ASIA PACIFIC RECRUITMENT SUMMIT 2014

Marina Bay Sands, Singapore

1-2 October 2014

THE GLOBAL RECRUITER

TODAY MENU • Indonesia Today

• Driving Forces in Recruitment

• Market Situation in Indonesia

• Operating Recruitment Business in Indonesia

• Current Executive Search Practice

INDONESIA TODAY

• Population: 249,865,631 (2013) *

• Part of G20

• GDP Growth: 6.3% (2012), 5.8% (2013), no

negative growth in last 5 years trend *

• Major challenges: corruption, legal system,

infrastructure, education, healthcare

• Key sectoral opportunities: infrastructure, food

and agriculture, energy, manufacturing/industry** *) source: www.worldbank.org **) source: www.bkpm.go.id

Talent Demand:

- Foreign Direct

Investment (FDI)

- Business/economic

growth

- Organization

Development

Talent Supply:

- Education & Development

- International Talents

Current Market Changer:

- Technology

TALENT

MARKET

Foreign

Direct

Investment

BUSINESS

GROWTH

ORG

DEV

TECHNOLOGY

EDUCATION

AND

DEVELOPMENT

FOREIGN

TALENT

General Market Condition

• “Short supply, over-demanded” talent market due to high economic growth, FDI, OD

• Lack of acceleration on talent supply due to: – weak education system at the past and

– international talents limitation

• Technology is main “game changer”: automation reduce the needs of unskilled labors, but also creating new type of business/profession

• Shorter employment period and higher employee turnover

• Philosophy of employment is more on “free market mechanism”, the end of whole life time employment

• The best employees are the most vulnerable talents to be retained (see talent behavior slides)

TALENT GAP IN INDONESIA

In 2020, Indonesia will

face major shortage at

middle management level

(56%)

Source: BCG report

Talent Behavior, some facts • Indonesia employee engagement *)

– Engaged: 8% VS 13% (global #) VS 12% (south east asia)

– Not Engaged: 77% VS 63% (global #)

– Active disengaged: 15% VS 24% (global #)

• Active & Passive talents in the country **) – Actively looking - 15% VS 12% (global avg)

– Casually looking a few times a week – 14%

– Reaching out to personal network – 20%

– Open to talking to recruiter - 41%

– Completely satisfied, no willing to move – 10% VS 15% (global avg)

• Top reasons to move/change the job **) – Active candidate: better compensation and benefit; more challenging work, better

quality company

– Passive candidate: better compensation and benefit; better work/life balance, opportunities for advancement

*) source: Gallup – State of the Global Workplace report **) source: Linkedin – Talent Trends 2014 report

RUNNING RECRUITMENT BUSINESS

Type of Recruitment License in Indonesia

Getting Recruitment License

• In general recruitment company requires special (operational) license,

from Indonesia Man-power Minister

• License need to be renewed for certain period of time, and approved by

man-power department, by considering their level of compliance and

performance

Private workers placement company (LPTKS) Assist client to hire workers/executives for private company

Manpower agency for foreign placement (PJTKI)

Perform Indonesian -talent placement in overseas market

Agency for worker/labor (Outsourcing)

Do outsourcing business for their clients

EXECUTIVE SEARCH PRACTICE

Past & Present

PAST PRESENT

• Retained based search

assignment

(project/hourly based)

• Strong commitment by

both Client & HH

• Only using 1 HH for 1

assignment

• Outsourcing practice was

without restriction

• Most assignments:

contingency based

• Probable for lack of

commitment on both

sides (Client & HH)

• Using >1 HH for 1

assignment

• Starts on “RPO” projects

• More restriction on

outsourcing

Note: Few international HHs still have luxurious to provide retained search. Some contingent search

firms also started

offer retained search

We are executive search company, incorporated in 2002, serving mainly our clients in Indonesia, ASEAN countries and other Asia

Pacific region. Industrial expertise: FMCG, Pharmaceutical, Technology, Telecommunication and Manufacturing. Hiring manager – director level for top multinational companies