Korn Ferry · NYSE:KFY

Korn Ferry — APAC Reward Trends webinar: The Great Resignation: APAC Perspective (May 2022)

48 slides from Korn Ferry's conference presentation, May 12, 2022

Slide 2: Meet your presenters and agenda
MEET YOUR PRESENTERS AGENDA Trevor Warden – Korn Ferry’s POV : What is “The Senior Client Partner, APAC Work & Great Resignation” Career Architecture Solution Leader – Economic and Business Outlook Warren D’Cruz – Retention Practices Vice President, Total Rewards & Organization Strategy, APAC Delive
Slide 3: Know your audience: Industry Demographics
Know your audience Industry Demographics Chemical N = 635 Other 9% 22% Construction and Materials 3% Energy (Oil / Gas / Coal / Power) 10% Services / Professional Services 10% Financial Services / Institutions 8% Pharmaceutical / Life Sciences / Healthcare 6% FMCG / FMCD & Retail 10% High Technology
Slide 4: Know your audience: Location Demographics
Know your audience Location Demographics Others N = 782 16% Japan Singapore 2% 22% Thailand 2% Vietnam 4% India 7% Australia 16% Malaysia 8% Hong Kong SAR *Others include countries outside APAC China 12% 11% © 2022 Korn Ferry. All rights reserved
Slide 5: Korn Ferry's POV: What is The Great Resignation?
Korn Ferry’s POV : What is “The Great Resignation”? • Coined by Anthony Klotz, a professor of management at Texas A&M University, in May 2021, when he predicted a sustained mass exodus. • It’s also called "The Big Quit“ or the “Great Reshuffle” APAC examples: Australia - Government reported that 1 m
Slide 6: Global Talent Trends
Global Talent Trends 40% of employees are 49% of professionals say 46% of employees they would turn down a job offer feel less connected to their currently actively looking for a if the company mandated that company now versus one year job. they go into the office full-time. ago. 59% of leaders Mill
Slide 7: The Big Quit – Why?
The Big Quit – Why? • A period of self-reflection accelerated by the pandemic, natural disasters and social unrest. Self-reflection and • Lockdown experience - people realize they could live differently (i.e. with less pay, in reprioritization a different location, with better balance etc.). • Chang
Slide 8: The Big Quit – Why Now?
The Big Quit – Why Now? • There are more options than ever – early retirement, remote work, the gig economy Greater flexibility and choice • Talent crunch/war for talent is shifting due to remote working conditions which in turn is creating new/more opportunities • Democratization of knowledge Ampli
Slide 9: POLL: Reasons that are making employees leave the organization
OVERALL POLL: Reasons that are making employees leave the organization N = 672 79% 43% 42% 39% 31% 25% 11% Compensation & Work Culture Nature of work Learning & Flexibility at work Manager Lack of alignment Benefits Development with the opportunities company’s vision *Response percentages exceeds 10
Slide 10: POLL: Reasons employees leave, by country
COUNTRY POLL: Reasons that’s making employees leave the organization N = 672 94% 88% 83% 82% 80% 77% 77% 75% 74% 72% 69% 67% 64% 54% 54% 54% 54% 52% 50% 50% 46% 45% 44% 44% 44% 43% 43% 42% 40% 40% 39% 38% 38% 38% 38% 38% 35% 33% 33% 32% 31% 31% 30% 30% 28% 27% 27% 25% 25% 25% 23% 23% 22% 21% 21% 20%
Slide 11: POLL: Reasons employees leave, by industry
INDUSTRY POLL: Reasons that’s making employees leave the organization N = 672 89% 86% 84% 79% 79% 74% 73% 69% 60% 53% 52% 52% 49% 48% 48% 47% 43% 42% 42% 40% 40% 40% 39% 39% 39% 39% 39% 36% 36% 33% 33% 32% 31% 31% 31% 30% 29% 28% 28% 28% 27% 23% 23% 23% 22% 22% 21% 14% 13% 11% 11% 11% 11% 10% 6% 6%
Slide 13: Significant slowdown in global growth in 2022
Global GDP Significant slowdown in global growth in 2022 6.1% (2021) GDP figures (Effective date: 1 April 2022) 3.6% (2022) 8.9 3.6% (2023) 8.1 7.6 7.2 7.4 6.8 6.4 6.1 5.5 5.3 5.1 5.0 5.14.9 4.7 4.6 4.2 4.04.2 2022 APAC 4.0 4.0 4.0 4.1 3.7 3.8 3.3 3.1 3.1 3.2 2.9 2.9 2.83.0 3.0 2.7 2.5 2.5 2.5 1.7 1
Slide 14: Positive Projections for Business in 2022 across the region
Positive Projections for Business in 2022 across the region N = 1539 External factors that would Very serious revenue decline (by more than 50%) 0.2% Serious revenue decline (by 31% - 50%) 0.9% affect business growth % of companies 57% Significant revenue decline (by 16% - 30%) 2.8% Small revenue de
