Employers must be strategic to attract, keep quality personnel

“This year, the labour market in Thailand has become more competitive because of the increase in the number of companies and labour shortages. Development opportunities, pay and benefits, and respect and recognition play vital roles in attracting employees,” said Chanat Adhibai, associate director of Hay Group, a global consulting firm.
“The market appears to be a little more aggressive now as companies are willing to pay higher than the median [wage] of a defined market to attract and retain employees,” he said at the event on Friday.
Hay Group has conducted a market survey that studied and analysed current human-resource issues and remuneration trends. This year, more than 200 leading organisations from both the private and public sectors participated in the survey, Chanat said.
The survey focused on salary increases, bonus payments, and basic salaries. It found that the oil and gas sector was the most attractive industry for employees because it stood first in both the “highest salary increase” and “highest basic salary” rankings, while coming second in “total bonus payment”.
In terms of the total salary increase, the oil and gas sector came first with 7.08 per cent, followed by the utilities sector, which got 6.91 per cent of the total votes in the survey, and the chemical sector with 6.64 per cent.
The overall forecast for salary increases next year is slightly lower than for 2013 (from 6.18 per cent in 2013 to 6.13 per cent in 2014), according to the survey.
In total bonus payments in 2013, the utilities sector was ranked first with 4.73 months of bonus payment, followed by oil and gas (3.91 months) and the industrial sector (3.66 months).

Oil, gas sector top

Taking basic salaries into account, the oil and gas sector also won first place, followed by the fast-moving-consumer goods and chemicals sectors.
Although most companies apply a single structure where one structure is applied throughout the company, there are an increasing number of companies that have different salary structures for different functions and business units. Most companies in the Kingdom currently use basic salary as their primary base for salary comparison.
Fourteen major factors play crucial roles in attracting employees. These are the company’s brand; a clear and promising vision and mission; strong leadership; direct supervision; teamwork; development opportunities; training; pay and benefits; resources; respect and recognition; work structure and processes; authority and empowerment; quality and customer focus; and performance management.
“Company brand plays a dominant role in attracting employees,” one consultant said. “Sometimes, some people work in a company because of its popularity, and strong image. Working places where there are a lot of development opportunities for the future are also quite attractive. No one wants to work for an organisation that does not create a promising future for him.”
Panuwat Kanchanosot, a senior consultant with Hay Group, pointed out that effective leadership was crucial to driving high performance of employees. “The market is becoming more volatile and unpredictable,” he said.
He urged Thai businesses and employers to focus on the welfare and status of the middle class. “The Kingdom must put emphasis on being ambidextrous. However, Thailand will become less ambidextrous in the next five years,” he said.
During challenging times, Thailand is more likely to abandon its “ambidexterity” balance – that is, balance between exploration and exploitation – when compared with the rest of Asia. “During tough times, the ambidextrous balance for Thailand is more likely to be disrupted, when compared with the rest of Asia, the Asia Top 10, and the Global Top 20,” he said.
“The ability to maintain the balance between exploration and exploitation during a downturn is crucial in executing an ‘ambidextrous organisation’ strategy.”
Panuwat also mentioned that Thailand was lacking the catalyst behind encouraging management to create ambidextrous organisation. Neglecting the middle class is a cause of failure in attracting employees, he said.
“What we have learned from the best companies is that employers should lead with agility and speed, and adapt leadership styles. They should bridge the gap between operational excellence and innovation. Building a pleasant climate is also important,” he said.
Hay Group is a global consulting firm that works with employers to transform strategy into reality, develop talent, and organise people to be more effective and productive. The group has more than 2,000 staff in 90 offices in 50 countries.
It has published its annual market survey for more than 10 years.