Myanmar HR Survey Finding and retaining talent in Myanmar. A study jointly conducted by Roland Berger, Dale Carnegie Myanmar and JobNet.com.

Transcription

1 Myanmar HR Survey Finding and retaining talent in Myanmar A study jointly conducted by Roland Berger, Dale Carnegie Myanmar and JobNet.com.mm October, 2018

2 1 MYANMAR HR SURVEY Finding and retaining talent is one of the major challenges for businesses in the country, according to Roland Berger's Myanmar business survey 1 conducted in % of international companies and 72% of local firms cited the lack of trained staff as a significant bottleneck. To assess how companies can deal with this challenge, Roland Berger launched this new survey focusing on human resources in Myanmar. The survey was conducted in 2018, in cooperation with JobNet.com.mm and Dale Carnegie Myanmar. JobNet.com.mm is an online jobs and recruitment solution, which effectively matches employers with suitable candidates to fill their jobs. In addition to delivering advanced online recruitment technologies, JobNet supports the advancement of Myanmar s human capital industry. For over hundred years, Dale Carnegie has assisted companies foster an environment that thrives on productive relationships. Dale Carnegie Myanmar is helping Myanmar organisations unleash their full potential by creating inspiring development opportunities for everyone, from new hires to high performers, all the way to the top. Roland Berger is a global strategy consulting firm active in 34 countries. Roland Berger has been advising the Myanmar government and companies, both local and international, in Myanmar since This Myanmar HR survey includes answers from 757 respondents, including HR managers, and job seekers. 1

3 2 MYANMAR HR SURVEY 1. The challenge of finding and retaining talent in Myanmar According to Roland Berger's 2017 Myanmar business survey, the lack of trained staff is a significant bottleneck for 83% of international companies and 72% of local firms. Given the country's weak education system, this is not surprising. Of the population aged 25 or older, only 11% has a higher education. 39% of the population has not completed primary education. Figure 1: Population aged 25 and older by highest completed level of education 14% Secondary 2) 11% Higher education Population > 25 39% None or incomplete primary Primary 1) 36% 1) Including incomplete lower secondary 2) Including lower secondary, incomplete upper secondary and completed upper secondary Source: 2014 Myanmar census The business significance of the lack of skilled staff is confirmed in this HR Survey, in which 84% of small companies and 75% of mid-sized and large companies consider it a (major) issue. An astonishing 50% of large companies even see it as a major issue that hinders them from investing and growing.

4 3 MYANMAR HR SURVEY Figure 2: How significant is the lack of skilled staff in your organization? Small companies Mid-sized companies Large companies < >500 67% 17% 17% 25% 58% 50% = 84% = 75% = 75% Very significant It hinders us from investing and growing The lack of skilled staff is an issue, but not a major one Source: Myanmar HR Survey 2018 "Finding the right talent remains the biggest challenge for us. Part of the reason is the weak education system. I really do hope that the next generation has better access to education", Head of HR, international consumer goods company 2. Very high employee turnover amplifying the problem The lack of skilled staff is further amplified by high employee turnover: 54% of have worked for two or more companies in just the last four years. 18% of have even worked for three or more companies in the last four years.

5 4 MYANMAR HR SURVEY Year Figure 3: How many companies have you worked for in the past four years? 1 46% 2 36% 3 10% 4 >4 4% 4% Source: Myanmar HR Survey 2018 Particularly small companies (less than 50 ), seem to struggle retaining their : 75% of at small companies leave their firms within the first three years. 3. How are companies dealing with the human resources challenge? Given the limited talent pool, due to a poor education system and emigration, local and international firms in Myanmar are all facing the same problem. But some companies are better at attracting and retaining talent than other ones. We have identified three reasons that distinguish successful from less successful companies when it comes to talent management in Myanmar: a) Understanding your ; b) Training and providing opportunities to learn and grow; and c) Strategic HR planning

6 5 MYANMAR HR SURVEY a) Understanding your There often seems to be a lack of understanding between employers and (future) regarding what motivates people to join, stay or leave the firm. In crucial aspects throughout the job lifecycle, there is typically a large gap between what employers think is important versus what say is crucial for them. Figure 4: Reasons for joining a company Ability to learn 15% 24% 26% Interesting work 16% 15% 15% Location 8% 8% 13% Salary and compensation 8% 13% 14% Attractive and fun working culture 0% 10% 10% Growth opportunities 6% 9% 8% Company prestige and reputation 6% 4% 23% Good and flexible working hours 6% 8% 15% Other 6% 7% 8% Employee Job seeker Employer Source: Myanmar HR Survey 2018

