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Watson Wyatt Vietnam, Aug 2009 NewsletterTOWER PERRIN AND WATSONWYATT TO COMBINE TO FORM TOWERS WATSON Combined Company Positioned for Sustainable Growth and Profitability with a Broader Portfolio and Wider Geographic Footprint STAMFORD, CT & ARLINGTON, VA, June 28, 2009 — Towers, Perrin, Forster & Crosby, Inc. and Watson Wyatt Worldwide, Inc. (NYSE, NASDAQ: WW) today announced that their respective Boards of Directors have unanimously approved a definitive agreement under which Towers Perrin and Watson Wyatt will combine in a merger of equals to form a new, publicly listed company called Towers Watson & Co. Based on the closing price of Watson Wyatt common stock on June 26, 2009, the implied equity value of the transaction is approximately $3.5 billion. Watson Wyatt Chief Executive Officer John Haley will serve the combined company as Chief Executive Officer; Towers Perrin Chief Executive Officer Mark Mactas will serve as President. The combination of Towers Perrin and Watson Wyatt into Towers Watson will create one of the world’s leading professional services firms, well positioned for sustained growth and profitability across all geographies and business segments, said Mr. Haley. The combination will further strengthen our core service lines while offering our clients an enhanced portfolio of proven offerings across a range of financial, risk and people management areas. Towers Watson will have tremendous global reach and service breadth to meet the growing needs of the world’s largest multinational corporations. As we provide more value for our clients, we in turn create value for our people and our shareholders. Mark Mactas, Chief Executive Officer of Towers Perrin, said, This is an important transaction for our respective organizations that positions us well for a future of accelerated growth and higher levels of profitability. The fit between our firms is excellent, starting with a deep commitment to client service and shared values of integrity, professionalism and respect. Our service lines and geographic strengths are also highly complementary, which creates great opportunities for growth. We couldn’t be more excited about this combination, which will change the landscape of our industry. Towers Watson, which is expected to have annual revenues in excess of $3 billion, will benefit from the scale of the combined companies and anticipates approximately $80 million in pretax annual synergies. While significant savings are expected during the first two years following completion of the transaction, it is anticipated that full realization of synergies will take three years and cost approximately $80 million. Towers Watson will also have significant non-cash expenses during the first two years following completion of the transaction. The transaction is expected to be accretive to diluted earnings per share within three years following the consummation of the transaction. Strategic & Financial Benefits of the Transaction - Strengthened Organizational Capabilities: Towers Watson will be stronger than the sum of its parts, positioned for industry leadership long into the future and a more effective competitor that can provide additional services to our existing and prospective clients. - Expanded Global Presence with Geographically Diverse Revenue Base: The combination will expand our global footprint to optimize service, global reach, and seamless delivery for our clients. Towers Watson will operate within four geographic regions: North America, EMEA (Europe, Middle East and Africa), Asia-Pacific, and Latin America. - Enhanced Products and Services: Towers Watson will focus its operations on three segments: Benefits, Talent and Rewards, and Risk and Financial Services. These will build on existing thought leadership and research, and will be supported by a more comprehensive set of services, from strategic advice to solutions and implementation. We believe that these benefits will lead to: - Increased Growth and Revenue: For our shareholders, we expect to deliver economies of scale, diversification of our current businesses, and increased growth and investment potential. - Greater Depth of Talent for Our Clients: We expect to provide broader solutions and a deeper talent pool across a wider geographic footprint. - Greater Opportunities for Our People: For our people, there will be an expanded set of career opportunities, a stronger brand, greater access to resources, and a broader network of colleagues. - Inreased Profitability through Operating Synergies: Towers Watson expects to have an annual earnings before interest, taxes, depreciation and amortization (“EBITDA”) margin of 17%+ post-integration. We expect $80 million potential cost synergies on a year three run rate, with $80 million in expected one-time costs. Transaction Terms Under the terms of the agreement, Watson Wyatt shareholders will be entitled to receive fifty percent of the combined company’s shares on a fully diluted basis. Towers Watson shares issued to Watson Wyatt shareholders in the merger will be freely tradable. Towers Perrin shareholders, who are all active employees of Towers Perrin, plus a group of Towers Perrin employees to be designated to receive certain equity incentive awards, will be entitled to receive fifty percent of the combined company’s shares on a fully diluted basis. Towers Watson shares issued to Towers Perrin shareholders will be restricted shares that become freely tradable over a period of one to four years. Conference Call The companies will host a live webcast and conference call on Monday, June 29, 2009 beginning at 8:30 a.m. Eastern Time to discuss the transaction. The webcast can be accessed via the Internet by going to the Investor Relations section of www.watsonwyatt.com. A replay will be available after the live call and may be accessed via either company’s website at www.towersperrin.com or www.watsonwyatt.com. Approvals and Time to Close The transaction is subject to approval by each company’s shareholders and the satisfaction of customary closing conditions and regulatory review and approvals, including competition reviews in the U.S. and other countries. Subject to satisfaction of these conditions, the companies anticipate a shareholder vote in the fourth quarter of 2009 and a closing date as soon as possible thereafter. Advisors Goldman, Sachs & Co. is acting as financial advisor and Milbank, Tweed, Hadley & McCloy LLP is acting as legal advisor to Towers Perrin. Banc of America Merrill Lynch Securities is acting as financial advisor and Gibson, Dunn & Crutcher LLP is acting as legal advisor to Watson Wyatt. About Towers Perrin Towers Perrin is a global professional services firm that helps organizations improve performance through effective people, risk and financial management. The firm provides innovative solutions in the areas of human capital strategy, program design and management, and in the areas of risk and capital management, insurance and reinsurance intermediary services, and actuarial consulting. Towers Perrin has 6,300 employees located in 26 countries and is located on the Web at www.towersperrin.com. Tower Perrin has not had operation in Vietnam yet. About Watson Wyatt Watson Wyatt (NYSE, NASDAQ: WW) is the trusted business partner to the world's leading organizations on people and financial issues. The firm’s global services include: managing the cost and effectiveness of employee benefit programs; developing attraction, retention and reward strategies; advising pension plan sponsors and other institutions on optimal investment strategies; providing strategic and financial advice to insurance and financial services companies; and delivering related technology, outsourcing and data services. Watson Wyatt has 7,700 associates in 34 countries and is located on the Web at www.watsonwyatt.com. In Vietnam, Watson Wyatt launched a colaboration with SMART HR - a human resource management consulting firm established in October 2001, in HCMC - on the Total Rewards Surveys and other consulting projects from 2004. On Jannuary 1, 2009, Watson Wyatt officially accquired SMART HR and became the first global human capital consulting firm, fully operating in Vietnam. Forward-Looking Statements This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements and other forward-looking statements in this document by words such as "may", "will", “would”, "expect", "anticipate", "believe", "estimate", "plan", "intend", "continue", or similar words, expressions or the negative of such terms or other comparable terminology. These statements include, but are not limited to, the benefits of the business combination transaction involving Towers Perrin and Watson Wyatt, including the combined company’s future financial and operating results, plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of Towers Perrin’s and Watson Wyatt’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: the ability to obtain governmental approvals of the transaction on the proposed terms and schedule; the failure of Towers Perrin shareholders and Watson Wyatt stockholders to approve the transaction; the risk that the businesses will not be integrated successfully; the risk that anticipated cost savings and any other synergies from the transaction may not be fully realized or may take longer to realize than expected; the ability to recruit and retain qualified employees and to retain client relationships; the combined company’s ability to make acquisitions, on which its growth depends, and its ability to integrate or manage such acquired businesses; and the risk that a significant or prolonged economic downturn could have a material adverse effect on the combined company’s business, financial condition and results of operations. Additional risks and factors are identified under "Risk Factors" in Watson Wyatt’s Annual Report on Form 10-K filed on August 15, 2008, which is on file with the SEC, and under "Risk Factors" in the joint proxy statement/prospectus that will be filed by the Jupiter Saturn Holding Company. You should not rely upon forward-looking statements as predictions of future events because these statements are based on assumptions that may not come true and are speculative by their nature. None of the Jupiter Saturn Holding Company, Towers Perrin or Watson Wyatt undertakes an obligation to update any of the forward-looking information included in this document, whether as a result of new information, future events, changed expectations or otherwise. Where You Can Find Additional Information This press release was issued on June 28, 2009. Towers Perrin and Watson Wyatt have formed a company, the Jupiter Saturn Holding Company (the "Holding Company"), which will file a registration statement on Form S-4 with the Securities and Exchange Commission (the "Commission") that will contain a joint proxy statement/prospectus and other relevant documents concerning the proposed transaction. YOU ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND THE OTHER RELEVANT DOCUMENTS FILED WITH THE COMMISSION BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT TOWERS PERRIN, WATSON WYATT, THE HOLDING COMPANY AND THE PROPOSED TRANSACTION. You will be able to obtain the joint proxy statement/prospectus (when it becomes available) and the other documents filed with the Commission free of charge at the Commission’s website, www.sec.gov. In addition, you may obtain free copies of the joint proxy statement/prospectus (when it becomes available) and the other documents filed by Towers Perrin, Watson Wyatt and the Holding Company with the Commission by requesting them in writing from Towers Perrin, One Stamford Plaza, 263 Tresser Boulevard, Stamford, CT. 06901-3225, Attention: Marketing, or by telephone at 203-326-5400, or from Watson Wyatt, 901 N. Glebe Rd., Arlington, VA. 22203, Attention: Investor Relations, or by telephone at 703-258-8000. Towers Perrin, Watson Wyatt, the Holding Company and their respective directors and executive officers may be deemed under the rules of the Commission to be participants in the solicitation of proxies from the stockholders of Watson Wyatt. A list of the names of those directors and executive officers and descriptions of their interests in Towers Perrin, Watson Wyatt and the Holding Company will be contained in the joint proxy statement/prospectus which will be filed by the Holding Company with the Commission. Stockholders may obtain additional information about the interests of the directors and executive officers in the proposed transaction by reading the joint proxy statement/prospectus when it becomes available. Source: Towers Perrin and Watson Wyatt Contacts: Towers Perrin Media: Joe Conway 914-745-4175 joseph.p.conway@towersperrin.com Watson Wyatt Media: David Popper 703-258-7582 david.popper@watsonwyatt.com Investors: Mary Malone 703-258-7841 mary.malone@watsonwyatt.com --------------------------------------------------
Coaching Vs MentoringOrganizational development and changes, occurring due to mergers, acquisitions, market and economic conditions, require companies to provide its key employees with strong support, to deal with such changes and adapt successfully. Therefore, companies often seek Coaching or Mentoring as a tool to support their employees. To survive and prosper in these tough times, your staff has to perform at the highest level of effectiveness. This might mean leadership skills, decision-making, staff relations, creativity, stress and time management, meeting control or sensitive issue handling. Coaching and Mentoring can help a person in all these and more by discovering hidden potential and enhancing it. Coaching and Mentoring are two terms that many believe are interchangeable. While there are some similarities in these two roles, their actual responsibilities and duties vary. What are Coaching and Mentoring? Coaching- Enhancing technique that involves observing an individual at work and providing feedback to improve current work performance or correct deficiencies - Focusing on enhancing skills and capabilities relevant to the immediate career path - Relationship generally has a set duration - Short-term (sometimes time-bounded) - Formal and more structured in nature and meetings are scheduled on a regular basis - Revolving more around specific development areas/issues related to tasks Mentoring- Relationship to give people the opportunity to share their professional, personal skills and experiences, and to grow and develop as an individual - Focusing on career and personal development through guidance, direction and career advice - Ongoing relationship that can last for a long period of time - More long-term with a broader view of the person growth - More informal and meetings taken place and when the learner needs some advice, guidance or support - Resolving more around developing the learner professionally in career decisions As can be seen above that Coaching and Mentoring are not the same but what contributes to the confusion is that a Coach and a Mentor often perform their work using similar skill sets, such as strong interpersonal and communication skills. Effective Mentors (as well as effective supervisors, managers, and executives - leaders of all kinds) also use effective coaching skills. The goal of both a Coach and a Mentor is relatively the same -- to help someone to improve performance in a certain area of life or career. However, a Coach and a Mentor each will go about their duties in a unique way. How to conduct Coaching and Mentoring?A Coach- observes the routines, activities or strategies & listens, makes inquiries and reflects - feedbacks and corrects any wrong doing, problem or weakness within a person and his/her performance - builds skills and increases knowledge within a specific area - assists people in staying focused on an area of improvement or learning objective to achieve the desired outcome or change - focuses on improving an individual’s specific performance, which is usually task-related Example: a Coach may work - with an executive to upgrade his presentation skills; - with a golfer to improve her swing; or - with a job applicant to polish his resume. A Mentor- usually is senior within the organization - acts as a guide or a role model - generally tells, advises, instructs, suggests or gives opinions - knows when and how to use coaching skills during mentoring process - conducts the mentoring with scope always individual related - gets actively involved in another person’s development (personal or professional) Example: a Mentor likely covers many facets of that profession, including concepts, attitude, knowledge, preparation, networking and technical functioning etc. Therefore, Mentors share their insight and knowledge in a way that helps people take greater control of their lives' Coaching & Mentoring can enhance morale, motivation and productivity as well as reduce staff turnover as employees feel valued and connected with organization and it is a two-way relationship gaining significant benefits to both parties. Coaching and Mentoring are also closely linked with organizational change initiatives in order to help staff to accept and adapt to changes in a manner consistent with their personal values and goals. Though it becomes essential to determine clearly what your organization’s needs are and to ensure that the Coach or Mentor can conduct the sessions with the type and level required, whatever it is called.
