The Importance of Talent Management in the Middle of the Technology Industry Turmoil

Indonesia's technology industry is experiencing turmoil, as can be seen from news layoffs by a number of startups. This is often associated with projections of a global recession that will occur in 2023. Companies are aggressively carrying out efficiencies and restructuring to avoid a bigger impact and extend runways.

In this act of efficiency, employees are often one of the most affected. Meanwhile, people or employees themselves are assets, an essential part of the business operations of a company. Good employee management can determine how the company's career will go forward.

At the start of this month, Alpha JWC Ventures, in partnership with Kearney and GRIT, launched a report entitled "ASEAN Growth & Scale Talent Playbook". The survey was conducted from August to September 2022, involving more than 600 employees in 34 companies from Singapore, Malaysia, Thailand, Indonesia, Vietnam and the Philippines.

This report aims to educate and assist the founder or digital startup management in attracting, managing, and developing human resources effectively and sustainably. With stiff competition, shifts mindset, as well as ongoing economic challenges, it is important for stakeholders to understand this HR landscape.

One of the interesting findings from this research is, 9 out of 10 tech companies have difficulty recruiting employees especially those with technical and non-technical capabilities. Conversely, 91% of employees said they were open to leaving their company if a new opportunity arose.

Challenges faced

This report also describes some of the reasons employees want to leave the company to seek new opportunities. As many as 32% of respondents stated that compensation, including salary and benefits greatly influenced their decisions. It states that the average employee considers leaving for a 15%-30% raise.

This poses a new challenge for startups, especially small-scale startups, if they have to compete giant tech companies which is already expanding globally and offers very competitive compensation. Therefore, companies must be able to attract talent with other things, such as company culture.

As much 25% of respondents consider leaving the company due to a difference in vision and cultural mismatch. Therefore, culture or work culture in a company becomes essential when associated with employee loyalty. On the other hand, flexibility is also an aspect that also influences an employee's decision to stay or leave.

In addition, 24% of respondents feel there is a need for opportunities to learn and develop within a company. Without it, they will feel stagnant or undeveloped, which prompts them to look for better outside opportunities to support their own skill development.

Ideal talent management

ASEAN's Growth & Scale Talent Playbook was launched as a guidebook to assist startups in dealing with issues in the field of workforce management. The report also mentions six important pillars that companies can use to attract, build and retain a digital workforce.

Kearney's Partner & President Director Shirley Santoso said, "Developing solid human capital is one of the most important priorities and the main key for companies so that their digital vision can succeed. Of course this can only be achieved with joint efforts between company leaders and other ranks in ongoing effort, also encompassing all levels of the organization."

Also attending the panel discussion at the launch of this report, Co-founder and CEO of Bobobox Indra Gunawan. He revealed that value company is something that is essential to ensure business continuity. In Bobobox itself, there are three value which is always held tightly, that is attitude, obsessive curiosity, and overcommunicate. According to him, these three values ​​can create a company's resistance to various threatening negative influences.

Co-founder and CEO Lemonilo Shinta Nurfauzia who was also one of the speakers at the event shared her opinion. He admits that he is still struggling to get quality talent, he even has to recruit trusted friends or relations to help in the company's early days.

It's not easy to find people who have the same vision as a company that sells 'healthy' tasting products at relatively more expensive prices. Up to now, the company has decided to keep the amount relatively small until several rounds of funding go ahead.

With a total of around 250 employees, this strategy has proven profitable for both the company and employees. "We want to keep our numbers small so that any profit or whatever the company generates, it all goes back to a small number of people and we can give [employees] more," he said.