4. Dear members,
R
ecent government statistics
show that Hong Kong’s
employment rate from June
to August remained at a
relatively low level of 3.3%, amidst
global economic uncertainties and a
slowdown in China’s economy. The
alarming slip in Mainland visitor
numbers, combined with Hong Kong’s
strong currency and volatility of the
stock markets, has adversely affected
our key economic sectors including
retail, hospitality, accommodation
services and export trade. Faced with
uncertainties, HR practitioners need to
be innovative, strategic and resourceful
to turn challenges into opportunities
for their companies.
Recently, the government has been
exploring the possibility of MPF/ORSO
offsetting of long service payment and
severance payment. This is a matter
with significant impact not only on
employers and employees but also on
Hong Kong’s economy and business
environment. Thorough consideration
of employee relations, business
impact and legislation will be
needed. HKIHRM will offer platforms
and take a proactive role in the
consultation process.
The Institute successfully organised the
7th Two-Shore Four-Place Employee
Relation Forum on 23 September,
where more than 15 HRM experts,
academics and policy strategists from
Mainland China, Hong Kong, Macau
and Taiwan gathered to share their
thoughts on trends, challenges and
opportunities. We had the honour
of Mr Eddie Ng Hak-kim, SBS, JP,
Secretary for Education officiating the
forum and addressing more than 100
participants. Topics included strategic
talent management, youth employment
and training, cross-generation
workforce, among others. We hope
that through this platform, our HR
practitioners and participants would
better understand the impact created
by the HR profession at corporate and
social levels.
Thanks to the steadfast support of
our members, the Institute’s tri-
annual Benefits Survey has received
encouraging response from more
than 200 participating companies;
findings are expected to be announced
in January 2016. Meanwhile the 2015
HKIHRM Pay Trend Seminar will take
place on 3 November at the Regal
Hong Kong Hotel where key findings of
the Pay Trend Survey will be revealed,
alongside pay changes, reward trends
and practices.
While we are counting down to the
important dates for the 35th HKIHRM
Annual Conference and Exhibition in
November, the 2015/2016 edition of
HR Excellence Awards has been rolled
out and applications are accepted
until 4 December. The Awards are
aimed at recognising organisations
and individuals who achieve business
success through outstanding people
management strategies. Interested
members and HR practitioners should
grasp this opportunity to share with
our HR community people strategies
and exemplary cases in HRM that have
made your company thrive.
In this issue, our cover story features
an exclusive interview with Matthew
Cheung Kin-chung, Secretary for
Labour and Welfare of the HKSAR
Government who talks to the Institute’s
Executive Director Ms Kwan Kin-
mei about labour relations and the
challenging roles of Hong Kong HR
professionals. You will also find our
interview articles of May Tan, CEO of
Standard Chartered Bank (HK) Limited,
and Edgar Tung, Managing Director,
Group HR, Organisation Development
and Communications at Esquel Group,
among other equally interesting stories
on topics such as work-life integration
and individual income tax compliance
for expatriate employees in China.
David Li
President of HKIHRM
Turning
Challenges
into
Opportunities
President’s Message
4 HUMAN RESOURCES • October 2015
5.
6. Helping Staff to Achieve Full
Potential Helps Standard Chartered
to Deliver Performance
Annual Conference
As the CEO, what are the most
important priorities of your job?
The strategic intent of our Bank is
to work with people and companies
driving investment and trade, and
create wealth across Asia, Africa and
the Middle East. On the ground, this
strategic intent translates into building
social legitimacy for the Bank to take
root in a community, and to prove that
we are “Here for good”. That is my
top priority.
On one hand, the Bank has to be able
to generate income and help our
clients create wealth. On the other
hand, we must establish best practice,
adhere to our Code of Conduct,
collaborate with one another, engage
staff and maximise their performance.
To achieve these, we need a team of
highly motivated and dedicated staff
May Tan, CEO, Standard Chartered Bank (Hong
Kong) Ltd, will speak at the CEO Plenary of the
35th HKIHRM Annual Conference & Exhibition
on 24 Nov. Find out more at www.hkihrm.org
who believe they can make things
happen and are ready to go the extra
mile in order to deliver results. We
listen to their thoughts and ideas,
and strive to continuously build a
collaborative culture. I’m glad that we
have a team of highly engaged staff.
How would you describe Standard
Chartered’s company culture and
what are the components of
building it?
We believe that a bank can be about
more than just the profit it makes. Our
brand promise, “Here for good”, and
our five core values – courageous,
trustworthy, responsive, international
and creative – are at the heart of
our culture.
Our brand promise sets out our
commitment to people, including
our employees and the communities
in which we live and work; and our
commitment to building a sustainable
and responsible business for the
long run.
Our core values set out the expected
behaviour of how we do our business
with clients and how we work with
our colleagues.
We are client-focused and strength-
based. Being client-focused, our
services to our clients are
relationship-driven rather than
product-driven. By developing the
strengths of our employees, valuing
their unique perspectives and
enabling them to make a difference
to our success, we are helping our
employees to fulfil their potential,
while delivering performance for our
shareholders and doing good for our
customers, communities and staff.
6 HUMAN RESOURCES • October 2015
7. How do you make sure when you hire
people that they buy into the company
culture?
We have a comprehensive hiring
process that emphasises two-way
communication between the Bank and
the prospective candidate. We apply
hiring tools to assess the fit between
the person and the organisation, such
as culture fit assessment for frontline
roles and graduates, and structured
leadership interview and assessment
for senior leadership roles. During the
interview process, we seek to explain
early on what it means to work at
Standard Chartered and why we
are different.
Our values are vital in bringing our
unique culture to life, and we seek to
build a team that shares and actively
lives these values in their day-to-
day work. In identifying the right
candidates, we look for people who
possess those qualities that make up
our values – courageous, responsive,
internationally-minded, creative
and trustworthy.
We also look for certain other
attributes including teamwork, the
desire to do good, and the ability
to perform at a consistently high
standard. People with these values are
likely to be a good fit for us, and are
also likely to enjoy working here.
Based on Standard Chartered’s
experience, what could companies do
to support an inclusive and family-
friendly workplace?
Being “Here for good” also
encompasses being “Here for people”.
It is important that we create an
inclusive and family-friendly workplace
for our own people. We have policies
and resources in place to attract and
retain talent based on merit, so as to
ensure equal opportunities for women
and men, and people with disabilities,
different family positions, or
sexual orientation.
We have established strong support
networks among particular groups of
staff. We have a women’s network, a
parents’ and caregivers’ network, and
an LGBT network. These networks
facilitate social support, flow of
information and guidance among staff
with similar backgrounds.
We have also put in place a suite of
family-friendly working arrangements
across our markets to help colleagues
with family responsibilities, such as
part-time work, flexible hours and
working from home.
We implemented paternity leave in
Hong Kong in 2008, well ahead of the
statutory requirement which came in
force this year. To respect people
who may prefer civil partnership
over the traditional form of marriage,
our spouse benefits extend to
domestic partners.
How do you align your company’s staff
development needs on both personal
and professional levels with your
company’s goals?
We want our people to excel. We
consider the unique strengths of
each of our employees and provide
them with the right technical and
professional training to help them
realise their potential and perform to
an exceptional standard.
Our development programmes are
aimed at ensuring that our staff thrive
in their current role, and are well-
positioned to take on new opportunities
as they arise. We seek to expand the
capability of staff in areas ranging from
negotiation and influencing through
to process improvement and project
management, and many others in
between. In addition, each business
function also has specific learning
programmes designed to meet the
specific needs of its team.
Development objectives form part of
the overall job objectives for every
employee. At the beginning of the
year, when we set the job objectives,
employees and managers will jointly
agree on the development options
aligning to job requirements, career
advancement and personal growth
aspirations. This will be tracked as
part of the performance in discussions
between the employee and the
manager throughout the year.
What are the most important factors
that contribute to high employee
engagement? How do you see the role
of employee engagement in future?
Engaged employees mean happy
customers. Globally we have more than
90,000 employees across 71 countries.
And in Hong Kong, our more than
6,000 staff comprises over 30 different
nationalities. It is exceptionally
important to keep our highly diverse
employees engaged.
To build an engaged workforce, it is
important for the employees to share
the values the employer advocates.
Our sense of shared values helps
us feel and behave as one team
across our different markets and
business functions.
We also seek to provide an exceptional
and compelling employee experience,
and understand and meet the
needs of our diverse employees and
managers. It is also important for
employees to have opportunities
for development.
