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Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Addressing Issues and Challenges of Talent Mismatch.

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Presentation on theme: "Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Addressing Issues and Challenges of Talent Mismatch."— Presentation transcript:

1 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Addressing Issues and Challenges of Talent Mismatch in the Planting Industry – Planters Perspective. The 3 rd International Plantation Industry Conference & Exhibition 5 th – 7 th November 2012 Le Meridien Hotel, Kota Kinabalu, Sabah The 3 rd International Plantation Industry Conference & Exhibition 5 th – 7 th November 2012 Le Meridien Hotel, Kota Kinabalu, Sabah Ramesh Veloo & Hj Borhan Abd Aziz Group Plantation Advisor Department Tradewinds Plantation Berhad

2 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 A Professional Planter Doctor Accountant Engineer Surveyor And is usually so busy that he has to do his serious studying at meal times Well rounded multi talented/ skills.Physically Fit Can take pressure and serve under remote working conditions Obey instructions and observe a strong chain of command Absolute integrity Architect

3 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Presentation Scope 1.Some background/challenges faced by the industry- requiring young blood/talents to relook at these issues. 2.The need for talents and talent management in the planting industry. 3.Issue of talent mismatch and mitigation(Entry point, Managerial and Higher level management). 4.Conclusion.

4 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Oil Palm Land Area. Source: MPOB (2010) Point of saturation -5.5mill ha. Industry is posed by various issues and challenges –new blood/new talents required to relook at these issues.

5 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Comparison of Rates of Yield Growth of Soya bean, Rapeseed and Oil Palm Since 1970s (2012) FFB Yield(t/ha) against Average(Years). The Yield Challenge.

6 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Price Volatility: Monthly CPO Price Trend 2008 – 2012 Source: MPOB (2012)

7 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Labour Productivity.

8 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Cost of Production.

9 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 The Challenge to Innovate & Change Traditional Practices. The only big breakthrough as far as labour saving technology is concerned in the industry is the introduction of the pollinating weevils and the industry is hungry for the quantum leap innovation.

10 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Global Agriculture & Food Supply Japan & Rep of Korea pledge additional $60 mill to boost food security More than 17 million people starving in West Africas Sahel region Droughts drives food prices higher threatening the poor Food price volatility a growing concern The need to enhance talent management cannot be viewed lightly in the light of issues faced by global agriculture and food production.

11 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Where Money Grows on Palms! Palm oil will remain to be a major contributing factor to the national economy.

12 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Source: Statistical Yearbook for Asia and the Pacific (2011) Worrying Phenomenon: Declining Share in Agricultural Employment – Lack of interest

13 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Professionals Planters and Supervisory Staffs Global demand (million tonnes) & land area required (million hectares) Executives & staff ratios industrial plantation Global demand for oil palm Global demand for rubber (NR share 1.4 mt/ha) Land area required for oil palm Land area required for rubber Executives ratio of 5:2000 industrial plantation (oil palm) Staff ratio of 1:500 50% industrial plantation (oil palm) Executive ratio of 5:2000 industrial plantation (rubber) Staff ratio of 1:500 50% industrial plantation (rubber) Oil PalmRubberOil PalmRubber Dont forget rubber.

14 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Estimated Labour Shortage in Oil Palm Plantation according to Job Categories and Region (2010) Job CategoriesP. MalaysiaSabahSarawakMalaysia Harvesting Mandores General Mandores Harvesters and Collectors10,8286,7425,14522,721 Field Workers5,9173,4402,88912,240 Other General Workers2,3411,2151,3964,957 Sub Total Field Workers19,73911,7329,75341,234 Executives Staff ,010 Sub Total Executive ,462 TOTAL20,29410,215 42,696 Source: Mohd. Arif, Azman & Roslan (2011)

15 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 The Emergence of Talent Management in the Current Business Landscape The World Economic Forum and the Boston Consulting Group provides compelling evidence that the talent crisis will affect every region of the world in the coming years. The economic pressures of the last few years have forced organizations to do more with reduced resources by putting the the right people in place. The right talent is emerging as key competitive differentiation component. Talent is accepted as The No.1 business risk in the world.(Manpower Group, 2011). PLANTATION INDUSTRY IS NO EXCEPTION PLANTATION INDUSTRY IS NO EXCEPTION

16 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Talent Mismatch:The Global HR Talent Tsunami Edward Gordon the author of Winning the Global Talent Showdown: How Businesses and Communities Can Partner to Rebuild the Jobs Pipeline (Berrett-Koehler Publishers, 2009). describes talent mismatch as the imbalance between talent supply and job requirements resulting with global "HR talent tsunami," which will strike globally and create intense competition for people with science, technology, engineering and math skills and for other educated professionals in most industries.