VIETNAM HR PRACTICES REFLECT THE IMPACT OF ECONOMIC DOWNTURNDespite being one of the three Asian countries able to claim positive GDP growth for 2009, Vietnam like its neighbors is showing the effects of the world economic downturn. Unemployment, a growing issue worldwide, is expected to increase in Vietnam as some export oriented garment and footwear factories closed down in response to canceled or insufficient orders. Local employment statistics are receiving additional pressure from Vietnamese working abroad who are returning home in greater numbers seeking work and overseas Vietnamese looking to Vietnam for new professional opportunities. Watson Wyatt Vietnam recently hosted its 2009 Spring Market Trend Update seminar presenting the analysis from the recent Total Reward Survey (TRS) Update findings, which confirm that companies have been adjusting their HR practices to reflect the economic reality. Major findings are the following issues: 1, HR budget constrainOne way that companies in Vietnam are responding to the current economic situation is via their HR budgets. A quick measure of this is the comparison of the previous TRS finding (data as July 31, 2008) which indicated that more than 46.8% of participating companies planned to increase annual their HR budgets as opposed to only 28.0% for this latest survey (data as March 31, 2009). As one could expect, plans to decrease HR budgets rose in the latest survey by 6.1% over the previous survey results. 2. Headcount constrain & continued high staff turnoverOn the closely related issue of headcount, it is interesting to note that in the last eight months between the 2 surveys, more than 60% of TRS participating companies maintained or increased headcount and of this more than 15% increased headcount by more than 20%. During the same period, the majority of participant companies reducing headcount did so by less than 20%. Projected headcount changes based on the latest TRS Update indicate their plan for headcount increases at more or less the levels of the previous survey, but the real difference is in the companies with headcount reductions. Nearly all these companies are projecting to cut headcount by more than 40%. With all the talk of unemployment and headcount reduction, it will come as no surprise that staff turnover rate has decreased since 2008 (the highest for the period from 2005 to 2009). However, what is surprising is that the decrease is only 1%, with average turnover remaining at 16% (the second highest rate for the five year period). It shows that talent shortage is still an issue and companies are struggling to attract and retain the critical workforce to keep business operations going. 3. Caution on salary increase policyComparison of findings from the two latest surveys (8monthsapart) on reported basic salary increase policies (17.7% in Jul 2008 vs. 15.0% in March 2009) shows caution on salary increase. The figures in good part reflect a response to last year’s high inflation which has since significantly eased from its summer 2008 peak. 3. Focus on revenue growth and cost managementAs if to highlight current company priorities, survey findings indicate that the job with the most market value increase is Head of Sales, in contrast with the most market value decreased - Purchasing Manager. RecommendationThe challenges of constrained HR budgets and headcount and slowing salary growth are a clear call for cost management that if responded to correctly can be an opportunity to prepare for the future. A cost focus means setting the right priorities. This is the time to optimize capability, engage critical talent and focus on the motivation and retention of high performers. Limited budgets need to be carefully allocated to ensure that core competencies are preserved and developed. It is vital to enable companies to take advantage of the upturn.. Overcutting, just like overspending, can seriously weaken a company’s ability to respond to opportunity. This is the moment for HR management to demonstrate the fine art of balancing financial considerations and critical performance and core competencies.
MAY TOPIC: REDUCTION IN FORCENo matter what you call it: a recession, a sluggish environment, or a downturn - it is clear that the economy is far from robust. Because job losses are an inevitable part of any economic downturn, it is wise to plan ahead, whether you believe your company will be able to weather the storm successfully or you expect to face the painful task of cutting jobs. As with most situations, planning is the key. A good plan for a reduction in force (RIF) requires that you identify the tasks that need to be accomplished, those that will be eliminated, and the new structure that will accomplish these goals. Current employees' skills can then be aligned with the company's business needs and, difficult but well-considered, decisions made. A RIF should not be used as a way to manage performance problems that have not been well-documented. When employers implement RIF, possibly, they risk lawsuits from unhappy affected employees. Therefore, human resources professionals should take appropriate steps to reduce the likelihood of liability during a RIF using the following critical steps: I. PlanningConsider alternatives to layoffs: Employers may be able to achieve at least some of their goals through measures other than involuntary layoffs, such as salary freezes, reductions in benefits, hiring freezes, cancellation of club memberships, entertainment activities, eliminating overtime or offering employees incentives to encourage voluntary early retirement. Typically, a plan might include anticipated savings from attrition and the elimination of open positions on organizational charts, not just job consolidation or elimination and outsourcing. Create a plan to reduce other expenses: Before implementing your rightsizing program, establish an overall cost-savings plan to reduce expenses and improve efficiency. Reorganization plans often include cost-saving measures unrelated to personnel (e.g. eliminating the number of outside vendors). Ensure that the RIF is not discriminatory: If at all RIF is what you need to choose then you should rely on objective factors when selecting employees for layoff and compare the composition of the individuals being laid off to that of the workforce as a whole to ensure that reliance on seemingly neutral criteria does not result in a disparate impact on any particular group. Prioritize selection factors: Base selection on quantifiable and objective factors, such as: 1) length of service or seniority; 2) elimination of unnecessary job classifications; 3) elimination of certain categories of employment conditions, e.g. temporary, part-time, or contract workers; 4) pre-existing job appraisal data related to successful performance of critical post-reduction functions; and 5) disciplinary actions taken for severe or persistent performance problems. II. PreparationEstablish the case for downsizing: The laid-offs often challenge the genuineness of a reduction in force (RIF). Establishing written reasons for downsizing lends credibility to your underlying employment decisions, for both displaced employees and those who remain employed. You may articulate a story as telling the story is an opportunity to articulate the business case, address employee concerns, and deliver key messages. Appoint a taskforce: If necessary, appoint a task force or committee to review the reasons for your rightsizing and formulate a plan which typically establishes specific criteria and procedures for identifying jobs for elimination. The task force/committee usually assists in selecting employees for layoff and also analyzes the demographic impact of the elimination of particular jobs. Define the role of managers: Consider the role of managers to make recommendations and communication strategy, to support the change and deliver difficult conversations. Try to maintain transparency to lessen the perception of secrecy, thereby avoiding confusions and misunderstandings. Give managers the tools they need to manage the rumor mill, to maintain productivity and to handle difficult situations. Emotionally prepare yourself: Expect anger and sadness in response to the RIF action. Recognize the fact that you may grieve along with the laid-off employees. Part of this step means getting ready for the psychological effect the layoff will have on everyone, including the "survivors" and their managers. III. RIF AnnouncementCommunicating layoffs and downsizing will significantly impact your organization. How well it is communicated will determine the recovery time with your employees, customers and the impact on business results. Develop right communication strategy: The potential impact on all employees necessitates a carefully crafted change and communication strategy. Let them know what is coming, how it supports the business and how it will drive future results The communication strategy should define the business objectives, key messages, focused audiences and set your timescales and tactics. Communicate openly about the results, the plans and the future as you see it Deliver the news: Always focus on layoffs with respect and dignity. Practice out loud until you feel confident. The more prepared you are, the easier your job will be, and the more helpful you can be to the employees. Make sure that your leaders are delivering messages consistently with your story. Provide required advanced notice: If a RIF proves necessary, keep in mind that the Labour Code requires employers to provide advanced notice to Labour Office before to employees laid off due to workforce reductions. Communicate early and often: Honesty should play a major role in everything you do and say. These are the people you depend on to keep you in business. Tell them what you know and what you can share. If you aren't allowed to tell them some of what you know, try to explain why. Consider how you can help: In-house outplacement services can assist those who must find other work. If possible, find out what is available in your community to meet the needs of the unemployed. Be empathetic and willing to go the extra mile in helping your laid-off population. Keep in mind that your "survivors" are watching you and the way you handle those who are leaving. IV. Post RIF ActionTake care of those who remain: Remaining employees will be distracted by the departures of the colleagues, concerned about transitioning to new responsibilities and curious about the future of the Company. Communicate to survivors to ensure employee engagement. Valued employees will leave if they think the organization is in trouble. Provide support to affected employees with one-on-one meetings or formal letters etc. Business results can only be achieved if the workforce stays motivated and engaged. As time passes, take the pulse of the employees and act on their suggestions Be a cheerleader: HR has a major responsibility in redesigning, training, and employee engagement, especially after a major layoff. Employees are looking to HR for guidance in filling in the gaps while managing the social pressures that are inevitable with layoffs. Remain positive, set goals, and help others who are struggling with what they are being asked to do In summary, communication is the key to ensure smooth and to re-engage employees. To conduct a RIF, we must : 1) treat employees with respect and understanding; 2) communicate realistically and practically; 3) balance honesty with the risk of increasing the negative reactions; 4) prepare your leaders to support; and 5) engage the survivors through communication. With these in mind as principles, the risk of a RIF and the recover time can be reduced to the minimum.
DEVELOPING AND SUSTAINING A COMPETITIVE EDGE - ContinuedAs mentioned in the March Newsletter article, although attraction and retention may not be critical issues at the moment, they are likely to be so when the economy recovers or skills shortages are felt. Organizations today need to have the tools in place to maintain their competitive advantage and to be prepared to respond to future changes. The key finding of Watson Wyatt’s (WW) 2008-2009 Global Strategic Rewards report shows the link between high performing organizations and an integrated approach to talent management and reward. Organizations differ and so do their strategies and approaches to talent management. The results of the WW report give insight into the best practices being used and how deeply these are used in high performing organizations. Although levels of integration vary, the trend to integration is clear. Last month’s article focused on five areas of talent management: organization-wide total rewards philosophy; employee value proposition (EVP); formal workforce planning; competency models; work/life balance. Clearly, each of these can be deployed independently of the others, but as the WW report shows, the more integrated the approach, the more effective it is. It is now time to look more specifically at the rewards-related best practices: Linking performance goals to business objectives and performance to rewardPerformance management is the most effective way for management to communicate with employees about their objectives and how these link with the organization’s. For employees - it helps them to focus their efforts on priorities and to measure for themselves how they are doing. For the company – it helps to focus employee development on competencies that drive organizational success. By linking individual performance to reward outcome, effective performance management is delivering on a commitment to pay for performance. Leverage total cash through differentiation of awardsIn response to the need for critical talent and to keep employees’ financial interests aligned with business objectives, employers are differentiating both merit increases and short-term incentives on the basis of performance. Top performing employees in high-performing organizations are receiving double the merit increases of other performing staff. This has the dual advantage of reinforcing performance excellence and of motivating and retaining top performers. High-performing firms are also awarding significantly larger performance bonuses since the bonus pool, based in part on company performance, is larger. This creates a positive cycle that companies can use to further reinforce the benefits of employee and company performance. . Effectively deploy recognition programsFormal recognition programs linked to individual and organization results have a high return-on-investment. They reward high performance, reinforce desired behaviour and offer the opportunity for targeted recognition of achievement. This can be an excellent opportunity to stimulate positive internal competition to reach specific performance goals. An example of this is different production units each striving for improvements on safety issues. On a quarterly basis, the management hosts a dinner during which the unit with the most improvement receives an award. An additional advantage of this approach is that these programs are quite cost-effective, typically representing from 0.5 to 2 percent of base payroll. The power of an integrated talent management platformLike talent management, there is not a standard level of integration between rewards best practices. However, the three practices are closely related facilitating integration. By linking reward directly to performance management, the organization is further strengthening the utility of this talent management tool and creating a platform for further rewards differentiation. Once the integration in place, this is a powerful tool for aligning performance with organizational business objectives. In Vietnam, like elsewhere, economic considerations are guiding many business decisions including budget cutting on human resources management. This being the case, it is the ideal time to consider establishing or updating an integrated performance management and rewards program. Focusing the investment on high performers not only saves costs, it also sends out a message linking results to business goals. In addition, as the cost for such a program is tied directly to results, the potential financial exposure is controllable. A final note in favour of implementation is the historical talent shortage being faced by many companies here and the need to retain and attract top performers by providing line of sight and meaningful motivation. In conclusion, based on findings from the WW report, organizations using an integrated approach to talent management and reward programs outperform their competitors in attracting, retaining and motivating talent. This is achieved by incorporating business goals into the organization’s talent and rewards strategy. It is further enhanced by defining an organization-wide EVP, leveraging a competency approach, optimizing job-design and resources, communicating to ensure clarity around roles, setting standards & actively measuring and rewarding performance. Whether this describes your organization today or not, it is essential to note that this is an ongoing and evolving process that needs to be updated regularly to ensure close alignment with organizational strategy and business objectives.
