PDF - Management Insider
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PDF - Management Insider
2016 | No 4 $4.00 CAMBODIA’S BUSINESS LEADERS MAGAZINE $alary Shake Up WAGES HAVE BEEN SPIRALLING UPWARD FOR YEARS IN CAMBODIA, BUT WITH REGIONAL ECONOMIC UNCERTAINTY REFLECTING LOCALLY ... THINGS ARE ABOUT TO CHANGE Amaury de Saint Blanquat gives an insiders perspective Also: Big Profile: Chhiv Phyrum Fair Play: Resolving Labour Disputes on Neutral Ground Academy Rewards A Brand New Institution Enlists Experts to Fill Gaps in the Skillsets of Professionals Know Your Role What A CEO Expects From an HR Manager Management Insider | 1 200 eLearning Modules in 14 Languages eLearning modules are a fast and cost-effective way to train your team wherever you want, whenever you want. Developed by top experts, the high quality eLearning modules are multi-device friendly and use a comprehensive pedagogical design to maximise learning goals. You can choose among 200 individual modules or we can recommend bundle packs and blend them with tutor-led programmes to fit your team’s needs. Open Courses | Customised Training | Personal Development | Training Consulting | eLearning www.saintblanquat.com / Management Academy 2 | Management Insider Follow us Facebook/Management Academy Management Academy is a brand of Saint Blanquat & A. and exclusive partner of Cegos Group Management Insider | 3 LinkedIn/Management Academy Cambodia 4 | Management Insider Management Insider | 5 Contents P.8 About Letter From the Editors Contributors P.10 Society & Lifestyle Lasting Impressions P.14 Technology & Strategy Digitise P.16 Big Cambodia Big Idea: Know Your Foe Big Conversation: Hay Hunleng. Agency for Change Big Profile: Chhiv Phyrum. Fair Play: Resolving Labour Disputes on Neutral Ground P.28 Management Cambodia Academy Rewards The Right Mix Human Capital Consulting. A Job for the Experts Strength in Numbers P.40 Photo Essay Big Talk P.46 Cover Story Salary Shake Up THE ONLY FRENCH BILINGUAL SCHOOL IN PHNOM PENH BILINGUAL I CREATIVE PEDAGOGY I SMALL SIZE CLASSES In partnership with P.54 Business Asia In the Club Great Minds P.60 Expert Insights Above Board Leading & Learning P.64 Working Cambodia Style Collaboration Career Forum Top 5: Know Your Role 6 | Management Insider NOW ACCEPTING APPLICATIONS for Toute Petite Section de Maternelle (Preschool 2yo.) to CE2 (Grade 2 / 8-9yo). For more information on how to register or to book a tour and meet the EFI team, please contact us at [email protected], or call us at 092 259 124 / 023 727 788 Ext 104. BASSAC CAMPUS Bassac Garden City (near Rose Garden Condo), Phnom Penh KOH PICH CAMPUS Diamond Island, Elite Town Street, Phnom Penh www.efi.asia www.facebook.com/efi.asia Management Insider | 7 ABOUT LETTER FROM THE EDITORS The winds of change are blowing across Cambodia’s burgeoning employment market, with salaries going through the roof as a result of increasing demand for quality professionals to staff new and expanding interests. Finding qualified candidates is just the first step; enticing candidates with salary packages that are both attractive and affordable is one of the great challenges facing entrepreneurs, particularly those whose business requires specific experience or technical expertise. This rush to staff has given rise to an explosion in offerings of human resources services, which are being outsourced to professionals specialising in staff administration, headhunting and training. In this issue, we examine the forces behind the salary spike, and look at how the market might react. We dig into the world of human resources professionals - upskilling, recruitment and bonding. We also take a look inside the Labour Ministry’s Arbitration Council and explain why it is high time for business owners to dust off the Labour Law and comply. CONTRIBUTORS ABOUT US Eve Watling Jo Hocking is a journalist from Brighton, UK, and has an English and film studies degree. She works as a freelance writer and is former editor of MILK magazine. Jo Hocking, originally from Western Australia, is a seasoned writer and communications specialist who has resided in South East Asia for the last five years. Jo is currently based in Phnom Penh. Managing Director Amaury de Saint Blanquat Managing Editor Camilla Pluess Art Director Hamid Saatchi Editorial Assistant Vivaddhana Khaou Contributing Editor Matt Blomberg Sales Manager Bruno Abert Steve Noble Kali Kotoski Sales Consultant Lise Romon is a South Africa-born writer with a background in radio and music journalism. Steve explored the globe before settling in Cambodia two years ago. is a Cambodia-based journalist who reports on business and politics. Kali has a background in small business management and development. Sales Assistant Men Kimchhay Administration Sorn Sokly Staff Assistant Cassandra Riddell Accounting Sophea Pich Finance Kang Simemilie Pich Sophea Distribution Read Weasna For Editorial Enquiries [email protected] For Sales Enquiries [email protected] +855 (0)12 480 413 7B, Street 81, Phnom Penh, Cambodia © 2016 Saint Blanquat & Associates Co., Ltd. All rights reserved. No content may be reproduced without prior authorisation of the owner. Cover: Enjoy. Art Direction Hamid Saatchi Amaury de Saint Blanquat Camilla Pluess Get our Digital Magazine at www.managementinsider.asia 8 | Management Insider Management Insider | 9 SOCIETY & LIFESTYLE | LASTING IMPRESSIONS Lasting Impressions Cambodia is alive with businesspeople from all over the world. Management Insider reveals the intricacies of inter-cultural communication. Words and photographs by Eve Watling We are constantly told that first impressions play a crucial role in setting the right tone for our business dealings. However depending on where you are in the world, and who you are dealing with, greetings take on different shapes and forms due to cultural, societal and generational factors. Taking time to learn and understand your clients’ business culture can greatly benefit your future dealings, and greetings are no exception. Cambodia is now home to any number of different nationalities doing business, from strictly formal East Asian cultures to the more relaxed dealings of the West. As such, it is increasingly important to be aware of the different types of business greetings used in Cambodia, with good first impressions as vital as ever. Chanra Sir is Operations Director at DNAK Trading Co. Ltd and Digby’s Grocer & Café. She is Cambodian. The Cambodian sampeah is used both as a symbol of prayer and as a greeting: a sign of respect and politeness or a way to say thank you or to apologise. When greeting someone who is considered a peer, hands are pressed together in prayer in front of chest. The higher your hands are in relation to your forehead and the lower you bow, the more respect you are showing. These days, except when greeting elders or public officials, Cambodians incorporate Western culture in their greetings by doing a sampeah first, followed by a handshake. As Cambodia is a hierarchical culture, respect and deference must always be shown to the most senior person. If groups are involved, we should introduce