Not only do we facilitate employees
to learn in order to excel in their
existing roles, we also provide
opportunities and support for them to
expand their roles or try out a different
role in another department or even
another country.
We have been running an annual
employee engagement survey called
“My Voice”, where employees can
give feedback about the Bank, the job
and the people in the workplace. We
respect the voices of our employees.
Employees will be invited to a two-
way action planning session where
managers will share the My Voice
results, be it positive or negative, and
jointly formulate engagement action
plans with employees, including
regular monitoring, making Standard
Chartered a great place to work.
7HUMAN RESOURCES • October 2015
8. Annual Conference
What are the most important traits of
a leader?
If we do a Google search for
“leadership traits”, we can easily come
up with hundreds of them. To me, there
are three important and defining traits
of a leader:
• Leaders do not command excellence;
they build excellence. So, one of the
most important traits of a leader is
the ability to attract talent. A good
leader is not necessarily the
brightest person in the team, but
has the ability to attract and inspire
and bring out the best in them.
• A good leader is also a visionary,
with the ability to handle
complicated situations and come up
with simple and aligned goals for
the team.
• Finally, a leader should have a
positive and courageous mind to
enable the team to sail through
rough waters with calmness and
confidence.
You spend a lot of time on youth
leadership development. Based on
Edgar Tung, Managing Director
of Group HR, Organisation
Development and Communications,
Esquel Group, will speak at the
Senior HR Forum of the 35th
HKIHRM Annual Conference &
Exhibition on 25 Nov.
Find out more at www.hkihrm.org
Grooming People from Within for
Sustainable Business Success
your experience, what are the best
methods of grooming leaders at a
young age?
My favorite quote to the young
generation is one from Einstein:
“Everybody is a genius. But if you judge
a fish by its ability to climb a tree, it
will live its whole life believing that
it is stupid.”
To groom young talent, it is important
to recognise their uniqueness and
appreciate the diversity in talents.
We should help young people identify
their passion and not to “mould” them
into stereotyped “leaders”.
To do so, we should create the right
environment and provide the right
tools for them to discover their own
talents and unleash their potentials.
I often encourage them to read books
of genres and topics new to them,
and to venture out of their comfort
zones to put their ideas into practice.
It is perfectly okay to make mistakes,
especially when you’re still young.
Most importantly, you learn from
these mistakes the hard way!
What will be the major disruptors of
leadership and the human resource
system as we know them now?
Technology and innovation have
always been major disruptors,
dating back as early as the Industrial
Revolution. I believe they will continue
to be a sine qua non and every leader
needs to embrace them. To effectively
reach out to the millennials, digital
presence has become as important
and relevant as physical presence,
both for companies and for leaders.
At Esquel, for example, we are an early
adopter of the enterprise social media
network Yammer. We currently have
an active user base of 5,000 and many
new ideas are fostered from active
exchange of views on the platform.
At our manufacturing facilities, we
taught workers to create mobile apps
through AppInventor, a tool developed
by MIT that allows transforming ideas
into computer codes just like building
Lego blocks. In recruitment, we
asked candidates to answer questions
and perform dexterity tests through
notepads. While an effective digital
8 HUMAN RESOURCES • October 2015
9. strategy does not guarantee success,
the lack of it will be detrimental.
What will be the major challenges for
leaders and HR practitioners and what
solutions do you envisage?
Throughout the years, HR has
evolved from a passive “personnel”
role to an active “human capital
management” one. Instead of just
focusing on standard policies and
procedures, the best HR people
partner with leaders of companies
to ensure the businesses have the
necessary and right talent to deliver
the aligned goals.
In the corporate world, it’s not always
about maximising profits. To some,
sustainable development is something
that is in conflict with profit-making.
Therefore, the major challenge for
leaders is how to weave the interests of
society into business interests.
Esquel is in the industry of apparel
manufacturing, where companies
believe that growth must be tied
with the overuse of labour and that
competition must be based on low
wages. At Esquel, we aspire to “make
a difference”. We believe, by doing your
business right, you also do right to your
society. This will enable your business’s
sustainable development and maintain
your competitive edge. Through
deploying technology, re-engineering
processes, training and developing
talent, we help our workers improve
their productivity, and hence their
income, driving social progress for our
56,000 employees and their families.
We grow together with our employees.
What kinds of talent development
programmes are available at your
company?
People are our biggest and most
important asset. To fill some
development gaps we identified, a few
years ago we established the Esquel
University, a platform that provides
a structured training curriculum and
progressive development opportunities
for our people. Programmes range
from on-boarding for new joiners,
technical and management skill
workshops and e-learning based
programmes, to executive talks,
seminars and conferences. These
opportunities are available to all of
our workers, supervisors, technical
specialists, managers and executives.
We also have three graduate trainee
programmes (management trainees,
operation trainees and production
trainees) as well as GOAL, the Growth
Opportunities for Accelerated Leaders
programme, to build our talent
pipeline. The trainees are often rotated
to different functions in our global
operation, involved in cross-functional
projects and mentored by our senior
management.
How do you keep development goals
aligned with your company’s culture
and business goals?
What would you advise to our readers
on growing their new potential
leaders?
“People Caring” is imprinted in the
DNA of Esquel. We put people at the
heart of our business, and we believe
this determination is key to any
successful business growth.
“Grooming people from within” is our
key people strategy. We strive to create
an environment where our people dare
to err and continue to grow, so that
they can find meaning in their work,
realise their full potential and map out
a trajectory for individual success. We
appreciate diversification of workforce
and we empower our staff to be
independent critical thinkers. Over half of
our senior management are home grown
“Esquelers”, who started their careers as
trainees and eventually became general
managers of our business units.
My advice to readers on growing their
new potential leaders is to start with
careful recruitment and start training
them early in their career path, during
which we must challenge and stretch
them so they can learn and grow, while
providing the necessary “tender loving
care”. Most often, you learn as much by
being a mentor as a mentee.
SPONSORS
• Standard Chartered Bank
(Hong Kong) Limited
• Cornerstone OnDemand
• Microsoft Hong Kong Limited
• Multiable
• Ricoh Hong Kong Limited
• Agile 1 Hong Kong - Asia Pacific
Limited
• CLP Power Hong Kong Limited
• FlexSystem Limited
SUPPORTING ORGANISATIONS
• Amcham CHRMA
• The American Chamber of Commerce
in Shanghai
• Business and Professionals
Federation of Hong Kong
• The Chinese General Chamber of
Commerce
• Chinese Human Resource
Management Association
• The Chinese Manufacturers’
Association of Hong Kong
• Continuing Professional Development
Alliance
• The Council of Hong Kong
Professional Associations
• Employers’ Federation of Hong Kong
• ER Club
• Federation of Hong Kong Industries
• Hong Kong General Chamber of
Commerce
• The Hong Kong General Chamber of
Small & Medium Business
• The Hong Kong Institute of Directors
• The Hong Kong Retirement Schemes
Association
• Hong Kong Small & Medium
Enterprises Association
• Human Resource Association for
Chinese & Foreign Enterprises,
Beijing
• HR Excellence Center
• Hroot
• The Macau Human Resources
Management Association
HKIHRM’s heartiest thanks to:
9HUMAN RESOURCES • October 2015
10. Show Compassion: Labour
Relations is Not a Zero-sum Game
What type of qualities should a human
resource professional possess?
Human resource professionals have a
very important, yet challenging role to
play in today’s business landscape and
labour relations, as they are required
to possess multi-faceted competencies
and the ability to tap into prevailing and
upcoming trends across all sectors.
Whichever industry an HR practitioner
is in, be it pharmaceutical or hotel
or any other specialised areas, he or
she needs to have a good knowledge
of the industry. For example, if they
work in the hotel industry, they have to
understand all aspects of operations in
order to hire the right talent at various
levels for different job functions, from
kitchen helper to top chef.
HR management goes well beyond
recruitment, retention and training. In
order to keep up with the fast-changing
• HR professionals should be
able to find a fine balance
between a company’s
interests and the interests
of employees, says
Secretary for Labour and
Welfare, Matthew Cheung
Kin-chung.
• Hong Kong has an ageing
workforce and companies
should reach out to the still
untapped workforce.
Secretary for Labour and Welfare of the
HKSAR Government, Matthew Cheung
Kin-chung talks to Kwan Kin-mei, Executive
Director of HKIHRM about the challenging
roles of Hong Kong HR professionals.
local socio-economic and global
environment, HR practitioners need
to keep abreast of everything from
business development to geo-political
challenges. They need to be politically
sensitive, given Hong Kong’s special
demographics, economic importance
and close relationship with the
mainland. These are factors that will
affect our talent pool.
