The HR sector in Southeast Asia (SEA) is undergoing a significant transformation, moving away from its traditional role as merely an administrative function to becoming a strategic and value-generating powerhouse. This shift has been long overdue and is a welcome change for businesses aiming to stay competitive in a global market.

The Journey Towards Strategic HR

Historically, HR in SEA has been seen primarily as a BAU (Business-As-Usual) function, largely focused on administrative management and payroll. However, the modern business landscape demands more. Today, HR is expected to drive organizational development (OD), foster talent, and contribute to strategic business goals. This evolution involves raising the bar on practitioner skill sets to meet global standards.

The implementation of a structured, data-driven OD model is a significant step forward. However, the true impact of this shift will take time to manifest, often requiring three or more years to see measurable outcomes.

Measuring Success: Retention as a Key Metric

If we were to choose one primary metric to gauge the success of this strategic shift in HR, it would have to be employee retention. Companies with high retention rates typically boast the most satisfied, productive, and sustainable workforces. While the logic is straightforward, the path to achieving such results is complex.

Quick Wins for Evolving HR Teams

As companies in SEA seek to bridge gaps and adopt a more strategic HR approach, there are immediate steps they can take to make significant gains. Focusing on retention as a critical yardstick, here are six key reasons why employees choose to stay with their employers:

1. Leadership standards

Fair, considerate, and mature leadership fosters a positive work environment, significantly boosting credibility and trust.

2. Career visibility

Investing in employees’ professional growth and development is essential. Offering clear career paths and skills development opportunities helps retain top talent.

3. Work-life Balance

Promoting work-life balance is crucial for employee well-being and happiness. Businesses that have carefully thought through what the new norm working conditions mean for them and clearly and consistently implant these will retain staff. This typically entails a flexible, balanced work model which is outcomes based and promotes trust.

4. Competitive Pay

Fair and competitive compensation that matches employees’ skills and contributions is a significant factor in retaining staff and it’s not necessarily about highest base salary wins. It’s the extent to which it is fair and is regularly reviewed and communicated plus staff increasingly appreciate the value of their additional benefits package, the more customised to lifestyle the better.

5. Strong Culture

Employees who feel deeply connected to their company’s values and culture are more likely to remain loyal. Building a strong organizational culture and truly waking the well is key. Companies with a relatable core purpose have the best retention.

6. Great Team Working

A collaborative team environment enhances job satisfaction and the overall employee experience, making it more likely for employees to stay. Monitoring and responding to poor behavior, leading by example, celebrating good behaviour and creating channels for connecting people internally and with the community on which they operate are all key continuity’s to this outcome.

Conclusion

Retaining top talent is a crucial challenge in today’s job market. By focusing on these six key areas, companies can create a workplace that not only retains top talent but also drives long-term success. As HR in SEA continues to evolve, the emphasis on strategic, value-generating roles will only grow, leading to more satisfied, productive, and sustainable organizations.