people according to rank so that our Cambodian counterparts understand the dynamics of the group. Handshakes are normal, although be careful not to be too firm as this may be construed as aggressive. If men are dealing with women, they should wait and see 10 | Management Insider if the female counterpart extends her hand before doing so themselves. Eye contact should be kept to a minimum as looking directly at another person’s eyes is considered rude. Cambodians address people with the honorific title ‘Lok’ for a man and ‘Lok Srey’ for a woman, with the first name alone or both the first and surnames. Business cards should be exchanged after initial introductions. Have the flipside of your card translated into Khmer if possible, and present the card so the Khmer side is first read by the recipient. Use the right hand or both hands when offering or receiving a business card. It is important to treat business cards with respect as the way we handle the card is indicative of the way we will treat the person. Small talk should always be employed at the beginning of meetings. Cambodians are very indirect communicators so some reading between the lines is a necessary skill. In fact, if Cambodians disagree with a person or idea, they would rather remain silent than make any comment. If unsure about statements, be sure to double check by “ Cambodians incorporate Western culture in their greetings by doing a sampeah first, followed by a handshake. ” - Chanra Sir, Operations Director, DNAK Trading Co. Ltd / Digby’s Grocer & Café asking. Cambodians prefer ideas to be brought forward in a gentle way and to wait for others to respond. Pushy, pressured or boastful communication styles are a real turn-off. Non-verbal behaviour is important to be aware of. For example, smiling in Cambodia is situational and can have many meanings; it may mean a person does not understand what has been said, or that they are nervous or even irritated. Showing emotions is considered negative behaviour: a sign of weakness as well as poor manners. Modesty and humility are emphasized in the culture, so compliments and praise are generally responded to by a deprecating comment. Eigo Takechi has been the manager of Tama Hotel and The D22 for one and a half years. He is Japanese. Japanese greetings are more polite than friendly. First, we exchange business cards; it is considered rude to skip that step. Japanese people don’t shake hands; they bow. There are three kinds of bow. When you acknowledge someone you know in passing it’s just a little bow. When you greet someone properly, the bow is 45 degrees. To apologise or say thank you, it is 90 degrees – a deep bow. The Japanese never hug or kiss. After bowing and trading business cards, Japanese tend to get straight to the point with just a little small talk. When the meeting’s over, you thank them for coming and bow again. If you get in an elevator after the meeting, you bow, and remain bowing until the doors have closed, and then stand straight again. When in a business meeting in a restaurant, the youngest women need to serve drinks to everyone. If there are no women, then the youngest men do it. In general, the Japanese are not so straightforward; they don’t say when they dislike something. They are always very polite. They believe you should always wear a tie, a jacket and shiny shoes. Sit with your back straight, don’t cross your legs, and keep eye contact. Keep a lot of distance and personal space. It’s easy to offend the Japanese. The key is to remain polite and formal. Management Insider | 11 SOCIETY & LIFESTYLE | LASTING IMPRESSIONS “ When you greet someone properly, the bow is 45 degree. To apologise or say thank you, its 90 degrees. ” - Eigo Takechi, Manager, Tama Hotel / D22 “ Among Chinese, business deals are sometimes done in unusual places like sauna. - Zhengyu Ren, Manager, Elionetwork Translation Agency 12 | Management Insider Zhengyu Ren works for Elionetwork Translation Agency and has been in management in Cambodia for four years. He is Chinese. Chinese people mostly shake hands as a greeting, and there is a lot of emphasis on body language. In the case of a business meeting with Chinese clients, you need to consider your role in the meeting, plus the subject of the meeting. If you’re at an advantage, you can appear relaxed, but if you want something from someone, you need to appear humble, with lowered posture, speaking quietly, and looking up at the other person - you need to be clearly deferential. Among Chinese, business deals are sometimes done in unusual places like saunas – it’s informal, but quite acceptable. Chinese culture is non-confrontational; people avoid straightforward expressions, yet at the same time we all know that to be straightforward is most efficient. Going to places like saunas, where people are naked, tends to soften the atmosphere and allow for smooth dealings. When dealing with Chinese, your posture will have a great impact on your communications. Confidence can easily be mistaken for arrogance in Chinese culture – a typical American-style confidence, for example, could be seen as arrogance. The staunch and casual posturing that is more typical of Westerners would be inappropriate for a Chinese businessman. You want to make yourself smaller, and more sincere. Bowing or making a sampeah isn’t appropriate among Chinese: people will think you’re a monk. In a business context, Cambodians sometimes ask questions such as how much money I make, which I find inappropriate. I’ve heard Cambodians say that Chinese businessmen can come across as harsh and arrogant. The Chinese like to small talk a lot: sometimes annoyingly so. However, it is strategic - it helps us understand the mood and interests of the other person and allows you to build some kind of connection, facilitating smoother business dealings. Talking about cars, property prices or children for two hours is normal. The real issue may only be discussed for ten minutes, and after the small talk has subsided. The Chinese also love compliments - and they can be shamelessly over the top. Chinese people exaggerate and even make things up, but everyone knows that is part of the culture so they bear that in mind and don’t believe everything. If you don’t know the culture, you may judge “ Australians place a lot of importance in the quality of the grasp – no one likes a dead fish handhake! ” - Weh Yeoh, Managing Director, IOC: The Cambodian Project them as liars. People aren’t trying to trick you - that’s just the culture. Chinese people find it very hard to say no, even if they’re not interested. Generally, they’re totally non-confrontational. Also, words are not literal or binding in Chinese business culture. It’s acceptable to go back on a verbal agreement if there’s been no deposit, and people won’t even feel guilty about it. Weh Yeoh is the Managing Director of OIC: The Cambodia Project. He has three years of management experience in Cambodia. He is Australian. Australians get off our chairs when someone enters the room. We would first always go in for the handshake. Australians place a lot of importance in the quality of the grasp - no-one likes a dead fish handshake! Grip strength is important: you have to be strong, but not too strong. Make sure you go into the handshake with the palm facing up instead of down, as a downward facing palm is seen as arrogant. What’s different to Asian culture is that we don’t always pull out the business card immediately. Open up the conversation with a little bit of small talk about the weather, the coffee in the café that you’re sitting in, or the cricket (the scores in the sport, or the taste of the insect) in order to initiate some element of bonding. But the conversation should get to the point relatively quickly - and after business is done, move on to something that is off-topic. Keeping your word is very important when dealing with Australians. As such, you often don’t need a written document or contract: giving your word is just as good, and you will be judged by how true you are to your word. It would be inappropriate not to call someone by their first name. Being too formal is impolite: it’s seen as putting up barriers. In Australia, they might even use the word ‘mate,’ which is similar to friend and even less formal. Ask about their family, use a little bit of humour - it can even be the kind of humour that other cultures would consider inappropriate during business dealings. Australians have an emphasis on timeliness and punctuality: you shouldn’t be late for a meeting or stretch out something over an unnecessary period of time. Meetings in Cambodia last two or three hours, but in Australia they last one hour maximum. We have to get the heart of the meeting out of the way, then worry about socialising afterward. Contrasting with business cultures that are all about face, ceremony and over-the-top compliments - the Chinese used to call me the best physiotherapist in the world, even though I had not practiced for eight years - Australians roll their eyes at grandiose and dishonest statements. Management Insider | 13 Digitise Words by Vivaddhana Khaou Businesses are increasingly leaving paper in the past, moving to digital file management. The initial cost can be a burden, but for those who make the switch it is an investment that keeps on giving. HR information system is a software and online solution that is used as a centralised data base for HR tasks and management. Expanding your business means expanding your staff, and expanding your staff means an influx of tasks for your HR department: new contracts and all the paperwork that comes with them. And then there is the logs of employee personal information, payrolls, benefit schedules - seemingly endless administrative tasks that waste many man hours, clutter desks and offices with files, and are susceptible to human error. Many Cambodian businesses still operate under this system but plenty have turned to a Human Resource Information System (HRIS), also known as a Human Resources Management System (HRMS), to streamline operations and reduce margin for error. The Benefits The HRIS system is often praised as a one-stop shop for companies, who use it as a data bank, for managing recruitment and to schedule tasks and reminders. Users, both employees and employers, are only ever required to enter information once, with the system intelligent enough to take data and use it on other forms where required. The HRIS system allows a business to process HR-related tasks, such as payroll, accounting, recruitment and management, more efficiently while relieving stress on the HR department. Tasks such as recruiting also become a lot easier for both employee and employer, as the process is paperless, with file management digitalised. Many HRIS systems also feature an online platform for employees to personally manage their employment and benefits. Company guidelines, employee handbooks and safety guidelines can be put online and easily updated, making them accessible anytime and anywhere. All of this eases the burden on your HR department, saving essential man hours every month. The paperless, digitised approach to storing information raises efficiency. Business execution and prospects of mergers, for example, become a walk in park compared to what the process would be without HRIS systems, simply because HR departments TOP 5 SYSTEMS GLOBALLY 1. Greenhouse A recruiting platform at its core, Greenhouse goes beyond just tracking applicants - it offers the tools companies need to manage their entire hiring process. Greenhouse was built to align with how great recruiting organisations work, and includes industry best practices for hiring great talent. It is scaled throughout the company, so hiring teams are able to make more informed decisions. 2. The Applicant Manager With no software to install and no IT support needed, The Applicant Manager (TAM), a cloud-based system, gives users full accessibility at any time from any device with Internet access, including smartphones and tablets. © Illustration by Hamid Saatchi 14 | Management Insider 3. Workable Workable is a standalone applicant tracking system that helps users find and hire the right people. The program replaces email are able to manage tasks, documentation and time. The Disadvantages While HRIS is a highly regarded tool for boosting performance, it is important to note the foreseeable disadvantages. While they do not outweigh the benefits, some do exist. The first and possibly biggest obstacle is the cost factor. Your initial investment is around $50,000 in Cambodia, and does not include costs of maintenance. Man hours that you save in HR might now have to be dedicated to IT professionals employed to maintain your system. And then there is the security factor: These systems hold troves of sensitive and confidential information about employees and the company, so quality security and management of your database is essential. SME Adaption Despite the ongoing influx of large companies to Cambodia, small and medium size businesses have taken over large chunks of the market, and these firms can further strengthen their models, and eventually their productivity and bottom lines. In recent years, HRIS systems have evolved, becoming more affordable for small companies, with options like software-as-a-service (SAAS) HRIS tools, which deliver the product via subscription rather than straight purchase. If you haven’t done away with the paper and taken your file management online, it might be time to consider it. and spreadsheets with a simple way of advertising jobs, receiving applications, filtering them, setting up interviews and making great hires. 4. JobAdder JobAdder is a cloud-based recruitment management platform designed for recruitment and staffing agencies and in-house corporate hiring teams. JobAdder is used by more than 10,000 recruiters in 20 countries. 