DEVELOPING AND SUSTAINING A COMPETITIVE EDGE -
AN INTEGRATED APPROACHNew technology, globalization and the economy are impacting on talent markets across industries and geographies. During times of change, effective management of talent and rewards has proven vital to maintaining a competitive advantage. Although attraction and retention may not currently be top priorities, skills-shortages and economic recovery can quickly push these issues back up the list. Companies must be prepared to respond quickly by having in place the necessary tools. The findings below are drawn from Watson Wyatt’s 2008-2009 Global Strategic Rewards Report which is based on a survey of 1,389 organizations across 24 countries, collectively representing more than 15 million employees. The key finding of the report is the link between high performing organizations and an integrated approach to talent management and rewards. Not only are attraction and retention positively impacted by the integrated approach, but company financial performance also benefits. What does an integrated approach mean? In this context, it refers to an organization that effectively utilizes a majority of human resources best practices. Of the eight best practices identified through the survey: organization-wide total rewards philosophy; employee value proposition; formal workforce planning; competency models; work/life balance; performance management; differentiation of awards; and recognition programs, five will be covered here and the other three most closely related to rewards will be addressed next month. Design an organization-wide total rewards philosophy. One of the first steps in an integrated approach to talent management and reward is to define the total rewards philosophy that guides the design, administration and communication of rewards across an organization. Effective communication on total rewards has been noted as a key element in ensuring employees have a clear appreciation of the overall approach to rewards which is important in building EVP (see next paragraph) and leads to greater satisfaction with those rewards. Define an organization-wide employee value proposition (EVP) for attraction, retention, pay and talent management. EVP is the range of programs an organization offers in exchange for employment. It reflects the business, brand, values, culture and leadership of the organization. It is used to define, manage and deliver the elements that encompass an employee’s whole experience at work, thus making it a powerful platform for designing reward programs and driving cultural change. One example of effective use of EVP is an organization instituting a performance management program called “WorkExcellence”, which is linked to pay. This organization prepared employees for the transition by holding meetings to explain the program, sending e-mail communication to the staff, training and supporting line-managers to ensure the effective implementation and communication of the program and the related earning opportunities. Information on the program was also presented to potential candidates during the recruitment process as part of the discussion on total rewards. Conduct formal workforce planning activities that optimize supply of talent versus demand. Short and long-term talent management require organizations to look beyond current staffing needs to understand how their talent model and the talent market are likely to shift. Successful organizations conduct formal workforce planning to support their business by working to understand and plan for anticipated changes in competency and skill requirements, staffing levels and the impact of talent supply and demand over time. This understanding enhances the ability of organizations to position themselves to acquire and develop talent as needed. Leverage competency models across recruiting, career management and compensation. Competency models are tools for measurement and decision making on a range of talent management and rewards issues (selection, promotion, training, career development, performance management…). These models are most often associated with selection, performance and development and least often with pay decisions and workforce planning. It has been noted that organizations using competencies for a broad range of issues are more likely to report that their competency models are very effective compared with those using competencies in only one HR domain. Facilitate healthy work/life balance and take measures to moderate employee’s levels of work-related stress. Work-related stress is one of the major reasons employees leave an organization. Addressing this issue is an important part of EVP. Improved management communication, performance management programs, and availability of stress management or work-related skills training are the top three actions found most effective in reducing work-related stress. Implementing flexible work schedules is the most common approach to promoting work/life balance. Each of the above best practices, when effectively deployed, can contribute to enhancing the organization’s ability to attract and retain talent. This effect is increased as more best practices are used concurrently, creating broader coverage throughout the organization and thus touching employees more frequently. When this coverage of integrated talent management and rewards is complete, employees find themselves in a work environment that provides clear direction, transparency and takes their situation into consideration – key factors for attraction, retention and engagement.
HR in the Global Economic Slowdown:
Trends and RecommendationsThe economic slowdown is challenging employers to find the balance between budget constraints and talent resource issues. The tools critical to achieving this are a clear vision and strategy, a good understanding of the market and the flexibility to make timely adjustments. Headcount reduction may be necessary but it is not the only option to consider. Global Economic Slowdown Wherever you may find yourself, the talk on the street is all about the Global Economic Slowdown (GES) and its impact. Gross domestic production (GDP) forecasts for 2009 and 2010 paint a sobering picture; according to the Economist Intelligence Unit (EIU), world GDP which in 2007 was 3.7 is forecast to be 0.9 in 2009, the weakest since the 1980's. Despite this, there are a few economies that, although affected by GES, appear to be faring better than the rest. Vietnam is one of the standouts in great part thanks to recent years' strong growth. The more pressing issue for Vietnam in 2008 was inflation. The consequences of both GES and inflation have been and continue to be heavily covered, as such, we will not belabour the issue here but just use it as a backdrop. Priority HR Issues Finding the balance between GES and the pressure brought by inflation to raise salaries is one of the challenges many employers in Vietnam are facing today. Adding to this is the fact that these same employers, like their counterparts all over Asia, have placed a priority on attracting and retaining high performing and high potential employees. This along with engaging and motivating employees and building critical employee capabilities and skills are ranked as the top three HR issues across the region as recently surveyed by Watson Wyatt. How to accomplish the above depends greatly on the strategy and vision of each employer. There is no perfect solution that can respond entirely to all the objectives so it will be necessary to prioritise and then fine-tune as situations present themselves. Having a roadmap is essential but there must also be some flexibility in how it is followed. Recommendations Economic considerations are the critical issue motivating many employers to review HR budgets and headcount. This is clearly the appropriate action to take under the current circumstances. That said, one should not forget the historical skills shortage that many employers have been and continue to face in Vietnam. Alternatives to headcount reduction should be sought to avoid undoing all the work that has been done building up talent. It is possible that when the economy takes off again certain industries will experience some improvement in the talent market. However, it is unlikely that the overall skills shortage will have greatly changed. Rather than downsizing, this may be an ideal time to focus on improving employee productivity, increasing efficiency and effectiveness and reviewing processes and organizations. If headcount reduction is necessary, cost efficient cuts need to be well planned and not too deep to ensure that the employer is able to rapidly take advantage of the upturn in 2010-2012. Having to recruit and train talent takes time. Time that has a cost associated with it when one is not able to respond to opportunities quickly. A baseline of critical skills, as mentioned above, needs to be retained to guarantee rapid operational capability. Budget issues, however, cannot be ignored. Although most employees expect an annual salary increase, a modest one can be reasonably justified by GES. Employees are well aware of the economic situation and as such, salary increase pressure that employers have felt in the past few years due to high turn-over should be less this year. At the same time, attention needs to be given to low paid employees, whose standard of living is directly impacted by inflation. For this employee population, employers may find that off-setting specific cost increases may be more cost effective in the long-term than raising salaries. Most importantly, employers must ensure that their high performing and high potential employees are taken care of. Not only should their current compensation be reviewed but also long-term incentives to ensure their commitment and motivation. To navigate this difficult period, employers need to be finely attuned to the market. Industry and other networks provide timely insight on trends and practices that compliment more traditional information sources. Conventional salary movement indicators (salary surveys) and other HR surveys, when regularly updated, are effective in corroborating this while providing necessary detail that enables adjustments as appropriate. Conclusion 2009 is starting out as a year filled with challenges. Although this is certainly the case, it can also be a year of opportunity. The current economic slowdown is forcing many employers to review their HR budgets and headcount plans for 2009. Inevitably there will be reductions. However, this can also be an opportunity to increase efficiency and productivity while preparing for the economic upturn that is to come.
JANUARY 2009NEW YEAR-NEW PRESENCEWelcome 2009, SMART HR Vietnam is delighted to announce to all of our clients a "SMART move" to become Watson Wyatt Vietnam. Established in October 2001, SMART HR has undertaken to meet the growing demand from international companies for quality human resource management consulting services. We have been trusted as a SMART HR partner to provide our clients with Specific, Measurable, Attainable, Result-oriented and Time-bound ( SMART) Human Resource ( HR) solutions. In 2004, we started collaborating with Watson Wyatt Asia Pacific on the Total Rewards Surveys and other consulting projects. And now, January 2009, we have become Watson Wyatt Vietnam. This new presence will enable us to leverage Watson Wyatt's global network of expertise to offer a broad portfolio of professional solutions to the Vietnam market. "Vietnam is one of Asia's most dynamic emerging markets. We are very excited about Vietnam. We see significant growth opportunities for Vietnam, which is often viewed as the star of ASEAN. Several of our international clients feel the same and are looking for our assistance to help them establish a presence and be successful in the Vietnamese market. In recent years, we have been actively growing our business in China and India and we see that clients in Vietnam face similar challenges in optimizing their talent strategy - in particular in the attraction, engagement, reward and retention of the key talent that make a difference to the success of our clients' business.
As a developing country, Vietnamese businesses are challenged with rapid increasing salaries, increasing employee turnover and regional competition. Our goal is to help our clients optimize their business success in such challenging times."
Mr Andrew Heard, Managing Director, ASEAN, Watson Wyatt Worldwide. Truly a global company with long established history, Watson Wyatt Worldwide has a successful business with records of helping leading corporations (mainly fortune 500 companies) operate more effectively, and has been operating for more than 30 years in Asia Pacific region. The acquisition can be considered an ideal formula of local expertise backed with global solutions. In these uncertain economic times, many organizations are keen to enhance their risk management profile, to ensure that employees are fully engaged and that business performance is optimized. Watson Wyatt can draw from its extensive global expertise of helping clients prepare and weather through the current challenging times. We are well positioned to advise and share successful solutions with our clients. Our immediate focus is to cement our leadership position in the human capital consulting market, which SMART HR has established in Vietnam and then subsequently work towards developing and strengthening other service offerings in line with client needs. We believe, with our highly qualified and experienced team, plus international & regional HR experts, Watson Wyatt Vietnam continues to be the SMART trusted partner to the world's leading organizations on delivering objective business solutions and practical tailored advice that create value for employers and employees.
 DECEMBER 2008Growing Human Capital while Facing Financial Crisis"Catching up with Market Trends", the title of the November 2008 Vietnam remuneration seminar hosted by SMART HR Vietnam in partnership with Watson Wyatt Worldwide, appropriately reflects the impact of ongoing economic pressures on the domestic employment market and how these translate into compensation and benefits practise. Consistent with Watson Wyatt Total Rewards Surveys done over the past four years, the focus is primarily on Foreign Investment Enterprises (FIE) and exclusively surveys local national incumbents. The analysis is based on data collected on over 23,000 incumbents in more than 1000 positions from 141 participant companies covering a broad range of industries and locations in Vietnam. The overriding message is that high inflation in 2008 has resulted in significant market movement on pay that can be easily be seen in increasing wages. In July 2008, the consumer price index (CPI) was at 28% and salaries had risen on average by 17.7%. Although the CPI has come down to 23.25% by late November, companies continue to feel the pressure to increase salaries. Watson Wyatt's November Survey of "Anticipated 2009 Salary Movements and Economic and Labour Outlook for Vietnam" shows this clearly. Based on this latest survey, the overall budget for 2009 salary increases has shifted from an average of 15.33% to 16.30%. Of the companies surveyed, 75% of the participants anticipate maintaining or increasing projected 2009 salary increase budgets. While discussing the current inflationary situation during the November seminar, Jessica Lu, CEO, SMART HR, emphasized that in a continuously changing business environment, companies need to stay closely attune to market developments especially on salary movement. She recommended that companies implement a cost of living allowance rather than a straight salary increase in view of the flexibility that this can provide for future adjustments. She also advocated linking pay and performance in order to orient company compensation structure to short-term incentive rather than merit increases. Adding to the inflationary challenge is the global financial crisis. Although the domestic economy continues to experience rapid growth with gross domestic product (GDP) for 2008 projected to be between 6.2% and 8.5% depending on the source and 5.9% in 2009, signs of the latter are evident. HR budget increases for 2008 have been cut sharply compared to 2007. Priority spending is on training and development with new benefits policies and inflation measures and recruitment budgets tied for second place. This corroborates well with the November survey results that ranked insufficient talent in the market and rising manpower costs as two of the greatest challenges impacting survey participants' business today. Of companies surveyed 64.8% had plans to recruit in 2008. The November survey also captured expectations for the next three years, showing that companies expect moderate to high growth in employee headcount and manpower costs. At 16.7%, Vietnam is currently experiencing the highest staff turnover rate ever since it opened to foreign investors. This continues to be a critical issue for FIEs in Vietnam especially in view of the fact that companies expect to increase headcount over the next few years. The top reason for leaving continues, as in 2007, to be better pay elsewhere, outranking personal issues by 10%. Along with recruitment pressure from turnover and business growth, are continuing efforts by companies to localize expatriate positions. This market practise is being pursued with the greatest success at the top management and senior management levels. However, it is important to note that both of these issues are forcing companies to confront a recurring talent shortage in the market. In response to the challenges that companies are facing for attraction and retention, Jessica Lu detailed different retention schemes that can be tailored for specific employee populations. She encouraged companies to review their benefit provisions and to look at such options as introducing flexible benefits for high performers and family health plan coverage. For management retention, she recommends implementing retention bonuses, long-term incentives as well as other measures. A final factor that companies will need to take into account when reviewing their remuneration structure is the upcoming 2009 implementation of the Vietnam Personal Income Tax law. Although not formally part of the Watson Wyatt Survey, and as such not addressed in detail during the November seminar, Jessica Lu strongly advised companies to carefully review current labour contract terms and company remuneration policies to ensure that well-thought adaptation is in place to face the upcoming changes. In conclusion, although 2008 has been a year considerable change from a business environment standpoint, generally speaking companies in Vietnam remain committed to pursuing their business and people strategies. Inflationary tensions as easing up and growth projections are positive for 2009. The challenge that remains is to attract, retain, motivate and develop a workforce in-line with company strategic growth in this market. As a final note, Jessica Lu pointed out that in the last decade, the Human Resource function in Vietnam has developed effectively to replace the traditional Personnel Administration. She emphasized that now is the time to take the next step from Human Resource management to Human Capital growth. To grow Human Capital is to engage the Heart and strengthen the Relationship with the employee. In parallel, the focus must continue to be Hands-on effectively aimed to deliver the business Results. We need to be employment champions, implementing performance appraisal and competency development that is aligned to the business objectives, linking succession planning and employee career choices, creating an work environment where the employee receives fair pay for performance as well as non-cash recognition for excellence.
