FINDING THE RIGHT ROLE

EMPLOYEE TRENDS

JOB SECURITY

OVERSEAS OPPORTUNITIES

SALARY

2015 EMPLOYEE INTENTIONS REPORT INDONESIA

Specialists in human capital consulting www.michaelpage.co.id

CONTENTS

Executive Overview

3

Attracting New Talent

4

Retaining Top Performers

13

In The Workplace

16

CONTACT US

2015 EMPLOYEE INTENTIONS REPORT

19

2

EXECUTIVE OVERVIEW As South East Asia’s largest economy and an emerging market, Indonesia has enjoyed positive growth in the last few years, and continues to display positive signs of growth, remaining an attractive destination for investors. On the employment front, Indonesia’s professional employment market is expected to remain healthy as employees in Indonesia display strong confidence about opportunities in the current market and over the next 12 months. Both foreign companies continuing to look to Indonesia in their expansion plans and growing domestic companies are expected to fuel the need for talent in the coming year.

POSITIVITY IN THE MARKET The majority of survey respondents in the 2015 Michael Page Indonesia Employee Intentions Report believe that the level of job opportunities in the next 12 months will be the same or improve (94%). This sentiment is felt most strongly by professionals in sales & marketing (75%), procurement & supply chain (74%) as well as human resources (69%). Another sign of confidence in Indonesia’s employment market is the expressed intentions of almost three quarters (72%) of respondents to change roles in the next 12 months. This is expected to lead to a wider choice of job opportunities for jobseekers while companies will have to relook at their attraction and retention strategies in order to retain top talent in the various industries.

MATURING WORKFORCE DRIVEN BY FINANCIAL REWARDS Despite Indonesia’s positive economic performance over the last few years, employees in Indonesia still list financial rewards such as an increase in salary as the top reason that they are looking for a new role (24%). Employees are also displaying signs of a maturing workforce as they start to place more emphasis on non-tangible benefits such as a scope for career progression (18%) and gaining a promotion as well as a more senior role (17%), narrowing the gap between the two. However, while this is so, for those who are looking at an increase in salary for the next role, the most common expected salary increase when moving to a new role is 30% or more as indicated by 30% of survey respondents. This high expectation will mean that employers wanting to attract top talent will need to relook at innovative and alternative tools to do so.

MOVING AWAY FROM TRADITIONAL RETENTION STRATEGIES Based on the above findings, talent retention strategies will be a key focus for companies to work on if they are looking to keep top talent within their organisations. To do this, they will need to look beyond traditional strategies such as awarding employees with financial rewards based on performance which is the most preferred option (30%). Non-financial based strategies such as leadership and a motivating manager (16%) or good company culture (13%) will also play a part in ensuring that employees will stay on and build their careers with an organisation. Again, this is supported by the survey finding that the biggest contributor to dissatisfaction at work is management (40%).

LOOKING AHEAD The survey also reveals encouraging findings for promotion rates, with 60% of the respondents indicating that they received a promotion in the past two years and a further 70% stating that they are expecting to receive a promotion in the coming 12 months. This can be taken as another sign of a maturing and developing Indonesian workforce with professionals progressing in their roles and gaining more experience and skills as they develop their careers. Bolstering this is the finding that almost half (44%) of the survey respondents indicate that the main reason for their increased working hours is because of business growth.

CONCLUSION Indonesia remains a challenging but potentially highly lucrative market. Human capital is central to this both in terms of talent attraction as well as retention. As the results show, financial rewards are an increasingly influential factor in career planning and decision making made more so in an emerging market with desire at all levels to take full advantage of the positive domestic economic climate.

METHODOLOGY The 2015 Michael Page Indonesia Employee Intentions Report is based on the online survey responses of approximately 500 employees in Indonesia. Participants represent a broad range of professional occupation groups and hold positions ranging from entry level to senior management. The scope of the report includes key employee insights into preferences for attraction and retention, salary expectations, benefits and work-life balance and their views on the predicted employment outlook.

