? Is employee

loyalty an outdated concept? Was the

company doing something wrong?

And if so, what can be done to

salvage the situation?

The 2014 Kelly Global Workforce

Index (KGWI), an annual global

survey with opinions gathered from

230,000 workers around the world,

reinforced this concern. The study

revealed that only 18% of Hong Kong

employees felt “totally committed” to

their employers – the lowest in the

Asia-Pacific (APAC) region.

In fact, 45% of Hong Kong

employees felt less loyal to their

employers compared to 2013,

making the Hong Kong results one

of the worst in APAC. Consequently,

56% planned to search for a new

job this year, with 43% frequently

contemplating handing in their

resignation letter. Nearly 50% of

all respondents were eyeing new

opportunities, even when they were

happy in their jobs.

A deeper look into the survey

revealed that Hong Kong employees

– more so than their global and

APAC counterparts – expected their

employers to satisfy their fundamental

work motivations. The key factors

that drive Hong Kong workers to

leave their current jobs are:

1. poorsalarylevels/financial

incentives (68%)

2. lackofwork/lifebalance(48%)

3. limited advancement opportunities

(44%)

Why employees quit?

KGWI reported that workers look at

three main concerns when deciding

whether to stay or go:

1. Are my earnings/financial

incentives competitive?

Globally, 60% of the study’s

respondents said that having pay

levels below their expectations was

enough to prompt them to switch

jobs. In APAC alone, Hong Kong

topped the chart (68%), followed by

Singapore (66%) and mainland China

(62%).

In 2014, the average on-job salary

increment in Hong Kong was 4.7%

while inflation was 3.6%. This

means an employee without a

promotion salary raise would find

it more difficult to meet the city’s

rising cost of living, which goes up

every year. And for the 50% Hong

Kong population who live in private

housing, the demand for a higher

salary is further boosted by the

unreasonably high property prices.

Hong Kong ranked first for city

with the most unaffordable housing

in the 10th Annual Demographia

International Housing Affordability

Survey, released in January 2014. The

US-based consultancy’s poll, which

covered 85 major metropolitan areas

(with a population of 1,000,000 or

more) around the world, including

Australia, Canada and Japan, found

that the median cost of a flat in

Hong Kong was almost 15 times the

annual household income, while

Singapore›s was only 5.1 times.

Hong Kong, however, has a low

unemployment rate at 3.3% for the

period May to July 2014, according

to data from the Census and Statistics

Department of Hong Kong. As such,

there are sporadic cases where keen

hirers offer 50% salary increase to

“lure” their desired candidates from

competitor firms. Under these special

circumstances, it becomes even

harder for companies to retain staff.

2. Do I have work-life balance?

Poor work-life balance triggers more

job change in Hong Kong (48%) than

in other parts of the world, reflecting

how the sentiment against excessive

hours demands employers’ greater

attention.

In Hong Kong, working hours

vary, depending on the industry

and organisation. Employees,

especially those in service sectors

such as IT, architecture, law,

accounting, banking, marketing and

communications, are burnt out by the

demanding long hours. According to

the 2012 Price and Earnings Report

by UBS, full-time employees in Hong

Kong worked an average of 49 hours

per week. This figure is the second

highest in APAC after Singapore and

the fifth highest among 72 countries

surveyed in this study conducted by

the Swiss financial services firm.

3. Does my job offer good

advancement opportunities?

Apart from a competitive salary

and acceptable work-life balance,

Hongkongers are more likely to

look for job change if there are no

advancement opportunities in their

current positions (42%), compared to

Singaporeans and mainland Chinese

(both 40%).

Dissatisfaction with current

management is the second major

reason to defect for Singaporeans

and mainland Chinese (both 51%).

Hongkongers (40%) appear to be

more tolerant of management,

Page 3: Is Employee Loyalty a Long- Gone Myth in Hong Kong? · Reviving loyalty There are no hard and fast rules to improving employee loyalty, and companies are exploring what works best

14 HUMAN RESOURCES • October 2014

Employee Engagement

reinforcing their practical attitude

towards their careers.

Itching to jumping ship?

Is it correct to conclude that Hong

Kong employees, when compared

with their APAC neighbours, are more

inclined to switch jobs when shown a

bigger pay cheque or better working

hours?

Actually, the KGWI survey said no.

As long as their basic employment

needs are met, Hong Kong workers

(89%) are almost at par with their

Singapore and mainland China

counterparts (90%) in terms of how

readily they would leave their current

work when offered good financial

incentives.

If a new position provides

better work-life balance, 72% of

Hongkongers said they would take

it compared to 79% of Singaporeans.