 NOVEMBER 2008What Make an Effective Employee Communications Program?There are several factors involved in implementing an effective employee communications program in your workplace. Employees are more likely to put in extra "discretionary effort" when they are kept informed openly and honestly on all aspects of their jobs and the business. What was once considered a "soft" skill is now seen to have a "hard" business impact. There are a few key issues you should consider to ensure that your executives, managers and supervisors are communicating positively with your employees: BE CONSISTENTEffective communication is a matter of discipline – the day-in, day-out "dialogues" that address questions and issues in an informal, or formal, manner. Most organizations have some methods of employee communication already in place. Use these as your basis to keep information flowing and continue the dialogue that has been started. By doing so on a regular basis, employees will have an understanding and context through which they can filter major business changes, announcements, events, and news. BE IN TIMESlow economic times are forcing many organizations to make changes, and some will not be welcome by employees. Most people fear change and the unknown, making it doubly important to keep employees informed of your organisation's plans. Whenever possible, internal communication should precede external communication especially when it comes to critical issues involving employees' livelihoods. It is vital that employees don't hear negative crisis-related news from outside sources first. This can alienate them and hinder the chance of successful recovery plans. BE TRUEEngage in an honest dialogue with as many employees as possible. This leads to better understanding and increased employee support for what may be unpopular yet necessary steps senior management may have to take to manage the crisis and secure the future of the business. ADRESS 3 KEY EMPLOYEE NEEDSIn order for employees to be engaged and highly productive, your internal communications scheme should satisfy these three key employee needs. Each and every employee needs to: 1. Be informed of facts about your organization and their specific job – what business you are in, who your customers are, specific details about your product or service, where forms are located, and who to see when there is a problem. This can be both in print and on-line. Every employee should receive this information in their initial orientation package. There should also be several files stored on a common server in the public file sharing area. This way employees can easily access information about your organisation at any time - even when they are away from their work station. 2. Be fully versed in the practical skills required to do their job well – whether it's repairing a machine, filling out an invoice, designing a building, or writing a software program. Again this can be both in print and on-line, and should also include workshops and presentations on an on-going basis to ensure there are no gaps. As people, employees can become a little complacent and fall into bad habits or behaviours that are less productive and less safe than desired. Regular updates on techniques and related issues can help them to avoid that trap. 3. Feel that they are valued. Interaction and communication should give them a sense of belonging and self-worth, a sense that they are being listened to, respected and trusted. Regular meetings, email announcements and newsletters and posters displayed in public areas are all good ways of disseminating information. But to truly have the desired effect, good communications must be two-way. Suggestion boxes, employee opinion surveys, the opportunities to contribute to newsletters or to submit posters and announcements, even the chance to speak at meetings are all good ways of saying: "We want to hear what you have to say." There are a few basic communication mediums you should consider: NewslettersComposing an employee newsletter for your company is a great way to make sure that each department gets the opportunity to make announcements or ask for assistance from other departments to complete company projects. You can include things in the newsletters like new comers, birthdays of employees, monthly high performers or make announcements about employees' personal good news such as getting married or a new baby. A newsletter is also a great way to make a more team-like environment at your work place. You can distribute it to employees via email or print it out monthly to hand out at company meetings. To generate momentum and quickly address challenges that may arise in your company, we can use newsletters to measure progress against the "must wins" and report the results. Progress may be visually represented through graphs or charts at each of the company's locations as well as reinforced through CEO messages and managerial discussions. MeetingsMeetings can be a great way to facilitate effective employee communication strategies. Making sure that your company meetings are held in a place where workers feel comfortable sends a positive message and can be an important factor in making these forums a great place to communicate key messages. Maybe you need to let workers know about changes in company benefits or perhaps there are various departments concerned about finishing a major project on time? Do you have interns or entry level employees who are not sure about their duties? Whatever the purpose of your meeting, allow time for employees to make comments or suggestions and to ask questions. No matter what position employees hold in your company, everyone should have the chance to make himself/herself heard. E-mails and BlogsKeeping up a great email system to have online meetings, or establishing programs that will allow employees to log in and make internal announcements is also a great way to make sure the employee communication is positive in your company. Whichever method of internal communication an organisation chooses, the more upfront that senior leaders are about what is happening, the better-informed and more entrusted employees feel. When communication is conducted within an open, timely and truthful way, employees are both able and willing to represent their company and support its goals internally as well as externally. Once again, this is especially true in times of cost cutting measures.
 OCTOBER 08Employee OrientationWhat is Employee Orientation?Employee Orientation can be defined as an organisation's systematic effort to assist new staff to adjust quickly to new assignments so they can contribute effectively to the organisation while realizing their own personal and professional goals. It involves helping the employees to understand their job responsibilities and benefits, and clarifying their roles and what the company expects from them. Mostly, it is a gesture to help them settle into their new workplace and be ready to work as soon as possible. Why Spend the Time and Money on Employee Orientation?In the first few days, or even the first few hours, an employer can create a relationship that has a long-lasting effect on the new employee. This is going to happen whether the company plans it or not, so a favourable first impression is of the utmost importance. An employee who goes through a carefully planned and successful induction program, takes pride in the company and the work and can become a good brand ambassador for the company. It can also increase an employee's engagement in the workplace, a major factor in motivating and retaining employees. A professional and thorough Employee Orientation plan reflects very positively on the image of the company and is highly representative of the company's managerial style and corporate culture. Research has shown that employees work harder for companies that care for them; and hardworking employees keep customers happy, ultimately increase the business' profits. Further more, Employee Orientation begins the process of communicating and nurturing an environment of collaboration and cooperation, which increases the employee's commitment to the company. Typical Employee Orientation Program Content: * An introduction to HR and other supporting team members * Meeting management and line manager or supervisor * A briefing on all the facilities and equipments in the workplace * Job duties and how they fit into the overall structure of the company * An explanation of job terms and conditions * An overview of the company, its vision, mission, value and strategy * Information on company policies and procedures * A tour of the office or site * Relevant health and safety information * Basic training on internal communication such as telephone or computer system Employers often ask new hires to bring along various documents and provide information to fill out some essential forms to establish employee records in the HR information systems. This may include items such as bank details, passport or ID card, emergency contact information etc. One process worth considering is detailed explanations on the company's internal regulations and a Q&A session for clarifying the new employee's concerns. In ConclusionMany companies already realize that a practical and clearly structured Employee Orientation program, along with a 2-way communication approach, can have a very positive impact on employee productivity and retention. It can transform new recruits into dedicated, committed and loyal employees by helping them to feel a sense of belonging and security right at the beginning. When the program offers such significant benefits, it only makes sense for companies to create, assess and/or improve their current process and its effectiveness.
 SEPTEMBER 08Creating "Happy" Work Cultures: How and Why to Conduct Employee Attitude Surveys What is EAS?An Employee Attitude Survey (EAS) is an assessment of the opinions and morale of your employees. Most often it is performed anonymously as a self-completion questionnaire. Employees are asked to rate various aspects of the organisation according to their level of satisfaction. There might also be a few open-ended questions to allow employees to comment on other issues. Why should an EAS be conducted?There may be several underlying reasons why someone in an organisation feels that it is a good idea to use one. There may be a general feeling of dissatisfaction; employee attendance or retention may be poor; or production levels may be down. The type of feedback that an organisation can get from an EAS may: * provide management with employee feedback (both positive and negative) on the internal health of the organisation to be used to motivate employees and improve job satisfaction * allow the organisation to focus on employee needs and to leverage its strengths * measure the impact of current programs, policies and procedures * inform the management which planned actions will create concerns or problems for the employees Considerations before your EAS1. Needs analysisDetermine the objectives and deliverables before you design your survey. Why is the survey being conducted? How are you going to communicate the results to the employees? What do you hope to achieve through this exercise? Then decide how best to achieve those objectives. 2. Scope or focus defining Is it communication, teamwork, leadership, initiative, management styles, or compensation? Know where your concerns lie. 3. Survey process design Which survey instrument will best suit your needs and achieve your objectives? Will it be an online survey to be completed by a certain date? Will it be a pen and paper survey? 4. Confidentiality assuringConfidentiality helps ensure results that are genuine. Check very carefully every possible data processing step to prevent information leaking. Using a third party with professional experience such as a HR Consultant is ideal. 5. Types of questions designFor obvious reasons, questions with rated answers are the easiest to extract data from. But will they achieve your objectives on their own? Do you need to allow your employees a chance to: * comment on issues that may be outside the scope of your survey? * identify non-applicable questions? * choose to not make comments? 6. Rating scale design: * Strongly agree| agree | neutral | disagree | strongly disagree * Excellent | good | fair | need improvement | poor * All the time | most of the time | sometimes | seldom | never * To an extreme extent | to a great extent | to some extent | to a very little extent | to no extent at all * Very satisfied | satisfied | neither satisfied nor dissatisfied | dissatisfied | very dissatisfied 7. Data analyze formatYou may want to analyze the data by employee levels, by department or by location. This will allow you to assess the attitudes of different groups. 8. Results communicationShare the results with the employees. You may even want to conduct sessions with employees to help individuals understand the results and develop appropriate action plans. 9. Questionnaire review & improvementExamine and critique your survey. Like all aspects of business, if possible, do a trial run. Conducting an effective EAS is a result of continuous improvement. And the better your survey is, the more effective your results will be. Areas to look at could be: * question wording or sequencing * questionnaire length * inability or unwillingness to answer certain questions * additional questions needed * any negative repercussions Some final hints:* Make your EAS a normal part of your business planning cycle. * Don't ask questions you already know the answers to. * Know how you will use the information you gather BEFORE you conduct an EAS. This will help ensure you ask the right questions. * Be prepared to receive criticism along with the hoped praises and compliments. You may not always hear what you expected, or wanted, to hear. * Act on the results. Create and communicate clear specific actions as a result of your survey. Be prepared to commit the resources needed to change things. * Use more than one method: don't rely on one source for all of your information. Interviews, even casual ones, and suggestion boxes are good ways to allow your employees to communicate how they feel. IN CONCLUSIONConducting Employee Attitude Surveys shows your staff you care about them. It shows you are willing to listen and to change; this can go a long way toward motivating your people. It can also help to indicate why problems you see occurring at work are happening. They can indicate the root causes for staff problems that may be occurring and identify keys areas where your organisation needs to spend time and effort; often these are different from where you thought. And finally, a well constructed EAS can let your current management know their employees perceptions about them.
 AUGUST 08DEALING WITH CULTURAL DIVERSITY IN THE WORKPLACEWhat Is Cultural Diversity?Diversity is often thought of in terms of race, ethnicity, age, physical ability, gender, sexual orientation, and socio-economic status. But diversity also includes cultural diversity. Cultural diversity includes, but is not limited to, language, values, religious & other beliefs, social, family & community responsibilities and political views. Cultural differences are like ice-bergs; only one tenth of cultural behaviours and norms are clearly visible. Below the surface lie the less obvious but important features of a culture, from how we encode & retrieve information and how we attach meaning to "teaching" stories, to what constitutes status. One of the deep or hidden aspects that differentiate cultures is the amount of context a culture's members expect in social interactions. People who study such things divide cultures into those which are high context, and those which are low context. In general, high context cultures place great importance on ambience, decorum, the relative status of the participants in a communication and the manner of a message's delivery. Low context cultures tend to ignore such things and emphasize the content of communication, an attitude that might be expressed as "getting straight to the point". It is not uncommon for people of any culture to experience confusion or engage in protracted arguments about activities only to realize later that they have been in agreement all along. The challenge thus becomes how to work in an environment where people with little knowledge of each other have to communicate in such a way as to make meaning clear and not provoke misunderstanding. SuggestionsThese are all issues that need to be viewed as positives. There is much to be gained from working on a committee or team with individuals who bring viewpoints and perspectives other than your own. When we are challenged to consider other opinions and listen to the logic and reasoning behind those opinions it can be very enlightening. Take this one step further where you have employees from other countries and it brings new and diverse informed decision makers into the equation. Remember, above all: reality is only an opinion. Your special reality is formed in the cultural environment in which you were born, raised, and spent most of your life. But then, so is everyone else's. The concept of diversity is based on individual acceptance and respect. It is an understanding that individuals are unique and different. Everyone has their own unique approach to their work life. Other's approach should never be viewed as less effective than your own. Demonstrating respect for how individuals tackle business issues will go a long way to creating a healthy work environment. Operating in a Multi-Cultural Setting1. Be aware of your personal biases, style and preferences. Focus on those you share with your colleagues and be aware and considerate of those areas where you differ. 2. Realize that each part of an organization probably has a unique culture. For example, administrative assistants might interact with each other quite differently than they do with executives, or the levels of respect between senior and lower management may vary depending upon employees' cultural backgrounds. 3. Promptly acknowledge the existence of your organisation's cultural diversity. State that you do recognize that different people might approach the same project differently depending on their own personalities and culture and ask how you might better understand their approach. 4. Try to know your audience well enough to be able to anticipate their reaction to your communication. It is impossible to learn everything about every culture you must communicate with. The best you can do is to try to find common areas and work from there. Look for concepts you share but where your cultures clearly differ; clothing, rituals, and food are good examples. 5. Have someone from your organization help you understand their culture and how to work with them in a compatible and efficient manner. This request for understanding is not a sign of weakness or lack of expertise; rather it is an authentic request that better serves you, your colleagues, and your organisation. 6. Try to find people who have worked in a culturally diverse setting. Learning from their experience can be a time and effort saving exercise. ConclusionWhen a company embraces cultural diversity, the workforce enjoys equity in all aspects of employment. This means that everyone's skills are utilized. People with additional language ability can be an excellent asset through increased sales and customer service. When staff extend themselves to assist customers from different backgrounds, these customers are much more inclined to remain loyal to that company. In addition, staff who are encouraged to learn from one another are more inclined to be motivated and productive.
 JULY 2008CAN YOUR EMPLOYEES DESCRIBE THEIR JOBS?
