The stakes are high...with the hunt for the right talent becoming exceedingly competitive, the issue of employee poaching comes under scrutiny to examine its ethics and nature.
The advent of new technologies has turned the entire industry on its head and formed a new landscape filled with new competitors and new challenges. The wave of technological disruption hits the hiring sector especially hard; since the nature of work is changing, more and more companies are now seeking digital expertise. With the hunt for the right talent becoming exceedingly competitive,the issue of employee poaching comes under scrutiny to examine its ethics and nature.
GBS Focus Group: (L-R) Bobby Varanasi, CEO of Matryzel Consulting; Andy Allen, MD of RBC Investor & Treasury Services; Mariana Shaharudin, Head of KL Shared Services Center for Experian; and Izwan Ibrahim, COO of Petronas ICT.
To uncover a deeper understanding of poaching in Malaysia and the underlying factors that surround it, the GBS Focus Group facilitated a panel discussion, held at Shaftsbury Asteria, Cyberjaya on the 8th of August 2018. Moderated by CEO of Matryzel Consulting, Bobby Varanasi, the panel consisted of Andy Allen, the MD of RBC Investor & Treasury Services; Izwan Ibrahim, the COO of Petronas ICT, and Mariana Shaharudin, Head of KL Shared Services Center for Experian.
Breaking Down The Hiring Process
Speaking on the mindset of a young workforce, Allen emphasises that companies now are engaging a very different workforce, wherein his own company hires 90% millennials. As a result, the roles and careers offered need to be examined, to meet the prospective employees' goals. He also spoke about the realistic expectations companies need to have of their younger workforce. “Back then, ten years was considered too long at a job, then it became five years and now it's between two to three years. This being said, we can't blame the millennials as this is just how society has evolved. It is healthy for people to work for different organisations because they can bring different skill sets, views and ideas. I believe that as long as there are healthy competition and no stagnation, we are not necessarily in a bad space,” said Allen firmly. Expanding on Allen’s point, Shaharudin agrees that as long as it is not over excessive and fair, poaching is not a bad thing. She states that if a company has done all they can to retain an employee who still decides to leave, then they need to accept that there's only so much that the role can offer the employee. Aspects such as career development are sometimes a greater motivation for staying or leaving, compared to money. “I think one of the main reasons why employees leave is because they are unable to see a clear career path within an organisation. Do they see themselves moving up the value chain and how is the company working to close the gaps in terms of reaching higher goals? If an organisation can give them clarity on these aspects, it would immediately become a strong reason for staying. What's important is how we build a strong talent pool and best equip new entrants into the industry,particularly the millennials,” said Shaharudin.
Climbing the ladder to success... one of the main reasons why employees leave is because they are unable to see a clear career path within an organisation.
Ethics In Poaching
Weighing the rights and wrongs of poaching, as well as the scope and limitations of it, elicited varying opinions from the panel. Varanasi cited an example in Jamaica, where companies would comply to a gentlemen’s agreement of no poaching. In the case that an employee was to leave a company and join another, the company is obliged to inform the other. He later raised the question if such an agreement is needed in Malaysia’s GBS sphere? Shaharudin believed that a balance is necessary when it comes to poaching. “If 50% of your staff are poached and your company has been in the industry for a long time, then this would be considered excessive poaching. As an industry, there exists a salary benchmark, with some offering more than others. If we plan our budget right and offer adequate incentives for employees, this, in turn, would improve our retention rate.” Responding to the question, Allen, however, disagreed and believes in the freedom of movement. He believes that more people need to be brought into the GBS industry. Allen also felt that the biggest challenge would be determining what skills a company would need in the upcoming years and how to acquire said talent. Speaking from experience, Ibrahim also gave his perspective on the manner – poaching occurred when Petronas completed their petrochemical plant in Qatar. Despite tens of millions of dollars at stake each day, the company ensured business continuity as a result of their comprehensive management system in place. “The underlining aspect all big companies need to think about is value. In the Government-linked Companies (GLC), the common shareholders are the incumbents. We cannot create a bubble and expect them to stay in that bubble for an indefinite period of time.Not only is this unhealthy, it will also increase our cost of operations. While I think that the practice of poaching will continue, I agree that there should at least be a gentlemen’s agreement in place,” said Ibrahim.
Shaping The Talent Pool
Talent and upskilling are hot topics within the GBS industry. Allen thinks that bringing in talent is not a big issue as his company recruits graduates each year from either foreign or local universities. The main point, he believes, lies in developing the middle management towards becoming leaders that can adapt to the changing environment.
“The talent pool is there, but their exposure levels are low. This is why local industries are introducing GBS into their curriculum courses. I believe this is a step up in enhancing our talent pool as they would therein learn the fundamentals of the GBS industry and where it is heading, rather than entering the GBS for several months and realising that it is not what they expected. Granted this isn't necessarily a solution, I would consider it as part of the solution when looking at the bigger picture,” said Shaharudin. Whilst 130 million jobs in the market are in a vulnerable position, companies in Malaysia are looking to hire permanent staff. The main problem faced in Malaysia, however, seems to stem from the lack of IT talent. In 2015, data from the statistics department of Malaysia showed that approximately 350,000 students furthered their studies to tertiary education, with 8% enrolling in ICT courses. Fast forward a couple of years, however, and that number has dropped to 1%. “This is very troubling news as its consequence is a shrinking number of new IT graduates. Additionally, for a shared services environment, companies need to make sure graduates have proximity to the business; they need them to understand and appreciate what is happening at the frontline,” said Varanasi.
According to Allen,his company has regular visits from countries which they support globally and have invested a large amount of time in training their employees. The goal was for their employees to understand the process and how the business operates, from the beginning to end.
Bracing for future storms...Companies have the responsibility to upskill their staff and future-proof them for whatever disruptions or changes that may lie ahead.
“Looking at the technical competency now as opposed to a decade ago, there have been massive changes. RPA is a sector that is steadily expanding, and it's imperative that there is the talent to build it up.” Touching on the on boarding process, Shaharudin had this to say: “When a new employee joins an organisation, they would first need to understand the core business. This becomes an issue when the on boarding process is taken lightly. In our company,we have a 30- and 90-day checkpoint, where our employees go through a thorough programme so that they feel a part of the business itself on top of performing their designated roles.” Ibrahim believes that organisations need to spend more time in building up knowledge roles and areas which can help grow the business. With the goal of flipping the pyramid and moving up the value chain, he stressed that unless companies make the move in this direction, they will be in trouble as RPA is set to take over many of the existing bottom-of-the-pyramid jobs. He stands by the notion that companies have the responsibility to up skill their staff and future-proof them.