7 6 MYANMAR HR SURVEY The key reasons for to join a company are ability to learn (24%), interesting work (16%), location (13%), salary and compensation (13%) and an attractive and fun working culture (10%). However, employers believe that company prestige and reputation (23%) is the key reason for to join their firm, followed by good and flexible working hours (15%). Similarly, when it comes to motivation at work, there are significant gaps between what employers think drives employee motivation, versus what cite as motivational drivers. For example, employers believe that recognition by management is the most important driver for motivation. Although recognition is indeed important for, so are other factors driving employee motivation, such as salary, challenging work, work culture and atmosphere among colleagues. Figure 5: Motivation drivers [Scoring 1 not important at all, 10 very important] Salary and financial benefits Recognition by management / praise Challenging work Work culture and atmosphere Work-life balance Achievement of results Job security Employee Job seeker Employer Source: Myanmar HR Survey 2018

8 7 MYANMAR HR SURVEY Also, the reasons for leaving the firm differ from employers' perception. For example, employers underestimate the importance of salary, growth opportunities and job content. Figure 6: Reasons for leaving Higher salary and benefits at new employer 9% 11% 19% Lack of growth opportunities 11% 18% 20% Asked to leave 0% 11% 10% Lack of recognition / praise at previous employer 10% 13% 33% Poor work-life balance 10% 12% 22% Job was not interesting 9% 11% 0% More prestige / brand name at new employer 8% 3% 0% Unattractive work culture and atmosphere at previous employer 7% 14% 22% Other 7% 9% 0% Employee Job seeker Employer Source: Myanmar HR Survey 2018

9 Work in progress 8 MYANMAR HR SURVEY The main reason for leaving their employer is the prospect of a higher salary and benefits (19%) hence, in addition to building an attractive working culture, providing learning and growth opportunities and interesting job content, remuneration remains an important element to maintain talent in Myanmar. b) Providing training and opportunities to learn and grow As mentioned, the key reason for (24%) to join a company is the ability to learn. This should not come as a surprise, given the lack of formal education in the country. Myanmar are keen to develop their skill set and join companies to do so. This drive to learn is something that Myanmar firms should tap into and nurture. Unfortunately, trainings in Myanmar are not yet widespread, nor very effective. 54% of at small companies and 31% of at large firms have no training at all. Figure 7: How much training per year do you have within your company? Small companies <50 Mid-sized companies Large companies >500 30% 27% 31% More than 5 full days Between 2 and 5 full days per year Less than 1 full day per year 13% 3% 54% 28% 11% 19% 19% None 34% 31% Source: Myanmar HR Survey 2018 When asked to employers why they do not provide more training, the key reasons cited are no time (30%) and high employee turnover (15%). Employee turnover in Myanmar is indeed very high. But the employer's perception is, according to our survey, flawed: investing in training and skills development would reduce a company's employee turnover, given ' keen interest to learn.

10 Work in progress 9 MYANMAR HR SURVEY The effectiveness of trainings has significant room for improvement as well. Even at larger firms, 12% of state that the training they have received was not effective (at all). Figure 8: Do you believe that the trainings you have received in the last year have developed the skills you need to develop? Small companies <50 Mid-sized companies Large companies >500 43% 44% 46% Yes, the trainings are very effective 36% 50% 42% Somehow effective Not effective Not at all. It s a waste of time and money 14% 7% 4% 2% 6% 6% Source: Myanmar HR Survey 2018 c) Strategic HR planning Human Resources management in Myanmar is often conducted in an ad hoc manner, rather than strategically or in a structured way: even 38% of large firms confirm that their HR management lacks proper planning.

11 10 MYANMAR HR SURVEY Figure 9: How do you plan for your organization's HR needs? Based on our overall corporate strategy, we identify HR needs, including by skill, and then assess how to acquire or develop the necessary skills Small companies (<50 ) Mid-sized companies ( ) Large companies (>500 ) We don t plan for HR needs, or we plan based on ad-hoc interactions with management 57% 43% 42% 58% 62% 38% In addition, Human Resources departments focus primarily on administrative HR functions. Figure 10: Which functions does your HR department perform? [Multiple answers possible] 81% Recruitment administration 74% Compensation/ Payroll 70% Training and development 63% HR planning 59% Succession planning 44% Exit management 44% Labour union management 48% Retention management 52% Performance evaluations 56% HR administration, incl. IT 41% 2 Improving organizational structure 41% Corporate Communication 33% Staff planning 30% HR marketing/ Employer branding 7% Other Source: Myanmar HR Survey 2018