THE WHY'S AND HOW'S OF JOB DESCRITIONSWHY BOTHER?Job descriptions, as a management tool, can greatly help an organization's human resource management be more effective. A well written job description allows your employees to understand what is expected of them. It clarifies the scope of their work (duties and responsibilities) and their place in the communication chain (who they report to and who reports to them). It lets them focus on tasks that fall under their job descriptions and to avoid those that do not. It removes the hesitation and frustration that accompanies uncertainty and allows them to flourish in their current positions. Well written job descriptions can also help to evaluate your employees' performances. By letting your employees know what is expected of them in all categories, you give both them and yourself a benchmark by which to measure their performance as both parties have the same criteria in mind when approaching the performance evaluation process. Well written job descriptions can be an important tool in selecting the right candidates for a vacancy your organisation is trying to fill. It helps both you and prospective employees to recognise if there is a match between the position and them. They can help you quickly eliminate those without the necessary physical characteristics or the special skills needed for a position. This helps save your organisation time and cost during both the selection and the training process by ensuring you pick the best candidate with the closest match of skills and attributes to those in your job description. And finally, job descriptions can help organisations maintain a consistent salary structure that rewards jobs involving tasks requiring similar education or experience in a fair manner. THE CONTENTA good job description contains more than a simple description of tasks and responsibilities; it can also describe how a job is to be done, what resources are to be used and what limitations or demands a job might entail, both physically and mentally. Duties & Responsibilities:Well written duty statements contain action words which accurately describe what is to be done. They focus on a position's daily duties and primary responsibilities and not upon incidentals or temporary assignments. Each task statement says who is to do what action (if a task requires team work), the purpose and result of the action, the way to be completed and what resources are to be used. This last item is of special interest if a position requires employees to have special training or skills such as driving a vehicle, using power tools, such as computer software. But not only should a job description deal with the task itself, it should describe the mental capacities necessary to complete the tasks. Examples of these are: compiling, comparing, computing, analysing and co-ordinating. Relations with Others:As mentioned above, a job description should outline a position's place in an organisation's communication chain. But it should take that one step further and include the types of communication a position requires. Does the position require supervising others and/or the need to be supervised? Does it need the ability to instruct others or to both give and receive direction and feedback? Are there areas that will require special communication skills such as negotiation and influencing, and are there different backgrounds, cultures or even simply personalities to deal with? Physical Demands:Different positions require special physical characteristics from your employees. This, however, does not simply refer to physical strength. Certainly if lifting or moving objects is a necessary task in a certain position, then it must be included in the description. Even the necessity to climb stairs, to reach high, or to kneel or crouch can affect an employee's ability to fulfil a position's duties. But beyond that, there are the less obvious physical demands a position might entail. Does the position require speaking or an excellent sense of hearing? Is it a must to have a finely developed sense of touch, taste, or smell? Is perfect eyesight absolutely necessary or is wearing eye glasses okay? Environmental Conditions and Physical SurroundingsOf final importance for a complete job description is the actual physical environment the employee must operate in. This can be as simple as a non-air conditioned office, a humid environment or locked facilities, or as severe as exposure to extreme weather conditions, high noise levels, moving machinery, or the possibility of electrical shock or working with explosives or toxic substances. In fact, anything that places an employee in the threat of bodily discomfort or stress should be noted in a job description. WHERE JOB DESCRIPTIONS GO WRONGWith the obvious advantages attached to having well written job descriptions for each position, it is amazing the number of organisations who place little emphasis on them. Having a clear sense of one's duty and fulfilling that duty to the best of one's ability can provide a sense of accomplishment that will result in a highly productive and highly motivated workforce. There are, however, a few possible drawbacks that might occur if you're not careful. First, they may push people into the organisational chart boxes you've been asking them to step out of. This may cause employees to take less risk, in which case you may lose some of the great input and creative ideas you want from them. Second, job descriptions become dated fast! It's a rapid-paced, ever-changing work environment, and outdated job descriptions are time bombs that can keep you in the past when what's needed is an eye to the future. It is therefore a good idea to review job descriptions regularly as part of your performance appraisal system. Third, job descriptions can encourage "it's not my job" thinking. People need the flexibility and confidence to feel the freedom to help their colleagues and to help make appropriate decisions concerning their work. And finally, poorly written job descriptions may be used against you. If you fire someone for failing at a task not listed on their job description, it could be your job, not theirs, that is in danger! CONCLUSIONJob descriptions can be the blueprint of your organization, telling each employee what, where, when, how and why to do his or her task, and how that task fits into the bigger picture. As a supervisor in your organisation, you want each employee to know what is expected of them and the desired outcomes of their efforts. In fact, when you do a performance appraisal, what you're really doing is reflecting how well the employee carried out the job description. Furthermore, well-written descriptions outline the relationships between departments and work groups, helping your organisation to avoid disputes over whose responsibility a particular task is. They are tools in letting employees know exactly what a job entails and provide a basis for deciding whether it fits the individual's skills, experience, and job preferences. In fact, your recruitment ad should be a marketing version of the job description. And finally, your job descriptions can help motivate your employees and allow you to more easily delegate certain of your own tasks. Having a clear picture of your employees' capabilities can go a long way towards maximising the results of those capabilities.
 JUNE 2008The HR STARAs companies adjust to changes in the work environment of the 21st century, HR has to find new approaches to remain in-line with the needs of their customers. And often the simplest approaches are the easiest to implement, and the easiest to evaluate. In general, HR has five functions: culture building, staffing, paying, developing and retaining. The HR Star shows how these functions are best achieved through interdependence. Culture BuildingThe way of thinking, the communication habits, the behaviour patterns and the set of values respected are the major elements of a corporate identity - the company culture. This is normally established by the board of directors and then conveyed through the actions and behaviours of management. One of the most important missions HR personnel need to carry out is to articulate that culture to all employees and to help them behave within the guidelines laid out by that culture. Furthermore, HR personnel should be advocating those corporate culture values to their customers, their suppliers and the public in general. StaffingIn a high growth environment such as Vietnam, hiring can become an all-consuming activity. What can help reduce the stress and resource spent on this task is an understanding and improvement of current practices. Knowing how much it costs, how long it takes and the quality of employees produced by different selection methods can help in designing the most effective hiring process. PayingThis refers to the total remuneration costs in your workforce, including salaries, allowances, incentives, performance pays and non-cash benefits. Viewing employees as company's capital allows us to view them from the point of investment and growth in ROI. How much should be invested, and in what forms? And what should the distribution be between different employee levels and functions, and between guaranteed and variable, to attract, retain and motivate employees to be productive? DevelopingAs a shortage of skilled and reliable employees becomes more of a problem, developing current employees is no longer an option: it is a necessity. At the same time, more progressive HR departments are looking to the future, not just focusing on the present. A decision must be made to buy or build: do we hire employees with the necessary skills, assuming they are available, or do we develop the skills and competencies needed in our current and future workforce? And at what level and what priority of competencies do we spend our development money? This requires developing data on the competency framework. Time and cost spent here will reduce time and cost in hiring as well as training and produce a more stable and productive workforce. RetainingTime and time again, we have heard that retention is the key to stability, but it is also one of the greatest challenges when a shortage of skilled employees exists. When the cost of finding and training new employees are considered high, it becomes apparent that retention should be a priority. One surprising fact to our advantage is why workers leave: not for pay or opportunities elsewhere, but for better work conditions. Then what makes people stay? According to WW Work Asia survey, the first 3 reasons are: a sense of good performance, interesting challenges at work and growth opportunities for their professionalism. Therefore, even if outbidding competitors for employees is not an option, providing more desirable working conditions, such as well trained supervisors, better working environment and career opportunities, usually are. Working Cross-functionally - making the HR starTraditionally in larger companies with several HR units, few units have worked together for the greater good of the overall HR department. But there are many natural connections that can be exploited. Examples are: * Whether to hire or develop talent should be discussed by both the recruitment and the training departments to decide which is most cost effective and will produce the most effective employees. * Employee relations personnel can provide a great deal of feedback to help guide decisions made by the remuneration staff. * If the compensation and benefits personnel are different, constant communication between these two parties can help to maximise an organisation's ROI on human capital. In general, regular communication between the five functions of the HR Star can provide information to help guide all decisions in all areas that will maximise employee satisfaction and ultimately produce the most cost-efficient HR policies and the most productive employees.
 MAY 2008
ARE YOUR STAFF UTILIZING THEIR TRAINING? How do you know if your employees are, in fact, applying the skills, tools and techniques from their training sessions to the workplace? Determining the levels to which your staff are transferring new skills and knowledge learned through training to their workplace involves what is commonly known as a "level 3 evaluation" (Level 1, reaction to the training; Level 2, retention of the learning; Level 3, revision of the behaviour; Level 4, result of the application changes. Application evaluation not only recognises progress and enablers, but can uncover problems and barriers as well. THE PREPARATION: COLLECTING DATABefore any kind of conclusions can be drawn from the evaluation, data must be gathered in the areas where changes are expected. For a level 3 evaluation, changes in the trainees' performance, behaviours and habits are to be expected. Therefore, the levels at which they operate before they attend any type of training must be measured for a meaningful comparison to be made. Planning your training thoughtfully can often mean the data you need to collect beforehand can be a part of your training needs analysis process. Doing so can reduce stress for both your HR staff and your trainees: every one involved knows what training outcomes are desired and to be measured, and what questions might be asked after the training. METHODS OF LEVEL 3 EVALUATION: THE INTERVIEWOne of the most successful techniques to determine the application levels involves interviewing the trainee(s). Interviews can be conducted by the HR staff, the participant's supervisor or manager, or even an outside third party. Interviews may also be conducted on a one-to-one basis, or use a focus group approach and they can be either structured or unstructured: Structured interviews use a questionnaire format where the interviewer asks pre-determined questions and there is little room for deviation from the desired responses. If for example, you are looking to find out the level of improvement in telephone communication with customers from your customer service representatives you may want to pose these types of questions. * How many times do you let the phone ring before you pick it up now? * How long do you spend on the average call? * Give me an example how you dealt with a recent complaint call from a customer. Unstructured interviews allow for probing for additional information. Interviewers use a few general questions, and then ask follow-up questions based on the data they uncover during the interview. Focus group interviews are designed to solicit qualitative judgements on a given topic or issue in a group setting. When you are looking for more in-depth feedback, focus groups can be particularly helpful. Finding the right mix of employees is important. You will want to select individuals who feel comfortable and unthreatened by one another. Throwing in a line manager with subordinates will probably not yield the outcomes you desire unless your organisation has a very open management style that stresses teamwork over a top-down management style. All group members are required to provide their opinions, and in the process, motivate each other to discover new ideas and generate new solutions. Thus, the feedback obtained from the group becomes greater than the sum of the each individual's contribution. For instance, your sales rep's have just completed a sales training program and you are hoping to uncover the application of the negotiation techniques they have implemented to help close the sales. You may commence by asking someone whom you know has adopted the technique to start off the focus group describing their level of comfort with the technique, the reactions they got, the challenges they faced and the level of success they achieved. Getting people to also discuss their failures is critical in helping to uncover the potential barriers your staff are facing. The group can then work to overcome these barriers with solution-focused ideas. THE KEY: A SKILLFUL INTERVIEWERThe key to accurately discover the extent to which your trainees are using their new learned skills and knowledge lies in using a skilful interviewer. Interviewers should be well aware of the areas in which they are looking for improvement. This does not mean they must be experts in those fields, only that they must know the indicators for the expected improvement. Therefore it is extremely beneficial to involve the interviewers in the pre-training needs analysis and familiarise them with the training objectives and content if at all possible. Also, in regards to skill sets, they should be the experts in questioning techniques. An effective interviewer should be proficient in their use of all types of questions, especially those that probe for, and elicit, in-depth information trainees may be reluctant to provide or are unsure of the answers. What the interviewers are looking for is evidence of changes in attitude, behaviour, reaction, and possibly results and these may go unnoticed by even the trainees themselves. VARIETY LEADS TO VERACITYUsing the interview format is, of course, only one form of data collection that may be used in measuring the effects of training delivery. It is advisable to use a variety of techniques to ensure validity and reliability of the findings. In addition, periodic reviews have to be conducted in order to determine if the trainees are applying the skills and achieving a satisfactory competence level. The ultimate goal is, of course, to reach the 'unconscious competence' level, where new skills and knowledge learned have become an integral part of the way trainees behave and function in the work place.
 APRIL 2008
LONG-TERM INCENTIVES FOR RETENTION:
STOCK OPTIONS & PROFIT SHARING
Why Think Long-Term Retention?
According to many business leaders, we'll be facing the worst labour shortage in our lifetime within the next five years. Organisations here are already seeing and feeling the effects of a market that suffers from a lack of necessary talent. As the market moves toward favouring the job-seekers, organisations must abandon the "they have no place else to go" mindset and reconsider their attitude toward employee retention. The ultimate strategy to reduce the costs of turnover and high recruitment is to manage for retention.
In other words, for business leaders everywhere, a focus on retention isn't just about maintaining a stable staff turnover rate. Nor is it simply about making sure that your best people remain in the firm should the market soon beckon with new opportunities. It's about establishing a way of doing things that may well be essential to survival just a few years down the road.
Many employers are trying to reduce employee turnover with quick fixes such as salary increases, special allowances, one-time off bonuses or gimmicks and prizes. Some work for a while, but they don't necessarily retain employees in the long-term.
The key to retention is to consider both their employees' personal aspirations (career development, recognition, reward) and the aspirations they possess for their organizations. True solutions require a change in management's attitudes and behaviours toward employees.
Two incentives for long-term employee retention that have become popular are stock options and profit sharing.
What are Stock Options and Profit Sharing?
Stock options provide employees with the right to buy their organisation's stock, usually at a discounted rate. The employee can then profit by selling the shares for more than the purchase price.
Sometimes stock options are used as a form of deferred compensation. In these cases, employees cannot buy shares until a specific date in the future. In doing so, organisations are hoping employees will stay with them until the date of their big "bonus".
Traditionally, stock option plans have been used as a way for companies to reward top management and "key" employees and link their interests with those of the company and other shareholders. More and more companies, however, now consider broad-based stock option plans that include all staff.
For profit sharing, on the other hand, organisations contribute a portion of their profits to a pool that will be distributed among eligible employees, usually on an annual basis. The amount distributed to each employee may be based upon such factors as an employee's base salary or upon other factors such as productivity and performance.
Design Principles
One of the most important considerations for the plan design is its purpose: is the plan intended to give all employees stock in the company or to just provide a benefit for some "key" employees? Does the company wish to promote long-term ownership or is it a one-time benefit? Is the plan intended as a way to create employee ownership or simply a way to create an additional employee benefit? The answers to these questions will be crucial in defining specific plan characteristics such as eligibility, allocation, vesting, valuation, holding periods, and stock price.
The other consideration is the plan needs to be able to motivate the employees' commitment to their organisations and the overall organisational goals. A linkage needs to be set up to influence employees to work together toward a common goal: the success of the organisation. With this employee focus on clear measurable KPIs, of course, organisations can look forward to increased organisational value.
Cautions:
One of the main advantages of using incentives such as profit sharing is its focus on profitability. This, however, may come at the expense of quality. In their rush to produce and sell more, employees may compromise the quality of their product. This may not be the case with stock options, as employees are concerned more with the overall organisation's worth as reflected by the price of their stock, a factor which depends upon variables such as reputation and future prospects, not just profitability.