As an essential business component
of any company or organisation, HR
professionals should be well-versed in
laws and regulations and sensitive to
the differences in various generations
Cover Story
Photo:SCMP
10 HUMAN RESOURCES • October 2015
11. marketing department needs to go
lean, HR needs to ask the top echelon
to consider seriously in the first place
whether back office staff can absorb
the extra headcount to solve the
staff shortage.
As Hong Kong becomes an ageing
society, it will be a challenge to replace
a generation of departing workers with
new blood. HR professionals are using
multiple tactics to find the right people
and attract them, be it head-hunting or
road shows to promote their company.
All HR practitioners are in essence the
company’s sales representatives who
contribute to employer branding.
Hong Kong boasts a population of 7.3
million, among whom there are 1.1
million people aged 65 or above (or one
in seven of the entire population). By
2041, the elderly population will grow
to a significant 2.56 million (or one
in three). This poses a big challenge
as our low unemployment rate is
compounded by an ageing population
and a low birth rate. While our labour
in the company’s workforce mix.
For example, when it comes to staff
engagement, it’s important to manage
young people’s job aspirations, as most
of them are looking for a better work-
life balance. These days it takes HR
professionals more patience than ever
to recognise the differing values of our
younger workers and groom them. Yet,
engaging this generation of workforce
is very important to sustain our
talent pipeline.
An HR practitioner should not simply
look at himself or herself as a “profit
guardian”, especially when it comes to
labour disputes. He or she should play
a genuine mediator’s role and be able
to show compassion in the workplace.
They need a good sense of fairness
and proportion. They need to strike
a fine balance between a company’s
interests and the interests of
employees. Even in routine office
management, compassion can be
shown through small things such
as arranging more window desks,
breastfeeding room and removing
unnecessary cubicles to create a warm
and caring working environment.
When problems arise, the HR
practitioner should have the courage
to speak up and reflect the employees’
views impartially. For example, if the
force will reach a peak of 3.7 million
(excluding foreign domestic helpers
who now add up to 337,000) in 2018,
it will fall to 3.5 million in 2035. It
will be extremely challenging for HR
professionals who are in the driver’s
seat of any organisation to sustain a
healthy talent pipeline.
How is the government tackling the
shrinking workforce?
I believe that there is untapped human
capital in Hong Kong, namely the
early retirees, housewives, ethnic
minorities, persons with disabilities,
immigrants from the mainland who
settle here for family reunion. However,
to unleash the potential of the local
workforce, Hong Kong companies need
to be more flexible about employment
contracts, more open-minded and
embrace overseas talent or the socially
underprivileged and disadvantaged.
This also ties in with the notion that HR
professionals need to pay attention to
government policies and keep abreast
of community developments. In this
respect, an HR professional plays the
A group photo of the awardees and Mr Matthew Cheung at the HKIHRM HR Excellence Awards 2013 presentation ceremony.
HR professionals should be well-versed in laws and
regulations and sensitive to the differences in various
generations in the company’s workforce mix.
11HUMAN RESOURCES • October 2015
12. Cover Story
key role of an internal lobbyist with the
company’s management.
For those who retire early, many
of them are still fit for work. Some
could work until 70 but the company’s
policy might not allow them to. This
is where some employers can blaze
a trail. In June, the government
announced a new retirement age, 65
for civil servants in general and 60 for
members of the disciplined services
such as the police. The retirement age
for both groups is currently 60 and
55 respectively. What employers and
HR heads need to recognise is their
experience – one of the strengths of
this age group. Employers could
attract retirees back to the job market
by offering them flexible work hours
and an advisory role, which would
not block the promotion prospects of
younger staff.
There are measures and policies that
employers can adopt to help release
potential manpower in Hong Kong
to create a sustainable workforce to
fuel our city’s economic development.
For housewives, the government has
found that about six per cent of 637,500
full-time housewives are willing to
return or join the labour market. The
question is how to attract them to do
so. As not all of them can take up full-
time employment, companies need to
be more flexible, family-friendly and
accommodating.
Hong Kong has more than 570,000
people with disabilities and some of
them can still be economically active
and contribute to society. HR managers
need to encourage employers to go for
more social inclusion. The government
has subsidy schemes for companies to
refurbish and upgrade the workplace
for staff with disabilities. For ethnic
minorities, we have about 60,000
from Pakistan, India and Nepal. While
they may not be proficient in written
Chinese, many can speak English and
near-native Cantonese. A number of
them are working in the construction
industry now. There are other areas
such as logistics, catering and tourism
where they may contribute too.
It is noteworthy that as part of our
population strategy, the government
has adopted the new initiative of
attracting the second generation of
Hong Kong people who were born
overseas, with one of their parents
originally from Hong Kong, to return
and work here. We have altered
immigration policies to enable such
young adults (below the age of 40) who
come to Hong Kong to be eligible to
stay for one year to find work.
How can HR practitioners prepare
themselves for labour disputes?
HR teams should bear in mind that
labour relations is not a zero-sum
game. In this respect, they play the
role of a bridge-builder and trouble-
shooter. Very often, mediation skills are
important. HR needs to find common
ground and be a successful and
honest broker, not only to safeguard
an organisation’s interests, but also
to fairly and truthfully reflect the
legitimate sentiment of employees and
HKIHRM Executive Director Kwan Kin-mei had a fruitful conversation during the interview
with Mr Matthew Cheung.
Mr Matthew Cheung was the
Judging Panel Chair of HKIHRM
HR Excellence Awards 2013.
12 HUMAN RESOURCES • October 2015
13. It takes a truly
professional HR to master
the art and science of
HRM in order to champion
this very important role
between the management
and the employees.
achieve a win-win outcome. This is a
fine balancing act and, admittedly, a
rather difficult one.
Let me share with you a real story that
happened during the SARS outbreak
in 2003, when business was hard hit,
particularly for restaurants. I have
come to know a restaurant owner who
encouraged all his staff to return to the
restaurant as usual even when there
was hardly any business so that they
could socialise, play mah-jong, watch
television, have free meals provided
in-house by the employer and even
take home unconsumed food. The
employees were deeply touched by the
care and compassion of the employer
during this very difficult “down time”
and they reciprocated with exceptional
zest, efficiency and loyalty during the
post-SARS period when business
returned to normal. This restaurant is
now thriving.
What is your advice to HR
professionals trying to enhance their
influence in an organisation?
An HR professional wears several hats
and should be versatile in the various
roles that he or she plays. The person
should be ready to gain new knowledge
constantly by tapping into the business
environment and being politically
sensitive. They should be good
listeners and keen observers and must
not rely on hearsay when performing
their duties. A successful corporation
should consider including the head
of HR on its board of directors. Most
companies think that it is the finance
director’s responsibility to oversee the
expenditure. However, a significant
part of expenditure is related to staff.
This is why the HR head should be
included on the board so that he /she
has access to the top management
and can influence them. What is more
important, this can ensure that he/
she is privy to what is going on, is not
operating in a vacuum and can speak
out when the company is going in the
wrong direction, for example when it is
losing talented and committed staff.
To sum up, our HR professionals need
to be very eloquent, persuasive, as
well as conscientious and committed
to the company, but at the same time,
they should also be compassionate
about the employees. The successful
HR head is a glorified employee who
has the full confidence and trust of the
company but at the same time can win
both the mind and heart of all staff. It
takes a truly professional HR to master
the art and science of HRM in order
to champion this very important role
between the management and the
employees.
Mr Matthew Cheung shared his thoughts
with HR practitioners at a breakfast meeting
organised by HKIHRM in 2012.
This interview is part of an on-going
stakeholder consultation on the
PRODUCTION OF SPECIFICATION OF
COMPETENCY STANDARDS (SCS) for
THE HUMAN RESOURCE MANAGEMENT
SECTOR that HKIHRM has been
commissioned to do.
13HUMAN RESOURCES • October 2015
18. • Professionals in all industries are moving from work-life balance to work-life integration, where work
and life are intimately intertwined – and leveraging technology to make it happen.
• To attain an edge in talent recruitment and retention, organisations have to recognise that meeting the
diverse range of needs from employees across their various life stages through work-life programmes
can be a good strategy to create win-win outcomes in today’s highly competitive business environment.
From Work-life Balance to Work-life
Integration – The New Way Forward
T
raditionally, “work-life balance”
is a business imperative directly
impacting productivity and
business performance, and is
the goal of almost every modern day
professional to maintain an overall
sense of harmony in life. Work-life
balance has long been considered a
strict separation between work and
personal life, but the lines between the
two have gradually become blurred,
By Gigi Liu, Corporate Director, Marketing and Communications, The Executive Centre
What’s Hot
attributable to the technological
advancements which allow people
to be constantly connected and
businesses to be active and accessible
at all times without boundaries.