17 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 ORGANIZATIONAL FACTORS CANDIDATE-SPECIFIC FACTORS ENVIRONMENTAL/ MARKET FACTORS Source: Manpower Group (2011) *Based on survey results of 40,000 employers across 39 countries; 10 throughout Americas, 8 Asia Pacific and 21 across Europe, Middle East and Africa. Talent Mismatch: A Global Phenomenon.

18 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 The Value of Talent: A Good Planter Not many outstanding talents. Research shows that outstanding performers typically deliver four to six times more performance than average. Selecting or developing just one outstanding performer has huge impact on overall performance Poor Average Outstanding/ Talent Performance The best way to persuade senior management of the value of talent management is to put a value on that talent (ROI) 18 © HRPD Associates 2009

19 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Career Path as a Planter and Mismatch Issues. Cadet Senior Manager CEO GM/PA Asst.Manager Senior Asst. Manager How Long Does It Take To Move This Ladder?. Entry Point Managerial Level Senior Management 1 Senior Management 2

20 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Source: Department of Statistics Malaysia (2010) TOTAL UNEMPLOYED GRADUATES: 65,500 (917 of total) Supply for Entry Points: Numbers/Quantity is No Big Issue.

21 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 What Market Can Offer:What Is Required: A basic degree/ diploma. No hands on training. Poor command of English. Bright light exposure. IT savvy candidates. Clean/ cool working conditions. Not inclined to strong chain of command Passion & love for the job. Agricultural degree/ diploma. Hands on working culture. Good command of English. Remote working environment. Field loving candidates. Dirty, dangerous and difficult (3D). Inclined to strong chain of command. Talent Mismatch: Entry Point Level

22 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Basic Degree/Diploma Commitment & Hands OnHave passion for the job Chain of command Love outdoor /challenges of remote working environment Good command of English

23 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Mitigate Talent Mismatch at Entry Point Level. Revive interest in agriculture/plantation management. Agriculture took a back seat with industrialisation and it is impossible to industrialise the whole plantation area. Prominence of agriculture especially in the Sabah/ Sarawak should not be forgotten. Introducing agriculture education as part of school curriculum/living skills. Agricultural education should not be merely a curriculum of vocational/technical schools. Attract top students/best brains to take up agricultural scholarships/ study grant at school level. Time to revive agricultural/oil palm university and produce more pure agricultural graduates. Emphasis on classroom, practical and hands on training and leadership values.

24 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012

25 Indonesian Universities With Agricultural Faculties & Programs. SUMATERA ANDALAS BENGKULU DEHASEN EKASAKTI ISLAMIC UNIVERSITY OF INDRAGIRI ISLAMIC UNIVERSITY OF SUMATERA UTARA JAMBI SUMATERA UTARA RIAU SRIWIJAYA SERAMBI MEKAH JAVA AL-GHIFARISATYA WACANA BOGOR AGRICULTURAL UNIVERSITY SEBELAS MARET BANDUNG RAYASLAMET RIYADI BRAWIJAYATRUNOJOYO MADURA GADJAH MADAWIDYAGAMA MALANG JANADABRAWIDYAKARYA JEMBERWIJAYA KUSUMA SURABAYA MUHAMMADIYAH MALANG YUDHARTA PASURUAN PADJADJARAN KALIMANTAN LAMBUNG MANGKURAT MULAMARWAN TANJUNGPURA SULAWESI COKROAMINOTO PALOPO DE LA SALLE HASANUDDIN SAM RATULANGI GORONTALO TADULAKO BALI-NUSA TENGGARA ARTHA WACANA CHRISTIAN MATARAM UDAYANA MOLLUCAS KHAIRUN PAPUA MUSAMUS MARAUKE STATE UNIVERSITY OF PAPUA

