MANILA, Philippines--A common wail of nearly all organizations in our country is the exodus of their employees--managerial, professional and technical, skilled and semi-skilled--to other companies, here and abroad.
Filipinos are much sought-after; human resource seems to be our country's No. 1 export in recent years. The situation is reaching crisis proportion. Many companies don't have "ready-now" or even "ready in one or two years" candidates to take over senior leadership positions when the present occupants retire or migrate.
Companies make enormous investments in recruiting and selecting college graduates and in developing them to be in their talent pool of successors, only to lose them to another company, or to another country. Organizations don't have enough human power to propel its growth and stability. Our country doesn't have the talents and skills needed for nation-building.
The centerpiece of the 25th anniversary celebration of Career Systems Inc., my management consulting and training company, last June 19 was the presentation by a panel of HR practitioners from prestigious companies, of their company's strategies to attract the best and the brightest college graduates, developing and managing them, and retaining them.
Recruiting talent
"The war for talent continues and is now stronger than ever" was the declaration of Renee Cecilia Valdez, Nestle Philippines' learning and development head and HR partner, food and beverage business units and sales, and one of the four speakers at the Career Systems' forum. She quoted the McKinsey Quarterly January 2008 issue which carried a strong advice to organizations to "constantly rethink the way [the organizations] plan to attract, motivate and retain employees" and to "make talent a strategic priority."
Generation Y appears to be flight risks. To them, there is no such thing as corporate loyalty. They are ever on the lookout for greener pastures.
Lulu E. Carrasco, former HR head of GlaxoSmithKline Philippines, cited a study by a research organization on the factors that attract young talents into an organization. These are: competitive and attractive compensation and benefit package; being provided with a new car and "techie" gadgets; prospect of working with a reputable company; fixed hours; and prospect of global posting.
The high potentials (a.k.a. hi-pots) want constant challenge and frequent career moves; and have the "what's next" mentality.
To survive, grow and succeed in today's global environment, organizations need to constantly strategize how to attract the best and the brightest, and provide them with opportunities to acquire new and more skills, and hone their talents, with a compensation and reward system they can afford.
The companies showcased in the forum shared similar strategies to attract talent not only from the generally recognized top three universities in Metro Manila but also from other centers of excellence in cities outside Metro Manila and even in the provinces. These strategies include: campus recruitment of junior or senior college students who have impressive academic and extracurricular credentials; giving them summer internship, during which they are exposed to decision-making strategies as they work in teams on actual projects; marketing the company as a market leader and as having a good reputation in the industry; etc..
These organizations have a template of the talent they want, and the kind of leaders they want to develop. Leadership competencies are clearly defined. So their recruitment and targeted selection procedures are focused on identifying and getting these "raw materials" from our educational institutions.
Developing talent
Once hired, these young, bright and eager ones go through intensive management training and immersion-into-the-culture process. Ruiz G. Salazar, who holds a dual role as Johnson & Johnson's HR director-Consumer Asean and HR director, Consumer Asia Pacific Talent Management, described J&J's incubation process as one that provides and keeps their talent "in a favorable environment for development." The talent incubation "assembly line" has made J&J Philippines Inc. the No. 1 exporter of talent into J&J global human resource network.
The most common development strategies used are management and leadership training (local and international), coaching, mentoring, secondments, cross-functional assignments, performance feedback, 360-degree feedback, career discussions, developing leaders as coaches, etc. Carrasco describes GlaxoSmithKline's adherence to Vida model (variety, intensity, diversity and adversity) in developmental assignments to "toughen" their talent pool. Salazar described Johnson & Johnson's leadership development framework which is centered on J&J's credo and values which are the bases for their standards of leadership. All four HR practitioners emphasize the importance of not only person and job/career fit; as important is the person and culture fit, in their leadership development strategies.
