Riding on the success of our October HR Conference, HR Magazine's latest event—HR GPS: Guiding People Strategies attracted a capacity crowd on 14 January. The 230 HR professionals in attendance were privy to the latest strategies of transforming HR through technology, retirement planning, enhancing work life integration and instilling an international perspective in young employees. If you missed it, read on...
Jonathan Perrin, Global Product Manager Performance & Reward HR Solution Centre, HSBC
Perrin was the first keynote speaker and gave an insight into HSBC's application of technology to help streamline HR processes. He began by addressing the impact of company growth and internationalisation on the HR function, looking specifically at how technology can minimise disturbance. He pointed out the basic requirements of HR include: keeping a record of how many people work for the company, what hours they work, how much they are paid and their position against the market, and went on to explain how technology could help with these issues.
Setting standards
- To manage the employee pool whether local, regional or pan-regional, Perrin stated that the company and HR need a set of standards. Questions that should be asked in this regard include:
- How are full-time employees defined—based on working hours or contract hours plus paid overtime?
- What is base pay, regionally and globally?
- Is there market pay, if yes do you have a standard target range?
- How do you define an employee as such—is it someone with an employment contract, and if so, does it have to be a full-time contract?
Once a set of such measures has been agreed, technology platforms not only facilitate reporting and controlling standards, but are also particularly helpful when implementing self-service functions. Perrin added, “Technology is only as good as what you squeeze out of it.” And suggested implementing a simple, centralised data repository that collects monthly uploads from dispersed HR and finance systems.
Perrin advocated the empowerment of managers and employees to make decisions. He advised HR to, “…ensure they are trained, but also that they are intuitive as they can’t spend the rest of their days in training.” He added, “Don't be frightened of what you don't understand. Nothing in HR transformation fundamentally changes HR’s key activities—it just allows HR to focus on the important elements of activities.”
Technology to support organisational change
HSBC has recently launched a global on boarding programme—meaning everybody gets the same training. Perrin acknowledged the time and effort required to implement the programme in every business line, every company and every country. He stated, “Standardising how you recruit and onboard someone is a challenge, but important because it ensures everybody understands the process.”
Continual development is necessary to bring larger benefits, and Perrin explained how complex technology can provide consistent development, which saves money. He added, “The best money you’ll spend on HR management is an online recruitment tool, which provides a self-service data warehouse—thereby reducing costs. Additionally, it provides a lot of dynamic information from employee profiles. Do it right and it'll pay back in buckets.”
Availability of data for those that require it is the driver of organisational change and is often held by very few people. Perrin advocates technology that provides accurate, relevant data when needed, explaining, “Ideally it is self-service so that when a manager needs a report they press a button and it is there. HR should simply overview the process.”
Standardisation
One of the biggest challenges, according to Perrin, is that of standardisation. HSBC are a huge organisation and each company acts as a sibling, each one slightly different this presents a challenge. “In order to overcome integration and organisational challenges of new technology processes, senior executive sponsorship and a clear strategy are a must,” said Perrin. He added, “Completion will take years, so you must have an implementation strategy, more money than you think necessary, local management buy-in, forecasts, resources, and an appetite for change.”
Louisa Bench,
Vice President HR,
Turner Broadcasting System Asia Pacific, Inc.
Bench proffered advice on people guiding strategies, drawing on examples from her own orgnisation, a Time Warner company with over 11,000 staff worldwide. On the subject of work-life balance she believes it is “fundamental to Turner's DNA” and commented that in Hong Kong it is something many organisations could improve on. At Turner Broadcasting they refer to this topic as ‘work life integration’ because ‘balance’ wrongly implies it is 50:50. Many in the audience laughed when Bench asked how many of them actually had a 50:50 work life ratio—clearly not the case for most HR professionals in Hong Kong.
Bench believes Turner’s success lies in bringing exceptionally talented and creative people together and it is important to nurture that creativity through work-life integration. She highlighted the importance of fostering innovation and collaboration by focusing on people with the most innovative and divergent ideas, concentrating on diversity, respect, inclusion and ensuring that everyone has an opportunity to be heard.
Employees first
Bench then spoke on Turner’s Employees First philosophy, explaining that employees come first because they are critical to the organisation. She detailed how the philosophy captured the essence of Turner: packaging everything from development and benefits to programmes such as: career enrichment and professional development, CSR events by Turner volunteers and special events such as movie screenings and dinners.