With the capabilities of modern
technology, “work-life integration”,
a new concept in which work and
life are intertwined, is emerging and
is perceived to be the future of the
working world.
Work-life integration trumps work-
life balance
Today, we are living in a 24/7 business
environment. Professionals in all
industries demand instant gratification
and instant connectivity, and desire
to optimise their precious time as
effectively as possible. The boundaries
between work and home-life are
increasingly indistinct as they find
themselves more connected to the
Photo:iStockphoto
18 HUMAN RESOURCES • October 2015
From Work-life Balance to Work-life
Integration – The New Way Forward
19. office and often handling work-related
responsibilities at home. Globalisation
and technology’s impact on the work
environment have forced people to
find a way to integrate their work and
personal responsibilities, casting out
the notion of work-life balance in
order to build better work-life
integration practices.
The Executive Centre, a serviced office
provider in Asia Pacific, has recently
conducted a survey on “Work-Life
Integration” among 200 business
executives, aiming to gauge their
attitudes and thoughts regarding
the quality of their professional and
personal lives, and how that quality
might or might not have changed in
meeting the challenges of work. Most
of the business executives polled were
based in Asia Pacific, and they mainly
worked in the banking and finance,
consulting, IT, technology and
retail sectors.
According to the survey, 92% of them
agreed there was a global trend
of work-life integration driven by
the power of the Internet, mobile
technology, video conferencing and
email communications which allow
people to work virtually anywhere with
connectivity. At the same time, 30%
of the respondents have experienced
a decrease in the amount of leisure
Work-life integration
*Most of the business executives polled were based
in Asia Pacific, and they mainly worked in the banking and
finance, consulting, IT, technology and retail sectors.
and personal time, mainly due to an
increase in globalisation and mobile
technology, which requires many of
them to be available outside their
normal working hours. The majority of
the respondents are so connected that
they even make themselves accessible
during vacations, with 91% of them
either always available to respond to
emails and contactable at any time
or sometimes available and can be
contacted at specific times.
The survey results also revealed that
while modern executives are working
more hours and in more locations
Source: The Executive Centre
A survey on “Work-Life Integration” among *200 business executives, aimed to gauge their attitudes and thoughts
regarding the quality of their professional and personal lives, and how that quality might or might not have changed
in meeting the challenges of work.
92%
30%
91%
56% 80%
Percentage of respondents agreed there
was a global trend of work-life integration
driven by the power of the Internet, mobile
technology, video conferencing and email
communications which allow people to work
virtually anywhere with connectivity.
Percentage of respondents
have experienced a decrease
in the amount of leisure and
personal time.
Percentage of respondents either always
available to respond to emails and
contactable at any time or sometimes
available and can be contacted at specific
times during their vacation.
Percentage of respondents still
very satisfied with their overall
balance between work life
and personal life attributable
to the work-life programmes
implemented by their companies.
Percentage of respondents said
their companies offer flexible work
arrangements and part-time schedules.
Work-life integration, a new concept in which work and
life are intertwined, is emerging.
19HUMAN RESOURCES • October 2015
20. What’s Hot
now than in the past, over half (56%)
are still very satisfied with their
overall balance between work life
and personal life attributable to the
work-life programmes implemented
by their companies. A high 80% of the
respondents said their companies offer
flexible work arrangements and part-
time schedules.
Perspectives from business
executives on the “new norm”
In order to achieve a beneficial
work-life balance through work-life
integration, a majority of the executives
in the survey are placing the highest
value on flexible work schedules and
telecommuting as the most valuable
non-financial employee benefits.
From their perspectives, work
performance should be evaluated by
outcomes and deliverables rather than
hours clocked and physical presence
in the office, and meanwhile, every
employee has different work-life needs
and should have the flexibility to attend
to family issues and accommodate
kids’ schedules, doctor appointments
and other personal concerns. Flexible
work arrangements thus are perceived
to improve productivity and job
satisfaction, increase retention and
improve loyalty and commitment.
According to the survey, their most
preferred flexible way of working is to
conduct telework on an ad-hoc basis
for important family and personal
needs or take time off during workdays
without loss of pay. They also prefer
taking sabbaticals - leaves paid or
unpaid of six months or more for
personal reasons.
Best practices on work-life
programmes
Apparently, today’s professionals are
interested not only in intellectually
challenging work and the opportunity
to contribute to company goals, but
also in finding work environments
that are flexible to meet personal life
needs and interests. To attain an edge
in talent recruitment and retention,
organisations have to recognise that
meeting the wide range of needs from
employees across their various life
stages through work-life programmes
can be a strategic business tool for
win-win outcomes in the current
competitive business environment. In
implementing effective and
sustainable work-life programmes, the
organisation, managers and employees
all need to play their part, and the key
to success lies in the workplace culture
based on reciprocity and trust, with the
responsibility for work-life integration
shared among them.
Here are the three best practices on
how an organisation can implement
a successful work-life integration
programme which not only facilitates
telecommuting along with flexible
working arrangements but also makes
the organisation an attractive place to
work at for employees.
1. Assess employees’ different work-
life needs
A work-life strategy is not a one-
size-fits-all approach as workforces
across industries are multi-faceted,
with groups of various ages and
cultural backgrounds, at different life
stages and with diverse needs. Thus,
Flexible work arrangements thus are perceived
to improve productivity and job satisfaction, increase
retention and improve loyalty and commitment.
Photo:iStockphoto
20 HUMAN RESOURCES • October 2015
21. a key aspect of planning work-life
initiatives well is first to recognise
the degree to which one manages
potentially conflicting family and work
responsibilities. This can take many
forms and ranges from flexible work
arrangements to family care leave
to having on-site child care facilities.
Conducting a regular company-wide
survey can provide invaluable insights
to help companies shape existing
strategies and work-life programmes,
and implement new and more relevant
ones for employees. To be successful,
work-life integration has to remain
relevant to the changing needs of the
business and employees.
2. Cultivate a supportive and trusting
environment
To build sustainable work-life
programmes, it is of vital importance
to create a culture of trust and
personal responsibility which should
be a joint effort of the organisation,
managers and employees. The goal
of the organisation should be to help
managers disassociate the notion
of the “ideal worker” with face time
in the office and cultivate a concept
of “Work Smarter, Not Harder”.
Managers should be encouraged
to stay focused on the results by
setting clear performance targets for
their employees, and measure their
performance by these targets rather
than hours clocked in the office.
That way, job flexibility and outcome-
based performance management
can act as powerful tools to help
improve employee productivity and
efficiency, and employees can feel
at ease making use of flexible
working arrangements and managing
their time in an honest and
reasonable manner.
3. Provide the right tools and
technology
Leveraging rapid advancements in
technology, working-on-the-go has
become easier than ever before, and
organisations need to provide the
right business tools for employees
to work wherever and whenever
they can. With the right software and
applications to allow live file sharing,
mobile access, video chat and video
conferencing, employees can stay
connected and collaborative from both
inside and outside the office.
Overall, people are rethinking the
traditional concept of work-life
balance as two separate entities,
and accepting the fact that work will
interrupt some personal time, and
some personal time will interrupt
work. “True” balance will most
likely never be found, but a
harmony through work-life
integration is attainable. Flexibility in
work schedule, along with the ability
to leverage mobile technology, is
the preferred way to find a balance
and is a trend that is becoming more
popular at organisations and sought
after by employees. “Work Smarter,
Not Harder” makes real sense in the
mature world of management that
we all experience today.
Job flexibility and outcome-based performance
management can act as powerful tools to help improve
employee productivity and efficiency.
Photo:Thinkstock
21HUMAN RESOURCES • October 2015
22. HR Horizon
I
n leadership terms, it is a very
different skill to preside over stable,
calm conditions from navigating a
storm. In a world filled with constant
change, leadership success hinges
today – and increasingly tomorrow –
on the ability to handle any storm,
and to be adaptive, collaborative and
entrepreneurial. These kinds of new,
agile leaders are currently scarce,
but we are going to need them more
than ever in the years ahead.
Today’s leaders must go beyond
tracking what is happening in their
• Younger cohort of emerging leaders, who graduated around the time of the financial crisis, are not well
prepared for change.
• In the developing economies, young leaders are not used to diversity and not enough women are in the
workforce.
