Retention is undoubtedly the biggest headache for HR today. Whilst market analysts could credit it as an aftermath of booming Asian economies and rising rates of employment and hiring opportunities, HR experts often shoulder the rolling stone trait on the psyche of the new generation of employees.
Gen-X and Gen-Y are seeking new opportunities all the time, without being ready to commit themselves to any particular organisation. In such times, it takes a few strategic initiatives and pro-active quick action plans to ensure that employees, especially the new generation in the workforce, stays happy, engaged, motivated, productive and grows within the organisation, feels Amanda Chuan, group HR manager, The Hour Glass.
The Hour Glass has been recruiting from the pool of Generation X and Chuan says the talent comes in with different expectations. "They want everything quick; which means, money, and then to rise up to the next level in one year's time. Everything has to happen so fast but when you dig deep to ask them about their role in the business, they're very superficial. They want more money and better career progression but they're not willing to commit to the company." What makes it more challenging, she feels, is that the generation of young workers do not think they should stay in a company for long. "They move every year or so." The rationale is an escalation in terms of the pay packet, she shares.
Hiring the young ones
In The Hour Glass, the challenge, she admits, is to create, motivate and retain employees, and to build this pool for the future. The right approach to managing a temperamental generation is to start with the right orientation.
When new hires come on board, the HR organises a staff orientation program for them like most other companies do. "We go through the mission, vision, core value, our business milestones, what makes hourglass work, and what the culture in the organisation is, with them." But unlike many other companies, The Hour Glass does not give up after the first induction. Interestingly, it is a continuous, ongoing process of refreshing the employees' perception of the organisation and making amendments where deemed necessary. "As part of the retention strategy, we conduct another orientation program. This is an ongoing process we do to retain our staff, to check with them on how they're doing after four months of joining. Is there anything they want to ask? What are the things that are still not clear? What are the things that we can do to help them stay?"
She elaborates, "we recruit them with the understanding that they'll stay with us for a long time and move with the company in terms of their career, and will grow with the company. We don't believe in hiring short-term."
The Hour Glass, she says, is not hiring to plug in immediate talent gaps. "We're recruiting for our future expansion. I think what we're doing is more proactive, more forthcoming rather than being passive."
Managing the green horns
Chuan, who has been with the company for 12 years, knows for sure what makes HR tick in the organisation. "For the first two years or so, I didn't know the business. I grew with the company. Now we have 26 boutiques in nine countries, and our employees are about 300 plus. I've been through many joint ventures with the company." She says she has learnt from her experiences what works and what doesn't.
People are motivated by various factors, she tells us. "Money for sure is a short- term motivation. But you can't be always motivated by money. Once you satisfy this basic need in the hierarchy of needs, you'll move on to self-fulfillment, self-actualisation. Therefore, as employers, we need to make our staff feel that they're working for the right company, where they can grow and develop with the company."
Can rewards make a significant difference? No, says Chuan. Rewards can only satisfy you, she argues. "They can't retain you. Rewards are only short-term." It is the soft aspects like employer branding, wellness programs, training and development, and talent management that can make a difference in retaining employees, she feels.
"We have to do a lot of employer branding to make employees understand that this is the company where you should stay, as this is a company that will invest in your wellbeing." The Hour Glass has a structured training measurement program to measure the effectiveness of training, she informs. It also has a talent management system in place that measures the potential of each staff and then identifies the group of performers it wants to groom and develop.
"We further develop this group of people by placing them on a core training program, followed by a retention program," explains Chuan.
Retaining the Gen X and Y
Using either a variable bonus or career development as a retention tool, The Hour Glass believes in investing in employee health and satisfaction. It promotes healthy eating and drinking habits. But that is not all. Health is not skin deep. To de-stress its employees, The Hour Glass came up with a unique concept last year.
The company gave each of its employees a Philip Stein watch. These watches are designed to emit negative energy from human bodies. By wearing their watches, it is anticipated that staff will feel less stressed while at work, says Chuan. "We hope, by wearing this watch, the staff can feel relaxed. It's part and parcel of employer branding, but at the same time, it may help the staff to feel more energetic. They can come to work happily and at the same time contribute positively to the organisation."
The Hour Glass also has an open competency-based performance appraisal system, says Chuan. "After individual appraisal, manager and employee will sit together and discuss any differences in expectations of performance." This system, implemented last year, has been very well accepted by employees, she shares. "They feel it's very encouraging and forthcoming."
So whilst most of these strategies and their implementation have worked well so far, Chuan believes that there is still room to improve. And it is only with a good understanding of the psyche of the new generation of employees that an analysis of what motivates and engages them can be done. Using this knowledge, HR can help bridge the talent gap in a fast paced industry. The mantra, she says, is not to wait for the crisis to happen and then react, but to be prepared in advance, pro-actively lay out plans for the future and implement them on time. After all, in the watch retail business, all hands count.
Number of brands: Over 60
Number of boutiques: 26 in 9 countries
· Named one of Singapore's premier brands by International Enterprise Singapore, Singapore Brand Awards, 2002
· Most Transparent Company Award by Securities Investors Associations Investors' Choice Award, 2006
· Brand Laureate 2006 Award by Asia Pacific Brands Foundation, 2007