2015 EMPLOYEE INTENTIONS REPORT

3

ATTRACTING NEW TALENT EMPLOYMENT OPPORTUNITIES CURRENT JOB OPPORTUNITIES

7%

JOB OPPORTUNITIES OVER THE NEXT 12 MONTHS 5% 1%

1% 4% 8%

16%

25% 32%

53%

48%

Excellent

Weak

Significantly improve

Be worse Unsure

Good

Very weak

Improve

Average

Unsure

Be the same

The majority (88%) of survey respondents in the 2015 Michael Page Indonesia Employee Intentions Report review positively that the current level of job opportunities in Indonesia are average or above. This positivity is further demonstrated with the breakdown showing that 48% of respondents believe there is a good level of job opportunities in the current market. A further 8% of respondents view the level of available job opportunities in the current market as excellent. This positivity is likely due to Indonesia’s excellent economic performance in the last few years which has resulted in the growth of various sectors and subsequently, job opportunities as a whole.

Further demonstrating confidence in Indonesia’s economic stability, an overwhelming percentage of survey respondents (94%) indicate that they expect job opportunities over the next 12 months to at least remain the same or improve to varying degrees. More than half of the respondents (53%) believe that there will be an improvement on current job opportunities over the next 12 months. Only a handful (5%) of survey respondents are of the opinion that job opportunities will be worse in the coming 12 months, taking a more conservative sentiment.

TOP 5 PROFESSIONAL GROUPS WHO THINK THAT JOB OPPORTUNITIES WILL IMPROVE IN THE NEXT 12 MONTHS sales & marketing

75% procurement & supply chain

74%

accounting & finance

64%

2015 EMPLOYEE INTENTIONS REPORT

human resources

69%

Employees from sales & marketing (75%) display the most confidence in Indonesia’s job market while professionals from procurement & supply chain (74%) as well as human resources (69%) round up the top three professional groups that think job opportunities will improve in the next 12 months.

general management

56%

4

ATTRACTING NEW TALENT EMPLOYEE ACTIVITY

ISSUES OF CONCERN IN THE NEXT 12 MONTHS

17%

45% Salary Vs Living Costs

Global Economic Influences

10% Job Security

3%

4% Interest Rate Rises

1%

1% None

The 2015 Michael Page Indonesia Employee Intentions Report reveals that the top issue of concern for employees over the next 12 months will be salary versus living costs with almost half (45%) of the respondents indicating so. This is perhaps a good reminder for employers to adopt fair remuneration policies as part of their attraction and retention strategies. Other issues of concern for

2015 EMPLOYEE INTENTIONS REPORT

Government Regulation

8% Domestic Economic Downturn

Quotas of Foreign Workers

11%

Other

employees in Indonesia are aligned to the country’s economic performance with 17% indicating that global economic influences will be their top concern while 11% express that government regulation will be their top issue of concern over the next 12 months.

5

ATTRACTING NEW TALENT JOBSEEKER ACTIVITY

NUMBER OF ROLES INTERVIEWED FOR OVER THE LAST 12 MONTHS

39%

31%

16% 0

WHERE THE INTERVIEW WAS ATTENDED

1-2

3-5

9%

2%

3%

6-8

9 - 11

12+

As an indicator of future interview behavioural patterns, 84% of respondents reveal that they have attended at least one interview in the last 12 months with 39% attending three or less interviews and a further 31% attending between three to five interviews. The high percentages for these two ranges (70%) indicate that jobseekers in Indonesia are generally selective about the roles that they interview for. Employers would therefore do well to position themselves as choice employers or better define roles to make them more attractive to talented professionals who are looking for a job change.

EMPLOYEE TURNOVER IN THE NEXT 12 MONTHS

4%

70%

WITHIN MY COMPANY

WITH ANOTHER COMPANY

Of the jobseekers that have attended at least one interview over the last 12 months, 70% of them attended interviews with an external company. In comparison, only 30% of jobseekers attended interviews with their current company. The low internal interview rate indicates possible areas to improve attrition levels, such as strategies like succession planning, internal transfers or other schemes that promote career progression internally.