‘Lunch and view’ is one such scheme, whereby employees eat lunch provided by the company while watching the latest movie or cartoon produced by Cartoon Network. Such events provide employees with an opportunity to learn more about the company’s content, have fun, and socialize with colleagues. Other Lunch and learn classes run have included Yoga, Tai Chi and ergonomics. Other events include the Turner Sports Day when the office is closed and employees go and have fun, the Spring Dinner where everyone, including the director, gets dressed up and acts in character for the whole evening.
From a CSR perspective, employees are also encouraged and rewarded for voluntary work and given a number of days paid leave every year to go and work with registered charities. The company also provides a quiet room with massage chairs, which Bench points out, “allows employees to relieve aches and pains or just chill for a while.”
Summer Fridays
Perhaps one of the most innovative ideas Bench shared was that of ‘Summer Fridays’. From May to September, when children are on summer holidays, all staff finish work at 3pm every Friday, except shift workers and on-air colleagues who are given extra leave in lieu. Perrin said, “It's simple, it’s done every year, and everyone loves it.” She added, “Work-life integration is not complicated and makes a big difference to employees.”
Bench pointed out that Turner has recently decided to give everybody in the organisation the same number of days annual leave—from the tea lady to senior executives. This has meant giving some employees at lower ranks in the company extra days, which she stated helps reduces absenteeism and has had no negative impact the business results. In fact, the system has helped create a highly engaged workforce. This has been demonstrated in business results, which have significantly exceeded targets in 2009 without the need to reduce headcount; and while continuing to recruit and pay salary increments and bonuses. Confident in the business benefits of such initiatives, Bench summed up by saying, “We have the best talent and we want to keep them.”
Ka-shi Lau, Managing Director and CEO, Bank Consortium Trust Limited
The Bank Consortium Trust Company Limited is among the top five MPF providers in Hong Kong with over 680,000 members—representing one-fifth of the local workforce—and were the main sponsor of HR Magazine’s HR Conference.
Ageing population
Lau began by highlighting how the extremely low fertility rate, coupled with one of the highest longevity rates, had been the precursors of several issues relating to the ageing population in Hong Kong. In this environment, the government faced with having to pay pensions for an increasing, ageing population established the MPF scheme in the hopes of introduce more market competition and thus better products for retirees.
Lau pointed out that providing employment protection for employees was one of the best things employers could do for their staff. She went on to detail the main differences between the MPF and ORSO schemes and noted that the predominance of MPF over ORSO would increase over time, and that it would finally surpass ORSO in terms of value.
Regulatory changes
Lau explained that as a result of regulatory changes, employees would be able to transfer their portion of mandatory contributions made under their current employment to an MPF scheme of their choice. She then pointed to three limitations: it must be a lump sum transfer, funds can only be moved once a year, and preserved accounts must be renamed to personal accounts. Lau pointed out that a register is available so employees do not lose track of their personal MPF accounts, and said that there should be no additional administration for HR because it is employees and the new trustees that manage the plans.
In answer to the question of how HR could help employees, Lau pointed out that too many choices can sometimes result in a lack of interest from employees. With 38 schemes and 368 funds available, she explained that HR need to give staff need more information. She advised, “Get them [employees] interested in managing their own accounts and improve their awareness about risks and returns.” She also advised employers to learn about trustees, fees and charges of current schemes and providers and to ask providers for member briefings. Such meetings also provide a forum in which employees can express their views and provide input on how current trustees can enhance services.
Lau also advised HR managers to note the differences between the various MPF funds and exactly what methods were used for fee calculations. She cautioned that promotional offers should not be the most important criteria in selecting particular funds. She went on to advise, “Make proper comparisons, don’t compare MPF conservative fees with equity fees as they are totally different. Look at fund expense ratios and the pricing strategies, not bonuses.” Lau also advised looking at the quality and variety of services offered by the different MPF providers, for example if they provide investor education, risk profiling and retirement calculators. “When choosing an administrator or trustee put people first,” advised Lau. She added, “Look at staff and anticipate their needs and choose one that is flexible, client centered and solution driven.”