Slide 15: 91% of the organizations have increased their HR budget
91% of the organizations have increased their HR budget % of companies Changes in HR budget in 2022-23 53 % N = 1549 APAC 32.3 59 8.7 Australia 23.6 69.5 6.9 Greater focus on China 46.4 39.6 14 succession planning Hong Kong 14.5 73 12.5 48 India % 49.2 44.3 6.5 Indonesia 49.3 43 7.7 Korea 30 66.7 3.
Slide 16: POLL: Inflation in increment strategy, by country
COUNTRY POLL: Organizations that have taken inflation into N = 618 account while deciding increment strategy 100% 50% 50% Yes No 59% 55% 56% 54% 54% 53% 50% 48% 30% Australia China Hong Kong, India Japan Malaysia New Zealand Singapore Thailand Vietnam SAR of China © 2022 Korn Ferry. All rights reser
Slide 17: POLL: Inflation in increment strategy, by industry
INDUSTRY POLL: Organizations that have taken inflation into N = 618 account while deciding increment strategy 66% 54% 51% 51% 48% 44% 37% 37% Chemical Energy (Oil / Gas / Coal Financial Services / FMCG / FMCD & Retail High Technology Industrial Goods / Pharmaceutical / Life Services / Professional /
Slide 18: Salary increases are expected to be higher than past 2 years
Salary increases are expected to be higher as compared to past 2 years 77 % Organizations plan to have a normal salary 12.7 review in 2022 10.5 9.8 10.0 N = 1352 9.0 10.0 7.0 6.3 5.9 5.7 5.1 5.4 5.7 4.4 4.5 4.5 4.8 4.4 4.2 4.2 4.4 4.7 4.0 3.8 3.6 3.4 5.4 3.3 3.5 3.0 3.0 2.9 3.1 4.3 2.5 2.3 2.5 3.2 2
Slide 19: POLL: Modifying reward programs for inflation, by country
COUNTRY POLL: How are organizations modifying their reward programs to help employees cope with rise in inflation? 54% organizations are on wait and watch mode, 21% organizations have incorporated it in the coming increment cycle, 20% organizations are not planning to make any changes and 5% are N =
Slide 20: POLL: Modifying reward programs for inflation, by industry
INDUSTRY POLL: How are organizations modifying their reward programs to help employees cope with rise in inflation? N = 600 78% 60% 60% 55% 51% 52% 48% 49% 34% 33% 31% 30% 24% 18% 18% 17% 15% 16% 15% 15% 13% 13% 10% 10% 8% 7% 5% 5% 4% 4% 4% Chemical Energy (Oil / Gas / Financial Services / FMCG / FM
Slide 21: Variable Payout Trends
Variable Payout Trends Across all APAC countries, employees who exceeds expectations get 1.4x variable payout as compared to the ones who meets expectation 70% Plan to pay out variable bonus as per budget in whereas employees who did not meet expectations are paid out 2022 differently across APAC co
Slide 22: POLL: Variable payout for top performers, by country
COUNTRY POLL: Variable Payout for employees who exceeds expectations If an employee who meets expectations get 100% of the variable pay, 68% organizations provide 125% - 150% of the payout to employees who exceeds expectations; 10% organizations provide 150% - 175% of the payout to them, 7% organiza
Slide 23: POLL: Variable payout for top performers, by industry
INDUSTRY POLL: Variable Payout for employees who exceeds expectations N = 574 51% 49% 48% 47% 46% 46% 46% 44% 43% 41% 38% 36% 36% 36% 35% 24% 14% 13% 11% 10% 10% 9% 8% 8% 6% 6% 5% 5% 5% 3% 3% 3% 3% 3% 3% 2% 2% 2% Chemical Energy (Oil / Gas / Financial Services / FMCG / FMCD & High Technology Industr
Slide 24: Employee Turnover Trends
Employee Turnover Trends 13% 10.3% 2.7% Median Median Median Overall APAC Turnover Voluntary APAC Turnover Involuntary APAC Turnover 24.0 18.7 15.5 14.6 14.0 13.7 13.0 12.0 12.0 12.3 11.0 11.0 10.2 2022 APAC 10.0 10.0 10.0 10.0 9.0 8.0 8.0 9.0 9.0 7.0 6.0 6.3 6.0 APAC Australia China Hong Kong, Indi
Slide 25: POLL: Functions with highest attrition
OVERALL POLL: Functions with highest attrition N = 590 49% 32% 25% 18% 16% 15% 14% 12% 12% 9% IT / Technology Sales Engineering Finance Production / Human Marketing Supply Chain Research & Project / Manufacturing Resources Development Program Management *Response percentages exceeds 100% as question
Slide 26: POLL: Functions with highest attrition (1/2)
COUNTRY POLL: Functions with highest attrition (1/2) N = 590 67% 61% 45% 36% 36% 36% 34% 32% 28% 28% 23% 22% 21% 21% 19% 19% 19% 18% 18% 18% 17% 16% 15% 15% 13% 11% 10% 9% 8% 8% 8% 8% 7% 6% 5% 5% 5% 4% 4% 1% Australia China Hong Kong, SAR of China India IT / Technology Sales Engineering Finance Prod