12 11 MYANMAR HR SURVEY Given Myanmar's telecom revolution, with mobile penetration at around 100%, companies have tapped into digital platforms for human resources needs. For example, 31% of have used online job websites in the past (and 86% have found it effective), an additional 15% use social media, such as LinkedIn for job searches (and 75% find it effective) and an additional 12% use company websites to apply for jobs (with 76% finding it effective). Therefore, Myanmar employers are already using digital tools, especially for recruiting. 4. Implications for businesses in Myanmar How can companies in Myanmar become more successful in finding and retaining talent? First, companies need to gain a better understanding about their along the job life cycle. This is easier said than done. It will require much more engagement with, including effective exit interview with leaving the organisation. Employee surveys, which some companies in Myanmar are already conducting, is one way to assess employee satisfaction. But, more importantly, managers should foster a dialogue with. What do find of their jobs? Do they want to continue their job? What are their aspirations or fears? In such a culture of dialogue, true leadership is crucial. Leaders, across the organisation, should foster such engagement with, to understand their feelings and objectives and how ' objectives can support the company's objectives, instead of assuming that the company's objectives can be transferred to top-down. Real conversations in a people-centric culture are crucial. This does not translate in a large HR department, but rather proper leadership across management levels. Second, this HR survey has highlighted that companies need to focus much more on providing challenging and interesting work, fostering a pleasant working culture (e.g. through attractive office space, events, leadership skills) and growth opportunities (e.g. through training based on individual needs, employee career planning). Again, all of this should be based on a better understanding of what individual actually want. Third, Myanmar organisations should continue to invest in skills development and training. High employee turnover should not be an excuse not to invest in trainings. Rather, trainings should be seen as contributing to lowering employee turnover. However, it is not just the number of training days that matter. More importantly, it is the usefulness and effectiveness of such trainings. Courses should be tailored to individual skill requirements and needs. To improve the effectiveness of trainings, Myanmar companies can tap into an increasingly growing professional training services market in Myanmar. Today, only 27% of trainings in Myanmar are outsourced to external training providers. On-the-job learning remains an important part of the learning curve, but also requires support to effectively do so.

13 12 MYANMAR HR SURVEY Fourth, many companies in Myanmar need to transform their HR department from an administrative function to a more strategic function. Rather than spending most time and resources on administrative tasks such as payroll and compensation, HR departments should evolve towards becoming a strategic business partner and develop HR policies that suit individual ' needs, based on closer engagement with, rather than a one-size-fits-all approach. Reducing the gap between what employers believe is important for versus what actually want, will greatly ease attracting and maintaining talent in Myanmar.

14 13 MYANMAR HR SURVEY _Credits and Copyrights WE WELCOME YOUR QUESTIONS, COMMENTS AND SUGGESTIONS AUTHORS Roland Berger Thomas Klotz Managing Partner, Southeast Asia Dieter Billen Principal, Head of Roland Berger Myanmar Johannes Golüke Senior Consultant johannes.golueke@rolandberger.com Dale Carnegie Luc de Waegh Managing Partner, Dale Carnegie Myanmar Mathieu Conan Business development manager Luc.de.waegh@dalecarnegie.com Mathieu.conan@dalecarnegie.com Jobnet.com.mm Matt de Luca Co-Founder and Managing Director Helena Field Marketing Director mattdeluca@jobnet.com.mm helenafield@jobnet.com.mm

15 14 MYANMAR HR SURVEY This publication has been prepared for general guidance only. The reader should not act according to any information provided in this publication without receiving specific professional advice. Roland Berger Co., LTD or any of the above authors shall not be liable for any damages resulting from any use of the information contained in the publication ROLAND BERGER CO., LTD. ALL RIGHTS RESERVED _About Roland Berger Roland Berger is an independent management consulting company, solely owned by our 220 Partners. Founded in 1967, we are German by origin, European by nature and global by ambition. Through mutual trust and sustainable value added for our clients, we have become a longstanding advisor of major international industry and service companies as well as public institutions worldwide. Our entrepreneurial spirit has shaped our growth and fueled our outstanding achievements since the early days of the firm. In short, being a game changer is in our DNA. With nearly 50 years of continuous growth behind us and 2,400 working in 34 countries, we are one of the leading players in global top-management consulting. We have successful operations in all major international markets including a strong footprint in Asia. Our 50 offices are located in the key global business hubs. Roland Berger is the leading strategy consulting firm in Myanmar, working with both local and international companies as well as the government. We have contributed strongly to Myanmar's development by supporting clients across industries on various topics, such as market entry, strategic growth, organizational development and other.

16 15 MYANMAR HR SURVEY _About Dale Carnegie For over hundred years, Dale Carnegie has assisted companies foster an environment that thrives on productive relationships. Dale Carnegie Myanmar is helping Myanmar organizations unleash their full potential by creating inspiring development opportunities for everyone from new hires to high performers, all the way to the top. _About JobNet.com.mm JobNet.com.mm is an online jobs and recruitment solution, which effectively matches employers with the most suitable candidates to fill their jobs. In addition to delivering advanced online recruitment technologies, JobNet supports the advancement of Myanmar s human capital industry.