Lau summed up that with an ageing population there was going to be much more reliance on MPF. Better MPF means better workers and so employers need to think about trends and sell suitable contribution plans to employees. She concluded, “Benefits provide protection for retirement, but looking at demographics it’s now about pensions.”
Selina Ko,
Head of Talent Development,
Greater China and Japan, Standard Chartered Bank
Ko shared ideas on internationalising talent within Standard Chartered drawing from her role in formulating country talent strategy and initiatives to strengthen the talent pipeline.
Ko pointed to the fact the global economy and the banking system is becoming more interrelated while Hong Kong remains, “quite inwardly focused.” She views internationalising as important for the people agenda and at Standard Chartered they use different approaches to tackle such important issues.
Standard Chartered spent US$18 million to maximize staff capability international perspective and exposure by increasing their international footprint and offering job rotation opportunities. Ko commented that they hope to give employees an environment where they can gain international perspective because diversity and inclusion is essential for a company that employs 26 different nationalities in Hong Kong.
International graduates
Ko also highlighted the organisation’s two-year management trainee programme, International Graduates which encourages staff to work overseas, gaining a more holistic perspective on the company and their role. Last year 11 graduates came to Hong Kong while only one seconded out, Ko suggested that graduates want to remain in Hong Kong because here the company operation is bigger and they wish to be with their family, which she believes are valid reasons. However, she points out that this is “a wakeup call, because while the bank invests in them and takes a risk they are not taking the risks.”
In the past ten years Hong Kong has remained the number one contributor within Standard Chartered, but other countries are catching up. To remain number one and take advantage of globalization Ko asserted that they must “Take more robust steps to be internationally competitive.” To this end the organisation has the Strategic People Agenda and last December their senior executive committee discussed the need to provide international exposure and widen international perspective. They have adopted a 70:10:20 development approach comprising 70% on the job training, 10% formal learning and 20% learning from others.
Ko suggested that critical experience fast tracks their people so that they are challenged and able to work with peers from around the world by strengthening the International mindset. They provide more opportunities to work internationally from regional roles to cross-border exposure and talent exchange.
On the subject of developing employees, Ko outlined two of their group mentoring programmes: Development and Networking Alliance (DNA) and the Power of Leadership. She offered five tips for when implementing a leadership programme:
- Carefully select leaders and speakers with diverse, international background, from different businesses and industries that are able to motivate and inspire.
- Inject more fun.
- Invite two senior hosts to interview the speaker. This will make the event feel more like a sharing of insights.
- Timing: make it short and not too late, an hour and a half maximum.
- Keep it meaningful and hopefully talent will pass it on to others.
Ko explained the DNA programme is a group mentoring initiative where 23 talent champions, employees considered the best leaders, will mentor four to seven junior HIPOs. She added that more senior members also have one-to-one mentoring programmes whereby, for nine months, they meet every six weeks for one to two hours.
Speed Dating
Realizing that “chemistry affects the outcome of the programme”, Ko explained a ‘speed dating’ activity that the bank had implemented in 2008 to allow employees to choose their mentor or mentee with HR acting as ‘matchmaker.’
All support initiatives at the bank are ‘going transparent’ and with this HIPOS are being told that they are high potential staff. Ko explained that this transparency gives employees the opportunity to talk about their aspirations, and employers the opportunity to identify staff with the most potential. She pointed out that HIPOs are not limited to graduates, and the bank has an annual nomination system, whereby managers decide which staff are genuine HIPOs. Ko added that there are many different criteria for identifying HIPOs and for junior to more senior managers their manager nominates them, then there is a discussion, and once endorsed by senior committees they are informed. This is the first year the bank has fully implemented the programme, with 11 people selected, and Ko expressed that they needed to be managed very carefully and guaranteed continuous support and balanced development. She added, “The 70-20-10 approach is the safety net, and everyone will have this development, but there will be extra opportunities for the HIPOs.”
She concluded that it is important for HR to manage expectations, especially with international programmes and even more so for HIPOs on International assignments. Ko advised, “Ensure a continual dialogue, constantly checking their [employees’] expectations and matching them to appropriate opportunities.”
To be a part of our next HR Magazine conference, and get the chance to pick the brains of senior HR practitioners for tips and advice simply call 27366339 or visit our website: www.hrmagazine.com.hk
Paul Arkwright
Publisher