TOP 5 PROFESSIONAL GROUPS MOST LIKELY TO CHANGE ROLES

10%

procurement & supply chain

48%

35%

18%

26% BOTH WITHIN MY COMPANY AND ANOTHER COMPANY

general management

sales & marketing

35%

38% 37% Very likely

Not likely

Quite likely

Unsure

Almost three quarters (72%) of the respondents to the 2015 Michael Page Indonesia Employee Intentions Report express that they are quite or very likely to change roles in the next 12 months. This high percentage can possibly be taken as another show of certainty in Indonesia’s economy and employment market. For employers, this signifies possible high turnover and a need to strengthen their attraction and retention strategies in order to secure and retain the best available talent.

2015 EMPLOYEE INTENTIONS REPORT

accounting & finance

34%

human resources

31%

Out of the surveyed employees indicating that they are most likely to change roles in the coming 12 months, professionals from procurement & supply chain (48%) are the most inclined to do so while general management (38%) as well as sales & marketing (35%) professionals make up the top threee professional groups mostly likely to change roles in the coming year.

6

ATTRACTING NEW TALENT JOBSEEKER ACTIVITY

CHANNEL MOST LIKELY TO BE USED FOR A JOB SEARCH

59%

85% Recruitment Consultants

17% Local Newspapers

Job Boards

45% Social Media

7% Industry Specific Publications

37% Word of Mouth

6% Other* *friends, networking, company websites, etc.

Although a heavily connected country, the majority of surveyed employees in Indonesia indicate their channel of choice when it comes to looking for a new role is through recruitment consultants (85%). Other channels that jobseekers use when seeking a new role include job boards (59%) and social media (45%). Most survey

2015 EMPLOYEE INTENTIONS REPORT

respondents list Jobstreet as their preferred job board (75%) while LinkedIn is the most preferred social media platform for jobseekers when it comes to looking for a new role (86%).

7

ATTRACTING NEW TALENT PREFERRED ATTRACTION STRATEGIES

MAIN REASON JOBSEEKERS ARE LOOKING FOR A NEW ROLE

24% 18%

Increase in salary

Scope for career progression

17%

9%

More senior role/promotion

9%

Learning and development

Potential for overseas career opportunities

9%

Company brand and reputation

5%

Workplace flexibility*

4%

4%

Office location/ Other** accessibility

1% Approach to inclusion, diversity and equality

*flexible hours, work from home options, etc. **work enviroment, job security, job description, etc.

Respondents to the 2015 Michael Page Indonesia Employee Intentions Report state that the top reason for seeking a new role is an increase in salary (24%). This is followed by scope for career progression (18%) and a more senior role or promotion (17%). This clearly demonstrates the fact that despite Indonesia’s healthy

TOP REASON JOBSEEKERS ARE LOOKING FOR A NEW ROLE (BY AGE) up to 24

34

44

54

economic performance in the last few years, jobseekers still place financial gains and independence before other factors in a country where economic wealth is not evenly distributed.

TOP 5 PROFESSIONAL GROUPS MOST FOCUSED ON AN INCREASE IN SALARY 64

general management

32%

legal

29%

accounting & finance

26%

57% 21% 29% 26% 25% INCREASE IN SALARY

MORE SENIOR ROLE/PROMOTION

LEARNING AND DEVELOPMENT

POTENTIAL FOR OVERSEAS CAREER OPPORTUNITIES

SCOPE FOR CAREER PROGRESSION

The importance of salary increases is emphasised in the breakdown of respondents according to age, where jobseekers in the range of 24 years and up to 44 choose to focus on salary increases when looking for a new role. However, matured professionals aged between 44 and upwards to 54 choose to focus on securing a more senior role or promotion when looking for a new role.