Leading Your Future Leaders
By Tulika Tripathi, Managing Director, Hudson Asia
own economy. They are also expected –
and able – to keep an eye on China,
the US and other international
markets before making key business
decisions. It is a skill which today’s
C-suite has kept up with - their
experience at the front means they
can generally keep their head while
undertaking complex decisions. But
the next generation is working
slightly differently.
Unpacking tomorrow’s leaders
In the paper Identifying Tomorrow’s
Leaders Today: Determining the
Differences that Matter, Hudson’s
researchers compared 100
multinational emerging leaders
– senior managers who work in
multinational companies and were
identified by their CEOs as leaders
of the future – with over 700 C-suite
leaders from across the globe. In
general terms, research shows that
the two groups were evenly matched
when it came to managing complexity
and change. But while the younger
cohort is capable of dealing with
change, they are far less change-
oriented than their C-suite leaders,
22 HUMAN RESOURCES • October 2015
23. preferring to opt for proven methods
of success.
It is an important concern. Data
modelling has long shown us just
how important adaptability is as a
character trait of those at the top.
According to Hudson’s High Potential
Model, a robust tool designed to
help companies identify the most
talented emerging leaders, managing
both complexity and change are key
elements to success.
What leadership styles and skills will
best guide businesses through an
environment, where the seven-year
business cycle we are generally used
to will speed up and more likely we will
see the continuation of the present two
and three-year cycles?
Training leaders to embrace change
is often about mindset. For many
multinational emerging leaders
Our multinational emerging leaders need to work
on a more participatory style of leadership.
Photo:Thinkstock
raised as global nomads, an
appreciation for diversity is inbuilt.
And while Asian markets aren’t yet
seeing the four generations of
workers found in other markets,
diversity in both age and gender
is now prevalent in most
successful businesses.
It is easy to talk about the importance
of embracing diversity, but for those
new to issues of cultural sensitivity,
this takes time. Our research shows
that our multinational emerging
leaders need to work on a more
participatory style of leadership.
They may be extroverts, but they need
to boost their skills in both relational
and cultural sensitivity if they want to
thrive in the future.
We have long suspected that working
cross-culturally can aid social and
emotional intelligence. Luckily,
some working environments already
provide diverse, cross-cultural teams:
in economies like Singapore or
Hong Kong, where highly
international teams prevail, emerging
leaders gain a regional perspective
very quickly. But in countries like
China or India, where employees are
often accelerated into management
roles due to strong domestic growth,
they will have difficulties in acquiring
a multicultural outlook and
international understanding.
Many companies operate in markets
where young leaders are not exposed
to multi-cultural influences. When
they look to expand internationally,
they realise the challenge. Some now
send key “future leaders” on three-
year international secondments as
both a retention strategy and a means
of helping staff to develop a more
international mindset. Others bring
outsiders in to shake up standard ways
of doing business. All of these are
viable solutions.
Identify potential new leaders early
There are numerous other ways
companies can – and should – be
supporting their key talent of the
future. We need to give our emerging
leaders both time and opportunities
to learn leadership.
It is not drive that poses the problem
- our research shows that most
multinational emerging leaders
already demonstrate plenty of that.
Through programmes like coaching,
mentoring and high potential
programmes, companies have
opportunities to nurture and retain
those they believe have the potential
to achieve. Companies which are
strong in the cost-effective technique
of promoting from within, all take
mentoring seriously.
Potential leaders should be identified
early, but being a high performer
should not be the only criterion. It is
important to spot those who will be
able to deal with the complexities
that come with life in the C-suite. The
next step is to create a clear path for
growth to drive both engagement
and retention. Finally, while an MBA
is rarely wasted, targeted leadership
development programmes can often
provide more value for this group.
Female leadership adds value
Any look at our future leaders is not
complete without considering the issue
of gender. Our research shows that,
aligning to gender stereotypes, future
male leaders tend to make themselves
known, while their female peers are
less outspoken and have a lower
professional profile.
Importantly, some of the qualities
most closely associated with a more
female style of leadership could add
significant value in the multicultural
working environments that will soon
dominate the business landscape.
23HUMAN RESOURCES • October 2015
24. HR Horizon
LEADERS OF THE FUTURE
• Adaptive, collaborative and
entrepreneurial
• Managing complexity and change
• Appreciation for diversity
• Relational and cultural sensitivity
• Participatory style of leadership
• Good communication
Companies would
do well to proactively
encourage more talented
women to pursue
leadership roles.
To boost impact in areas like
collaboration, communication and
change, companies would do well to
proactively encourage more talented
women to pursue leadership roles. To
do so, it may be necessary to not only
develop the most talented women, but
also identify them. Remember, they’re
not always shouting their skills from
the rooftops as loudly as some of
the men.
Regardless of gender and background,
we will need adaptable leaders who
are comfortable embracing diversity in
all forms. To get them there, providing
support is essential. When those
currently in the C-suite despair over
emerging leaders’ lack of confidence
in decision-making, or their aversion
to change, remember, this is a cohort
that has real strengths.
Most graduated around the time of the
global financial crisis and, because
of that, have had to approach their
careers with hunger to stay in the
game. They are better at networking,
growing partnerships and thinking
proactively than the generation before
them. It is up to us to help them take
the next step and bridge the gap. Photo:Thinkstock
24 HUMAN RESOURCES • October 2015
25.
26. W
ith Hong Kong visitor
numbers on the decline
in recent months,
competition amongst
those in hospitality is heating up.
Hotel room rates have decreased by
15% to 20% as the sector struggles
to maintain its occupancy rate
of more than 80%. This means
companies in the sector are trying
to simultaneously increase visitor
numbers to the city and ensure that
those who are visiting select them
over other brands.
Faced with these struggles, and a
maturing luxury market, how can
those in the high-end of hospitality
ensure they hire, train and nurture the
employees who can deliver a truly five
star experience?
What constitutes a luxury experience
varies from industry to industry but
in hospitality this can encompass
everything from décor, food, amenities
and location through to knowledge of
key local destinations and bespoke
experiences. Central to delivering all
of this is a dedicated team of highly
trained and motivated professionals,
determined to create a unique and
memorable experience for every guest.
This has resulted in employees that can
deliver a luxury service always being
in demand in Hong Kong, particularly
those with international experience.
Finding top candidates
Over recent years there has been
a shift in labour markets. Whereas
Generation X employees (those born
between 1966-1976) would often have
HR Feature
• In the highly competitive luxury hospitality sector, finding and training the right employees is the key to
delivering a truly luxury experience.
• Diversity initiatives, making sure teams are digitally savvy and investment in training can all have an
impact on the quality of service a business provides its customers.
Standing out in the Luxury
Hospitality Market with Updated
Recruitment Practices and Training
By Andrew Simmonds, APAC Director, Harvey Nash Executive Search
Photo:Thinkstock
26 HUMAN RESOURCES • October 2015
27. stayed in the same company for
the length of their careers,
Generation Y workers (those born
between 1977-1994) do not want a
‘job for life’, preferring to change
positions on average every 18
months. As a result, companies
across all sectors are often put off
from hiring those who have been in
the same job for more than five years,
preferring candidates with diverse
industry experience that can bring
lessons from a variety of roles.
Across the hospitality market, there
has also been a drop in the number
of expat workers, as they take their
international experience back to the
US and UK. As a result, employers are
looking at how to attract talented Asian
candidates working abroad back to
leadership positions in Hong Kong.
Companies can look outside of the
hospitality sector for candidates,
particularly when filling higher-level
positions. Technology retail brands
like Apple, luxury goods stores like
Chanel, and top end restaurants
are all viable poaching grounds for
hospitality brands. Serving luxury
clients, the level of training in these
organisations is very high. Candidates
with this kind of background have the
skill set to serve guests above and
beyond expectations, offering them a
memorable experience.
The selection process
When it comes to choosing employees,
too many companies in the hospitality
industry still rely purely on gut
feeling rather than tests or
assessments. They may simply judge
the applicant by his or her looks,
previous work experience and one or
two rounds of face-to-face interviews.
It would be timely for the industry to
base hiring decisions on an informed
and thorough process, taking into
account the following:
1. Interview panel
Whenever possible, the interview
panel should include a diverse
representation of the company’s
employees that can provide a range
of perspectives on the candidate.
2. Tests and assessments
Assessment and psychometric
testing will offer in-depth insights
into the underlying motivations and
experience of a candidate ensuring
that key areas can be explored
further during the interview
process.
3. Recruitment process
A professional and effective
recruitment process helps to
develop an organisation’s brand
image and can make the difference
between securing and losing a
preferred candidate. Offer the
same luxury service to your
potential hires as you would
your customers.