If another job offered rosier career

prospects, 56% of Hongkongers

would go for it, 11 percentage points

less than Singaporeans (67%).

With these figures, perhaps Hong

Kong employees are not that “jumpy”,

after all.

Value and meaning in work

The survey also pointed out that only

16% of Hong Kong employees would

definitely do more than what was

expected or required from them. This

is the lowest in APAC, compared to

32% of mainland Chinese and 25%

of Singaporeans. It seems that the

diligent workforce that Hong Kong

was known for in the 1960s and 1970s

may now be less zealous.

Hong Kong has a long-standing

reputation of pragmatism and

efficiency. The city’s employees have

been through times when businesses

generously “purchased” talents to

support growth and expansion, and

then laid them off without a second

thought when market conditions

declined. This practice may seem to

have worked in the short term, but it

gradually erodes employee loyalty.

In addition, many employers also

demand their staff to work longer

hours so as to speed up delivery of

their work or services, and to boost

customer satisfaction. But busy,

results-oriented Hong Kong bosses

are often not the best communicators.

When employees surpass expectations

and deliver outstanding work, what

do the leaders say or do to show

appreciation? Perhaps even the most

caring boss resorts to clichés like

“Good job!” and “Well done”. They

may sound nice, but they can be quite

meaningless to employees.

Indeed, some senior leaders are

so passionate about their work that

they fail to see the needs of others

or take for granted their staff’s extra

effort and contribution. This lack of

empathy causes employees to become

disheartened with the company,

and they usually end up feeling

under-valued or under-respected. If

these negative perceptions reach the

tipping point, the staff will quit for the

smallest incentive.

But when employees discover

meaning in their work, the biggest

beneficiaries are employers, not the

staff, Scott Keller and Colin Price

advocated in their 2011 book, Beyond

Performance. Once work becomes

something personal for employees,

their commitment totally changes.

Yet when leaders and managers

entrust their staff with a job or project,

how often do they help the staff

understand their role on impacting the

business or even the community as a

whole?

No wonder the KGWI survey

found that only 28% of Hong Kong

employees believe their current

employment provided them with

a sense of “meaning”, as opposed

to 35% of Singaporeans and 55%

of mainland Chinese. As such, it

is not surprising that only 9% of

Hongkongers thought they were

highly valued by their employers,

making these results the worst in

APAC.

Reviving loyalty

There are no hard and fast rules to

improving employee loyalty, and

companies are exploring what works

best for them. Staff management

is stepping into a challenging yet

interesting era, and HR professionals

need to step up and take the lead.

Gen Y or millennial employees –

those born between 1981 and 2000

– will account for 75% of global

workforce in 10 years’ time or by

2025, according to a 2011 study

from the Business and Professional

Women, a US-based organisation.

However, the KGWI survey pointed

out that 44% of Gen Y in Hong Kong

frequently thought about quitting

their current jobs, compared to 38%

of Gen X (born between 1965 and

1980) and Baby Boomers (born

between 1946 and 1964). “Younger

workers in the Gen Y group naturally

have longer time horizons and their

careers in front of them. They have

fewer financial commitments and

are generally more willing to assume

some elements of risk with jobs and

careers,” explains Mr Lance Richards,

Vice President of Innovation at Kelly

Services Inc.

This means that no matter how hard

a company tries to retain its staff, it

may not be able to command staff

loyalty as easily as it was able to a

decade or two ago.

Using technology, employees can

find their market worth with a quick

search. Guided by the company’s

HR professionals, managers and

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APAC AVERAGE 35%

15HUMAN RESOURCES • October 2014

September 2012 • China FocusEmployee Engagement

leaders need to ensure they can

offer competitive salaries. Retention

of “star” performers must be done

proactively, even aggressively. In

terms of compensation, apart from

the annual salary package, employers

can also consider offering smart,

alternative options for financial

remuneration.

Organisations must also meet

employees’ varying needs for work-

life balance while providing them

with clear and promising career

paths. Consider the experience of

an American executive seconded

to Hong Kong by his company for a

six-month project. He was surprised

by how his Hong Kong supervisor

expected him to be on standby during

weekends and holidays for ad hoc

work requests. He also did not expect

that 12-hour work days were the

norm in the Hong Kong office. In the

US office, most staff left on time after

putting in an eight-hour work day.

At the end of his secondment, he

concluded that Hong Kong work

hours are unhealthily long. He also

observed that some employees were

working long hours only because they

were expected to be around, and not

because they were truly occupied.

There appears to be “little respect for

personal or family time in this city,”

he comments.