Another potential problem with both of these types of incentives is management's view that offering bonuses at the end of a period of time will keep employees "locked-in" waiting for their next "bonus". While in some cases this may be true, for others the receipt of these "bonuses" may become a leaving target date.
Suggestions:
Incentives such as stock options and profit sharing can indeed have a positive retention affect if they are used to meet any or all of your retention-related goals:
* Recognition
* Motivation
* Team-building
* Accountability
* Trust building
Therefore, it is important that you make your monetary incentives a part of your overall employee retention strategy. For example you might design them to serve as a form of employee recognition and motivation, build in team-building or accountability requirements for employees to qualify for incentives, or build trust by consistently following through on incentive programs.
In doing so, incentive programs such as stock options and profit sharing will become one more way for your organisation to show your employees how much they are valued, and will give employees one more reason to remain loyal to your organisation.
 MARCH 2007
WHAT MAKES TODAY'S HR MANAGER ?Due to an increasingly competitive market, organisations are demanding more accountability from their staff. Upper management in successful organisations are no longer expecting simple day-to-day HR activities, but are calling for HR initiatives that add value and differentiate their organisations from their competitors. With this focus on accountability, today's HR Manager needs certain essential competencies to perform effectively. The Basic HR Management SkillsBasic human resource management skills are, of course, still required and are most likely well covered by anyone who has been in a human resource role for a reasonable length of time. HR Managers are typically adept as designers and administrators of human resource policies & procedures. However, these skills are not sufficient for the new focus. It's a Business NowHR Managers have to act as consultants and business partners in the operation of their organisations. It is therefore crucial they develop good business sense and an appreciation for strategic planning. This entails the ability to think strategically both in terms of human resources and in terms of the direction, challenges, and opportunities of the total organisation. In doing so, HR Managers can begin to consider the short and long term effects of their initiatives. In other words, only by understanding where senior management is trying to take their company, can HR Managers design, implement and manage its HR services effectively. In successful organisations, senior management now see HR as critical in bringing about desired outcomes from their employees and view HR as part of the senior management team. It is this support and understanding that make those organizations stand apart from the rest. In addition to this basic understanding and consideration of strategy, HR Managers should possess a basic knowledge of the business they're in; if they know what their organisation is about, then obviously they can do a better job of supporting and managing their people. This will allow them to discuss business problems using the same language with their management colleagues. After all, line managers are not necessarily concerned with HR programs; they are concerned with meeting their own objectives. It is therefore up to HR Managers to communicate how their initiatives will help other departments reach their objectives. Money CountsFurthermore, in more and more organisations, HR Managers are now being asked to run their departments as profit and loss centres. A basic understanding of finance & accounting helps them with their own operating, staffing and budgeting, which in turn will give them the means to calculate the worth of, and the value added by, their initiatives. Change ManagementFinally, the new world market place is driving organisations who wish to remain competitive through a series of never-ending changes. Since human resources are responsible for an organisation's human capital, HR Managers and their staff need to learn to manage change. In order to do this, HR Managers must first be alert and sensitive to their organisation's situation. For this task, they will have to identify what data they need to gather and analyse and know how to turn that data into meaningful information and knowledge as a base for making sensible changes. It's no longer enough for HR Managers to describe the status of the organisation; they must indicate how they envision their organisations moving forward. Second, they need the ability to persuade others that the actions or initiatives they are suggesting are based upon valid data and are indeed the best move. Finally, they need the leadership skills to lead teams charged with implementing their recommendations. It is now imperative that they take part in carrying out their own initiatives. In other words, HR Managers must now "get into the game" and make things happen around them. ConclusionsIn short, today's HR Manager needs to operate more as an organisation's business partner than as a mere caretaker of its personnel. Once they learn how their organisations do business, they can design and implement programs and initiatives that make a difference to productivity and overall efficiency. Furthermore, with a basic knowledge of finance, effective communication with their management colleagues and peers will create a better understanding of HR's function in the development of their organisations, and ultimately help HR Managers to contribute more to their organisations' success. Adapted from: Fitz-enz & Phillips, A New Vision for Human Resources
 FEBRUARY 2008Analyzing Your Employees before Development InvestmentWhile generalised models of employee engagement and its link to business performance are helpful, there is no substitute for using your own internal employee research data in conjunction with the organisation's unique business performance measures. This combination enables the organisation to build an individualized employee engagement model that identifies areas for prioritised action and provides the greatest possible benefits to the business. Although organisations often use internal employee opinion surveys to identify which areas to concentrate on in terms of improvement action, they also need to determine which potential action areas are likely to have the greatest impact upon key target outcomes. These might include engagement, retention or business performance measures. Concentrating solely on areas where survey scores appear to be low could mean that effort and resources are not providing the maximum benefit to the business. The Opportunity: Targeting the Right Employees with the Right
ProgrammesAs discussed in last month's newsletter, the top three drivers of employee engagement are customer focus, compensation & benefits, and communication. However, these top drivers often vary depending upon the employees' commitment level (how motivated they are to help their organisations succeed) and their line of sight (their focus and direction on how to make their organisations successful). The figures below categorise employees into five key segments that reflect varying levels of commitment and line of sight: 12% Value Creators: high commitment and high line of sight 51% Core Contributors: medium commitment and medium line of sight 12% Aligned Sceptics: low commitment with high line of sight 11% Lost Believers: high commitment but low line of sight 14% Disengaged: low commitment and low line of sight Source: 2007 Watson Wyatt WorkAsia™ survey Why is segmenting employees in this way important? It is important to recognize that strengthening line of sight improves individual performance while strengthening commitment reduces turnover. Strengthening both translates into a greater number of high-performing employees who are more likely to stay with the company. As retention of key people and succession planning are the key issues facing organizations in Vietnam, retaining top talent and moving medium-engagement employees up in terms of individual performance can help reduce recruitment and retention costs and give the organisation a competitive advantage. Considering the differences among these segments when you design employee programmes helps ensure that you retain the right employees and that you get the best return on your investment. It also helps you allocate scarce resources effectively and design programmes that retain the desired employee segments & increase their engagement. Insights into the Five SegmentsValue creators are more likely to be top performers, thus contributing substantially to organisational success. Their superior performance makes it essential that you don't overlook the importance of performance management as a driver of engagement for this segment. Retention isn't normally a serious issue with core contributors. While their commitment is fairly high, they simply don't have the line of sight that characterises value creators. This offers an excellent opportunity for significant gains in driving engagement. Programmes that improve line of sight could pay off handsomely, transforming some of these employees into value creators and allowing the company to benefit from their improved individual performance. Aligned sceptics, who are low on the commitment scale but generally have strong line of sight, are at a high risk for leaving your organization. Consequently, you should consider putting in place a strategy to improve their engagement levels and find ways to assess their skill sets and potential for development. If engagement and development aren't possible, you need to consider an exit strategy. The lost believers are content to stay where they are, so retention risk is low, but their line of sight is lower and therefore, so is their performance. Developing line of sight in them will likely take more time than for the core contributors. However, because the two segments share some common drivers of engagement, the programmes that succeed with core contributors should also succeed with this group. And finally, the disengaged are the low-engagement, low-commitment and generally low-performing employees. Unfortunately, these employees are often disgruntled, and their negative attitudes can spread to others. The cost of raising engagement levels for this segment may simply be too high. If they have highly specialised skills, it might be wise to focus on them. Otherwise, the organisation needs to consider an exit strategy. Designing Programmes around the SegmentsSegmenting employees based on commitment and line of sight helps companies understand the drivers that will retain and motivate their most valuable employees. Companies can leverage this knowledge to design programmes that engage the right employee segments more fully, improving their individual performance and intent to stay. Value CreatorsMaintain their engagement by: Placing proper emphasis on customer focus Ensuring that compensation packages are aligned Ensuring that supervisors address performance management through formal processes and informal interactions Improving communication and ensuring employees feel their ideas and opinions are heard Core ContributorsHelp them become value creators by: Placing proper emphasis on customer focus Ensuring that compensation packages are aligned Strengthening strategic direction Enhancing the employee/supervisor relationship Aligned ScepticsStrengthen their commitment by: Placing proper emphasis on customer focus Ensuring high visibility on the part of senior management through frequent communication Ensuring that compensation packages are aligned and the value is clearly communicated Enhancing the employee/supervisor relationship Lost BelieversStrengthen their line of sight and ability to perform by: Ensuring that compensation packages are aligned Communicating corporate goals clearly and showing employees how their efforts contribute to business success Placing proper emphasis on customer focus Enhancing the employee/supervisor relationship DisengagedBuild commitment and line of sight by: Placing proper emphasis on customer focus Ensuring that compensation packages are aligned and the value is clearly communicated Improving communication by listening to and taking action on their ideas Increasing interaction with supervisors and fostering teamwork ConclusionEmployee engagement has a strong impact on financial performance, making higher engagement levels vital to continued business success. Programmes that increase engagement can improve individual performance and productivity as well as reduce employee turnover. The key to creating successful programmes is understanding what drives engagement. Forward-looking companies are now looking internally to gain insight into what drives engagement within their unique environments. Organisations can leverage the above insights of the employee segments to create programmes that drive the desired behaviours from the right segments and deliver the maximum value for the investment made.
 January 2008
Increasing Employee Engagement:
Strategies for Enhancing Business and Individual PerformanceEmployee commitment is an important factor in business success. Committed employees are proud to work for their companies and are motivated to help their companies succeed. High-performing companies, however, recognise that commitment alone isn't enough; they seek to build employee engagement. What is employee engagement?According to the 2007 Watson Wyatt WorkAsiaTM survey, engagement is a combination of commitment and line of sight. One is employees' motivation to help their organizations succeed and the other is employees' focus and direction on what to do to make their organisations successful. These two factors comprise one half of the "Watson Wyatt Four-Factor Model of Employee Effectiveness." The other two factors are enablement (employees' perception that they have the training, resources, tools and equipment needed to do their jobs) and integrity (employees' understanding and demonstration of living up to their organisations' values). Why engage your employees?Engaged employees understand the organisations' business goals, the steps required to achieve those goals and how their contributions drive goals. Moreover, they have a strong desire to participate in company success. The strong link between employee engagement and business success is reinforced by Watson Wyatt's global research. It shows when engagement is high, so is financial performance. Highly engaged employees are committed and focused. They are two-and-a-half times more likely to be top performers than their lower-engagement peers. Moreover, their companies enjoy higher retention rates keeping recruiting and training costs low. Companies represented by employees with high commitment outperformed the typical company represented in the Watson Wyatt survey by 50%. Companies with employees who also had high line-of-sight enjoyed a 100% higher financial return. In both cases their firms substantially outperformed the market. In short, companies that increase employee engagement levels can expect to improve their financial performance. Strategies for Building EngagementInsight into the employee engagement drivers is vital because engagement affects productivity, retention and financial performance. Companies can leverage this insight to design programmes that engage their employees more fully. The 2007 Watson Wyatt WorkAsiaTM survey found that the top 3 drivers are customer focus, compensation and benefits, and communication. Driver 1: Customer FocusCustomer focus affects an employee's sense of pride and job security. Employees want to feel good about the products and services their employer offers to their customers and they generally believe that companies offering high-quality products and services are likely to be successful. Suggestions for Improving Customer Focus * Demonstrate a commitment to customer focus by supporting employees in their customer service activities and making them accountable for delivering superior quality. * Empower people who have direct customer contact to make day-to-day decisions that increase customer satisfaction. * Encourage managers and employees to set goals around customer service and satisfaction, and tie compensation to achieving those goals. * Integrate internal and external communication so that employees receive the same messages as customers and partners. * Ensure that employees are aware of such attributes as superior engineering, innovations or improvements that demonstrate superior quality and performance. * Create programmes that are built around ensuring quality deliverables to customers. * Measure customer satisfaction with an eye toward continuous improvement and communicate satisfaction levels to employees Driver 2: Compensation and BenefitsWhen employees believe they are compensated fairly, they are more engaged. Organisations need to look closely at this driver because employees' perceptions in this area might not be accurate. Suggestions for Improving Compensation and Benefits: * Clearly communicate the value of the employee's total reward package including not only compensation and benefits but also working environment, culture and training and development opportunities, and show how it compares with what other organisations offer. * Work with managers and supervisors to make the link between performance and pay clear as part of the performance management process. * Examine how performance is determined, and make adjustments to ensure that top performers are rewarded appropriately. Driver 3: CommunicationOrganisations with effective internal communication practices perform better financially than their peers. The Watson Wyatt 2005/2006 Communication ROI Study™ found that these companies have: * 19% higher market premium * 57% higher shareholder return over five years * 4.5 times higher employee engagement Best practices also call for including communication from the bottom up. Soliciting employee feedback and acting on it shows trust in employees and helps engage them more fully. Asia-Pacific companies have work to do in this area. When asked if senior management takes an active, visible role in communicating to employees, only 52% responded favourably. Suggestions for Improvement * Senior leaders take an active, visible role in communicating with employees, explaining the reasons behind major decisions. * Include communication from the bottom up. Solicit and listen to employees' feedback and act on their suggestions - or explain why a suggestion cannot be acted upon. * Enhance communication planning and delivery, especially with respect to business objectives and organisational change. * Provide training and coaching for executives, managers and supervisors on how to be effective communicators and how to better connect with employees and personalise communication * Establish systems for routine dissemination of important information and key messages. * Offer more opportunities for employees to connect with leaders. E-mail, web-based forums and blogs are just a few examples of tools that can help. However, don't use these tools as a substitute for face-to-face contact. Key to communication is the discussion of issues and not just dissemination of information. * Implement online self-service tools that allow employees to access the organisation's information. ConclusionEmployee engagement has a strong impact on financial performance. Therefore, creating higher engagement levels is vital to continued business success. Programmes that increase engagement can improve individual performance and productivity as well as reduce employee turnover. The key to creating successful programmes is understanding what drives employee engagement. Forward-looking companies are looking internally to gain insight into what drives engagement within their unique environments.