How companies stand out in the
luxury market
• Diverse workforce
Bring your management in tune with those making
the product-buying decisions.
• Marketing and market research
Hire talent from other luxury sectors who can
provide different viewpoints, fresh insights and
have diverse experience.
• Building a digital footprint
Establishing a presence across a variety of social
media and hiring experienced staff who can
manage these platforms are essential to attracting
and engaging customers.
• Five star training
Training should focus on the brand value,
the services the company offers, customer
management, presentation skills, public speaking
and crisis management.
• Improving operational efficiencies
Focus on creating efficiencies rather than
cutting costs.
Photo:iStockphoto
27HUMAN RESOURCES • October 2015
28. HR Feature
Creating a successful environment
As the market evolves, companies
need to address both their hiring
policies and internal structure.
A key component of delivering a
luxury service is to really understand
your customer, and the workforce
of a company needs to reflect this.
Given that women currently make
the majority of decisions when it
comes to hotel and travel choices,
the management teams of hospitality
companies need to reflect this as well.
Questions such as “Is management
in-tune with their key decision-
makers?” and “Does management
represent the customer base?” need
to be asked and answered. If the
answer to these is no, then the hiring
process and talent pipeline needs to be
reviewed and brought in tune with the
business requirements.
Many luxury brands are investing in
consumer research and marketing in
an attempt to build brand awareness.
When filling these roles, experience
in working with luxury brands is
preferable to ensure employees know
how to communicate the brand and
how to interact with customers to gain
insights into their needs. Those with
experience in other sectors can bring
often something new to the table
when it comes to marketing; providing
fresh insights into event ideas,
promotions and branding.
As well as traditional marketing efforts
- such as PR, events and advertising
campaigns - luxury hotels need to think
about other ways in which consumers
will want to interact with them. Having
a presence across a variety of social
media channels can help to attract
new customers and keep existing
ones engaged, so hiring employees
with experience in managing these
platforms is essential. Online
advertising, bespoke apps and search
engine optimisation are also key areas
to consider.
Training in luxury hospitality needs to
focus on employee presentation and
customer management. Managers
need to ensure employees are
confident and knowledgeable about
the brand and its services, and the
customer’s previous interactions with
the company. Training focused on
public speaking and crisis management
are essential parts of developing
employees to deliver a five star service.
Management teams are often so
focused on keeping up with hiring
needs that they forget about improving
operational efficiencies. There are
examples of many organisations that
have faced sharp declines in revenue,
yet have come out of the cycle
stronger, as they have become leaner
and more efficient. Companies need
to ask themselves if the COO or
CFO is doing all they can to suggest
efficiencies rather than simply
cutting costs.
As the luxury hospitality market in Asia
continues to mature we are likely to
continue to see the emphasis placed on
finding and nurturing the best talent in
the industry. Companies that embrace
the latest changes in the market while
having in place robust recruitment and
training initiatives will have the edge
over competitors.
Photo:iStockphoto
28 HUMAN RESOURCES • October 2015
C
M
Y
CM
MY
CY
CMY
K
29.
30. A
n employee with a degree
and a great personality fit
with the company’s objectives
and values is more likely to
excel in their job than an employee
with the same degree, but with a bad
personality fit. Or, as they say,
“you can teach an employee skills,
but you can’t teach them attitude”.
However, while HR professionals
often feel that finding a professional
with the right education and the
desired personality fit and skill set is
often as difficult as finding a needle
in a haystack, the link between
personality fit and performance is
gaining more and more attention in the
hiring process.
When traits associated with the job are
perfectly matched with personality,
it can positively impact employees’
engagement and satisfaction which
promote commitment and loyalty, thus
reducing turnover.
Beyond that, in our fast-changing world
today’s degree may not be worth much
tomorrow. It is the attitude, curiosity,
enthusiasm and creativity, which will
drive the employee to keep up with
the changes, think outside the box and
contribute with new ideas.
The perfect fit
Laszlo Bock, Senior Vice President of
People Operations at Google said that
those who find interest in “figuring out
stuff where there is no obvious answer”
are desirable employees.
Richard Branson, Founder and Chief
Executive of Virgin Group prides
himself in prioritising personality when
HR Toolbox
• An employee who has a good fit with the company is likely to have a higher degree of engagement and
work satisfaction.
• Job applicants are tested by penetrating questions, as well as a number of popular personality tests
when applying to Fortune 500 companies – but in fact any company can introduce these practical tests
into the hiring process.
By Luke Phibbs, Managing Director - Hong Kong, Bo Le Associates
Why Does Personality Matter in
Recruitment More than Before?
Photo:iStockphoto
30 HUMAN RESOURCES • October 2015
31. hiring. He emphasises choosing a
candidate based on their personality
and their fit to the company’s culture
before even considering their degree
and qualifications.
Branson claims that it is better to
be short on talent than to have an
employee with a bad cultural fit, and
the success of the company is based
on the “perfect mix of people”. Only
after finding the “winning” personality
will he then look at the candidate’s
qualifications.
Walt Disney was known for his policy
that still exists today, of hiring for
attitude not aptitude. Disney employees
are referred to as cast members
and job descriptions and duties are
referred to as roles. This emphasises
the culture and company mission to
bring happiness to customers, who are
referred to as guests.
Interaction with guests is the main
duty of cast members. A client-facing
role like this needs more than just
extraversion to excel. Personality traits
that allow employees to enjoy extended
periods of high energy and social
interaction while delivering quality
service is needed.
In seeking personality fit, companies
are asking questions that have little to
do with the job itself. When asked
“can you tell me about yourself”,
candidates can answer this question
in a number of ways, from professional
history to hobbies and interests.
Often, the answer itself is not as
important as the way it is conveyed,
as answers can be scripted and
memorised.
Dharmesh Shah, Co-founder of
inbound marketing and sales platform
HubSpot, claims that asking the
question “what movie, no matter how
many times you have seen it, do you
have to watch when it is on?” can show
a lot about the candidate’s personality
and from the way they answer, their
passion.
Personality tests
For companies with less
unconventional requirements than
Bock or less imaginative questions
than Shah, personality tests such as
Personality tests used to
assess for personality fit
• Myers-Briggs Type Indicator,
which tests for dichotomies
of energy, perception,
judgement and lifestyle
combinations, is the most
popular test used to match
personality to occupations.
• The Five Factor Model can
be used to match personality
driven motivations to the
job and organisation by
measuring the extent of five
personality factors including
extroversion, agreeableness,
openness, conscientiousness
and neuroticism.
• The Holland Code assesses
the balance of six vocational
personalities including
realistic, investigative,
artistic, social, enterprising
and conventional interests.
With the link between personality and productivity
becoming clear, companies are increasingly placing
more importance to the assessment of personality fit
during the hiring process.
Photo:Thinkstock
31HUMAN RESOURCES • October 2015
32. HR Toolbox
Myers-Briggs Type Indicator (MBTI),
the Five Factor Model (FFM) and The
Holland Code are becoming popular
additions to the hiring processes.
MBTI assesses candidates in four
dichotomies, including introverted
or extroverted energies, sensing or
intuitive perception, thinking or
feeling judgment and perceiving or
judging lifestyles.
The tests measure the candidate’s
tendencies and combine each
dichotomy into 16 categories of
personalities. Each of these categories
can be analysed and used to determine
the best suited occupation. In a
collaboration with Business Insider,
MBTI suggests five occupations that
match the personality types of each of
the 16 combinations.
FFM measures five distinctive traits
which shape the personality. The
traits measured in this model are
extroversion, agreeableness, openness,
conscientiousness and neuroticism.
Measuring the extent of these traits in
a candidate’s personality, the test can
be used to measure and predict the
candidate’s suitability to the job role
respective to the responsibilities
and duties.
FFM can be used in conjunction with
The Holland Code which describes
vocational personality traits, including
realistic, investigative, artistic, social,
enterprising and conventional. By
categorising positions to The Holland
Code, employers can match candidates
with corresponding vocational traits.
According to the Boston Globe, 80% of
Fortune 500 and 89% of Fortune 100
companies have integrated personality
tests such as MBTI into their hiring and
training processes.
Assessing cultural fit
Having a clear understanding of
the culture, including working and
management styles throughout
the company, can help build a
framework against which to test a
candidate’s personality.
McDonald’s requires potential
candidates to first take a personality
test before they can apply for positions.
At Amazon.com, to ensure a
candidate’s capability and personality
fit, rigorous hiring processes are put in
place. While some positions, including
management level roles, do not
require a degree, specialist roles do
need formal education and training.
