This year’s Shared Services and Outsourcing Malaysia Summit brought together industry professionals to share from a wealth of expertise and experience. Key themes throughout the summit included: maintaining a competitive edge through innovative talent management, implementing value added services and sustainable cost-cutting strategies.
Michael Warren, Vice President, MDeC opened the Summit with an engaging speech on getting to grips with the ever-evolving machine of Shared Services & Outsourcing (SSO). He explained, “When it comes to SSO, Malaysia is the right place at the right time. Last year saw a 57% hike in job creation with over 7,300 new positions bringing the cumulative figure to 65,800. Malaysia now ranks in the top three countries globally in terms of global sourcing of services.” Acknowledging that it is not possible to be good at everything—and therefore it is essential to focus on the core business elements and outsource the rest—he emphasised the need for the overall business model, including HR, to embrace SSO in order to grow.
Due to the industry having little exposure, finding and attracting the right talent is its next big challenge and therefore it is under pressure to increase awareness. Warren stressed the importance of utilising local government employment initiatives in order to improve awareness and bridge the talent gap.
Untapped talent
Another key point raised was the need for more organisations to be involved in the Industry Academic Collaboration (IAC). Warren noted, “Improving relations with target universities not only increases industry exposure but also strategically positions the business to attract new talent.” There are multiple university schemes eagerly looking to engage with industry. Moreover, academics are incentivised to improve academia-industry affiliations. Developing these connections has huge implications on the business, from access to the latest research results to innovative new methodologies along with access to a pool of untapped talent.
Big talent, small budget
Throughout the summit it was evident that there is demand for the right talent, at the right price, right now. Professionals will agree that to get the best fit you either have to buy, borrow or grow your own talent. This means maximising the effects of a limited budget through active engagement. The premise for this is found in a strong brand identity. Employer branding can provide a huge competitive edge for the business and is often overlooked. It is vital to capitalise on the influence branding has on attracting potential talent. Businesses seeking to leverage the value of a strong identity will need to pay attention to three main factors, which research reveals to be the most important to candidates:
- Competitive salary/benefits
- Job security
- Pleasant work atmosphere
Forward thinking
A recent trend among HR professionals is the concept of treating your employees like customers. This gives jobseekers a sense that they are customers so, even if they do not ‘buy’ anything this time, they might do so in the future. This notion indicates that HR is thinking ahead and developing a relationship with valuable employees thus making sure that if they aren’t recruited now, they could still be hired down the line. The amount invested in planning for the future makes the difference between a good organisation and a great one.
Cross-generational expectations
An interesting panel conversation ventured on a three-way discussion revolving around the theme of talent. It was noted that candidates want to know they will be respected by an organisation. They want meaningful responsibilities, to be treated fairly and to be challenged. The panel explained, “It is essential for HR to give clear career progression opportunities. Some expectations never change and are the same for every generation. Listen to your employees, not everyone wants to be forced to fit in. Don’t make judgements based on appearance. Greet your employees in the morning—basic manners go a long way.” The panel emphasised that too many managers negate the basics, expecting much in return for nothing.
Boleh!
“Respect your efforts, respect yourself. Self-respect leads to self-discipline. When you have both firmly under your belt, that’s real power.” — Clint Eastwood
Jill Jamieson, Kuala Lumpur Associate, VCI Change shared on metrics and discipline, uncovering how a large global organisation reduced processing lead time from 96 hours to 24 hours. She explored the value of self-discipline, expounding, “The foundation for productivity is found in self-discipline. Research reveals that those in society with self-discipline achieve far more than those with a lackadaisical attitude. Discipline used to be a dirty word but while measurement is the first step leading to control and thus to improvement, it can also be a critical factor in providing employees with a sense of purpose.” Jamieson revealed how a disciplined culture of goal setting and measurement results in SSO staff increasing their ‘improvement ideas’ to an average of 1.1 per person per month—a world benchmark, and cutting processing lead time by 75%, with errors being reduced to an outstanding 0.02%.
A critical question was put out to the audience: how do you increase the level of self-discipline among employees? After discussion, Jamieson explained, “First, the rules should always be agreed. Ensure goals and expectations are settled from the offset. Second, feedback is imperative. Adults grow from regular and continuous feedback. Be open and transparent with employees. Lastly, measure input and contribution to the business. Employees need to know what value they bring to the organisation.” She stated that this is the first step to a sustainable cost-cutting strategy. The old Malaysian saying ‘Boleh’ is quite apt, its meaning: ‘we can do things’. Jamieson affirmed that having a can-do attitude cultivates motivation, which ultimately adds to the building blocks of self-discipline.
Finding the right balance
How do you preserve your greatest resource? The United Nations Development Programme (UNDP) has reduced attrition and attracted talent through international language training and staff rotation, John Kidd, Chief Global Shared Service Centre, United Nations Development Programme shared, “Understanding the employee’s perspective is the starting point to promoting a healthy work-life balance. Make an effort to make the job more interesting and aim to motivate the workforce to be more productive.” He highlighted the benefits of utilising social platforms to encourage employee productivity.
Kidd heralded the incorporation of flexi-hours—exposing the fallacy of the perception that they compromise costs. He explained that a good approach to building commitment is to collaboratively develop the vision, values and mission. He commented, “Create an environment where staff feel safe to raise issues and share their knowledge.” He believes that your career should be a noble mission and gave the following three steps as the cornerstone to achieving this; give variety, give scope and give international exposure. Kidd’s efforts have resulted in a team that has been internationally recognised for its speed, efficiency and responsiveness.
As the market moves towards SSO and offshore delivery becomes more widely accepted, businesses need to pre-empt the need for alternative locations for service and business delivery. Additionally, with the scarcity of skill sets in certain markets, the need to embrace SSO has never been greater.
Paul Arkwright
Publisher