Slide 27: POLL: Functions with highest attrition (2/2)
COUNTRY POLL: Functions with highest attrition (2/2) N = 590 58% 52% 41% 38% 35% 35% 35% 33% 33% 28% 27% 25% 24% 24% 23% 18% 16% 15% 15% 14% 13% 11% 10% 10% 10% 7% 6% 2% 0% 0% Malaysia Singapore Thailand IT / Technology Sales Engineering Finance Production/Manufacturing Human Resources Marketing Sup
Slide 29: Attrition and Retention challenges faced in APAC
Attrition and Retention challenges faced in APAC 66 Challenges faced by organizations while recruiting % % of companies of organizations are experiencing difficulties in 70% Availability of talent (shortage of skill sets in the market) recruiting some roles 61% Competitive market (candidates have ac
Slide 30: Focus will be on internal mobility to prevent attrition
Do you adopt any of the following measures to mitigate challenges of candidate scarcity? Focus will be on We upskill our employees to internal mobility to develop the right capabilities 67.1% prevent attrition and We outsource jobs 27.2% solve the talent No, we are not experiencing shortage, especia
Slide 31: Recruiter Lens: Retention Trends
Recruiter Lens : Retention Trends “The Great Resignation” Most impacted industries 1. Technology Around 20% - 30% of the hiring is 2. E-Commerce happening on new positions Pent up demand of talent, being created as business personal development & 3. Shared Services (BPO / KPOs) expands. This % varie
Slide 32: What Makes a Difference to Employees?
What Makes a Difference to Employees? There are no silver bullets to retention. The problem is multi-faceted, and so are the solutions. Retention must be addressed as both a short-term Leadership & Alignment and long-term proposition. Here are some places to focus: • Leadership & Alignment: Employee
Slide 33: What should organizations do?
What should organizations do? Leadership & Alignment Development & Growth Respect & a Fair Deal • Create purpose and alignment • Inspire new career experiences • Human centric approach •EVP alignment • Succession planning •Employee well-being •Compelling ESG • Right employee in right role •Multi cha
Slide 34: The key to employee retention is an attractive rewards plan
The key to employee retention is an attractive rewards plan Are you currently having to pay new hires higher How do you plan to manage internal relativity issues? remuneration rates than existing employees? 4% Yes No 9% 36% 46.7 Out-of-cycle remuneration review 10% Undecided 53.3 Retention bonuses f
Slide 35: POLL: How are organizations planning to manage the internal equity?
POLL: How are organizations planning to manage the internal equity? Off cycle Higher annual Market corrections in compensation review increments for existing coming increment for critical roles / hot employees vs new cycle skills hires Use of sign-on bonus for new hires to pay Pay ranges review for
Slide 36: 70% organizations have or plan employee retention measures
70% organizations have / or are planning to implement employee retention measures No, we haven’t and are not planning 29.8% Yes, offering above the market pay 29.3% Yes, remuneration review beyond regular rem review cycle 28.7% Yes, offering retention bonus 25.9% Yes, offering LTIs 13.1% Yes, other,
Slide 37: Korn Ferry Pay
Korn Ferry Pay Our Online Rewards Solution that turns data into business relevant insights and help you manage your rewards programs effectively!! © 2022 Korn Ferry. All rights reserved
Slide 38: Features of KF Pay
Features of KF Pay Rewards Benchmarking Rewards Health Check My Modelling Peer Groups Compensation & Benefits Report • Assess the external • Check if you are • My Modelling is a data • Create and store up to 20 competitiveness peer groups. Download pdf reports to structured properly environment with
Slide 39: Join our Compensation & Benefits survey
Join our Compensation & Benefits survey to make informed pay decisions using the world’s most comprehensive compensation and benefits database 1. Register your interest via registration form. 2. Submit your organization's salary data and pay policy information via secure online data collection tool