2015 EMPLOYEE INTENTIONS REPORT

sales & marketing

20%

human resources

18%

Professionals in general management are most inclined to focus on an increase in salary when looking for a new role (32%). Other professional groups focusing on an increase in salary include legal (29%) as well as accounting & finance (26%). Companies looking to recruit professionals in these sectors could tailor their attraction strategies to feature more financial rewards. Despite this, organisations should strengthen retention policies so that employees are not easily swayed through being offered financial rewards.

8

ATTRACTING NEW TALENT JOBSEEKER SALARY EXPECTATIONS

JOBSEEKER SALARY EXPECTATIONS IN A NEW ROLE

4% 13

2%

No change or reduction

%

1 - 5%

26 - 30%

18%

6%

21 - 25%

6 - 10%

30

%

13%

14%

16 - 20%

11 - 15%

OF SURVEYED EMPLOYEES INDICATED

30

% OR

MORE

Most jobseekers expect a salary increase of 30% or more when looking to move into a new role (30%), followed by 21-25% as expected by 18% jobseekers. Compared to other jobseekers in Asia, these are significantly higher expected salary increases and can be attributed to the positive Indonesian economy in the last few years. Additionally, salaries in Indonesia are still considered relatively low when compared to their South East Asian counterparts. Employers will need to adjust salary expectations or try to rework compensation packages with innovative attraction tools.

2015 EMPLOYEE INTENTIONS REPORT

9

ATTRACTING NEW TALENT WORKING ABROAD

JOBSEEKERS LIKELY TO CONSIDER OVERSEAS CAREER OPPORTUNITIES IN THE NEXT 12 MONTHS

TOP 5 PROFESSIONAL GROUPS LIKELY TO CONSIDER OVERSEAS CAREER OPPORTUNITIES

yes no

procurement & supply chain

97%

23% sales & marketing

general management

84% 77%

75%

human resources

72% More than three quarters of survey respondents in the 2015 Michael Page Indonesia Employee Intentions Report are likely to consider overseas opportunities when looking for a new role in the coming year (77%). The high percentage shows an underlying need for employers to put more work into improving their employee value propositions.

accounting & finance

69%

Professional groups with the highest number of employees looking overseas for job opportunities include procurement & supply chain (97%), sales & marketing (84%) as well as general management (75%).

WHERE JOBSEEKERS WILL LOOK FOR WORK

north america 5%

emea* 13% asia 57%

south america 1%

*Europe, Middle East and Africa. **Australia and New Zealand.

anz** 24%

Unsurprisingly, the top region of choice for jobseekers looking at opportunities offshore is Asia, with more than half (57%) indicating their inclination to remain based in a relatively familiar territory while being exposed to more developed markets.

2015 EMPLOYEE INTENTIONS REPORT

10

ATTRACTING NEW TALENT WORKING ABROAD

TOP 3 COUNTRIES WITHIN ASIA WHERE INDONESIAN JOBSEEKERS WILL LOOK FOR WORK

45%

19%

SINGAPORE

13%

MALAYSIA

Further breaking this down, Singapore is the top choice (45%) for jobseekers looking at overseas opportunities when considering a new role. This is followed by Malaysia (19%) and Hong Kong (13%). Similarities between these countries include developed economies

HONG KONG

and regional hubs for various multinationals as well as a culturally similar landscape where assimilation would not be too difficult.

TOP REASON FOR CONSIDERING OPPORTUNITIES ABROAD

50% 16%

Broaden experience/ opportunity to learn

Improve salary

13%

Achieve better work/life balance

6%

More job opportunities

4%

4%

Better work environment

Approach to inclusion, diversity and equality

3%

Other

3%

More senior role/promotion

1% Better training and support

Of the respondents who indicated that they would consider opportunities abroad, half of them reveal that the top reason for considering overseas job opportunities is to broaden experience and the opportunity to learn. Other popular factors which drive jobseekers to look for overseas opportunities include to improve salary (16%) and to achieve a better work life balance (13%).