5. APS OnLine APS (Automatic Payroll Systems, Inc.) has been providing payroll and tax compliance services to companies for almost two decades. In 2004, they released their APS OnLine, their cloud-based solution for human capital management. APS OnLine combines their services in a streamlined format that can be scaled to various sized companies. Management Insider | 15 BIG CAMBODIA | BIG IDEA. KNOW YOUR FOE Know Your Foe tock © Sh utters Big Idea Words by Vivaddhana Khaou With new products saturating a fledgling market, brands must do their homework before coming to Cambodia 16 | Management Insider Over the past few years, Cambodia has experienced steady economic growth that has led to the emergence of a new Cambodian middle class, effectively raising the disposable income and consumption levels in the country. With a market willing to spend more, and with greater consumer demands, it is increasingly necessary for companies to be able to track the performance of their products and services against their rivals. Some multinational companies, however, use regional market strategies for the whole of Indochina as though Cambodia is not a separate market with unique characteristics and needs, which is a mistake. “Companies currently underestimate how quickly Cambodia is transforming into a complex, segmented consumerist society with increasing disposable income and varying consumer demands,” says Anne Abcede, head of market research for Saint Blanquat & A. “Brands’ conservative outlook toward the market can be seen in multiple facets, and is made apparent by inadequate marketing efforts - from limited products and variants on supermarket shelves to translated Thai and Vietnamese ads on local airwaves, copycat taglines, untranslated packaging labels, and irregular or no customer satisfaction checks,” she adds. Spread the Brand There is no doubt companies see the Cambodian market potential, however their propensity to rush too quickly to grab a piece of the pie without fully understanding consumers means the market flooded, and firms are failing to create sustainable, personalised relationships with potential customers. Of companies’ marketing budget for Cambodia, a very small portion goes to market research, while the rest is spent on media placement, advertising, activations and other promotions. There is no denying the power of increasing brand visibility and communication. Budget restrictions dictate whether a firm can land a TV advertisement in prime time or take a promotion on the road, but while reaching your target audience is one There is no doubt companies see the Cambodian market potential, however their propensity to rush too quickly to grab a piece of the pie without fully understanding consumers means the market flooded, and firms are failing to create sustainable, personalised relationships with potential customers. goal, creating an impact is another, in the same way usage or sales figures do not readily translate into customer satisfaction and loyalty. A new market entrant who delivers specific needs such as creation of a new packaging format or a new product variant, or who connects better with Cambodian consumers, may well get your users to switch tomorrow. Through market research, brands can be aware where they stand in comparison with competitors, how to build salient and long-term equity, and what market projections are. With this, strategists can blend future trends through product development and innovation, not just to fulfill needs but also to introduce original concepts and create new demands. The Cost of Data Research can be financially intimidating for many, and this is exacerbated by the notion that research is too academic and to the point of being almost unnecessary. On the contrary, while research follows methodological and ethical principles, it can be flexible and be modified in several ways to guarantee actionable results or to simply address constraints such as time, staff resources or money. More often than not, money Management Insider | 17 “ Companies currently underestimate how quickly Cambodia is transforming into a complex, segmented consumerist society. ” - Anne Abcede, Head of Market Research, Saint Blanquat & A. and lack of familiarity with different types of research are what inhibit companies from doing a study. Omnibus and syndicated (OS) surveys are quantitative data collection instruments funded by several clients. The model uses a questionnaire covering many different topics concerning one target group. Multiple clients share the cost of data collection logistics and respondent recruitment, making it extremely cost efficient. As an OS survey is affordable, it can be done regularly, and through the process, it becomes increasingly efficient over time and makes it a vital tool for strategists and marketers to make moves based on up-todate data. Omnibus and syndicated survey data is exploratory and provides clients with some clarity of the overall market landscape. It later serves as a basis for custom- or tailor-made research when clients see the need to dig deeper into topics 18 | Management Insider and issues specifically concerning them. Omnibus and syndicated (OS) surveys are quantitative data collection instruments funded by several clients. The model uses a questionnaire covering many different topics concerning one target group. Multiple clients share the cost of data collection logistics and respondent recruitment, making it extremely cost efficient. As an OS survey is affordable, it can be done regularly, and through the process, it becomes increasingly efficient over time and makes it a vital tool for strategists and marketers to make moves based on up-todate data. Omnibus and syndicated survey data is exploratory and provides clients with some clarity of the overall market landscape. It later serves as a basis for custom- or tailormade research when clients see the need to dig deeper into topics and issues specifically concerning them. Management Insider | 19 BIG CAMBODIA | BIG CONVERSATION. AGENCY FOR CHANGE Big Conversation Agency for Change With Kali Kotoski As Cambodia continues to build its presence in the Asean region, and with more and more international companies bringing their operations here, the complexities of developing an adequate labour force are coming to the fore. © Photograph by Kali Kotoski 20 | Management Insider Management Insider spoke with Hay Hunleng, adviser to the National Employment Agency, about the challenges the organisation faces and the need to promote job training and employment services. Management Insider | 21 BIG CAMBODIA | BIG CONVERSATION. AGENCY FOR CHANGE “ “ If you look at the construction and real estate sectors, I think it is the most viable for long-term employment because we need more infrastructure and new developments are happening everyday. ” How does the NEA register jobseekers? Because they are scattered all around the country, we must rely on outreach and recruitment events at the commune level, where we announce that we are coming to an area ahead of time and have local officials gather the community together. We bring three or four employers with us to meet potential employees, and many are offered jobs on the spot and are working within days. Besides recruitment events, we also dispatch our officials to the provinces to gather statistics so we can gauge the level of employment there. - Hay Hunleng, Adviser, National Employment Agency What is the ultimate purpose of the National Employment Agency? The