NEXT HR Lounge - Melissa Soentoro Presentation.pdf

HR

1. THE CRUCIAL ROLE OF
REWARDS STRATEGY IN
ATTRACTING AND
RETAINING DIVERSE
WORKFORCE

«it KORN FERRY”

2. El
strategy

Assessment 8
succession

Korn Ferry
connects
the dots

000

UY

Leadership
development

3. In the digital era, the rapid pace of technological change is
leading organizations to make four key shifts

Businesses are facing
unprecedented

transformation and
impact on their needs for
talent.

m

«F
F emesis aici

4. How is digital changing the workforce?
The digital journey is changing the very nature of work

FEWER REPETITIVE TASKS
MORE DECISION-MAKING

MORE VARIED ACTIVITIES

GREATER EMPHASIS ON CUSTOMER-CENTRIC THINKING

LESS PREDICTABILITY

x MORE CROSS-TRAINING

=
«i ©2016 Kor Fer.

5. How is digital changing the workforce?
The digital journey will reshape the workforce...

RIGHT SIZE RIGHT SKILLS RIGHT SITE RIGHT SHAPE RIGHT SPEND
Fewer humans? Greater decision- Location is Networked, platform- Data
Ormore as making as deprioritized - or based structure. analytics means
automationenables automationtakes changedin search compensation and
greater capacity. repetitive tasks. of key digital talent. rewards are more

optimally allocated.

RIGHT MIX OF PEOPLE - DIVERSITY...

<F
F reas

6. Right mix of GENERATIONS

Diverse array of viewpoints and voices - “One size fits all” strategy cannot cater to all

group's preferences and needs

06 Oo: 9

Tracifionalst Baby Boomers Genx Milenniais Generation 1
1909 - 1945 1946-1964 1985-1979 1980 -1999 “After2000
Cautious
Loyal Optimistic Seltoxpressive di
Common Cautious Selkfocused Dés Group oriented RSR
Characters Formal Compeliive a Global o
Proud Foreveryoung Tech dependent ans
eretered Sublle, personal Acknowledgemen! Informaland publicly Regular, informal communication Regular
Psic recognilion & feed ofexpertise, prestigious communicated through internal company in-person
ar! back jobliles office faciily recognition ‘communication platiom public praise
Relrement Variable Pay. Base Pay Career Path
Top Priority (b
pres vad Health & Welfare Base Pay Variable Pay Base Pay
Career Path Recognition

Base Pay Retirement

By 2016, accounts for less than 35% of the
employee population and will reduce to less
than 10% by 2020.

Source: Kon Ferry Analysis

<F

FUTURE WORKFORCE POPULATION
HOW TO ADAPT TO THEIR NEEDS BETTER?

©2018 Kom femy. A nghts reserved

7. Right mix of SKILL

Digital era leads to changing jobs, it's important to discern which shift is occurring for
a given role

op pete Q soon
digital era a

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Digital elevates job in pes tsa
due to automation Job is actually gone Orgarientiond Development Specials" Ting and Development Specials Car, Ven and Motorcyle Divers
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ERES o Set | Woden eid Woes
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Source: future o obs Survey 2018 Wok Economic Farm
‘en oles mated nit oppor ost mole ce

ODIBKom Fey. Alrightsreserved 7

8. Talent war

Hiring ready-now versus future-ready employees

Projected talent shortage in some major economies

Indonesia projected talent gaps

a 17%
or = [ 5
DE a | al

Senior Management

Misco Management

Entry Level

With shortage of leadership, skils
and global exposure, quality
gap is larger than
quantily gap

Shortage in both
quality and
quantity will

Quantity gap will
widen, qually
gap remains a
big challenge

Moe _Msuppy

Tele shortage or surplus by Talent shortage or surplus by
2020 (%) 2030 (%)
BB France mmc ‘1
Germany nn] EL
LL LE 7
BER span ms 7 su
BS ux =: 11
m Russo 2 m
[> bras Sn
Mel Conaca |
BB vexico om
Bus. ma
MH china ol
= india Li
Indonesia 10.5
© Japan 20
4e! South Korea 25 ME

By 2030, the world wil face high scarcity of talent. With more global talent
mobility possibilty arise, competition to attract talent has never been more

crucial

Source: 806 Growing Pos, Lang Advantage: Tacking Indonesos Tien! Chalonges, BCG Creating Poo Advantage, Kom fony Ana

<F

©2018 Kom femy. A nghts reserved

9. How reward can address future challenges to attract and to
retain your potential talent

Shifts your mindset towards
remuneration

To

Competitive and motivational 0 d

pay program

Variable pay program management
non! in +

(performance-based differentiation)

an on monetary reward & value proposition
N etary-based reward bilty, career development, culture, employer branding)
Cost orientation of financial reward ROI orientation of total rewards

This shift is varied between different industries, company’s business cycle as well as business urgency. Er

«F

ODIB Om Ferry. Alrightresened 9

10. MARKET TRENDS
ON REWARDS

11. Global salary forecast 2019

Asia / Australasia salary increment forecast

New leclond DS 2.5%
Austraic TTT 2.5%
China a 6.0%
Hong Kong, Chine DS 3.0%
‘pi AAA © 27