2015 EMPLOYEE INTENTIONS REPORT

11

ATTRACTING NEW TALENT RETURNING TALENT

JOBSEEKERS WHO RETURNED TO INDONESIA FOR CAREER OPPORTUNITIES IN THE LAST 12 MONTHS

LOCATIONS THAT JOBSEERKS HAVE RETURNED FROM

yes no 16%

84% The 2015 Michael Page Indonesia Employee Intentions Report also reveals that a small percentage (16%) of respondents have returned to Indonesia to search for career opportunities over the last 12 months. Locations that have the most number of returnees include Singapore (29%), Malaysia (16%) and Thailand (7%).

29%

SINGAPORE

21%

OTHER*

16%

MALAYSIA

7%

THAILAND

7%

AUSTRALIA

5%

CHINA

5%

UK

4%

PHILIPPINES

2%

HONG KONG

2%

US

2%

JAPAN

*Denmark, Netherlands, Middle East, etc.

TOP REASONS FOR RETURNING TO INDONESIA FOR CAREER OPPORTUNITIES

37% 18%

To be closer to family/ personal reason

15%

More senior More job role/promotion opportunities

13%

Achieve better work/life balance

10%

Other*

4%

Improve salary

3%

Broaden experience/ opportunity to learn

For the surveyed jobseekers returning to Indonesia to look for career opportunities, the reason most commonly cited is the desire to be closer to family or personal reasons (37%). Other reasons include the pursuit of a more senior role or promotion (18%) as well as the possibility of more job opportunities (15%).

*Completion of overseas project, better life quality, short term contract, etc.

2015 EMPLOYEE INTENTIONS REPORT

12

RETAINING TOP PERFORMERS PREFERRED RETENTION STRATEGIES

WHAT WILL KEEP EMPLOYEES IN THEIR CURRENT ROLE

30% 16%

Financial reward based on performance

Leadership / motivating manager

13%

Company culture

13%

Workplace flexibility

11%

Additional career development supported by training

8%

Other*

7%

Overseas career opportunities

2%

Approach to inclusion, diversity and equality

*Work environment, responsibility to optimising the business unit, security, personal development, colleagues, etc.

According to respondents in the 2015 Michael Page Indonesia Employee Intentions Report, the top retention strategy that will keep employees in their current role is financial reward based on performance (30%). Employers who are looking to retain top talent in their organisations would also do well to note that other top retention strategies preferred by employees when considering whether to stay

TOP FACTOR THAT WILL KEEP EMPLOYEES IN THEIR CURRENT ROLE (BY AGE) up to 24

34

44

54

on in their current role include leadership and a motivating manager (16%) as well as company culture (13%). While formulating financial rewards is relatively straightforward, the harder task at hand is addressing the non-tangible factors which require a more long term approach.

RECEIVED A PROMOTION IN THE PAST TWO YEARS 64

YES NO 40%

57% 24% 33% 25% 29% FINANCIAL REWARD BASED ON PERFORMANCE

COMPANY CULTURE

Employees aged 54 and below unanimously choose financial rewards based on performance as their top factor of consideration when deciding whether to stay on in their current role. Once again, this is possibly due to the varying income distribution amongst Indonesian professionals as well as the desire of employees to receive salaries more closely matched to their neighbouring counterparts.

2015 EMPLOYEE INTENTIONS REPORT

60%

More than half of the survey respondents (60%) reveal they have received a promotion in the last 12 months. However, compared with the earlier findings that show the high possibility of employee turnover, this could possibly signify that employers have to look beyond promotions and understand and relook at their retention strategies to keep employees and top talent in their role.

13

RETAINING TOP PERFORMERS PREFERRED RETENTION STRATEGIES

EXPECTING TO RECEIVE A PROMOTION IN THE NEXT 12 MONTHS

yes

no

70

30

%

%

WILL ASK FOR A PROMOTION IN THE NEXT 12 MONTHS

57% YES

2015 EMPLOYEE INTENTIONS REPORT

43% NO

Although promotion rates among employees have been high in the last 12 months, 70% of surveyed employees are still expecting to receive a promotion in the coming year. 57% of the surveyed employees also state that they will be asking for a promotion in the next 12 months. This heavy emphasis on promotions and getting ahead in ones career could signify a general maturing of Indonesia’s workforce as more employees’ progress their career and move into more senior roles.

