CEO Series: Limitations of talent poolApril 24th, 2014
By Agus Sudradjat, Chairman & CEO of Grey Group Indonesia
The explosive growth in mobile devices and entertainment has had a positive impact on the digital industry in Indonesia. With the growth of affluence – an emerging middle class consumer – the industry will see an approximate 50% growth in the next five years. This booming growth of the digital sector will certainly have a positive impact on digital professionals.
As the industry must engage in innovations in order to keep up with the evolving market, the need to have talented professionals is critical but in reality, the market scenarios do not seem to be in line. Talent pool remains limited while poaching is an everyday headache.
According to a survey done by Monroe Consulting Group, some respondents apparently have been approached by head hunters with an offer between five to 10 times more than the current salary. It sounds ridiculous but yet this is what is happening…
The high turnover in the industry and the limited talent pool has pushed companies to accept demands from candidates – for instance a 100% hike in salary! A senior professional said, “It’s crazy and there’s no salary chart which we’re used to knowing of.”
Retention is also another issue according to the Monroe Consulting Group’s survey. About 17% of the respondents expect a 50% increment in their current wages while another 15% expect about 40% to 50% increment. And another 18% would want a 30% to 40% increment. Surprisingly, they actually get it!
For agencies, it’s a classic chicken and egg situation – for ongoing commitments to clients, do we nurture a fresh talent or take on an experienced hire. Clients rarely have the luxury of time in this day and age. The business cannot wait and we have to run fast. With the digital talent deficit happening right now in Indonesia, most agencies that I know of end up with staff that really cost. So which first, business or talent?