Economic slowdown is more opportunity than threat, according to Hewitt Best Employers in Malaysia
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1 For Immediate Release April 3, 2009 Contacts: Yap Yoke Wah, , Jaime Tan, , Economic slowdown is more opportunity than threat, according to Hewitt Best Employers in Malaysia Ten organizations in Malaysia named as Hewitt Best Employers KUALA LUMPUR Hewitt Associates, a global human resources consulting and outsourcing company, revealed main findings in its Best Employers in Malaysia 2009 study today, and named ten organizations in Malaysia that have made it to the 2009 local market Best list as determined by an independent judging panel in mid-january in Kuala Lumpur. Persis Mathias, Talent and Leadership Practice Leader at Hewitt Associates Malaysia, said: Hewitt Best Employers have a strong competitive advantage because their highly engaged workforce is prepared to go the extra mile for the organization and its customers. Understanding what drives employee behaviour during these economically difficult times is critical to business success. Employers need to stay focused on harnessing the discretionary effort that engaged employees deliver. It is precisely this extra effort that can make the difference in how severely organizations are affected by the downturn, how quickly they emerge from it, and how strong they are when the economy improves. Malaysia s Best organizations The Hewitt Best Employers in Malaysia 2009 judging panel identified ten Best Employers from across Malaysia. Page 1 of 5
2 The ten Hewitt Best Employers in Malaysia 2009 are, in ranked order: Organization Name 1. The Ritz-Carlton, Kuala Lumpur 2. American Express (Malaysia) Sdn Bhd 3. Four Seasons Resort Langkawi, Malaysia 4. Federal Express Services (M) Sdn Bhd 5. Agilent Technologies 6. S P Setia Berhad 7. Hilton Kuala Lumpur 8. Intel Technology Sdn Bhd 9. Golden Arches Restaurants Sdn Bhd 10. Telekom Malaysia Berhad How these organizations are facing the economic crisis When interviewed in January 2009 as a follow up to the surveying conducted by Hewitt in late 2008, CEOs from the Hewitt Best Employers overwhelmingly viewed the economic crisis as an opportunity rather than a threat. They said it is the right time to find and retain good talent. Yap Yoke Wah, Project Lead, Hewitt Best Employers in Malaysia, said: During these challenging times, many CEOs believe that it is even more important to attract and retain good talent, in order to uphold the company s brand and continue to live out its philosophy as a Hewitt Best Employer. HR directors reported that the focus on cost-cutting was in non-human capital areas such as travel and other expenses. Most organizations are trying not to have large scale layoffs, but are being creative in how they manage their human capital. More use is being made of part-time work, employees are being asked to take accrued leave, and to be more flexible in their approaches to work. Many organizations are limiting future hires in an attempt to protect current hires. The HR budget is still being spent on learning and development with many of the Hewitt Best Employers saying Page 2 of 5
3 this is the right time to invest in the people who will help them ride through the economic crisis. Three major key findings Understanding what drives employee behavior during these economically difficult times is critical to business success. This year s study results highlight three major areas that are common among The Best companies with differences compared with The Rest. Key finding #1: Relentless execution of programs Key differences emerge between The Best and The Rest when examining the results on how programs are implemented. This allows them to reach a point where they create the organizational momentum required to deliver results consistently. Hewitt Best Employers are better able to reach the tipping point where the business payback on human capital programs rises dramatically. Key finding #2: Persistent empowerment of managers The Best achieve greater execution payback through persistent empowerment of managers. This takes three main forms: 1. Focusing leaders on leading so that managers can manage 2. Better equipping managers to do their job 3. Creating self-sustaining reinforcement. Leaders at The Best empower managers by to manage by getting out of the way and by making sure managers are given the tools, skills, and incentives to effectively manage their people and drive performance outcomes. For example, managers at The Best are more involved in communication of reward programs and structures than their counterparts at The Rest. The Best focus a larger portion of their training budget on developing the management skills of people managers. Page 3 of 5
4 The third area of differentiation in empowering managers centres on how Hewitt Best Employers manage to put self-sustaining reinforcement mechanisms in place. Leaders and HR work together in these organizations to set the organization into a virtuous cycle where strength leads to strength. This is accomplished largely through efforts directed at vision, structure, culture, metrics, and rewards. Key finding #3: Highly efficient HR functions Hewitt Best Employers are able to efficiently deliver HR services and processes with fewer resources, raising questions about whether the HR function at The Best is using a fundamentally different operating model. In fact, Hewitt s Global HR study shows that, in HR functions around the globe, significant progress has been made to drive efficiencies in service delivery. Furthermore, in the current climate, many organisations are taking a renewed interest in outsourcing as a cost-savings solution in response to the recent economic situation. The Hewitt Best Employers in Malaysia 2009 study forms part of the Hewitt Best Employers in Asia study and it examines people management practices in many of Asia's leading organizations. Hewitt researched companies in eight markets including Australia/New Zealand, China, Hong Kong, India, Korea, Malaysia, Singapore, and Thailand. More than 900 organizations registered to participate in the Hewitt Best Employers in Asia 2009 study. The study received input from more than 180,000 employees representing a workforce of over two million people making it the largest single source of employee and human capital research across the region. In Malaysia, over 60 organizations registered to participate and the Hewitt Best Employers in Malaysia 2009 study received input from more than 13,000 employees, representing the views of more than 93,000 people in their workplaces in Malaysia. Page 4 of 5
5 The Hewitt Best Employers in Malaysia 2009 study is conducted by Hewitt Associates in partnership with Asian Strategy and Leadership Institute (ASLI), The Edge Malaysia and The Edge Financial Daily. For a full report on the findings of Hewitt s Best Employers in Malaysia 2009 study, please visit /bestemployersmalaysia. - end - About Hewitt Associates Hewitt Associates (NYSE: HEW) provides leading organizations around the world with expert human resources consulting and outsourcing solutions to help them anticipate and solve their most complex benefits, talent, and related financial challenges. Hewitt consults with companies to design and implement a wide range of human resources, retirement, investment management, health management, compensation, and talent management strategies. As a leading outsourcing provider, Hewitt administers health care, retirement, payroll, and other HR programs to millions of employees, their families, and retirees. With a history of exceptional client service since 1940, Hewitt has offices in 33 countries and employs approximately 23,000 associates who are helping make the world a better place to work. For more information, please visit. Page 5 of 5
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