The road ahead

High employee turnover may hurt a

company’s morale and efficiency, but

a healthy rate is in fact necessary for

growth. When a key worker leaves,

HR is prompted to re-examine the

organisation’s existing direction, as

well as its strengths and weaknesses.

Resignation indirectly opens the

door to new candidates with fresh

perspectives, industry knowledge and

business opportunities.

At present, employee turnover for

junior functional roles in Hong Kong

is at its peak. These jobs, usually

in customer service and sales, offer

workers minimal satisfaction, career

opportunities and other incentives. As

such, they tend to job hop even for a

small pay increase.

Given that an average Hongkonger

is more educated than a generation

ago, there is a decreasing supply

ofcandidatesforthesejunior/blue-

How committed or “engaged” do you feel with your current employer? (Percentage of “totally committed” employees by location)

Compared with a year ago, do you feel less loyal to your employer?

collar roles. Hong Kong employers

are left to face intensified demand,

unlike in some developed countries

in Asia where labour import from

neighbouring countries is legitimate

and even encouraged. One way to

address this is to repackage these

positions and make the job nature

more appealing.

Talent shortage calls for creative

measures. According to the Hong

Kong Legislative Council, the city

will face a labour shortfall by 2018,

and the deficit will reach 118,000 in

2022. Employers can team up with

the government to unearth “hidden

labour”, such as housewives and

retirees, and entice them to rejoin the

workforce. These formerly inactive

workers often see every job as a

new challenge, and are usually self-

disciplined and appreciative of new

work opportunities.

Hong Kong’s success was built

upon its agile and flexible approach

to business. Employee engagement

should be handled in the same way,

enabling Hong Kong to become a

hub where talents are satisfied and

motivated at work.

GLOBAL AVERAGE 31%APAC AVERAGE 29% GLOBAL

AVERAGE 26%

Page 5: Is Employee Loyalty a Long- Gone Myth in Hong Kong? · Reviving loyalty There are no hard and fast rules to improving employee loyalty, and companies are exploring what works best

• 香港僱員決定應否轉職時,金錢回報、工作與生活平衡及晉升機會是主要的考

慮因素。

• 幫助僱員尋找工作意義,照顧不同年代僱員的需要,有助提高他們的投入感。

僱員忠誠在香港早已神話不再?

Kelly Services Hong Kong董事總經理黃家豪

16 HUMAN RESOURCES • October 2014

員工投入

Page 6: Is Employee Loyalty a Long- Gone Myth in Hong Kong? · Reviving loyalty There are no hard and fast rules to improving employee loyalty, and companies are exploring what works best

試想像這個情景。一名《財富500》

公司的客戶服務部總監旗下團隊

流失率在過去六個月超過四成。她最擔

心如何緩和局面。公司品牌已屬國際知

名,對員工具吸引力。根據市場指標,

薪酬水平亦屬合理。工作表現評估亦有

條不紊。然而,即使僅僅每月加薪幾百

元,員工亦會為此跳槽。

究竟發生何事?忠於僱主的概念是

否已不合時宜?公司做錯了什麼?如有

錯,又如何扭轉局面?

年度全球調查《2014年Kelly全球勞

動力指數》(《指數》)訪問了世界各地

共23萬名僱員,得出同樣結果。調查顯

示,只有18%受訪香港僱員感到「完全

效忠」僱主,位列亞太區之末。

事實上,45%受訪香港僱員認為自己

對僱主的忠誠度較2013年為低,香港成

為亞太區情況最嚴重的地區之一。56%受訪者已計劃今年另謀高就,43%則常

常盤算著請辭。近半受訪者即使對現職

滿意,亦密切留意市場有何新機會。

深入研究該項調查後發現,香港僱員

期望僱主給予基本工作動力,程度遠超

全球和亞太區的僱員。香港僱員離職的

主因關乎:

1. 薪金水平/金錢獎勵偏低(68%)

2. 工作與生活不平衡(48%)

3. 晉升機會有限(44%)

員工為何離職?

《指數》顯示,員工決定去留有三大考

慮因素:

1. 我的收入/金錢獎勵是否具競爭力?

全球六成受訪者表示,薪酬水平比預期

低足以驅使他們跳槽。單看亞太區,香

港居榜首(68%),其次是新加坡(66%)和中國內地(62%)。

2014年,香港平均現職加薪幅度為

4.7%,通脹率則為3.6%。這意味著未獲

得升職加薪的僱員,難以應付本港年年

攀升的生活費用。半數香港人在私人樓

宇居住,樓價不合理地高企令他們更渴

望賺取較高收入。

據2014年1月發表的《10th Annual Demographia International Housing Affordability Survey》結果顯示,在樓

價最難以負擔的城市當中香港居首。是

項調查由美國一家顧問公司進行,涵蓋

澳洲、加拿大、日本等地共85個大都會

(人口達百萬或以上)。從調查所得,香港

樓價中位數幾乎是家庭每年總收入的15倍,反觀新加坡只是5.1倍。

然而,根據政府統計處的數據顯示,

本港失業率在2014年5月至7月期間處於

3.3%低水平。因此,偶爾也有僱主以加

薪五成「利誘」受僱於競爭對手的心儀

人選跳槽。在這種特殊情況下,企業要

挽留員工更加困難。

2. 我的工作與生活能否得以保持平衡?