Candidates not only have to pass
assessments from hiring managers
that predict the candidate’s
competency for the job required, but
also have to be assessed on
cultural fit.
“Bar raisers,” who are existing
employees from various departments
throughout Amazon, are charged
with the duty to assess candidates
based on cultural fit. As “bar raisers”
are employees from different
departments and levels, their
combined knowledge gives them a
more detailed understanding of
the overall culture from both the
frontline and management, and they
can accurately assess candidates for
personality traits that will allow
them to excel within the organisation.
With the link between personality
and productivity becoming clear,
companies are increasingly placing
more importance to the assessment
of personality fit during the hiring
process. Hiring managers should
pick from a candidate pool those
who have the pre-requisite for the
job, but by also assessing for
personality fit, they can gain a
more solid prediction of a candidate’s
performance in the long run.
Photo:iStockphoto
32 HUMAN RESOURCES • October 2015
33. • The Individual Income Tax (IIT) assessment and interview involves tax officials, expatriates, and
finance, accounting and HR departments. The tax authorities may also challenge the finance or HR
arrangements of the company.
• The State Administration of Taxation has made it clear the IIT of high-income individuals is a tax audit
target for 2015. To be prepared, relevant people from the company should be familiar with the rules
and processes.
Individual Income Tax Compliance
for Expatriate Employees in China
T
axation administration of
expatriates’ IIT, including
Hong Kong Chinese
employees, has been a
serious problem in China for quite
some time. However, recently the
Guangzhou local tax bureau (GZ LTB)
has been taking important steps to
strengthen compliance.
Investigating underreporting or
evasion of IIT using assessments and
agents, to find out any underreporting
or evasion of taxes.
An expatriate who has stayed in
China for a full year and received
an annual gross income in excess
of 120,000 yuan, has the obligation
to file an annual IIT self-reporting
return within three months from the
end of the calendar year, in addition
to the IIT withholding return filed by
the employer on a monthly basis, and
By Angie Ho, Tax Partner, KPMG China
Fiona Wu, Senior Tax Manager, KPMG China
China Focus
interviews, the GZ LTB has, over the
last three years, chased and
collected nearly 230 million yuan in
tax payments.
The IIT assessment and interview is
one of the tax investigation methods
that have been introduced in
Guangzhou since 2008. It means, the
GZ LTB in charge can directly interview
the individual taxpayers or their
employers as the IIT withholding
Photo:iStockphoto
33HUMAN RESOURCES • October 2015
34. pay any underreported IIT through the
annual IIT filing.
Recently, GZ LTB has also organised
a well-attended conference to
explain legal details to employers of
expatriates, such as determining the
reasonability of reported salary income
through market data.
IIT compliance status review
According to the GZ LTB, local tax
bureaus use a number of key points
to review the IIT compliance status of
expatriate employees. These provide
a clear list for taxpayers and their
employers to check their own IIT
compliance status.
1. Salaries paid overseas and in China
The salary paid overseas has to be
combined with the salary paid in
China as the “Wage and Salary
Income” of the month for PRC IIT
calculation and reporting. An expatriate
has to pay IIT on their full overseas
income starting from the sixth full year
of residence in China.
Expatriates can claim tax treaty
protection for the employment income
received during their period of work in
the PRC if they meet the IIT exemption
conditions set by the tax treaty signed
between China and their home country.
Employers should make sure the
correct PRC IIT formula has been
applied for the IIT calculation of the
expatriates’ employment income.
In case an overseas company seconds
an expatriate to provide management
or technical support in China and the
activities of the expatriate are deemed
to have constituted a permanent
establishment (PE) in China, the
seconded expatriate also has to report
IIT on their salary from the first day
they started work for the PE.
2. Allowances and benefits
Some allowances and benefits can
be exempt from IIT, provided they
satisfy the conditions set by PRC
tax regulations. The allowances and
benefits that do not qualify for IIT
exemption should be included in the IIT
calculation and reporting.
For example, the annual one-off
performance bonus received by an
employee can be exempt from IIT,
while other bonuses need to be
combined with the salary for the month
in which the employee received them
for IIT calculation and reporting.
3. Other taxable income
Any commercial insurance and
overseas social security contributions
made by the company for its expatriate
employees and their relatives are
required to be treated as employment
income of the employees for
IIT purposes.
For an expatriate who is employed
by a PRC company (or its related
China Focus
Photo:iStockphoto
HUMAN RESOURCES • October 201534
35. companies in China) and concurrently
serves as a director or supervisor
of the PRC company or its related
companies in China, their director fee
or supervisor fee has to be combined
with their monthly salary income for
IIT calculation and reporting. If the
expatriate only serves as a director or
supervisor of a PRC company but is
not employed by the company, their
director fee or supervisory fee paid by
the PRC company has to be reported
and taxed as “Remuneration for
Personal Services” rather than “Wage
and Salary”.
If an expatriate renders independent
personal services in China, the
remuneration they receive is subject to
Business Tax and IIT as “Remuneration
for Personal Services”.
When an expatriate receives gains
from stock options, stock appreciation
rights, restricted stocks or other stock
incentives, the part of income related to
the vesting period which overlaps with
their working period in China is subject
to IIT as salary income and preferential
tax treatments may be applicable if
certain conditions can be satisfied.
Any severance payment or settling-in
allowance which is related to the PRC
employment has to be included in IIT
calculation and reporting.
If the IIT of an expatriate is fully,
partially or proportionally borne by the
employer, or if an expatriate is under
the tax equalisation arrangement, the
net income received has to be grossed
up for tax calculation.
IIT assessment and interview
To better equip itself, GZ LTB
has purchased an International
Remuneration Data Report and
database, which acts as an up-to-
date reference to current worldwide
salary standards in each main area,
industry and position. Updated data
will be continuously provided to
GZ LTB on a regular basis.
Based on these data, GZ LTB will be
able to benchmark salaries in the
course of its IIT audits and
compliance investigations.
To carry out the IIT assessment
and interview, it will first determine
the interview targets through a
comprehensive assessment of the
filed materials provided by taxpayers,
withholding reports provided by
withholding entities, and other internal
material or information from tax
authorities, as well as the International
Remuneration Data Report mentioned
above. Once the interview targets have
been selected, they will carry out the
interview following the procedures.
HR departments should get prepared
The State Administration of Taxation
(SAT) has made it clear that the IIT
of high income individuals is one of
their tax audit targets in 2015. To
be aligned with the SAT, the GZ LTB
has announced that they will enforce
IIT assessments and interviews for
expatriates in the following months and
as a routine task in the coming years.
The IIT assessment and interview
involve communication between tax
officials, expatriates and people from
a company’s finance, accounting
and HR departments. In addition to
typical IIT issues, the tax authorities
may also challenge the finance or HR
arrangements of the company.
Company employees who are
interviewed by the tax authorities
should be familiar with the IIT
treatment of the company, IIT
regulations and local compliance
requirements so they can understand
the meaning of the questions
asked and explain or defend the
reasonability of the company’s
tax treatment.
In view of the above, even if your
company has not received the
IIT assessment and interview
notifications or your company is not
based in Guangzhou, it is suggested
that the HR department get
prepared for these processes to
mitigate the risk of non-compliance.
You can do so, for example, by
carrying out internal reviews and
making adjustments or corrections
if necessary.
Company employees who are interviewed by the
tax authorities should be familiar with the IIT treatment
of the company, IIT regulations and local compliance
requirements.
Procedures of the IIT interview with expatriates
Select target
Interview with the
expatriates or the
employer
Identify tax
issues
Issue IIT
rectification
notification
Possible treatments of expatriates after the IIT interview
Retroactive
IIT filing and
penalty
Transfer to
further tax
audit
Deemed tax
payable
Exit prevention,
visa application
or residence
permit refusal and
information
exchange with
foreign tax
authorities
35HUMAN RESOURCES • October 2015
38. T
he Office of the Privacy
Commissioner for Personal
Data (PCPD) of the Hong
Kong SAR Government
recently concluded an investigation
into the collection of employees’
fingerprint data by Queenix (Asia)
Limited (Queenix), a high-end fashion
trading company employing around
20 individuals. The PCPD formed the
view that Queenix’s use of fingerprint
recognition technology breached the
Personal Data (Privacy) Ordinance
(PDPO), in large part because it
considered that the collection of
fingerprint data could not be fair if
the employer had failed to obtain
employees’ genuine consent.
Coinciding with its report on the
Queenix case (Report), the PCPD also
published a guidance note entitled
Guidance on Collection and Use of
Biometric Data (Guidance) to assist
data users who collect biometric data
to comply with the PDPO.