26 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Malaysian Universities With Agricultural Faculties &Programs. Universiti Malaysia KelantanUMK Universiti Malaysia SabahUMS Universiti Malaysia SarawakUNIMAS Universiti Putra MalaysiaUPM Universiti Malaysia TerengganuUMT Universiti Sultan Zainal AbidinUNISZA Universiti Teknologi MARAUiTM KL Infrastructure University CollegeKLiUC Universiti Tunku Abdul RahmanUTAR TWINTECH International Technology CollegeTWINTECH Kolej RISDA

27 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Undergraduate Degree Programs INDONESIA University ProgramUniversityProgram Andalas Agronomy Horticulture Crop Protection Soil Science Bogor Agronomy & Horticulture Landscape Architecture Biosystem Engineering Crop Protection Soil Science & Land Resources Sumatera Utara Agribusiness Agronomy Agrotechnology Animal Husbandry Brawijaya Agriculture Socio-economy Agribusiness Agronomy Agrotechnology Crop Protection Soil Science Sriwijaya Agribusiness Agricultural Extension Agronomy Crop Protection Post Harvest Technology Soil Science Animal Husbandry Gadjah Mada Agricultural Extension Agricultural Microbiology Agriculture Socio-economy Agronomy Crop Protection Plant Breeding Soil Science Muhammadiah Malang Agribusiness Agrotechnology Food Science Animal Husbandry Forestry Sebelas Maret Agribusiness Agrotechnology Animal Husbandry Food Technology Padjadjaran Agribusiness Agrotechnology Hasanuddin Agribusiness Agronomy Agrotechnology Food Technology

28 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 MALAYSIA UniversityProgramUniversityProgram UMK Agrotechnology Entrepreneurship Bioindustrial Technology Husbandry Science Product Development Technology UMT Food Science Food Technology Post Harvest Technology UMS Crop Production Horticulture & Landscaping Livestock Production UNISZA Agricultural Biotechnology Animal Production UNIMAS Science & Management of Plant Resources UiTM Plantation Technology & Management UPM Agribusiness Agricultural Science Animal Science Bioindustry Science Horticultural Science UTAR Agricultural Science TWINTECH Agricultural Biotechnology Undergraduate Degree.

29 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012

30 The Role of Technology. Plantations as a centre of technology. Avoid 3D or slave drivers image of the industry. A good tool to entice younger generation. Potential to minimise the mismatch.

31 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Ability to manage an estate independently. Poor organizational ability. Lack of technical competency. Ability to initiate and motivate team members. Leadership. Decision making. Integrity/ transparency. Communication skills. Talent Mismatch: Managerial Level We are experiencing issues in promoting second liners to managerial positions. The Need to Empty The Barrel.

32 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 The Baby Foot Syndrome- Whose Fault??? HOW SHOULD A PLANTER ALLOCATE HIS TIME? THE PLANTERS FOOT IS THE BEST FERTILIZER Difficult to get planters to set foot in the field and organizations should review their management approach. 5% Passion

33 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Managerial Level: Bridging The Gap. External Training Providers: Identify good talents. Take stock of strength and weaknesses. Prioritise area/scope of training. Groom and Develop. Narrow knowledge and experience gap. In house Training:

34 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Dont Forget! Leadership Training This is a VSOP rich industry.

35 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Problems related to upgrading to higher level management. Provide leadership at a higher level. Analytical skills. Able to see the big picture. Strategic thinking. Strong business acumen. High level decision making (million/billion dollar decisions) Highest level of Integrity and transparency. Networking/ communication. Talent Mismatch: Higher Level Management

36 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Executive Development Program & Higher Level Training. Professional development services Saïd Business School Continuing Professional Development Advanced Management Program Transforming Proven Leaders into Global Executives

37 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Manager Sr. Manager GM/PA Years Salary Rewards Package : Brain Drain & Talent Mismatch. In a 30 years career life as a planter, ¾ of a planters life is spent earning 43% of his lifetime earnings.

38 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Succession Planning & Talent Duplication.

39 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Conclusion. The issue of talent management and mismatch in the industry should be viewed seriously with the growing challenges in the industry. Talent mismatch occurs at various levels i.e. at entry point level, managerial level and high level management. The issue related to talent mismatch should be addressed by the stakeholders of the industry which includes the planter himself, employers or plantation companies as well as the government.

40 Ramesh Veloo & Hj Borhan Abd Aziz, The 3 rd International Plantation Industry Conference & Exhibition 2012 Many Thanks


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