 December 2007Engaging and Retaining Employees in Vietnam: Catching up with Market TrendsAt our recent seminars in HCMC and Hanoi, SMART HR brought attendees up-to-date on current labour market trends in Vietnam. The seminars were held in conjunction with the findings presentation of the Watson Wyatt 2007 Vietnam Total Rewards Survey, in which 129 foreign invested firms had participated. What is the Situation Now?Vietnam is currently enjoying high economic growth. However, economic reforms and infrastructure have been slow to follow. More importantly for HR professionals, there currently exists a lack of a skilled labour force. This has created a very high turnover rate among middle and upper management. It has also resulted in pay packages offered that exceed employees' capabilities and contributions. Furthermore, recruitment costs have risen due to the difficulty of filling positions. Companies are now introducing new practices to slow their organisations' "brain drain." They have begun more frequent and unscheduled salary reviews to keep up with market practices and demand. They use signing and retention bonuses to lure new and existing senior managers. They have also developed more voluntary compensation and benefit incentives to help meet the needs of a growing middle-class. These include transportation and communication allowances, health care benefits, accident insurance, and educational assistance. Creative rewards for top performers are provided by more surveyed companies too. Unfortunately, at a time when their function has never been more essential, HR departments and professionals remain highly under-valued, under-staffed, and under-funded. 42% of surveyed companies still have no designated HR personnel.
What Do Employees Want?Of no surprise, base pay is still the major portion of any pay package; it remains the greatest motivational driver for most managers as well. And there is increasing demand for accompanying variable pay and benefits. Being more career-driven and interested in personal development, middle managers are motivated by learning opportunities and achievable challenges. They also desire greater decision making powers, recognition and fair feedback. How Can Organisations Respond?Organisations must now provide their employees with the means to achieve job goals with a greater amount of control. This can only be accomplished through upper management providing clear objectives as well as encouraging and supportive coaching. Thus, organisations should ensure their leaders have a clear competency framework that emphasises these behaviours. Care should be taken to properly match people's talents and desires with their job. Furthermore, policies and procedures should be designed to empower employees. Finally, organisations need to recognise their employees' achievements. Employees need to know they are valued members of a corporate team. Employee appraisals are an obvious starting point; it gives both employers and employees the opportunity to review past performance and to set new objectives for the future. Organisations must play an active role in their employees' development while allowing them to decide where they want to go and how they will get there. What Can HR Professionals Do?As HR professionals, we must continue to stress the importance of our role in attracting, developing, and retaining talented people. We must help top management to realise that implementing HR systems to achieve these goals is imperative to remaining competitive. It is, after all, an increasingly hostile business environment, both in terms of employee retention and performance.
 November 2007
Training Needs Analysis (TNA)
Training needs exist where there is a gap between the knowledge, skills and attributes required by an organization and those already possessed by employees. This gap is identified through the process of training needs analysis (TNA). Why conduct TNA?
TNA plays a critical role in planning the use of available training and development resources. Critically it ensures that money is spent on essential training and development that will help drive the business forward to meet its objectives. In the same way, it can help highlight occasions where training might not be appropriate but requires alternative action such as recruitment or contracting out work.
Training and development needs can be identified at different levels: 1. Organisational 2. Departmental 3. Occupational 1. Organisational levelTNA at an organisational level concentrates on weighing the needs against business strategy and goals. In many ways, this level is the most important because it starts with an assessment of the organisation's strategic direction. One important decision is whether training is the appropriate means by which specific organisational objectives are going to be achieved, or whether some other forms of intervention would be more appropriate.
2. Departmental level
Customised solutions for specific departments or teams need to be assessed. There may be unique technological or product development, knowledge and skills required. Line managers' views should be sought to identify these needs and a SWOT analysis can be scaled to assess these needs.
3. Occupational level Occupational levels are closely associated with individual needs. Line managers can identify issues to be tackled that are associated with those specific jobs or occupations. Individual needs can then be linked to the competence of individual employees within their roles. Methods for analysing the needs of individuals include: - Performance review - Self-assessment or self-appraisal - Subordinate appraisal - Peer appraisal - Assessment centre - Client/customer feedback - Competency assessment - Reviews against occupational standards Distinguishing between training needs and development needsWhile taking timeframe into account, there should always be a differentiation of short-term and long-term. A short-term training need analysis most often focuses on the existing job scope and current performance expectation requirements. A long-term development need analysis then more likely looks at each individual's potential, possible job expansion, promotion or organisational strategic plan for the following 2-3 years.
Prioritisation of training needsTraining needs must be prioritised if they are to be aligned with business strategy. There may be levels of training that are required to comply with statutory legislation such as health and safety. In these cases these basic standards must be prioritised over and above other training needs. It is important to distinguish between what is needed to achieve a specified successful outcome from the organisation's point of view and what an employee wants. Managing employee expectations of training must also be factored into prioritising the sequence of training. There may be some training and development initiatives which, although accorded a low priority from the organisational viewpoint, might increase the motivation level among employees. Importantly, training needs must always be managed within the constraints of organisational budgets. A cost/benefit analysis is a good way of measuring the return on investment of any training prior to implementation. To summarize, the key rules to follow when conducting a TNA are:
- Conduct regular TNAs - Align training needs with business strategy - Manage employees expectations - Benchmark individual performance and competencies against industry and occupational standards - Undertake a cost/benefit analysis prior to committing to any training For more information on training need analysis and for assistance, contact Ms Jessica Lu at jl@smart-hr.com.vn - Tel: 821 9488 ext.188 ________________________________________________________________
October 2007  Communicating ChangeCommunication is important to overcome the fears and concerns aroused by change. When an organisation announces a change (merger, restructuring, relocation, downsizing etc.), people wonder what effect it will have on them - will they still have a job after the change? Will they maintain their rank? Will they have an interesting role? What will their future be? Because these questions will always be asked, and because uncertainty in a working environment reduces productivity, it is important to communicate what is changing and why.
When do you communicate?
Communication is an ongoing process. It is clearly necessary to communicate to people at the beginning of a change project - to answer their initial fears and concerns. But it is also necessary to communicate throughout the intermediate phases of the change process. As the change process advances, people have to be kept up-to-date with the actual status and future plans. They will have new questions to be answered, and new ideas and understandings will need to be developed.
What do you communicate?
There are four key subjects of change communication:
1. The present state
People need to be informed of the reasons why the organisation has to move away from the current 'as-is' state, and of the dangers of staying there. They need to understand the pressures that make it necessary to change. Explain to them why the current situation used to make sense, why the environment in which it exists is changing and why the organisation must now change to adjust to the new environment. Also, it is essential to explain what will happen if the organisation doesn't change - and what this will mean for them as individuals.
A strategic team including key senior management and HR Director/Manager should be formed to manage the change process. At the very beginning of the change stage, the communication content and channels should be discussed among the strategic team. HR Management Consultant(s) brought in from outside, therefore being objective, can also help to provide a framework to prevent errors and ensure the effectiveness of the communication.
2. The intermediate phases
The intermediate phases of the change process are generally unsettling for everybody. It is no longer possible to cling to the familiar past, and the hoped-for future state feels as if it is never going to be reached. Communication about the intermediate phases builds confidence. Confidence that although people may appear to be in a situation that is unmanageable, before long it will be over and the organisation will have moved into the future state. The communication needs to show them how the future state will be reached, and what things will look like along the way. Furthermore, informing them that support is available and explaining how to get help will also bring additional confidence throughout the changing process.
3. The future state
Explain what it will look like, why it will look like this, the advantages of being in this state, which parts of it are clear and which are still hazy, and what this future state will imply for the roles of people in the company.
4. The activities of the change process
Tell people what is going to happen, when it will happen, and why. Let them understand that the process has been clearly thought-out, is well led and well planned, and is under control. Show how the process will help people to participate in the change and how it will help them to change.
How do you communicate?
Communication can be carried out in a variety of ways such as a newsletter, e-mail, Intranet, video, person-to-person, or in small groups. Person-to-person communication takes a lot of time and doesn't provide the synergistic benefits of presenting the message to a group of people. A newsletter can be a good communication tool but there is always the danger that some people will be 'too busy' to read it. Videos tend to over-formalize communication, and don't provide a direct way for people to ask questions. E-mail suffers from being a generally inaccurate medium and is easy to ignore and delete.
The best method of communication is for each line manager to attach a well-prepared change message and accompanying support material to their direct reports. This process should start at the top of the organisation and be followed at each level. As a result, most people will first hear the change message from their boss and be able to ask questions, and as a result they will understand the message well enough to communicate it to their team members - and answer their questions. In this way, a single message and accompanying support material can be communicated throughout the organisation.
Most people in the organisation will have a lot of questions about the change process. For any one of a variety of reasons they may not like to ask these questions directly to their boss or colleagues, so it's always best to include some mechanism in the communication process by which people can ask questions anonymously or off the record. And finally, don't forget to put a feedback process in place to make sure that the change communication process is evaluated and can be improved for the next change in the organization.
Communicating change is most effective when it is well planned and when the procedure and content are consistent across audience groups. Get help from a professional HR Management Consultant. He/she can identify methods and styles of communication that are appropriate for each audience group and the entire organization, resulting in:
For more information on Change Communication, please contact Jessica Lu
jl@smart-hr.com.vn - Tel: 821 9488 ext.188 __________________________________________________________
September 2007 Assessment Centre:
A Valuable Selection and Development Tool
 Research demonstrates that there is no substitute for objectively observing and systematically measuring how people actually perform "on the ground". However, not every employer is willing to invest (or risk) time, money and team spirit to a recruitment or promotion decision and just "wait-and-see-what-the person-can-do". An alternative option is providing opportunities for the potential candidates to perform in a well-designed stimulating environment for employers to observe and make selection decisions.
What is an Assessment Centre?
The exercise for this process is called Assessment Centre. It is regarded as the most effective tool available for assessing individuals in both individual and group based environments for selection or development.
The term "Assessment Centre" does not refer to a physical place, instead it describes an approach. Traditionally an Assessment Centre consisted of a number of exercises designed to assess a set of personal characteristics, and was seen as a rather formal process where the individuals being assessed had the results fed back to them in the context of a simple yes/no selection decision. However, recently we have seen a definite shift from this traditional view to one which stresses the developmental aspect. Today, it is very rare to come across an Assessment Centre which does not have a feedback session with SWOT analysis and developmental advices even if its purpose is only the recruitment selection. The approach is becoming increasingly collaborative, with the individual(s) actively participating in the process rather than being a passive recipient of it.
How does it work?
The theory behind this is that if one wishes to predict future job performance, then the best way of doing this is to get the individual to carry out a set of tasks which accurately sample those required in the job and are as similar to them as possible.
Simulations are designed to bring out behaviours relevant to the key aspects of the position or level for which the participants are being considered. Known as "competencies", these aspects of the job are identified prior to the Assessment Center by analyzing the target position or level. An analysis identifies the behaviours, motivations, and types of knowledge and skills that are critical for success in the target position or level. For example: planning and organizing skills presentation skills analytical skills self-motivation adaptability and flexibility problem solving approaches leadership potential communication style negotiation skill decision making pattern initiative creativity teamwork spirit stress resistance etc.
Then several process, cases, scenarios are designed to allow the participants to complete a range of exercises which simulate the activities carried out in the target job or level. Common simulations used in Assessment centers are: Psychometric testing Ability testing In-tray exercises Group discussions Simulated role plays with "subordinates" "supervisors" or "clients" Fact-finding exercises Case studies on analysis, decision-making or problem solving Oral presentation exercises Written communication exercises Competency/behavior-based interviews Stress interviews
The priority task of the Assessment Centre is to observe and collect sufficient "evidence" to evaluate the candidates. As participants work through the simulations, they are observed by assessors (usually line managers) who are trained to observe and evaluate behaviours and knowledge level. Assessors observe different participants in each simulation and take notes on specially-designed observation forms to help them focus on identifying evidence. After participants have completed their simulations, assessors will share their observations and agree on evaluations. If used, test and interview data are integrated into the decision-making process. The assessors' final assessment, contained in a written report, specifies the participants' strengths and development needs, and may evaluate their overall potential for success in the target position or level if that is the purpose of the centre. Laying the foundations for future development
Perhaps the most important feature of the Assessment Centre is that it relates not to current job performance, but to future job performance. By observing how a participant handles the problems and challenges of the target job or level (as simulated in the exercises), assessors get a valid picture of how that person would perform in the target position or level. This way, organisations can identify the potential talent for succession planning. This is especially useful when assessing individuals who aspire to management positions, but presently hold jobs that don’t offer them an opportunity to exhibit behaviours related to the target position or level.
In addition to improved accuracy in diagnosis and selection, the organisation that operates an Assessment Centre enjoys a number of indirect benefits. Candidates accept the fairness and accuracy of selection and promotion decisions more readily and have a better understanding of job requirements. Training managers to become assessors increases their skills in managerial tasks, such as observation, listening, evaluation, handling performance appraisals, conducting coaching and feedback discussions.
For more information on Assessment Centre, please contact Jessica Lu
jl@smart-hr.com.vn - Tel: 821 9488 ext.188 _____________________________________________________________
 August 2007Calling in the Auditors Who needs an HRM audit? As organizations grow, develop new activities or increase their workforce, they often suffer crises in operations. The good news is that if you do have issues and concerns, then you are experiencing growth, so you are on the right track. In reality, all companies at some point need to conduct a "health check" in order to re-align their processes, upgrade their people's competencies and optimize their performance:
when employees do not appear motivated when the workforce is unsettled when the management is complaining about their staff's attitude when there are complaints about the HR department when the BOD decides to restructure the company when communication does not flow as expected when the company is undergoing any change...,
then it might be time to call in auditors who will look into the HR management function and identify the underlying causes for those hiccups.
What is an HR function audit?