14

RETAINING TOP PERFORMERS EMPLOYEE SALARY EXPECTATIONS

EMPLOYEES ASKING FOR A SALARY INCREASE OVER THE NEXT 12 MONTHS

AGE OF EMPLOYEES MOST LIKELY TO ASK FOR A SALARY INCREASE IN THE NEXT 12 MONTHS

49%

20%

2% < 24 YEARS

24% 25 - 34 YEARS

22% 35 - 44 YEARS

1%

45 - 54 YEARS

55 - 64 YEARS

58%

22% Yes

No

Unsure

In terms of salary increases, the majority of respondents in the 2015 Michael Page Indonesia Employee Intentions Report state that they plan to ask for a salary increase during the next 12 months (58%).

TOP 5 PROFESSIONAL GROUPS MOST LIKELY TO ASK FOR A SALARY INCREASE IN THE NEXT 12 MONTHS

Respondents aged between 35 and 44 are the most likely to ask for a salary increase in the next 12 months (49%) followed by those between 25 and 34 (24%). Employers should take note of this age of employees as they form the bulk of mid-level staff, possibly ascending into senior level positions. Salary increase requests which are not met could lead to attrition and turnover, resulting in a loss of talent for organisations.

SALARY INCREASE EMPLOYEES WILL ASK FOR IN THEIR CURRENT ROLE

legal

71% sales & marketing

67%

2%

61%

human resources

57%

general management

57%

According to survey results, legal professionals are the most likely to ask for a salary increase in the coming year (71%). Other professional groups likely to ask their employers for a salary increase in the next year include sales and marketing (67%) as well as procurement & supply chain (61%). Indonesia’s lack of qualified legal professionals in comparison to its market size has directly resulted in upward pressure on wages as companies seek to improve retention rates. In addition, foreign investment into Indonesia coupled with an expanding domestic market has enabled professionals across most sectors to capitalise on the current climate.

2015 EMPLOYEE INTENTIONS REPORT

1 - 2%

procurement & supply chain

1% 3 - 5%

33%

12% 6 - 9%

16% or above

24%

28%

13 - 15%

10 - 12%

The majority of employees looking for a salary increase in the next year in their current role will ask for 16% and above (33%). A further 28% will ask for salary increases of between 10 and 12% while 24% of the surveyed respondents indicate that they will ask for increases of between 13 and 15%.

15

IN THE WORKPLACE JOB SATISFACTION

LEVEL OF SATISFACTION IN CURRENT ROLE

15%

BIGGEST CONTRIBUTOR TO DISSATISFACTION AT WORK

2% 4% 23%

56% Extremely satisfied

Very dissatisfied

Very satisfied

Extremely dissatisfied

40%

MANAGEMENT

22%

SALARY

11%

LACK OF LOCAL DECISION MAKING (CENTRALISED POLICY)

11%

NOT LEARNING ANYMORE

9%

BUSINESS PERFORMANCE

4%

WORK LIFE BALANCE

3%

MATRIX ENVIRONMENT

Satisfied

When it comes to satisfaction in the workplace, the majority (83%) of survey respondents to the 2015 Michael Page Indonesia Employee Intentions Report express that they are satisfied to some level in their current role. Exploring further, 23% of the respondents indicate that they are very satisfied and 4% of the respondents are extremely satisfied in their current roles. While this is so, many candidates – even those who are satisfied in their current role, – remain open to other career opportunities, further demonstrating the need for employers to strengthen their employee value proposition.

Out of the respondents who state that they are dissatisfied at work, almost half (40%) reveal that the biggest contributing factor is management while salary (22%) and lack of decision making (11%) are also contributing factors. These results show that dissatisfaction levels in the workplace may be addressed with better policies in place to encourage workplace communication.

HOW LONG DO YOU SEE YOURSELF WORKING FOR YOUR CURRENT COMPANY?

20%