工作與生活不平衡令香港的轉職情況

(48%)比世界各地更普遍,由此可見僱員

不滿工時過長,僱主應多加留意。

在香港,工時長短按行業和機構有

所不同。苛刻的長工時令僱員筋疲力

盡,尤其是資訊科技、建築、法律、會

計、銀行、市場營銷、通訊等服務性行

業。瑞銀2012年《Price and Earnings Report》指出,本港全職僱員每週平均

工作49小時,在亞太區高踞第二位,僅

次於新加坡,在全部72個受訪國家當中

位列第五。

3. 我的崗位晉升機會高嗎?

除薪酬具競爭力而工作與生活平衡可接

受外,跟新加坡和中國內地相比(兩者均

為40%),香港人較傾向因現職沒有晉升

機會而轉換工作(42%)。

對於新加坡和中國內地僱員而言,跳

槽的第二個主因是不滿現任管理層(兩者

均為51%)。香港人對管理層的容忍程度

似乎較高(40%),進一步顯示事業發展方

面表現較為實際。

17HUMAN RESOURCES • October 2014

September 2012 • China Focus員工投入

Page 7: Is Employee Loyalty a Long- Gone Myth in Hong Kong? · Reviving loyalty There are no hard and fast rules to improving employee loyalty, and companies are exploring what works best

丹麥

挪威

印度

印度

印尼

印尼

俄羅斯

波蘭

瑞典

法國

荷蘭

瑞士

馬來西亞

馬來西亞

中國內地

中國內地

英國

新西蘭

新西蘭

德國

澳洲

澳洲

新加坡

新加坡

泰國

泰國

葡萄牙

香港

香港

匈牙利

意大利

渴望跳槽嗎?

相比亞太區內鄰近地方,香港僱員是否

傾向為更優厚的薪酬或更理想的工時,

因而轉換工作?

事實上,《指數》調查否定了這個說

法。至於僱員有多願意為優厚的金錢獎

勵而離職,只要新工作能夠切合他們對

僱用的基本需要,香港僱員(89%)與新加

坡和中國內地僱員幾乎一樣(90%)。

如果新工作提供較佳工作與生活平

衡,72%受訪香港僱員表示會接受新工

作,新加坡則有79%。倘若另一份工作

的事業前景較佳,56%受訪香港僱員會

接受新工作,比受訪新加坡僱員低11個

百分點(67%)。

從這些數字看來,香港僱員轉職意向

或許並不是那麼高。

工作價值和意義

該項調查亦指出,只有16%受訪香港僱員

必定會做比別人預期或所要求的更多,

數字為亞太區內最低,內地為32%,新加

坡25%。上世紀60和70年代的香港勞動

人口以勤奮見稱,今時今日似乎不如以

往積極。

香港一向以務實和效率享負盛名。企

業發展和擴充時,往往以高薪「購置」

人才,市況下滑時,亳不猶疑便裁員,

這些情況香港僱員早已多番經歷。這種

做法短期內似乎奏效,卻逐漸侵蝕僱員

的忠誠度。

此外,許多僱主為求加快完成工作

或提供服務,提升客戶滿意度,要求員

工延長工作時間。可是,香港的老闆既

忙碌,又以目標為本,卻不善溝通。當

僱員工作出色、表現超乎預期,這些領

袖以甚麼說話或行動表示謝意?即使最

能關懷下屬的上司,也許只會說句「做

得好!」等陳腔濫調。這些說話看來動

聽,對僱員來說卻意義不大。

事實上,有些高層領袖非常熱衷工

作,卻看不到別人的需要,或者視員工

的額外努力和貢獻為理所當然。缺乏同

理心會令員工對公司心灰意冷,最終感

到被輕視或不受尊重。當這些負面看法

到達臨界點,誘因再小,員工亦會離

職。

Scott Keller及Colin Price在2011年

出版的著作《Beyond Performance》指

出,如果僱員發掘到工作意義,最大的

得益者是僱主,而不是僱員。工作成為

僱員個人的事情,他們對工作的承擔將

徹底改變。然而,領袖和管理人員向下

屬委派任務或項目時,有否幫助員工了

解他們對企業甚或整個社會有何影響?

