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Opportunities abroad stir up talent retention in Indonesia

Beyond educating and training the next generation of professionals in Indonesia, HR needs ways to find and retain talent. The existing skilled workforce is now in high demand, and this is aggravated by an increased rate of internationalisation. Indonesian workers with applicable qualifications may be enticed to foreign companies, reducing Indonesia’s human capital even further. There are a number of ways that HR can make organisations more competitive to attract talented individuals. 

The Asia Region Head at HR of Danish technology company FLSmidth, George Xavier, says: “With the fast-growing Indonesian economy, HR professionals face increasing competition for top talent. The challenge is compounded by the fact that many young, highly skilled professionals are seeking employment abroad. To attract and retain the best employees, HR professionals must be able to offer competitive salaries, benefits packages, and opportunities for career growth. For example, companies may need to invest in professional development programmes and provide flexible working arrangements to attract and retain top talent.”

Practices and policies that encourage talented employees to stay on and develop themselves within the organisation encourage a sustainable business ecosystem. HR professionals must keep an eye on this challenge in the next few years, especially as the ASEAN Economic Community is established at a regional level. This concept was introduced to recalibrate the competencies of Indonesian workers with those of other ASEAN countries, and to lessen the impact of foreign workers entering the country with a higher level of education (and more developed capabilities). The challenge may also be overcome by reviewing and adapting current business practices in Indonesia, from salaries to promotional training, which will prepare in-house employees for greater responsibilities and more advanced skills.

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Chief of Staff Asia