Why is the Guidance needed?
The use of biometric data such as DNA
samples, fingerprints, palm veins, hand
geometry, iris, retina and facial images
has moved from futuristic spy films
to the workplace in a relatively short
space of time, and there are concerns
that the law has failed to
keep up with technology in order to
protect employees.
In the Report, the PCPD noted that
use of fingerprint recognition and
other biometric technologies is no
longer limited to governments and
law enforcement for such things as
identification documents, border
control and criminal investigations.
While biometric data can be a very
useful identification tool, in the wrong
hands it can pose serious risks to
personal privacy and/or contribute
to identity theft, security breaches
or even discrimination arising from
assumptions based on gender, ethnic
origin or medical conditions that such
data may reveal.
In light of the above, the PCPD has
emphasised the importance of:
1. ensuring that biometric and other
sensitive data is collected only
when justified;
2. understanding and assessing the
privacy risks associated with such
collection; and
3. adopting appropriate procedural
and technologic safeguards to
prevent unauthorised access to
and use of the data.
The PCPD is not alone in its concern
about private sector use of biometric
data. In New York, for example,
employers are prohibited from
fingerprinting employees unless
they are required to do so by law. In
many other jurisdictions, the use of
biometric and other sensitive data
is expressly made subject to more
stringent requirements than other
less sensitive forms of personal data.
In Australia, for example, “sensitive
information” is a subset of personal
data and is afforded a higher level of
protection in recognition of the adverse
consequences for the individual
concerned which may result from
mishandling of that information.
Indeed, in the Australian privacy
Lawful Collection of Biometric Data
Should be a Priority for Employers
Legal Highlight
• Collecting personal biometric
data needs to be justified, and
checking staff attendance is
not a reason good enough for
collecting such data.
• Employers should carefully
explain the reason for
collecting the data, get buy-in
from the employees, keep the
data to a minimum, ensure data
security and regularly purge
data which is not required
anymore.
By Gareth Thomas, Partner, Herbert Smith Freehills
Gillian McKenzie, Associate, Herbert Smith Freehills
Photo:iStockphoto
HUMAN RESOURCES • October 201538
39. legislation, the term “sensitive
information” extends beyond biometric
data to also include such things as
a person’s racial or ethnic origins,
political, religious or philosophical
beliefs, union membership, sexual
orientation and criminal record.
In Hong Kong, the PDPO does not
differentiate expressly between
biometric or “sensitive” data and
other personal data. However, as
demonstrated by the Guidance and
Report, the PCPD seems prepared
to adopt a stricter interpretation of
the PDPO requirements where
biometric data is involved than it has
previously taken in cases involving less
sensitive data.
Employer’s use of fingerprint data
found to be in breach of PDPO
Queenix had installed at the entrance
to its office and showroom two
fingerprint recognition devices, for
the dual purposes of recording staff
attendance and for added security.
The PCPD investigated Queenix’s use of
such technology after a complaint was
made by an employee. It concluded
that the use of these devices breached
PDPO data privacy principles (DPP) 1(1)
and 1(2).
1. DPP 1(1): that personal data shall
not be collected unless the data is
adequate but not excessive for a
lawful purpose related to a function
or activity of the data user.
a. Security: The PCPD concluded
that fingerprint collection was
neither a necessary nor an
effective means of securing
Queenix’s stock as it had already
installed CCTV cameras, digital
locks and other measures to
prevent unauthorised entry and
detect theft.
b. Staff attendance: The PCPD
found that using fingerprint
recognition devices for the
purposes of recording attendance
was excessive, as other less
intrusive alternatives are
available. The PCPD went further
to comment more generally that,
while fingerprint recognition
devices may be an appropriate
tool to control entry to high
security areas, to apply this
system merely to check staff
attendance would
be questionable.
2. DPP 1(2): personal data must be
collected by means which are lawful
and fair in the circumstances.
The PCPD concluded that the
fingerprint data in this case was
not collected in a fair way, largely
because the employer had failed
to obtain the free and informed
consent of its employees orto
provide employees with
an alternative.
In that context, the PCPD suggested
that free and informed consent
could only be given if employees
were:
a. adequately informed of the form
in which data would be collected,
how the technology works,
the privacy risks associated
with its use and other relevant
information on how the data
would be handled; and
b. given the choice to opt for other
alternatives.
What should employers consider
before collecting biometric or other
sensitive data?
Before collecting biometric or
other types of sensitive data,
employers should conduct a privacy
impact assessment to determine
whether the data is really
necessary and not excessive for the
stated purposes (taking into account
the potential impact of the collection
on employees’ privacy), and
review the availability of other less
intrusive options.
Where an employer is satisfied that
the collection of data is justified in a
particular case, steps should be taken
to ensure the following:
1. Form of collection
Data collection is kept to the
minimum necessary to achieve
the stated purpose – for biometric
data, collection of a “template” is
preferred – a template is a limited
form of collection which comprises
numeric information describing a
limited number of reference points,
rather than, for example, the full
facial or fingerprint image;
2. Consent
Employees are informed fully of
the reasons for collection, the way
in which the data will be handled,
the potential impacts on privacy
and any alternative options available,
so that genuine and informed
consent can be given. Written
consent is preferred to reduce the
potential for future disputes;
3. Strong data security
Appropriate procedural and
technological safeguards are
adopted to prevent unauthorised
access to and use of the data – this
should include clear policies and
procedures on data access and
handling as well as staff training on
privacy issues. Employers should
also adopt physical and technological
measures (such as secure offices,
strong passwords and encryption)
to safeguard the data and review
regularly the effectiveness of the
measures adopted; and
4. Destruction
Data is regularly and frequently
purged once it is no longer
required and is not retained
indefinitely or made available for
other purposes.
Before collecting biometric or other types of sensitive
data, employers should conduct a privacy impact
assessment.
39HUMAN RESOURCES • October 2015
42. How to Protect Employers’
Customer Connections
By Jezamine Fewins, Partner, Stephenson Harwood
Case in Brief
GFI (HK) Securities LLC v Gyong Hee-kang and ICAP Equities
Asia Limited
Court of First Instance, HCA 1319/2015
Deputy High Court Judge Saunders
Date of hearing: 19 June 2015
Date of Reasons for Decision: 23 June 2015
Facts
Gyong Hee-kang, the first defendant,
was employed by the plaintiff, GFI
(HK) Securities, as “a senior broker
and head of Korea fixed income”. The
first defendant’s employment contract
contained post-termination restraints
prohibiting her, for six months from
the termination of her employment,
from competing with the plaintiff
or accepting orders, instructions or
soliciting business from any person
who had been a client of the plaintiff
in the previous 12 months. The first
defendant resigned from her job on
February 17, 2015.
On May 18, 2015, the plaintiff
discovered that the first defendant’s
Bloomberg account had been activated
with ICAP, the second defendant.
The plaintiff subsequently learned that
the first defendant was listed as an
employee of the second defendant and
licensed to deal in securities
with the SFC. A phone call to the
second defendant provided evidence
that the first defendant was employed
at the company.
On May 19, 2015, the plaintiff’s lawyers
wrote to the defendants, warning them
that they would seek an injunction
if required to protect their client’s
interests. Messages between brokers
showed that, in the week commencing
May 27, 2015, the first defendant was
in South Korea and had contacted four
clients of the plaintiff.
On June 16, 2015, the plaintiff applied
for an injunction to restrain the first
defendant from being employed by
the second defendant, and soliciting
and dealing with the plaintiff’s clients,
for the duration of the contract. The
plaintiff listed the clients which it
sought to restrain the first defendant
from dealing with. However, at
the hearing, the plaintiff dropped
its application to restrain the first
defendant from being employed by
the second defendant.
The first defendant argued that the
application be dismissed, as the
plaintiff had delayed in applying
for the relief, the restraints were
unreasonable, and that she had been
pressured into accepting the contract
containing the restraints.
Decision
The judge granted the injunction
against the first defendant, prohibiting
her from soliciting business from, and
having business dealings with, the
plaintiff’s clients until August 17, 2015.
The plaintiff had threatened legal
action the day it learned that the first
defendant’s Bloomberg account had
been activated, which was 17 days
later that the plaintiff had evidence
that the first defendant was in breach
of the agreements. The plaintiff
Summary
In this case, the court enforces non-solicitation
and non-dealing clauses to stop a senior employee
from joining a competitor and using the customer
connections of their ex-employer.
42 HUMAN RESOURCES • October 2015