National Employment Agency has two key mandates. One is offering employment services, and the other is providing labour market information to jobseekers and policy makers. How does the NEA help jobseekers become employees? We have found that many candidates do not even know what they are looking for. As such, during initial registration, before we make referrals, we provide counselling and advice to clients to help us fine tune the search. We also collect data from the private sector to define labour trends, skill gaps, and the specific needs of employers at any given time. We hope that this data can also be used to help shape policy and promote training of the skills that are most needed. Who does the NEA target in terms of finding employment? For the moment, the majority of candidates would be from the low-skilled labour force with rural backgrounds and little to no education. These people are the most vulnerable, so they need support most of all. Unlike private recruitment agencies, the NEA focuses on those with little information and who have been marginalised. Private recruitment agencies tend to be more like headhunters. 22 | Management Insider The NEA acquires lots of data on employment. How well do you believe it represents the overall situation? I don’t think our data can be considered representative of the whole country, but it certainly can be used as a rough gauge for some trends. We currently have 68,682 registered jobseekers, and over the last five years we have seen the numbers fluctuate. For instance, in 2014 when all the migrant workers were returning from Thailand over fears of a government crackdown following the coup, our database tripled, but this year it has only grown by 10 to 20%. What is the employment strike rate among your registered candidates? Of the 68,682 candidates in our database, we will only refer around 30,000 to employers. Of that number, only about 10,000 actually gain employment from our service. Why are so many jobseekers unsuccessful? Currently, we face the difficulty of our jobseekers having inadequate or mismatched skills for the positions that are available. Given our target clients, this is a common problem. For us, the most lacking skills are within the industrial sectors - auto mechanics, construction workers - and those working on light manufacturing assembly lines. With many companies looking to enter Cambodia to take advantage of the low cost of labour, is skills training keeping up with demand? I think, for now, the companies that are shifting here see the benefits of privately training their workers. Just look at Minebea. Plus, with the mobility of these companies, when initially starting up they can temporarily absorb the numbers needed at the low skill level, while also bringing in higher paid workers from outside the country at the managerial level. But gradually, through training, lowskilled workers could move into higher positions. But if employers are not providing skills training and are only looking to retain a low skilled labour force, these workers can fall into a trap of exploitation. How can low skilled labourers carve out a career path toward higher wages? In terms of designing workers’ career paths, training is what we need first. Otherwise, workers believe that they will only see their salary increase through collective bargaining, demonstrations or protests, which doesn’t really work in the long run. What we can do is create a dialogue to make workers more confident that they are actually on a career path - having them visualise how they can climb the employment ladder instead of getting stuck in a low-skilled manufacturing job. That is why the NEA tries to provide training programs to garment factory unions and labour representatives. We also promote job vacancies for those that are looking to move out of garment factories. Long term, what do you believe is the most viable sector for employment? If you look at the construction and real estate sectors, I think it is the most viable for long-term employment because we need more infrastructure and new developments are happening everyday. However, what we see is that while there are more opportunities in construction, the majority of companies do not take our referrals. Why is that? It could be for two reasons. Either there is a lack of locally skilled engineers and technicians, or those workers don’t register with us because they can easily find jobs through networking and contacts. What can be done in the future to develop Cambodian skills? When developing skills, you have to talk about having the right curriculum for the future. This is often a challenge between ministries. For example, when talking about vocational training, the Ministry of Labour is in charge. But now the Ministry of Education has started its own vocational training programme as well. And they do not teach the same things. So, these two training programmes need to join together to promote the necessary skills for the future. A coordinated approach is needed. Meanwhile, the private sector needs to keep us up to date with what skills are needed so we can incorporate them, or a public and private collaboration makes no sense. Together, we all need to have a concrete plan to move ahead. Summer School 11/07/2016 - 19/08/2016 Enroll Now! Early Bird Discount: 10% off on tuition fee! * until 15th of June 2016 10% * EARLY BIRD DISCOUNT! New School Year Start 01/09/2016 Reserve Your Space Early! CAMPUS 1 N°. 9, International School Road (St. 2004) Phnom Penh, Kingdom of Cambodia Phone: 023 882 088 / 012 200 01 E-Mail: [email protected] Web: www.ciaschool.edu.kh CAMPUS 2 N°. 107, International School Road (St. 2004) Phnom Penh, Kingdom of Cambodia Phone: 023 885 088 / 099 200 011 E-Mail: [email protected] Web: www.ciaschool.edu.kh CIA PP INTERNATIONAL SCHOOL Nº 51, St. 352, Boeng Keng Kang I, Phnom Penh, Kingdom of Cambodia Phone: 077 862 333 / 023 979 979 E-Mail: [email protected] Web: www.ciappschool.edu.kh Management Insider | 23 BIG CAMBODIA | BIG PROFILE. FAIR PLAY Big Profile Fair Play: Resolving Labour Disputes on Neutral Ground “ Since the Council was appointed to resolve disputes, more and more people have become educated on what their rights are under the Labour Law. ” Words by Jo Hocking The Arbitration Council plays a vital role in in resolving Cambodia’s collective labour disputes. Management Insider spoke with lawyer and arbitrator Chhiv Phyrum about the council’s place in today’s dynamic market. When it comes to workplace conditions and worker rights, employers and employees, understandably, do not always see eye to eye. If the two parties can not resolve disputes and come to agreement via internal negotiations, industrial disputes, strikes and protests can materialise. The independent Arbitration Council was established to avert such action, which can negatively affect the bottom lines of companies and their employees. After Cambodia’s economy exploded into action in the late ‘90s, the Council was established with the support of the Labour Ministry, unions and employers in 2003 to serve as an independent, national-level mediator with quasi-judicial authority under the Labour Law to resolve collective disputes. 