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

2. A Professional Planter
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
Surveyor
Engineer
Architect
Accountant
And is usually so busy that he has to do his serious studying at meal times
Doctor

3. 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. Oil Palm Land Area. Point of saturation -5.5mill ha.
Industry is posed by various issues and challenges –new blood/new talents required to relook at these issues.
Source: MPOB (2010)

5. The Yield Challenge. FFB Yield(t/ha) against Average(Years).
Comparison of Rates of Yield Growth of
Soya bean,
Rapeseed and Oil Palm Since 1970’s
(2012)

6. Price Volatility: Monthly CPO Price Trend 2008 – 2012
Source: MPOB (2012)

7. Labour Productivity.

8. Cost of Production.

9. 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. Global Agriculture & Food Supply
Droughts drives food prices higher threatening the poor
Japan & Rep of Korea pledge additional $60 mill to boost food security
More than 17 million people starving
in West Africa’s Sahel region
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. Where Money Grows on Palms!
Palm oil will remain to be a major contributing factor to the national economy.

12. Worrying Phenomenon: Declining Share in Agricultural Employment – Lack of interest
Source: Statistical Yearbook for Asia and the Pacific (2011)

13. Professionals Planters and Supervisory Staffs
Global demand (million tonnes) & land area required (million hectares)
Executives & staff ratios industrial plantation
Oil Palm
Rubber
Oil Palm
Rubber
Don’t forget rubber.
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)

14. Estimated Labour Shortage in Oil Palm Plantation according to Job Categories and Region (2010)
P. Malaysia
Sabah
Sarawak
Malaysia
Harvesting Mandores
363
179
127
672
General Mandores
291
156
196
643
Harvesters and Collectors
10,828
6,742
5,145
22,721
Field Workers
5,917
3,440
2,889
12,240
Other General Workers
2,341
1,215
1,396
4,957
Sub Total Field Workers
19,739
11,732
9,753
41,234
Executives
152
153
452
Staff
399
313
309
1,010
Sub Total Executive
555
464
462
1,462
TOTAL
20,294
10,215
42,696
Source: Mohd. Arif, Azman & Roslan (2011)

15. 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. 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. Talent Mismatch: A Global Phenomenon.
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.

18. 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
Average
Poor
Performance
Outstanding/
“Talent”
The best way to persuade senior management of the value of talent management is to put a value on that talent (ROI)
© HRPD Associates 2009

19. Career Path as a Planter and Mismatch Issues.
Senior Management 2
Senior Management 1
Managerial Level
CEO
GM/PA
Entry Point
Senior Manager
Manager
Senior Asst.
Asst.Manager
Cadet
How Long Does It Take To Move This Ladder?.

20. Supply for Entry Points: Numbers/Quantity is No Big Issue.
TOTAL UNEMPLOYED GRADUATES: 65,500
(917 of total)
Source: Department of Statistics Malaysia (2010)

21. Talent Mismatch: Entry Point Level
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.

22. Commitment & Hands On
Have passion for the job
Basic Degree/Diploma
Love outdoor /challenges
of remote working environment
Good command of English
Chain of command

23. 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.

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-GHIFARI
SATYA WACANA
BOGOR AGRICULTURAL UNIVERSITY
SEBELAS MARET
BANDUNG RAYA
SLAMET RIYADI
BRAWIJAYA
TRUNOJOYO MADURA
GADJAH MADA
WIDYAGAMA MALANG
JANADABRA
WIDYAKARYA
JEMBER
WIJAYA KUSUMA SURABAYA
MUHAMMADIYAH MALANG
YUDHARTA PASURUAN
PADJADJARAN
KALIMANTAN
LAMBUNG MANGKURAT
MULAMARWAN
TANJUNGPURA
SULAWESI
COKROAMINOTO PALOPO
DE LA SALLE
HASANUDDIN
SAM RATULANGI
GORONTALO
TADULAKO
MOLLUCAS
KHAIRUN
PAPUA
MUSAMUS MARAUKE
STATE UNIVERSITY OF PAPUA
BALI-NUSA TENGGARA
ARTHA WACANA CHRISTIAN
MATARAM
UDAYANA

26. Malaysian Universities With Agricultural Faculties &Programs.
Universiti Malaysia Kelantan
UMK
Universiti Malaysia Sabah
UMS
Universiti Malaysia Sarawak
UNIMAS
Universiti Putra Malaysia
UPM
Universiti Malaysia Terengganu
UMT
Universiti Sultan Zainal Abidin
UNISZA
Universiti Teknologi MARA
UiTM
KL Infrastructure University College
KLiUC
Universiti Tunku Abdul Rahman
UTAR
TWINTECH International Technology College
TWINTECH
Kolej RISDA

27. Undergraduate Degree Programs
INDONESIA
University
Program
Andalas
Agronomy
Horticulture
Crop Protection
Soil Science
Bogor
Agronomy & Horticulture
Landscape Architecture
Biosystem Engineering
Soil Science & Land Resources
Sumatera Utara
Agribusiness
Agrotechnology
Animal Husbandry
Brawijaya
Agriculture Socio-economy
Sriwijaya
Agricultural Extension
Post Harvest Technology
Gadjah Mada
Agricultural Microbiology
Plant Breeding
Muhammadiah Malang
Food Science
Forestry
Sebelas Maret
Food Technology
Padjadjaran
Hasanuddin

28. Undergraduate Degree. MALAYSIA University Program 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
TWINTECH

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. Talent Mismatch: Managerial Level
We are experiencing issues in promoting second liners to managerial positions.
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.
The Need to Empty The Barrel.

32. The “Baby Foot Syndrome”- Whose Fault???
HOW SHOULD A PLANTER
ALLOCATE HIS TIME?
5% Passion
THE PLANTER’S FOOT IS THE BEST FERTILIZER
Difficult to get planters to set foot in the field and organizations should review their management approach.

33. Managerial Level: Bridging The Gap.
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:
External Training Providers:

34. Don’t Forget!
This is a” VSOP” rich industry.
Leadership Training

35. Talent Mismatch: Higher Level Management
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.

36. 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. Rewards Package : Brain Drain & Talent Mismatch.
Sr. Manager
GM/PA
Manager
Years
Salary
In a 30 years career life as a planter, ¾ of a planters life
is spent earning 43% of his lifetime earnings.

38. Succession Planning & Talent Duplication.

39. 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. Many Thanks