In a corporate environment, audits are frequently associated with financial reviews and may create a sense of apprehension amongst the management. In reality, the word "audit" merely implies a comprehensive review of practices, procedures and results, leading to recommendations for improvement.
The objective of a Human Resource function audit is to analyze the current HR management systems and processes within an organisation, to find out the strengths and limitations, and to make recommendations for changes which would help the company to achieve better results through proper tracking of its human potential. An effective HR function audit should provide an independent appraisal of the company's operations and assist the management in achieving maximum efficiency while providing a satisfying work environment.
How is an HRM audit conducted?
To be successful, the audit should be planned in close co-operation with the management and take into account the specific needs of the organisation. During the audit process, information and opinions are collected on the following areas:
- The organisational culture and working climate: how are employees influenced and involved?
- The organization's structure: how does each function work? Where is the HR function positioned?
- The working environment: what is done for the safety, health, wellness of the employees?
- The information flows in the organisation: how is upward and downward communication organised?
- The personnel policies and workplace rules: are the policies and procedures regularly updated? Do they meet the organisation's needs? Are they communicated clearly?
- The management process effectiveness: how do the managers perceive their roles? What do they know and understand about the company's goals. Are the managers sufficiently result-oriented?
- The HR management principles and practices: is there a defined system of procedures and policies on recruitment and selection, C&B administration, training and development, performance management, disciplinary measures, rewarding, promotion, departure etc.?
- The managers' leadership skills: how is decision making and delegating organised? How are the teams formed and managed? Are managers willing to fulfill their roles to lead people?
- The pro-activity and the adaptability of the management team: are the managers willing to make proposals for changes and implement changes themselves?
- The employees' motivation and the sources of their satisfaction and dissatisfaction: have they ever been consulted? Have the results of the consultation brought any positive changes?
The most applicable methods in collecting above information are questionnaires, interviews, document investigation and monitoring. Depending on the audit focus area, a sampling plan is initiated to enable a realistic overview of the situation while remaining logistically feasible. The collected data on the above aspects is then reviewed, verified and linked with the strategic objectives of the company.
What results can my company expect ?
As a result of the HRM audit, the organisation will get an objective picture of the strengths and weaknesses of their human resource management system and capabilities. The auditors will then outline a set of recommendations for implementing changes in areas influencing the company's success.
For more information on HRM audits, please contact Pascale Herry
pascale@smart-hr.com.vn - DL: 827 8256
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 "Do we offer the right package to attract talent?"
"How do we stop our best people from leaving?"
"How do we plan and budget our payroll and welfare?"...
To get answers to these vital questions, join
The 2007 Vietnam Total Rewards Survey Update More than 130 participants already Assistance provided for data collection process Informative analysis reports Tickets to Market Trend Update seminar Confidentiality guaranteed 5% early bird discount before Jul 31, 2007
For more information or for registration, please contact:
Ms. Hong Hanh - hong.hanh@smart-hr.com.vn - Tel 84-8-821 9488 ext 108
Ms. My Linh - support-hr@smart-hr.com.vn - Tel 84-8-821 9488 ext 128
Ms. Hoai Vy - hoai.vy@smart-hr.com.vn - Tel 84-8-821 9488 ext 138
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July 2007  "Feel the pulse" of your workforce Every organisation is faced with the same vital HR challenge: understanding what drives employees who are now demanding more and more in exchange for their services. Today, retaining good talented employees has become a difficult task even for the well known, best performing companies across the world. It is a fact: satisfied employees not only remain with the company but are more productive. They are also loyal and are most likely to recommend the company's products and services whenever and wherever possible. What's more, they also help the company to attract the best talent for future recruitment.
Periodically conducting employee satisfaction surveys allows an organization to "feel the pulse" of its workforce and to diagnose issues and assess the overall organizational climate. An employee survey can accompany specific initiatives such as strategic planning, a merge, the implementation of a performance management system, or it can be conceived as a method to deal with internal issues. It serves to anticipate potential problems, monitor teamwork, evaluate management style and efficiency and/or measure the effects of organizational change.
Plan an employee survey
To effectively conduct the strategic planning cycle for your organisation – setting goals, articulating objectives, and preparing budgets - it is important to take into account the opinions and suggestions of your workforce. This can be achieved by scheduling the survey events before the goal setting and budget planning sessions. Schedule backwards to make sure the findings and recommendations are ready. For example, if budgets are due in October, you should develop and present the survey recommendations in September; analyze the survey responses in August; determine the survey ground rules, design and distribute the questionnaire in July. By scheduling this way, surveys deliver the maximum impact possible.
Involve influential employees in the survey effort
Organizations can survey their employees and get access to their thoughts, but overcoming their resistance to change is a totally different matter. One way to solve this problem is to involve, formally or informally, the employees in the survey planning and conducting process.
Don't look for what you already see
Many organizations believe they understand their problems, and call in consultants to work out the "obvious" solutions. This is a self-fulfilling prophecy. If an organization investigates only the issue of "internal communication", they will only collect information on "internal communication". By doing so, they may overlook other issues of major concern.
Use surveys with good reliability and validity
Validity is how well a survey measures what it should. This usually means measuring each survey topic with several questions, and in several ways. This usually means at least three questions, preferably five on each survey topic, and asking similar questions during interviews and focus groups. Review the survey's validity by comparing it to existing methods of gathering information to minimize missing or unclear questions.
Reliability is how consistent the survey is over time, and the consistency of survey items with each other. If a survey is unreliable, survey statistics will move up and down without employee opinions really changing. What may look like a significant change over time may be due to the unreliability of the survey methods used.
The most relevant and important aspects that need to be covered in an employee satisfaction survey questionnaire are: Never survey without acting
Managements can survey their employees to assess working conditions out of curiosity, or to relieve their anxieties that something might be "wrong". However, surveys raise expectations of change. When these expectations remain unfulfilled, employees can become more demoralized than before the survey. Create and communicate clear, specific actions from the employee survey data "We must communicate more," and "We must change people's attitudes" are often the recommendations that come from surveys. Unfortunately, these platitudes do little to fix the problems that survey responses describe. Specific changes in policies, personnel and procedures are what many employees want.
The management must decide what actions are possible and what are not, even before the survey group gathers the data. When employees voice or raise concerns, the management needs to communicate that they understand their concerns. If the management cannot immediately solve these issues, the employees must be informed.
Employee surveys can be conducted by the HR department, but many organisations choose to outsource them to third-party HRM consulting companies which are able to provide unbiased as well as expert advice on the survey results.
Adapted from articles by Eric Morris and David Chaudron. For more information on employee surveys, please contact Pascale Herry pascale@smart-hr.com.vn - DL: 827 8256
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 June 2007
What can Executive Coaching do for you?
Management coaching is an individualized development process that builds a team leader's capability to achieve short and long-term organizational goals. It does seem to play an increasing role in some organizations and is becoming a core part of people development. Under the right circumstances, one-on-one interaction with an objective third party can provide a focus that other forms of organizational support simply cannot. Why? Because there is a great demand in the workplace for immediate results, and coaching can help provide that.
So, should you provide a coach to your key people? Which managers in your sphere of responsibility might benefit from working with an outsider to help sharpen skills and overcome hurdles to better performance?
Timing is crucial
There are certain times when managers are most likely to benefit from coaching. Team leaders should consider coaching when they feel that a change in behavior - either for themselves or their team members - can make a significant difference in the long-term success of the organization.
More specifically, coaching can be particularly effective in times of change. That includes promotions, stretch assignments, and other new challenges. Succeeding in a new role requires skills that have not been needed in the past; a coach may help refine those skills, particularly when required urgently.
But coaching is not just for tackling new assignments. It can also play a stimulating role. Coaches can help managers develop new ways to attack old problems. When efforts to change have failed - the manager is frustrated or burned out - a coach can be the outside expert to help him/her get to the root cause and make fundamental changes, or to help release the pressure and stress, so he/she can overcome the motivation decline.
Getting focused feedback
By providing feedback and guidance in real time, coaching develops your team leaders in the context of their current jobs, without removing them from their day-to-day responsibilities.
At an even more basic level, many managers simply benefit from receiving any feedback at all. As individuals advance to a more senior level and the development feedback becomes increasingly important, it gets in fact more infrequent and more unreliable. As a result, many managers vegetate in critical interpersonal and leadership skills. By engaging an outside coach, the organization will demonstrate its concern and provide the opportunities for specific and constructive feedback, in order to fortify the confidence of its managers.
Coaching engagements should be part of a larger initiative. Coaching works when it is systematic and many organizations use it as the last integrated part of a larger leadership development program. First, they conduct 360o feedback sessions to reveal areas in which the key staff members would need to improve and/or skills they would need to refine. After certain specific trainings and internal coaching, they will then engage an outside coach who will make the improvement suggestions and facilitate the learning that will help these key staff advance through the organization.
A consensual decision
But simply having a clear purpose won't guarantee coaching value. Coaching works best when all parties know what they want to get done. Ideally it is a three-way partnership between the manager, the coach, and the organization, in which all involved agree on specific goals and parameters.
To achieve maximum impact, the manager must be able to say "I want to get over there, but I'm not sure how to do it", while the coach will use his/her expertise and insight to fine-tune the requested skills (strategy, communication, decision-making, leadership...) in line with the organisation's pre-set objectives and framework.
The organisation needs to be clear on the objectives and set together with the coach the expected outcome. Finally, choosing the right coach is vital: coaches should be selected based on their experience, their capacity to understand and attune to the company's culture, their interpersonal skills, their readiness to empathize with the stressed-out manager - all skills that will condition the value and the effectiveness of the coaching.
Adapted from "Methodology: Do You Need an Executive Coach?" Harvard Management Update, Vol. 9, No. 12, December 2004. _________________________________________________________________
 May 2007 EXECUTIVE SEARCH Another employment headache ? This morning your Sales Director resigned, with no prior warning signs: you now need to find a suitable experienced person to replace him. You also know you don’t have this person internally. You pick up your phone and call an Executive Search Consultant, also known as a "Headhunter".
In an ideal world, the headhunter will take your instructions and turn them into a series of interviews with superbly qualified and competent candidates, all of whom are interested in and perfect for the job. After the interviews, you will be hard pressed to choose a candidate from the embarrassment of riches. Finally you will pick one, make a generous offer that pleases everyone and you will all work happily ever after…
If only it were that easy!
Unfortunately, with too few truly qualified candidates being sought by an ever-growing number of companies, the above scenario rarely happens. To make sure your search is successful, there are a few rules to be followed.
Rule # 1: Be realistic
Many organisations begin the executive search process with overly optimistic expectations. They are likely to have a fixed idea of the perfect person in mind and have prepared a lengthy shopping list of qualifications, experience and attributes that the successful candidate must possess. As a rule, when looking for the ideal candidate, you should refine your list to more realistic expectations. Your role is to fully analyse the minimum qualifications required for the position, what fundamental knowledge, skills and attitude you expect from the candidate, the level of remuneration your company is willing to pay, and any characteristic you deem essential to your organization’s best interests. You will very rarely strike gold and find immediately the person who is just right for your organization. Sometimes, an unexpected candidate, perhaps from an unusual background, might in fact prove to be exactly what you need.
Rule # 2: Be completely open
For a search to be successful, the headhunter must fully understand your organisation, where you are now, where you are going and who you need to help you get there. Be honest and open about your circumstances, otherwise the time and money invested in the search will have been wasted. To ensure there are no nasty surprises for the new recruit on day one, the headhunter needs to be given full disclosure during the recruitment process. The headhunter requires far more than just a surface knowledge of the position to effectively represent you in the marketplace. Based on your comprehensive brief – such as the position’s purpose, the reporting line, the authority, your corporate management culture – the headhunter will then be able to utilize his/her strong, high level contacts and thorough market awareness to satisfy your demands and perform a truly successful search.
Rule # 3: Be irresistible
The most talented people in the marketplace are not likely to be actively looking for a career change as they are far too busy being successful in their current position. Often their interest is negligible – and the difficulty is to explain to the prospective candidate why the opportunity offered by your company might be tempting. You must remember that this individual may not necessarily want the job. The headhunter has contacted him/her on your behalf and now he/she is interested to hear more. These people are not applicants; they are curious professionals and should be treated as such. Once a qualified candidate has been identified, the first step is to demonstrate the challenges and rewards of the change. Creative methods might be necessary to attract the appropriate individuals, to demonstrate the opportunity and to establish their level of interest.
Rule # 4: Ensure a smooth transition
You are now ready to make an offer. The headhunter should continue to provide assistance in managing this delicate stage, counselling both you and the candidate throughout the process and helping to negotiate the best outcome for all. This assistance does not stop immediately after the new person has come on board. In the first few months, you should make sure the headhunter remains available to help the difficult transitional months go as smoothly as possible.
Can headhunting be the cure to your employment headache?
Prevention is always better than a cure and to prevent the employment headache, organizations should have good succession planning in place ensuring executive gaps are filled by individuals within the company who have already been groomed for the role. However, in reality, most firms experience occasions where this option is not available to them. This is when executive search or headhunting then works best, in preference to recruitment consulting (CV search, advertising), especially if the targeted individuals work within a defined marketplace or group of companies. An experienced executive search consultant will add value to your succession plan by working strategically with you to identify the skills and individuals you will need in 6 months onwards, rather than concentrate purely a reactive replacement.
In both cases, whether as a cure or a prevention method, the most obvious benefits will then be: - Detection of the best candidates within the target market
- Access to candidates who are not currently seeking a move
- In-depth screening of the prospective candidates according to your brief
- High confidentiality, as only candidates interviewed by the headhunter are made aware of the vacancy
For your search to be successful, selecting the right headhunter is crucial. Look out for a professional, experienced consultant, willing to understand fully your organization, an expert who will only provide the "right" candidates as opposed to the "available" candidates.
For more information on Executive Search, contact Ms Karen Davies, Senior Consultant at Opus Vietnam, a division of SMART HR. _____________________________________________________
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