24 | Management Insider “The Arbitration Council provides a free, transparent, unbiased and neutral system for cases to be heard,” lawyer and arbitrator Chhiv explains. “This system has become very well accepted in Cambodian society as a means to resolve disputes.” Understanding the Process When collective labour strife arises, disagreements that cannot be solved in-house are forwarded to the Labour Ministry’s conciliators. If agreement is not reached there, the case is passed to the Arbitration Council. (Note: The Council - Chhiv Phyrum, Lawyer and Arbitrator, The Arbitration Council © Photograph supplied Management Insider | 25 BIG CAMBODIA | BIG PROFILE. FAIR PLAY does not deal with individual disputes.) “This process is mandatory by law and the parties do not get to decide whether or not we arbitrate the case unless there is another rule of arbitration written in their collective bargaining agreement,” Chhiv points out. Specialised in conflict resolution, the Council will seek to find an amicable solution through private negotiations. Failing that, the Council will hold hearings for both sides of the dispute and then issue a decision, generally within 15 days. Before the decision is handed down, both parties must agree on whether they will respect the Arbitration Council’s ruling as final and binding. “As the Council has gained confidence and trust to deliver the best decision, we are finding that parties are choosing the award to be binding rather than non-binding,” Chhiv explains. The Role of Arbitrators While the parties involved do not get to choose if their case is arbitrated or not, they do get to choose who represents them during proceedings. There are currently 30 arbitrators available on the Council: 10 on the employer list, 10 on the employee list, and 10 on the Ministry of Labour list. Serving in the honourary arbitrator role for employers since 2005, Chhiv has handled more than 200 cases. As well as being a qualified lawyer, she has a highprofile background in human resources, having worked with Cambodia Airport Management Services and with Manulife. When asked about her personal contribution to developing labour relations in Cambodia, Chhiv reveals the secondary service that the Council serves - putting confidence in the industry. “Since the Council was appointed to resolve disputes, more and more people have become educated on what their rights are under the Labour Law. People are also now aware that there is an independent process and that conflicts can be resolved transparently and fairly.” Chhiv says. “As a result we have seen an increase in cases received by Council. Strike action has also decreased a lot as employers and employees choose to work things out. People listen to us and respect our decision.” The Most Common Disputes Many of the labour disputes Chhiv oversees and mediates involve employers in the garment and footwear industry, which has been under great pressure in recent years to improve conditions for employers, including with a series of rises in the minimum salary dictated by the central government. “90% plus of cases heard by Council are related to the garment industry. However, more industries are aware of our existence and I have also arbitrated cases in the tourism, construction, hospitality, telecommunications and transport sectors,” Chhiv says. “The biggest disputes we receive involve wages and bonuses followed by disciplinary and terminations. Working conditions, safety issues and the rights of women are also a concern.” How to Avoid Disputes While the Arbitration Council exists to resolve conflict, the ideal situation would be to avoid unnecessary disputes in 361 Left: Subject matter of disputes for 316 cases registered at AC covered period between 1 January – 30 November 2015 285 Below: Independent baseline and midline assessment has confirmed that 92% of parties (employers, workers and their representatives) report high confidence in the labour dispute resolution service provided by the Arbitration Council. AC covered period between 1 January – 30 November 2015 255 191 120 148 159 180 145 114 81 31 200320042005200620072008200920102011201220132014 Sources: The Arbitration Council, 2015 Leave, 6% Work suspension, 2% Employment status, 2% Wages and bonuses, 42% Discipline and termination, 15% Labour rights of women, 6% Occupationa, health and safety, 7% Strike, 3% Unions and workers delegate, 5% 26 | Management Insider the first place. The disputes are inevitable, however, with many employers constantly pushing the boundaries in a bid to increase output and reduce costs. “If a company does not want rights disputes, stick to what the law says and respect the law,” Chhiv advises. “This will help to avoid rights disputes because these occur when employers do not respect legal requirements. “However, if the dispute is “interest” related, a resolution is more complicated. For example, pregnant women being granted priority to leave work first is not written specifically into the law, and would solicit different reactions from employers and employees, making the resolution to such a dispute far from black and white. Chhiv advocates good communication and social dialogue, for example regular meetings and sharing of information, in order to keep these types of issues on the table for discussion and not simmering away beneath the surface waiting to explode. “It is important to keep talking to each other where concerns can be raised. Employers can also inform staff of changes, in terms of when and how, and if employees have this information they may be more patient. Often employers will also underestimate a change in policy and do not communicate it properly with their staff which can cause conflict.” Chhiv explains. “If possible it is best to negotiate a collective bargaining agreement where all expectations of staff and/or their representatives are discussed and signed with a mechanism for conflict resolution,” she concludes. “This mechanism may help to reduce illegal strikes which are very costly to the employer.” General working conditions, 8% Labour and other contracts, 4% For more information on The Arbitration Council visit www.arbitrationcouncil.org Management Insider | 27 © All photographs supplied MANAGEMENT CAMBODIA | ACADEMY REWARDS Academy Rewards “ “ IT IS OUR AIM THROUGH MANAGEMENT ACADEMY TO HELP BUILD MORE KNOWLEDGEABLE WORKERS BY PROVIDING ROBUST PROFESSIONAL DEVELOPMENT SOLUTIONS ” - Naina Peris, Principal Consultant, Management Academy 28 | Management Insider A Brand New Institution Enlists Experts to Fill Gaps in the Skillsets of Professionals Words by Vivaddhana Khaou Individuals invest in themselves, in their careers, with university degrees and vocational training. This is expected. But it is equally beneficial, and often overlooked, for companies to double down on the investment, providing training that builds on and adds skills to help staff fly through the ranks. With many of today’s professionals having earned their position via in-house promotions or based on outdated or untrusted education programmes, the need