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Indonesian employees confident in the job market
President Director for PT Michael Page International Indonesia, Olly Riches, takes us through key findings of the recently released 2015 Michael Page Indonesia Employee Intentions Report.
Our inaugural Michael Page Indonesia Employee Intentions Report covers career intentions, salary expectations and market confidence of approximately 500 employees across Indonesia, and outlines the on-the-ground sentiment of Indonesian professionals across various industries.
Perhaps the most outstanding point to note from the report was the overwhelming positivity displayed by Indonesian workers on job prospects in the local market, with up to 94% of the survey respondents indicating that they expect job opportunities over the next 12 months to hold steady or improve.
In addition, Indonesian professionals are positive when it comes to expectations of salary increases. I have selected a few key themes from the report that can help Indonesian employers shape their attraction and retention strategies in the coming year.
The three highs – Positivity, expected salary increases and turnover
Indonesia has benefited from a buoyant economy over the last few years. This has translated into a fairly positive economic climate and, as a result, a healthy employment market as well. More than half (56%) of employees who responded to the 2015 Michael Page Indonesia Employee Intentions Survey indicate that they perceive current job opportunities as good or excellent. Further demonstrating this overall confidence, 18% of surveyed employees reveal that they are expecting salary increases of 21% – 25% when moving into a new role, with a further 30% stating that they expect a 30% or more increase.
However, the positivity does have its downside – 72% of employees indicate that they are intending to leave their current role in the next 12 months. Professionals within procurement & supply chain, general management as well as sales & marketing are expected to lead the turnover.
What does this mean for employers? Simply that the need to refine retention strategies has increased tremendously. Employers will now need to delve deep to understand what makes their employees tick and the strategies that will help to retain their top talent.
The need to refine retention strategies has increased tremendously. Employers will now need to delve deep to understand what makes their employees tick and the strategies that will help to retain their top talent.
Employees concerns and reward preferences
With 83% of surveyed employees indicating that they are satisfied to some degree in their workplace, it is telling that they are still open to exploring other opportunities. Out of those respondents who cite dissatisfaction at work, the top contributor, according to 40%, is management. This is a relatively high figure and perhaps a sign for companies to look at their existing appraisal systems to include more well-rounded and robust ones. To better address employee concerns, employers need to understand the impetus behind a job search. In the case of Indonesian professionals, the top three factors that lead to workers embarking on a job search are to seek out an increase in salary, better scope for career progression and to move on to a more senior role or promotion.
Additionally, it is important for companies to note that the top financial reward for 45% of the surveyed employees is a bonus, further emphasising the importance of monetary remuneration for professionals in Indonesia. Another important reward for organisations to explore would be pension contribution, with 32% of respondents indicating their preference for this as a financial reward. Non-financial rewards such as flexible working hours and extended leave are the most sought after according to 49% and 42% of the survey respondents respectively.
In light of these findings, employers who are looking to retain the best talent in their teams will need to equip themselves with appropriate strategies which are customisable rather than adopting a one-size-fits-all approach if they are to succeed in the long run.
Get more insights into Indonesian professionals in the full report here.
The key findings from the 2015 Michael Page Indonesia Employee Intentions Report are as follows:
- 56% of employees indicate that they perceive current job opportunities as good or excellent
- 18% of surveyed employees reveal that they are expecting salary increases of 21% – 25% when moving into a new role
- 72% of employees indicate that they are intending to leave their current role in the next 12 months
- 40% of respondents who state they are dissatisfied at work selected management as the top contributor