Transcript Foundation Skills in Human Resource Management

Prepare for the Upturn
逆境自強 迎接挑戰
Employment in HK: Issues and Policy Implications
Central Policy Unit Public Seminar
Speaker：Ms Virginia Choi, President, HKIHRM
Date: 25 November 2002
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Agenda
What is HKIHRM?
What is going on in the market?
What does that mean to me?
What is the job market environment?
- Take aways for employers and employees
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What is HKIHRM?
• A non-profit and non-government
professional organization formed in 1977
• With more than 3,400 members
(including 320 corporate members)
3
What is Going on in the Market?
Economic
&
Employment
Environment
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Macro Economic Environment
1) Uncertain economic outlook
• US may experience economic downturn
2) Globalization
• Shortened business cycle
3) China
• Continues to enjoy high GDP growth
4) Knowledge economy
• Human capital is the most important asset
HK: Prudent but not pessimistic
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The Downward Spiral



Massive
Change

Demoralised
Workforce

Disconnection
from Customers

Cost
Cutting/
Resource
Stretching
Internal focus
Lack of
Capacity to
Grow
More Cost Cutting
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HK Employment Market
1) Unemployment rate still remains high
2) Manpower mismatch
3) Changing employment pattern
4) Outsourcing
5) Flexible work arrangement
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What does that Mean to Me?
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Transformation Requires a Leap
Can’t transact your way to transformation
Must think from the goal back
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What is the Job Market Environment?
(A) Skill Sets for the Workplace
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Top 5 most Important Training
Initiatives to Various Levels of Staff
Frontline Staff
Supervisors
Middle Management
Senior Managers
1
English Language
Comprehension
Supervisory
Management
Effective Problem
Solving Skills
Strategic Planning
2
General Computer
Skills
Effective Problem
Solving Skills
Presentation Skills
Change Management
3
Basic Interpersonal
Skills for Associates
English Language
Comprehension
General
Management Skills
Risk / Crisis
Management
4
Putonghua
Comprehension
Basic Interpersonal
Skills for Associates
Resolving conflict /
negotiation skills
Organization
Development
5
Effective Problem
Solving Skills
Managing Priority
Project Management
Resolving conflict /
negotiation skills
Source: Training Needs Analysis Survey 2002, IHRM
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Personal Quality being Measured
in Appraisals
Core competence
Future potential
Employ ee’s career w ishes/ aspirations
Specific competencies for each job
Functional competency applicable to specific business/ functional units
Selection of traits or skills
0%
10%
20%
30%
40%
50%
60%
Senior managers/ directors
Managers
Non-managerial staff
Industrial staff
Source: IHRM Incentive Policy and Performance Management Survey 2002
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Take Aways:
1) For employees:
• Invest in themselves
- New workplace skills are needed, e.g.
• Conflict-resolving / negotiation skills
• Managing priority
• Language skills: English and Putonghua
- Personal quality being measured
• Core competency, future potential
2) For employers:
• Invest in their people
• Talent management
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What is the Job Market Environment?
(B) Change of Employment Mode
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Manpower Planning
1. Proportion of flexi workforce to total
workforce increases:
- 2001: 9.1%  2002: 11.9%
2. Proportion of companies with outsourced
positions increases:
- 2001: 22.6%  2002: 24.2%
Source: IHRM Manpower Planning Survey 2002
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Take Aways:
1) For Employees:
• Try to understand the global trends of outsourcing
and flexi work arrangement
• Ensure your own employability
• Keep an open and flexible mind-set to the changing
working environment
2) For Employers:
• Need professional management on flexi workforce e.g. how to motivate, how to provide effective
training and how to reward
• Manage outsourcing projects professionally - may lose control and risk fluctuating standards
• Communicate with affected staff
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What is the Job Market Environment?
(C) Change of Compensation &
Benefit Package
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Pay Freeze is the Trend
1. First negative pay adjustment recorded in 2002
since 1984
2. Overall weighted average adjustment in 2002
- 2001: 2.6%  2002: - 0.1%
- 63.5% of responded companies opted for
pay freeze
3. 2003 predicted adjustment
- 82% predicted pay freeze
Source: IHRM Pay Trend Survey 2002
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The Use of Flexible Incentive Package
Non-guaranteed bonus payment
- 89% surveyed companies provided a
non-guaranteed bonus scheme to some
or all of their employees
(vs. 84% in 2001)
- Among those employees eligible to be
awarded a bonus, only 52% were
actually awarded a bonus
(vs. 88.7% in 2001)
Source: IHRM Pay Trend Survey 2002
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Take Aways:
1) For Employees:
-
Incentives will only be awarded to high performers
-
Work together with employers to enhance the
competitiveness of companies
2) For Employers:
-
C&B directly related to business profitability
-
A properly designed non-guaranteed scheme to motivate
staff performance and to flexi payroll costs
Open communication, the right corporate culture &
effective C&B strategy are key to enable changes with
least pain but more understanding
-
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The Upward Spiral
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Well-Equip yourself,
Be a Winner in the Future!
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Informative Website
URL: http://www.hkihrm.org
END
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