難怪《指數》調查發現,受訪香港

僱員只有28%覺得現職有意義,新加坡

和中國內地的數字分別為35%和55%。

因此,只有9%受訪香港人自覺深受僱主

重視,數字為亞太區最低,這就不足為

奇。

重建忠誠度

如何提高員工的忠誠度沒有不二法門,

企業都在探索最適合的方法。人事管理

正步入既具挑戰性又有趣的時代,人力

資源管理專才需要加快步伐,發揮帶頭

作用。

美國組織Business and Professional Women於2011年進行的研究顯示,1981年至2000年間出生的Y世代或千禧世代

僱員,未來10年或到2025年將佔全球勞

動人口總數75%。然而,《指數》調查

指出,44%香港Y世代經常考慮辭去現

職,而X世代(1965年至1980年間出生)及嬰兒潮世代(1946年至1964年間出生)則為38%。Kelly Services Inc 創新部副

總裁Lance Richards先生解釋:「Y世代

年輕員工擁有較長的規劃年期和職業生

涯。他們的財政負擔較輕,因此普遍而

言更願意在工作和事業方面承擔一些風

險因素」。

18 HUMAN RESOURCES • October 2014

員工投入

就現有僱主,你的承擔或「工作投入」程度如何? (按地區展示「完全忠於僱主」的百分比)

與一年前比較,你覺得對僱主的忠誠度有否下降?

全球平均31%亞太區平均29%

亞太區平均35%

全球平均26%

Page 8: Is Employee Loyalty a Long- Gone Myth in Hong Kong? · Reviving loyalty There are no hard and fast rules to improving employee loyalty, and companies are exploring what works best

也就是說,不管多努力挽留員工,企

業也未必能夠像10年或20年前那麼容易

控制僱員忠誠度。

運用科技,僱員很快便可得悉自己的

市場價值。管理人員和領袖需要經由公

司人力資源管理專才指導,確保提供的

薪酬具競爭力。挽留表現出色的員工更

要主動,甚至積極。待遇方面,除了年

薪福利,僱主亦可考慮另類精闢項目,

作為金錢報酬以外的選擇。

企業亦必須滿足員工在工作與生活平

衡的不同需要,同時為他們提供前景清

晰的晉升路徑。看看一個例子:美國一

名行政人員被公司調派到香港參與為期

六個月的項目。香港的上司期望他在週

末和假期候命,處理突發工作,這項安

排令他感到驚訝。他亦沒料到一天工作

12小時,在香港辦事處是平常事。在美

國辦事處,大部分員工一天工作八小時

後便準時下班。

調任結束後他得出的結論是,香港工

時之長並不健康。他亦指出,有些僱員

超時工作,只是因為公司期望他們留在

辦公室,而不是工作所需。他評論說:

「這個城市似乎不太尊重屬於個人或家

庭的時間。」

未來發展

員工流失率高企有損公司士氣和效率,

但合理的流失率是企業發展的必然事

實。遇上重要員工離職,人力資源部門

應重新審視企業現有方向、優勢和弱

點。僱員辭職間接讓企業迎接新入職

者,他們提供新觀點和行業知識,並可

帶來商機。

目前,本港初級職位員工的流失率達

到頂點。這些工作通常涉及客戶服務和

銷售,為員工帶來的滿足感、事業發展

機會或其他誘因甚少。因此,即使是輕

微加薪,他們亦傾向跳槽。

由於香港人的教育程度平均比上一

代高,這些初級/藍領職位的人手供應不

斷減少。在亞洲某些發達國家,從鄰國

輸入外勞不但合法,甚至受到鼓勵。有

別於這些國家,香港僱主須面對人手需

求大幅增加的情況。解決問題的方法之

一,是重新包裝這些職位,使工作性質

更吸引。

面對人才短缺,我們急需具創意的

方法。香港立法會表示,香港到2018年

將面臨勞工短缺,到2022年勞動人口赤

字將達到118,000人。僱主可以跟政府合

作,發掘「隱藏勞工」,例如家庭主婦

和退休人士,吸引他們重投勞動市場。

這些非活躍員工往往視每份工作為新挑

戰,而且大都相當自律,珍惜新工作機

會。

香港成功之道在於靈活多變的營商

手法。僱主應以同樣方式提升僱員投入

感,使香港成為人才集中地,讓他們對

工作感到愜意,又積極投入。

註:此乃中文譯本,一切內容以英文版本為準。

19HUMAN RESOURCES • October 2014

September 2012 • China Focus員工投入

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