11 July 2008
Prosper in the long term – look after your bright young things
Training and development are key for retaining talent, says PwC director.
The war for talent is no longer just being felt in Westernized nations, but throughout continental Asia, with countries such as Vietnam facing a major shortfall in skilled labor.
Demand for some positions such as accountants and bankers increased by 100% in 2007, while skilled labor makes up just 24% of the Vietnamese workforce.
Salary rises not the answer
Writing in Vietnam net Bridge, PriceWaterhouseCoopers' (PwC) Vietnam director Simon Calvert reflects that, as with other nations throughout the globe, young Vietnamese workers are placing great importance on training and development.
Demand for some positions increased by 100% in 2007.
When it comes to money, it's seen as a short-term retainer. That's bad news for companies that continue to make salary increases the weapon of choice for companies.
"[Are wage rises] enough to keep your best and brightest from falling into the arms of your competitors?" asks Calvert. "Experience elsewhere suggests not."
Unclear incentives
In a detailed analysis of the talent dilemma, Calvert says that current bonus programs are also often hard to understand and poorly communicated, and suggests deferred bonus and share option programs, which provide good long-term incentives for employees.
"Deferring payment may not be popular in a culture used to instant action, but over time this type of scheme will provide greater rewards to staff and reward their loyalty."
Calvert's analysis demonstrates once again that many companies fail to recognize staff needs and manage people effectively. Together with a desire for training and development, often overlooked issues such as burnout and poor leadership skills can have deeper effects on morale and productivity than a poor wage structure.
Have your say
Is your organization failing to attract and retain the best talent, despite good levels of remuneration? Is your bonus and incentive program clear and well communicated? Are there deeper problems afoot?
Discuss these issues with other comms practitioners by joining the Internal Comms Hub members' group on the Communicators' Network.
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