Hong Kong business leaders see the two biggest challenges as attracting new talent and retaining top performers in the next 12 months, according to the latest Randstad World of Work report.
The same report said that almost two-thirds (65 percent) of Hong Kong employees intend to leave their jobs primarily due to lack of opportunity for growth and advancement (67 percent), followed by non-competitive salary/remuneration (51 percent).
Game-Changer #1 of the 2013/14 Randstad World of Work Report, part of a four-part talent strategy series, also reveals that less than 10 percent of local HR managers and business leaders describe their talent strategy as world-class, highlighting the scale of the talent challenge for many organisations.
“Skills shortages, combined with wage pressures and high employee mobility are all driving the need of local employers to develop better selection and development techniques," said Peter Yu, General Manager and Director, Randstad Hong Kong.
"Fortunately, the companies we surveyed strongly indicated that they are ready to invest in the talent management strategies and systems needed to unlock much sought-after productivity gains.”
The top three strategies companies will implement over the next five years include strengthening employee engagement and collaboration (64 percent), improving middle management capabilities (51 percent), and better aligning their workforce plan with business strategy (46 percent).
More sophisticated models for talent analytics and strategic global sourcing will also become more prevalent over the next five years, with 51 percent of companies using talent analytics to improve the supply of new talent, while 53 percent will look to implement recruitment process outsourcing to improve attraction, engagement and retention.
Talent analytics examine a company’s internal organisational data regarding recruitment, training, employee performance and attrition, and uses sources such as CV data and exit interviews. From this data, companies can understand the behavioural patterns and desires of top professionals, and attract and retain the right talent for their leadership pipeline.
Currently, 35 percent of local HR managers and business leaders use talent analytics & “big data” as part of their talent strategy.
Less than half (45 per cent) of employers rate their organisation’s leadership capabilities today as good, while only 9 percent rate them as excellent.
The harshest critics are in Hong Kong (46 per cent), Malaysia (43 per cent) and China (42 per cent) who rate their organisation’s leadership capabilities as average or poor, while India (75 per cent), New Zealand (69 per cent) and Singapore (64 per cent) employers rate their leadership as good or excellent.
More than half (53 percent) of businesses will look to outsource all or part of their talent strategy and recruitment process in the next five years. The top three reasons for this are to access hard-to-find and specialised skills; improve recruitment process efficiency; and to manage business growth
“With low unemployment, the job market in Hong Kong remains buoyant, and demand remains strong for skilled professionals. Businesses will need to put robust plans in place to deal with the uncertainty caused by an increasingly mobile workforce and employers will need fresh thinking and new, innovative approaches to building a sustainable talent strategy,” concluded Yu.