Company Explores the Cultural, Political and Economic Circumstances Affecting Talent Management in Emerging Indonesian Market

ATLANTA, Ga. and MELBOURNE, Australia – May 13, 2012 – PageUp People, a Multinational Talent Management solutions provider, today announced the release of its newest research titled, “Into Indonesia: Talent Management Essentials in an Emerging Democracy,” authored by Sylvia Vorhauser-Smith, senior vice president of Research. As Indonesia has been relatively immune to the economic hardships affecting much of the world, enjoying an average 6 percent GDP growth over the past three years and anticipating strong future growth, the country offers multinational corporations an inviting business climate. However, as this new democracy continues to emerge from its colonial and dictatorial past, companies entering or expanding operations in the country will be confronted by a number of complex human capital management challenges.

One of the biggest challenges lies in finding the right talent in the face of fierce competition for qualified workers. As a result, companies looking to benefit from the Indonesian labor market must invest in efforts that strengthen and support the capabilities of the local workforce. PageUp People’s new research outlines the reasons behind the talent shortage and the difficulties of managing a workforce unfamiliar with common western business practices. The research also offers solutions for how employers can adapt their talent management practices and achieve their full potential in a complex, foreign environment.

Key Findings Include:

  • Although more Indonesians are pursuing higher levels of education, skilled workers are quickly absorbed by the labor market, resulting in a shortage of qualified talent.
  • Employers must show patience and flexibility in light of many cultural differences that affect workplace performance, such as an indirect communications style, strong group mentality and religious practices.
  • Indonesian society is strictly hierarchical, resulting in a work environment where senior managers are expected to make decisions and subordinates follow without question or challenge.
  • Mobile device proliferation in Indonesia has accelerated demand for applications for workplace use, and human capital management technologies, such as SaaS-based integrated talent management systems, have become more widely adopted.
  • As the war for qualified workers heats up, organizations can benefit from building a talent pipeline that allows them to identify emerging talent and focus on development that transforms potential to actual performance.

“The rapidly growing Indonesian market presents enormous opportunities to multinational corporations, but to fully leverage the local workforce, organizations must gain a keen understanding of the cultural nuances that impact on-the-job performance,” said Vorhauser- Smith. “Still, as Indonesia continues to emerge as a global power, the country has become more open to global workplace best practices. The organizations that significantly invest in their human capital strategies in light of the changing environment will be best positioned to find and develop the qualified talent they need in this expanding market.”

For a limited time, this research will be available for download here.