Korn Ferry — APAC Reward Trends webinar: The Great Resignation: APAC Perspective (May 2022) on 6ix

Korn Ferry — APAC Reward Trends webinar: The Great Resignation: APAC Perspective (May 2022)

Slide 1: APAC Reward Trends: The Great Resignation: APAC Perspective

Slide 2: Meet your presenters and agenda

Slide 3: Know your audience: Industry Demographics

Slide 4: Know your audience: Location Demographics

Slide 5: Korn Ferry's POV: What is The Great Resignation?

Slide 6: Global Talent Trends

Slide 7: The Big Quit – Why?

Slide 8: The Big Quit – Why Now?

Slide 9: POLL: Reasons that are making employees leave the organization

Slide 10: POLL: Reasons employees leave, by country

Slide 11: POLL: Reasons employees leave, by industry

Slide 12: Economic & Business Outlook

Slide 13: Significant slowdown in global growth in 2022

Slide 14: Positive Projections for Business in 2022 across the region

Slide 15: 91% of the organizations have increased their HR budget

Slide 16: POLL: Inflation in increment strategy, by country

Slide 17: POLL: Inflation in increment strategy, by industry

Slide 18: Salary increases are expected to be higher than past 2 years

Slide 19: POLL: Modifying reward programs for inflation, by country

Slide 20: POLL: Modifying reward programs for inflation, by industry

Slide 21: Variable Payout Trends

Slide 22: POLL: Variable payout for top performers, by country

Slide 23: POLL: Variable payout for top performers, by industry

Slide 24: Employee Turnover Trends

Slide 25: POLL: Functions with highest attrition

Slide 26: POLL: Functions with highest attrition (1/2)

Slide 27: POLL: Functions with highest attrition (2/2)

Slide 28: Retention Practices

Slide 29: Attrition and Retention challenges faced in APAC

Slide 30: Focus will be on internal mobility to prevent attrition

Slide 31: Recruiter Lens: Retention Trends

Slide 32: What Makes a Difference to Employees?

Slide 33: What should organizations do?

Slide 34: The key to employee retention is an attractive rewards plan

Slide 35: POLL: How are organizations planning to manage the internal equity?

Slide 36: 70% organizations have or plan employee retention measures

Slide 37: Korn Ferry Pay

Slide 38: Features of KF Pay

Slide 39: Join our Compensation & Benefits survey

Slide 40: Thank you!

Slide 41: Appendix

Slide 42: How are organizations planning to manage the internal equity? (1/7)

Slide 43: How are organizations planning to manage the internal equity? (2/7)

Slide 44: How are organizations planning to manage the internal equity? (3/7)

Slide 45: How are organizations planning to manage the internal equity? (4/7)

Slide 46: How are organizations planning to manage the internal equity? (5/7)

Slide 47: How are organizations planning to manage the internal equity? (6/7)

Slide 48: How are organizations planning to manage the internal equity? (7/7)