Emerging Businesses in Indonesia Vie for Talent with Established MNCs

January 26, 20168:09 am263 views

According to the latest annual Global Salary Survey from specialist professional recruitment firm Robert Walters, competition for key bilingual professionals in Indonesia is expected in the rapidly emerging industries.

These hotspots will include e-commerce, digital, technical healthcare and insurance. As firms across these sectors focus on gaining a stronger foothold in 2016, established multinational corporations are anticipated to face competition in attracting and retaining top talent.

Published figures suggested that qualified candidates changing roles can expect an average overall salary package increment of 20-30% in 2016. Increases of up to 50% will not be uncommon for niche positions.

Rob Bryson, Director of Robert Walters Indonesia, comments:

“In order to boost efficiency and productivity gains, businesses are in competition to assemble the best workforce. However as the skills shortage hits higher levels of severity, the demand for specialist professionals will continue to outstrip the supply in Indonesia.”

“In addition, this will fuel the interest for returning Indonesians currently working or studying abroad. Hiring managers must be prepared to constantly assess their total salary packages to ensure they are offering attractive compensation.”

See: Signalling Times Ahead for the Indonesian Job Market in 2016

Other Key Highlights for 2016:

  • With the rapid growth of social media and digital platforms, particularly in e-commerce and mobile, demand for developers through to CTOs will escalate
  • The government’s mandate for companies to hub IT infrastructure onshore will drive opportunities for IT project, program, operations and support professionals
  • Qualified professionals proficient in English are likely to see positions in the e-commerce, technical healthcare, pharmaceuticals, telecommunications and life sciences sectors

As more businesses channel efforts into building efficiency and productivity, HR professionals will be sought after to train and develop internal talent.

According to the recently released Global Talent Competitive Index, Indonesia, Chile, South Korea, Rwanda and Azerbaijan have emerged as new ‘magnet countries’, attracting highly-skilled workers. They are also likely to seek to lure back former emigrants with science and engineering skills.

The regulations set by the New Regulation related to the wage structure, non-wage and calculation of wage of employees in Indonesia, regards payment of wages during employee absence has been reregulated. The minimum wage is determined on yearly basis by the government, by taking into account the following factors:

  1. Decent living standard: the wage should be sufficient for a single employee to live an acceptable living standard in the region he works;
  2. Productivity; and
  3. Economic growth.

The company can impose sanctions on the management of a company or employees in case they deliberately violate or due to negligence violate provisions in the work agreement, company regulations and/or collective labour agreement.  The fines collected by the company may only be used for the benefit of the employees and cannot be used by the company to e.g. increase the profit / income of the company.

On the other hand the company can also be imposed sanctions when they delay payment of wages or religious holiday allowance (THR) to employees.

Also read: Challenges to HR management in Indonesia

Image credit: rappler.com

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