Retention strategies
John Victor Tence, Jollibee Foods Corp.'s corporate VP for HR, shared the findings of an international research agency as to the reasons cited by "high potentials" for leaving their companies. These are: being offered higher base pays, and better career opportunities, they don't want to have too much stress in their work, and poor leadership of their immediate boss.
Successful retention strategies have diminished the poaching and piracy of talent by local companies but do not decrease migration to other countries. This is because the dream of many Filipinos is to get out and try out the life and career opportunities in other countries. Living and working abroad in pursuit of a better life, especially in the North American countries, remains the dream of many Filipinos.
This, however, does not diminish the relentless efforts of companies to be creative and innovative in devising and implementing retention strategies.
Retention strategies common among the four companies (e.g., Nestle, Johnson & Johnson, Jollibee and GlaxoSmithKline) include the following:
1. Ensuring an employee-culture fit
2. Mentoring--being assigned to a mentor or several mentors
3. Having regular talent reviews
4. Building a succession development
5. Having a global posting and geographical exposures
6. Creating an executive coaching for key leaders
7. Making available local and international training; etc.
Johnson and Johnson has a Flight (acronym for Forging Leaders Into Greater Heights Together) program that includes mentor-mentee matching; mentor training, career planning for mentees, regular talent reviews, etc. which have increased engagement of key talents, among other gains. Salazar's major function is "to take care of J&J talent the best way all the way."
Values-based leadership
A common denominator among the corporate strategies shared by the four HR practitioners to manage and retain talent was values-based leadership. The corporate values are clearly communicated to all employees as well as to their external customers by the leaders in top and senior management through their consistent behaviors that are seen and felt by employees in the way they are treated, how their personal needs are met and their personal values considered.
Values such as respect for people, recognition of talent, rewarding performance and achievements, treating people as most important corporate asset, etc. are modeled by top management. In this time of governance and compliance issues amidst stringent business ethics environment, GlaxoSmithKline's value of Performance with Integrity comes foremost.
Jollibee Foods Corp. has two values unique to its culture: humility and frugality. Tence shared how the young members of the Excom retained frugality as a corporate value when asked to make a choice. He shared how deeply touched he had been by the humility of the president/CEO of JFC, Tony Tan Caktiong who, after interviewing him, asked his HR head, "Am I good enough a leader for JV?" instead of the usual "Is he good enough for us?" Tence set aside a much more attractive offer by another company and accepted the job offer of JFC.
Salazar shared how their retention program responds to the needs and deep seated values of their employees. He cited three J&J practices: maintaining a child care center so that young mothers can work in peace while their children are being cared for; once a week, an employee can work in their home; and a hotline which empowers any employee to call the attention of senior/top management to any violation of any corporate value by any employee.
Nestle prides itself in being "a human company providing a response to individual human needs." Valdez shared what Nestle does to make the workplace a fun place by bringing to the office recreation and fun activities enjoyed by employees and their families. Employees are encouraged to enlist themselves in special interest clubs (such as photography, running, cooking, etc.) to join summer programs and themed celebrations; wellness and personal development programs; organized programs for families; among others.
Valdez describes the leadership of Nestle Philippines CEO/chair Doreswamy Nandkishore who regularly visits the plants in several locations in the country, and talks with employees on the shop floor. He holds a regular "talakayan" with the union, and has a regular one-hour coffee session with employees in every floor in their Rockwell corporate offices. During these sessions, any employee can bring up any concern or issue and Nandi would address it. This open communication practice has contributed to the culture of Nestle that has retention power. Valdez, who has been with Nestle for the past 16 years, proudly declared that 9 out of every 10 Nestle employees are likely to say, "I practice the Nestle values," "I am proud to work for Nestle," "I am happy working at Nestle."
"It all starts from the top!" concluded Tence, at the end of the two-hour forum.
(The author is president of Career Systems Inc., a management consulting, organization development and training company. She is a professional psychologist. Feedback at josantamaria@careersystems.com.ph)
