WORK-LIFE BALANCE in Meeting Today s Generation of Human Capital

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1 WORK-LIFE BALANCE in Meeting Today s Generation of Human Capital

2 IT industry remains a fast growing industry ever since it came to surface back in the 1970 s and evolves every second with numerous creations and innovations around the globe. Arvato Systems, a well-known IT solutions provider is an exemplary entity in the IT industry with a rapid growth in its businesses. These IT solutions comprise financial services, customer relationship management, supply chain management and many other IT related services. Arvato Systems has a workforce of about 3,000 employees and operates in 25 countries around the globe, with its headquarters in Germany. Arvato Systems Malaysia has recently won the HR Excellence Award 2016 specifically in providing work-life balance for their employees. This prestigious award is special as it is given to entities upon careful selection by a panel of senior Human Resources Personnel and the winners are usually regarded as the cream of the crop. This entity was established about 12 years ago in Malaysia and now has 130 employees with a ratio of 70% locals and 30% foreigners. Their foreign workforce ranges from 10 different nationalities around the globe. Malaysia has become one of Arvato s focus as many IT related industries started booming in the 1990 s and Arvato established itself as an efficient service provider in the IT sector. Its establishment ensures that all its respective clients continue being competitive in their fields. 1

3 In addition to that, they have also won HR Excellence Awards in 2016 and 2017, HR Asia Best Companies to Work With for three consecutive years from 2015 until 2017 and Best Employer Brand Awards 2016 and Arvato Systems has also won the 16 th Malaysia HR Awards in 2016 and 2017 as well as The Asia Corporate Excellence & Sustainability Awards This depicts that Arvato Systems is popular among IT experts not only within the region but also within Asia as they strive to provide a strategic career development and conducive work environment for their respective employees. These work ethics advocated by Arvato reflects on their core values namely entrepreneurship, citizenship, creativity & partnership. These values have been successful in forming a committed and passionate group of employees. In fact, such practices have helped in reaching the local community and the external environment. Arvato firmly believes in giving back to the local community and hence they engage themselves with the surroundings to foster healthy relationship. This approach also aids in creating a better environment for the entire team at Arvato. Flexibility at work for better results In today s world of talent-based economy, human capital is undeniably the most significant asset in an organisation. A workforce is usually able to pave a pathway in driving the respective organisation towards excellence and endeavour challenges in bringing out the best. Mr Benjamin Dorsch, Managing Director, Arvato Systems Malaysia We believe in our employees being our biggest asset and they are responsible in the overall growth at Arvato. Not only that, trust is another essential value that we hold onto and this I believe has led to the acceleration of work performance among all our employees. Therefore, we have implemented numerous facilities, benefits and flexibilities for all our employees in recognition of their contribution and hard work towards the development of the entity, said Benjamin Dorsch, the Managing Director at Arvato Systems Malaysia. Being an IT service provider, Arvato Systems is not an exception in dealing with various challenges particularly in sustaining proficient workforce especially when the industry works around the clock. 2

4 Quality life has become one the most arguable elements these days especially when people give equal importance to both physical and mental health. Few years ago, Arvato has come to realise this fact, and decided on embracing their manpower by providing flexibility at work place to ensure that their employees live a quality life. Benjamin elaborated that We decided to eliminate the clockinghour system and allowed employees to come in at their desired time and fulfil their responsibilities or work related tasks at their convenience. Significantly, these advantages have improved the attrition rate which was at 32% in 2010 to 9% as of to date. A recent study conducted at Arvato Systems Malaysia rated flexibility and work-life balance in being two of their highest advantages. On top of all that, team members assist and motivate one another in work matters. Not only that, we strongly believe in abolishing any aspects of micro-management and this consequently led to a more result-orientated force and built a more driven community within Arvato Malaysia. Benjamin further explained that these changes were challenging and took a lot of time than what they estimated. However, with constant implementation and over time, Arvato Systems Malaysia witnessed outnumbered changes and saw a boost in work performances. These approaches made them unique and different from other entities within the region. In addition to that, Arvato prioritises the work life balance of all expatriates and provides the privilege of working from their respective home countries. With regards to that, those who have served Arvato for a year, were given a choice to work from their home countries for a duration of three weeks and those who have been with Arvato for more than two years are given a duration of four weeks. Benjamin said, We realised our employees were enthusiastic in such flexibilities and in fact returned to work feeling all energised as they get to spend quality time with their family members and at the same time not jeopardising their work responsibilities. These positive changes brought to a 42% increment in revenue with an increased in profit before tax by 1,123 % in Every employee is also given an allowance of RM3,000 annually, in which they can use to claim their wish list. These gradual implementation of flexibility brought to a tremendous decrease in the attrition rate over time. 3

