The Challenges of FM Talent Recruitment & Retention
in Asia
Victoria EvansDivisional Head, FM
James StephensonDivisional Head, CRE
by
• Ability to identify and assess current recruitment and retention issues
• Understand reasons for variations in recruitment and retention rates in FM across Asia
• Apply knowledge of variations to improve present recruitment and retention rates
• Integrate ideas at senior and middle management level as well as the general workforce, to align business and employee objectives
Profit Making Organisations
• Make Money
• Save Money
• Save Time
• Enhance Reputation
• Survive in the Marketplace
FM ChallengesEmployee expectations
o In-House v Service Providero International Brand v Local Enterprise
Talent War (China Jobs) 60% : Chinese enterprise over multinational (Manpower) 64% management offered last 18 months (MRI China)
o Focuso Reputationo Status
FM Challenges• FM skills shortage – Global / Regional / Local
Rapid expansion – demand v supply
1.33bn China, 1.15bn India : < 20% skilled workforce
• Technical
MEP, Workspace, Projects
• Soft skills
Management, client facing, ability to challenge
• Junior – localised, language, training & support required
• Mid – need for internal movement “through the ranks”, competitive
• Senior / Exec – comparatively fewer domiciles in RE within international brands, ex-pat packages costly but declining in frequency
FM Challenges
• Difference in Property Management & FM 物業管理
• Education
• Access to Facilities Management as a career choice
• Comparatively young industry; publicity of FM relative to other industries within and outside of real estate
• Changing thought process – “serve the customer” - a necessity, not just an expense
FM ChallengesEmployer expectations
International education / experience
Local language skills & cultural understanding
Bi- / Tri- Lingual
Polished, client-facing, professional, communicative
Technically strong
Stable work history
Strong people managers
and above all…
CHEAP!
FM Challenges• Business v Conversational Language skills - FM has diverse mix
of domicile employees and ex-pats (Western & Eastern)o Top international bank have a 15% uptake of language courses
• Location – 1st, 2nd & 3rd tier citieso 2011 – 60% of companies in Tier 1 cities planning to hireo 70% of companies in 2nd & 3rd Tier cities planning to hireo Expectation to employ in India & China cheaply: but living costs
rapidly rising
• $ ¥ - Rapid title promotion & pay acceleration (faster than mature markets)o Average 5 % across Asia, but up to 15% in China pao Counter offers (HK 20%, BJ 30%, SH 40% - short term fix)
• FM not fee generating – can be difficult to justify headcount
Cost to the business…Ex-pat contracts extended at high costs
Service provider penalties
Delayed projects
Higher attrition rates
Demotivated, stressed staff
Poor brand image
High recruitment & induction
costs
Unachievable workloads
So, what can we do…
• Increase productivity by realising aims & objectives of the business
• Better align employee motivations and company goals
Personally benefit from company success
4 year cycle
1. Learning
2. Become a success
3. Boredom
4. Move
Succession planning, offer variety & growth opportunity
So, what can we do…
• Salaries – in line with living costs, country averages and availability of skills
• Recruit the best – Value v Cost
• Start early – schools, colleges & universities
• Share information
• Take advantage of availability of European, US & ME talent pool whilst
economy is recovering
Employees Value…
• Skills shortage in buoyant market
• Candidate has control
Reward not linked to performance related or individual input – US direction, employees feel unstable; no loyalty
M&C salary survey 2010 reports 24% of respondents looking to move
within 12 months
In China, 40% of people born in the 80’s are considering starting their own business (China Europe Business School) – encourage entrepreneurialism culturally to retain the best
RFL ComparisonAsia UK
83%, 2010
77%, 2009
64%, 2010
67%, 2010
37%, 2010
Employee Satisfaction• Employee Surveys – invasive?
• Appraisals
• Performance Management
• Training & Development
• Motivating Employees
Management Style – No. 1 reason for joining
Reward & Recognition
Workspace : 10-15% retention difference over 5 years: investment required (Ascendas)
Workplace investment increases productivity and retention rates
Not at all, 4%(-2%)
Not very, 19%(=)
Fairly, 59%(+ 6%)
Very, 18%(-4%)
Job SatisfactionASIA
UK
ME
Regional Differences• Geography – languages, local cultural differences impact perceived “suitability”
• Quality of life, cost of living, education vary
• Competition heated between HK & Sg
o Cheaper in HK: reversal of 2010
o Shortage of quality housing
o HK Govt slow response to air pollution affecting desirability to work, live and raise family
• Candidate expectations can be much higher for less appealing locations
o Non- Tier 1 often lower budgets; greater reliance on local talent pool
Asia Rank 2011
Asia Rank 2010
Global Rank 2011
Tokyo 1 1 1
Nagoya 2 2 3
Yokohama 3 3 5
Kobe 4 4 9
Seoul 5 5 22
Singapore 6 9 36
Hong Kong 7 6 45
Beijing 8 8 46
Shanghai 9 7 47
Busan 10 10 64
Taipei 11 12 66
Ulsan 12 11 76
Guanzhou 13 13 89
Kaohsiung 14 15 97
Jakarta 15 16 102
Shenzhen 16 14 103
Bangkok 17 23 136
Shenyang 18 18 139
Astana 19 17 143
Tianjin 20 20 144
AsianCorrespondent.com, ECA Int
Regional Differences
Average Base Salary (USD $k pa) by Region
Regional DifferencesHow important are each of the following in your job?
ASIA UK84% 2010
77% 2009
90% 2011
Retention V Recruitment:the real cost to your business
Recruitment• Advertising no guarantee but
good brand exposure• Recruiters / Head-Hunters % of
salary (One top SP spends 33% rec. budget on HH in 2010)
• Time – Line Management, recruitment not core function of their role (3-6 months to recruit)
• Inductions & time to “bring up to speed”
• Cost of not having the person in post
Retention • Training & Development• Annual pay increases (5-15%)• Satisfaction monitoring (survey)• Appraisals & performance
review• Counter Offer – short term
measure 20-40%
Integration is key…
• Top-to-bottom buy in• Employees as
ambassadors
• The caring company• People are assets
PPM for your employees!
• Salary is not a motivator, but is a de-motivator
Summary
• Recruiting & retaining FM skilled employees in Asia is tough!
• Time to develop the industry in FM
• Become an employer of choice now!
• Appreciate your employees
Macdonald & Company Salary Survey – September 2011Business card drop at the end of the session to participate and receive results summary
OPEN DISCUSSION
ReferencesECA Cost of Living Survey. Cited: Asiacorrespondent.com
Multinational companies losing the battle for local talent in China. Cited: China Jobs. http://www.linkedin.com/groupItem?view=&gid=2914122&type=news&item=583157678
Gupta, V. India's Skilled Labor Supply: Myth or Reality? Towers Watson Technical Paper No. IND8009. Towers Watson, December 01, 2007
Gilleard, J.D. PhD. Facility management in China: an emerging market. IFMA
Macdonald & Company Salary Survey (Asia, UK, Middle East). 2009, 2010, 2011.
Macdonald & Company www.macdonaldandcompany.com
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