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As signs of economic recovery come into view, HR will be looking forward to making an even stronger contribution to business success in the coming year. We outline below ten points of focus for 2010 that no HR practitioner in Hong Kong and mainland China can afford to miss. Sonia Chan reports.
1 - Putting talent attraction back on centre stage
The last 12 months have been dominated by a survivalcentred approach. As we step into 2010, this attitude should give way to a renewed focus on talent attraction and retention. "During the past year, companies have really focused on people cost reduction issues, such as staff reductions, salary freezes and lower bonuses," says Deirdre Lander, Head of Watson Wyatt's Human Capital Group in Hong Kong. "China is now coming out of the downturn, so companies will be returning to thinking about how to grow their business and their people. The war for talent looks set to recur."
Some firms are already back into hiring mode, and capable employees are once again subject to the risk of poaching, observes Jonathan Gove, Managing Director of Mercer Hong Kong and Taiwan. "Employees have higher expectations, especially if they've stayed with the firm through a tough year, and gave up bonuses or suffered in other ways," he says. "Given this, and the fluidity of the Hong Kong and China workforce, the issues of talent retention and attraction will be crucial."
The way forward for companies is to rebuild their talent pools by developing longer-term strategies. "That's not going to be just about the cash and the pay; it's ultimately about how you're going to engage your people," says Lander. "Employers should consider what tiiey provide in terms of non-cash benefits, such as good retirement plans, medical plans, personal loans, as these tend to have excellent retention value."
2 - Executive compensation without the controversy
In the coming year, executive compensation practices should be treated with the attention they deserve - as the essential component of a truly effective talent retention strategy. What, then, should companies be aiming to achieve? Mercer defines success in executive remuneration to mean "designing [a program] that drives business performance, secures key talent and withstands public scrutiny," and implementing the program as...