to brush up on certain skills among established employees is essential. This has been noted, and while many firms have taken to providing in-house training, demand is booming and coaching in soft skills - such as business English, public speaking, managerial skill, excel finance - is being outsourced to specialised institutions. “The Cambodian education system is recovering from a tough past and still has a lot to catch up with,” says Lyaun Hay, a trainer with the Management Academy, which was launched recently to meet this need. “Private schools have grown like mushrooms to fill an important gap in the sector. But most of these institutions are too business orientated and have little concern for the training quality.” With the economy on the end of some of its strongest growth ever, more skilled professionals are essential, according to Jitendra Manghnani, country manager for Tata International in Cambodia and Laos. He said that while the availability of skills and talent in Cambodia has witnessed a gradual incline over the past few years, there are certain profession-specific skills which the universities and vocational training institutes are unable to cater to in line with the evolving demand. This is where the role of training institutes come in, he says, forming a critical link in the current situation. Management Insider | 29 MANAGEMENT CAMBODIA | ACADEMY REWARDS “ BY PROVIDING TRAINING OPPORTUNITIES TO EMPLOYEES, THE COMPANY DEMONSTRATES TO THEIR WORKFORCE THAT THEY VALUE THEM … WHICH IS COST SAVING FOR THE COMPANY ” - Lyaun Hay, Principal Consultant, Management Academy 30 | Management Insider Running Repairs “Employers prefer job-ready talent, and in the absence of the required skills in the existing talent pool, companies look to training institutes to fill this void,” says Manghnani. “Over the years, we have learnt that in Cambodia the need is to plan for skill and developmental infusion at a base level. This is important for and beneficial to both the employer and the employee. For the employer, it aids talent retention, image building, and creating a robust talent pool. And, for employees, it sets expectations right from the beginning and also helps them hone their skills to become domain specialists in the medium- to long-term.” Cambodia is among a number of rapidly growing economies in the ASEAN region that can no longer be ignored on the world stage. With the integration of the ASEAN bloc, Cambodia, at its centre, has the chance to become an economic hub within the region. “However, with competition for skilled labour becoming fiercer almost by the day, Cambodia needs to ensure it can keep up with labour and management requirements from foreign companies looking to settle in Cambodia,” says Naina Peris, principal consultant at Management Academy. While the cost of labour is a factor in any business decision, she says, employing qualified staff with required skill sets is a non-negotiable element of developing the economy toward manufacturing or financial services, something Cambodia is aiming for with its 2015-2025 Industrial Development Policy, which outlines plans to upgrade from a garment-sector led economy with an eye on moving toward Lower Middle Income status. A Matter of Perception For those companies looking to develop their human resources, training and development institutes such as Management Academy are a godsend, with the institution’s success measured by its graduates. “It is our aim through Management Academy to help build more knowledgeable workers by providing robust professional development solutions which will not only help develop more local leaders but may also become a key differentiator for outsiders Management Insider | 31 MANAGEMENT CAMBODIA | ACADEMY REWARDS looking at Cambodia,” says Peris. The results of training your employees can prove to be a game changer, especially given the rate that globalisation is taking place in Cambodia and around the world, raising standards and expectations across the board. “Employees who participate regularly in the training organised by their employers…will acquire new skills, increasing their contribution to the business and building their self-esteem. The training they do can take them into other positions within the organisation - positions with better prospects and/or better pay,” says Hay. Employers will also see the difference. “By providing training opportunities to employees, the company demonstrates to their workforce that they value them enough to invest in them, improving loyalty and staff retention, which is a cost saving for the company.” Training is a tool to keep employees motivated and Hay believes 32 | Management Insider “ “ EMPLOYERS PREFER JOBREADY TALENT, AND IN THE ABSENCE OF THE REQUIRED SKILLS IN THE EXISTING TALENT POOL, COMPANIES LOOK TO TRAINING INSTITUTES TO FILL THIS VOID ” - Jitendra Manghnani, Country Manager, Tata International that employees who do not improve their skills are more susceptible to organisational change and will face tough competition from the next generation of employees coming after them, who will be properly trained for the job. Ahead of the Curve There are many different options for value-added training, with context and need the great differentiators. Any external input by way of training, mentoring or coaching should be contextual and in that manner be a steppingstone to future development, according to Manghnani. Management Academy is looking to stand out from its competitors simply be setting the bar higher in terms of standards and quality. “The primary objective is to offer only the best in class trainings with very highly reputed trainers, both Cambodians and expatriates,” explains Peris. “The MA has gone a step ahead of the current requirements of the Cambodian market.” Peris believes that while training programmes are important, having internationally certified trainers helps ensure that clients benefit from world-class training methods, and gives them confidence that attendees will develop world-class skills. Management Academy has closely followed this methodology and partnered with globally recognised training and development institutions with an aim to bringing internationally recognised standards, and experts, to their training curriculum. Management Insider | 33 MANAGEMENT CAMBODIA | THE RIGHT MIX The Right Mix With Vivaddhana Khaou A new learning method combines faceto-face sessions with online modules for up skilling staff. James Siew, Regional Consulting Director at Cegos Asia Pacific, sat down with Management Insider to explain how, and why, it works. What is blended learning? Blended learning is a formalised and structured learning programme in which the participant learns through a variety of instructional modes. It includes facilitator-led workshops and classroom sessions, coupled at least in part with content and instruction delivered digitally. Blended learning is new to the Cambodian business environment. It has come with the continued emergence of corporate learning and development within organisations, which are in turn seeing improvements in productivity and employee engagement. In