5 A conducive environment towards acceleration of ideas and motivation work The workforce at Arvato comprises a majority of Gen Y and Gen Z with a ratio of 70:30 and this has led to an abundant innovative ideas in increasing performance and quality of work as well as sustaining what seems to be their most essential asset; the manpower that they have. A Perhentian Meeting Room They started off by eliminating majority of the work-tables and provided their employees with attractive meeting and discussion rooms which outlined themes of various tourist spots around the country. In fact, most of the meeting rooms represent islands in Malaysia namely Sipadan, Perhentian, Tioman and Langkawi and consist of items bought from the respective places. All employees are provided with conducive and engaging workstations. On the other hand, IT personnel are given freedom to work in the meeting rooms, café, discussion rooms and small workstations set up around the office area as they do not have a permanently designated work stations. B Free and Easy Workstation / Casual Workstation Such approaches at workplace set by Arvato provides room for constructive ideas and innovations to take place. Employees value their environment and believe that is a great pathway in establishing communication with one another. Benjamin explained that staff were encouraged to come up with designs for meeting rooms and the office setting. This included the planning, purchasing items needed and the entire works of it. This ensured more involvement from employees in setting an environment that they aspire to work at and helped in setting a conducive environment with an increased focus in their tasks. C Lang Tengah Discussion Room 4

6 Human capital investment at Arvato A town hall is also conducted once every quarter to ensure employees are able to engage with the management team and provide ideas and thoughts especially in growing together. Every employee is given the freedom of speech in brainstorming ideas and implementing them. Arvato also provides empowerment to every employee and offers an entrepreneurship environment. Being one of the strongest industry players has always brought to a lot of challenges and changes within the organisation and Arvato constantly looks into matters such as employees expectations and engaging initiatives to balance employer-employee needs. Benjamin went on further. Arvato also believes in understanding the different needs of generation these days and works towards accommodating employee needs. In fact, Arvato Systems Malaysia promotes employee participation through programs such as team building activities, birthday parties, team lunch, weekly team bonding sessions and annual dinners. Another advantage by Arvato Systems Malaysia would be an internal referral allowance up to RM10,000 should the respective candidate is hired. This is indeed a way in promoting Arvato within the industry and strengthening its position in valuing human capital. care leave and 2 months sabbatical leave upon 10 years of service. In fact, expecting mothers are given the advantage of working from home and are given designated parking lots. Additionally, they also offer flexi work arrangements such as flexible time and telecommuting for all employees. Another exclusive aspect at Arvato would be its nursery room and providing baby gifts to mothers. Arvato believes in providing empowerment to all female employees through such facilities. These flexibilities provide a healthy work environment with a much delighted workforce as most of their employees choose to stay with Arvato for long durations. Other benefits furnished by Arvato Systems Malaysia would be a 70% subsidy of membership for gym facilities. Other benefits that are claimable within RM3000 include vision care, personal insurance, medical benefits, travel benefits, mobile or internet claims and even passport renewal fees. Employees at Arvato also stand a chance to learn other skills through training apart from work related training such as coffee art. Arvato also has a café, game zone, phone booths and space for watching movies. This varies the work environment and provides a good bounce back to work with much passion. Subsequently, the HR division executed many other facilities and flexibilities through their Flex Benefits Program in order to ensure their workforce sustain a quality life. Arvato Systems also conferred meaningful benefits for their workforce such as various leave entitlement, for instances, time off, 2 months paid maternity leave, birthday leave, child care or parental Café and game zone at Arvato Systems Malaysia 5

7 Excellence in managing human resource lead to greater achievements Their values and work ethics have brought them to what they are in today s industry; a successful and forward thinking entity. These benefits and facilities have brought to a progressive community within Arvato and has successfully increased their productivity rate to 76% in 2016 from 66% in Productivity rate increased to 76% in 2016 from 66% in 2014 Average sick leave decreased to 2.1 days in 2016 as compared to the industry average of 4.04 days In fact, the average sick leave of an employee was recorded at 2.1 days in 2016 and this is much lower than an average sick leave for an employee provided by the Malaysian Employers Federation (MEF) in 2014 which recorded 4.04 days. Moreover, their Net Promoter Score has increased to 68 points in 2016 from 59 points in These achievements are not just numbers but they stand as an evidence in the effectiveness of work-life balance in an organisation and how essential it is in sustaining quality life. 3 Net promoter score increased to 68 points in 2016 from 59 points in 2015 Today, Arvato Systems Malaysia is known not only for its products and services but also its human resource excellence and how appreciative they are towards human capital and valuing skills. The importance given to work-life balance indeed makes Arvato Systems Malaysia as a unique entity and as an example to other team players in the industry. 6