Published on October 23, 2014
1. ASIA PACIFIC RECRUITMENT SUMMIT 2014 Marina Bay Sands, Singapore 1-2 October 2014 THE GLOBAL RECRUITER
2. TODAY MENU •Indonesia Today •Driving Forces in Recruitment •Market Situation in Indonesia •Operating Recruitment Business in Indonesia •Current Executive Search Practice
3. INDONESIA TODAY •Population: 249,865,631 (2013) * •Part of G20 •GDP Growth: 6.3% (2012), 5.8% (2013), no negative growth in last 5 years trend * •Major challenges: corruption, legal system, infrastructure, education, healthcare •Key sectoral opportunities: infrastructure, food and agriculture, energy, manufacturing/industry** *) source: www.worldbank.org **) source: www.bkpm.go.id
4. Talent Demand: -Foreign Direct Investment (FDI) -Business/economic growth -Organization Development Talent Supply: -Education & Development -International Talents Current Market Changer: -Technology TALENT MARKET Foreign Direct Investment BUSINESS GROWTH ORG DEV TECHNOLOGY EDUCATION AND DEVELOPMENT FOREIGN TALENT
5. General Market Condition •“Short supply, over-demanded” talent market due to high economic growth, FDI, OD •Lack of acceleration on talent supply due to: – weak education system at the past and –international talents limitation •Technology is main “game changer”: automation reduce the needs of unskilled labors, but also creating new type of business/profession •Shorter employment period and higher employee turnover •Philosophy of employment is more on “free market mechanism”, the end of whole life time employment •The best employees are the most vulnerable talents to be retained (see talent behavior slides)
6. TALENT GAP IN INDONESIA In 2020, Indonesia will face major shortage at middle management level (56%) Source: BCG report
7. Talent Behavior, some facts •Indonesia employee engagement *) –Engaged: 8% VS 13% (global #) VS 12% (south east asia) –Not Engaged: 77% VS 63% (global #) –Active disengaged: 15% VS 24% (global #) •Active & Passive talents in the country **) –Actively looking - 15% VS 12% (global avg) –Casually looking a few times a week – 14% –Reaching out to personal network – 20% –Open to talking to recruiter - 41% –Completely satisfied, no willing to move – 10% VS 15% (global avg) •Top reasons to move/change the job **) –Active candidate: better compensation and benefit; more challenging work, better quality company –Passive candidate: better compensation and benefit; better work/life balance, opportunities for advancement *) source: Gallup – State of the Global Workplace report **) source: Linkedin – Talent Trends 2014 report
8. RUNNING RECRUITMENT BUSINESS
9. Type of Recruitment License in Indonesia Getting Recruitment License •In general recruitment company requires special (operational) license, from Indonesia Man-power Minister •License need to be renewed for certain period of time, and approved by man-power department, by considering their level of compliance and performance Private workers placement company (LPTKS) Assist client to hire workers/executives for private company Manpower agency for foreign placement (PJTKI) Perform Indonesian -talent placement in overseas market Agency for worker/labor (Outsourcing) Do outsourcing business for their clients
10. EXECUTIVE SEARCH PRACTICE
11. Past & Present PAST PRESENT •Retained based search assignment (project/hourly based) •Strong commitment by both Client & HH •Only using 1 HH for 1 assignment •Outsourcing practice was without restriction •Most assignments: contingency based •Probable for lack of commitment on both sides (Client & HH) •Using >1 HH for 1 assignment •Starts on “RPO” projects •More restriction on outsourcing Note: Few international HHs still have luxurious to provide retained search. Some contingent search firms also started offer retained search
12. We are executive search company, incorporated in 2002, serving mainly our clients in Indonesia, ASEAN countries and other Asia Pacific region. Industrial expertise: FMCG, Pharmaceutical, Technology, Telecommunication and Manufacturing. Hiring manager – director level for top multinational companies
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