Japan DS 20%
Korea A 4.9%
Malaysia A 5.0%
Papua New Guinea EEE 50%
Philippines da sex
Singapore TT 4.0%
Taiwan, China DS 9.7%
Thoiland EN 5.0%
Vero, EN 5.0

«Fr
4 ©2018 Kom Feny. Al right reserved "

12. Indonesia’s international comparison

1200%

1000% In comparison with the
Asia Pacific countries,
800% Indonesia has a lower
base salary in general.
600%
However, compare to
400% South East Asia region, we
200%

are relatively at the same
base salary level with
Malaysia, Philippines,
eg 2 Ss Thailand and Vietnam,
$
Ci E ES while Singapore is the
e highest in the region.

0%

NZ 2
P&E EE
$

a

"Senior management / Middle management /

Supervisory / "Clerical /
Executive

Seasoned professional Juniorprofessional Operations

<F

ODIBKom Ferry. Alrightresened 12

13. Type of salary increases

’ Middle
senor Management/ Supervisory/ Junior
Salary Increases Management/ y Clerical/ Operations
| Seasoned Professional
Executive N
Professional

Merit/ Performance 4.7% 4.5% 4.5% 4.9%

Inflation / Cost of Living 2.5% 2.9% 2.9% 2.6%

Seniority 0.0% 0.0% 0.0% 0.2%

ODIBKom Ferry. Alrightresened 18

x

#1

14. Remuneration mix

120%

100%

80%

60%

40%

20%

0%

Senior Management /
Executive

mBase Salary

Middle Management / Supervisory / Junior
Seasoned Professional Professional

m Allowances

Short Term Variable Payments

Clerical / Operations

m= Benefits

©2018 Kom femy. A righisreserved.

15. Major benefits and allowances

Healthcare benef
Death benefits
Car benefits
Additional holidays / Vacation
Transportation / Commuting.
Telecommunication Assistance
Accidental death benefi

Meak Assistance
Roliment plans - defined contibution

Loans for other purpos

Housing / Rental allowances
Long - Term Disabilty
Retirement plans - defined benefit

Dependent education assistance

<F

Loans for home purchase

= >:
M:
mix
mix
mix
mx

| ES

©2018 Kom femy. A nghts reserved

16. x

Flexible benefit as part of a holistic reward structure

6 dE ö ns FIT

Retirement

A framework that
provides flexibility to
employees and
allows employees to
choose their
preference benefits
based on their
needs and interest.

702

CREDIT
POINTS

Annual & Lila

Leave Disability
Home Insurance
Finance

3 ODIA Kafer. A igh resened

17. Types of flexible benefits scheme

The selection is highly depend on organization's readiness and needs

SIMPLE, LOWER INVESTMENT DELIVERY

cs
0

DESIGN

FSA (Flexible
Spending Account)

Pre-determined
benefit packages

0

Employers provide a set of benefit items |

Eder emblajes to be selected by employee with pre-

determined points

Employees are allowed to choose any
benefit they preferred accordingly to
N the point they have

set without making any changes on the
items included in the set

i
| Employees are allowed to choose one )

Set A SetB sete Dental= 1,000 pts
+ Dental + Vision + Chinese 2 Maternity SD
+ Malemily + Gym medicine ae
+ Annual : Personal + Malemily E o
Leave Finance + Vision son = 550 pls

X

/Employers provide a list of benefit lems

NVESTMENT 2

MOST FLEXIBLE

03 re-dsemined cas

Employers do not provide any list of
benefits

Employees directly receive pre-
determined amount of cash

“Y “Y a!
CASH CASH CASH
IDR6 Mio IDR1OMo IDR 12Mio

©2018 Kom Feny. A nghts reserved

18. X

How flexible benefits works?

CORE BENEFITS
4 Annual
) Leave
VOLUNTARY BENEFITS - FLEX BEN

Personal
Finance

Upgraded

a

HEALTH

Medical Insurance
for Dependent

0,8 Vision

~ D> vente

Chinese
Medicine

©2018 Kom femy. A nghts reserved

19. Key success factors in implementing flexible benefits

program

a

+ Ilisimportan! not to complicate the
scheme and introduce all
sophislicated features within a year of
implementation

+ Give employees ample time lo ease
into the new scheme, understand Ihe
objectives and learn what they need
fo do lo reap the benefis of the
scheme.

Organizations should promote the
scheme through corporate emails,

posters, seminars, promotional videos,

and other relevant resources.
Routine monitoring process on

‘employees’ participation rate

© te

(GM system

Invest lime fo analyze available historical
data to understand current benefit
ulllzation,

Involve employees in focus groups or
employee surveys lo beller understand
their needs

Select the right time to launch the program
10 ensure beller parficipalion and smoother
‘administration,

Ease of access- platforms used lo.
support the flexible benefits scheme
need lo be user-tiendly and
‘compatible with smartphones and
tablets to allow easy access and
participation anytime anywhere.

ness

©2018 Kom femy. A nghts reserved

20. THANK YOU

Y KORN FERRY