building a progressive approach to human capital development, organisations are looking to blended learning as a viable development option with sustainable results. Why might companies move away from conventional modes of training? While conventional modes of learning are highly effective and popular, there are sound reasons why an organisation may choose to implement blended learning: it is flexible to learner needs, extends the learning experience and capitalises on the power of multi-modal learning delivery methods. How exactly does blended learning capitalise on the power of multi-modal learning delivery methods? Multi-modal learning involves activating all learning styles, not just capitalising on new technologies. Learning styles 34 | Management Insider Who is Cegos? Cegos Asia Pacific, headquartered in Singapore, was opened in 2012 as part of the Cegos Group, which was founded in Paris in 1926. With almost a century of experience in the development of people, Cegos has grown to be Europe’s leading learning and development consulting firm - and its largest, with 1,000 employees and more than 3,000 partner consultants - and continues to thrive across the Asia Pacific while extending its reach, beginning operations in Latin America in 2015. James Siew is the Business Operations and Consulting Director at Cegos APAC. Based in Singapore, James has held various corporate and consulting roles in learning and organisation development over the span of 23 years covering the Asia Pacific region. may take the form of cognitive, emotive and tactile learning. Blended learning stimulates cognitive learning through the provision of knowledge through facilitator-led workshops, as well as e-learning modules and reading. Providing time for the learner to learn and to reflect activates their emotive learning style, helps them make links with what the learning means to them and how it applies to their daily lives. Practical exercises during the formal learning workshops as well as project work in between workshops provide learners with the ability to apply their learning, experiment and to get actively involved, thereby stimulating the tactical way of learning. Can blended learning help companies achieve sustainable results? If so, how? Some organisational capabilities take a longer time to acquire, so many organisations have turned to blended learning to address two strategically important learning areas: sales and leadership. Some leadership and sales competencies cover a wide range of learning areas, and cannot be mastered in a single training workshop. Blended learning carefully selects modules and applies them over a set period of time, hopefully culminating in the mastering of certain skills, which learners will practice and refine following workshops through simulations or role-plays coupled with scenario-based e-learning modules. How can an organisation supplement employee training to ensure sustainable results? Many organisations that have adopted blended learning may also include a component where employees work on a specific project, applying new skills acquired to their daily processes. By linking learning to practical application, the participants are able to effectively transfer learning to their daily habits. Likewise, leadership development facilitated through a blended learning structure also means that the participants have the means and time to assimilate new information, master new concepts, practice new skills and apply new ways of leading others in ways that may not be as easy if they only attended a two-day workshop. How relevant is blended learning in an economy like Cambodia’s? In an emerging country like Cambodia, blended learning provides organisations with a flexible and even costsaving means to provide learning to their employees. For accelerated learning, organisations can also implement structured blended learning programmes. Cegos also facilitates learning in a variety of ways to suit an organisation’s needs - for example, clients in Singapore, Malaysia, and China have opted for e-learning to ensure short-time learning is deployed consistently to large employee populations, which are geographically dispersed. Do you think blended learning can change the corporate landscape of Cambodia? The impact of blended learning on an emerging economy like Cambodia differs from other countries in the region. To illustrate, Singapore has had an active learning and development practice across most industries for decades and this can also be one of the potential limitations: there might be some resistance to adopting new learning methodologies. In Cambodia, utilising technology and other learning modes in a landscape that is relatively new to learning and development could have different implications in terms of the rate that these new approaches are adopted. While the future developments depend on several factors and these are relatively unknown, the prospects for introducing dynamic learning and development in Cambodia are strong. Cegos provides blended learning solutions - combining tutorials, workshops and e-learning - that can be customised and focuses on developing skills such as leadership and management, sales and negotiation, team effectiveness, and interpersonal communications. Today, Cegos works with 20,000 client companies across 50 countries and averages 12,000 bespoke training projects per year. To date, Cegos has trained an average of some 250,000 people per year. Cegos provides clients with reassurance, knowing that procedures have been quality tested and that requests will be addressed. Cegos consultants are also continuously assessed and trained in the latest pedagogical practices. Content is also regularly updated, with thorough trainer certifications undertaken. Programmes are customised to suit the specific context of each individual client project. Milestones 1926: Creation of the CGOST (General Commission on the Scientific Organisation of Work), which was to become Cegos in 1936 1937: Creation of the corporate consulting business 1951: First training courses 1958: Cegos begins its international expansion with an initial operation in Spain 1997: Cegos sets up business in China 2001: Cegos rolls out the first training courses that combine e-learning and classroom learning 2008: Cegos launches the Global Learning by Cegos® and e-Learning Solutions by Cegos® courses 2010: Cegos creates the E-Learning Excellence Awards 2012: Cegos Asia-Pacific opens in Singapore 2014: Cegos takes over Integrata, a leading training provider in Germany 2015: Cegos secures a foothold in Latin America 2016: Cegos enters an exclusive partnership with Saint Blanquat & A. in Cambodia More about Cegos: www.cegos.com Management Insider | 35 MANAGEMENT CAMBODIA | HUMAN CAPITAL CONSULTING. A JOB FOR THE EXPERTS HumanCapital Consulting: A Job for the Experts With unheralded interconnectedness between developing nations, the rise of new middle classes with more disposable income, and enhanced trade agreements spanning the globe, HR services have become key in supporting commercialism, capitalism and the globalisation of economies. In recent times, HR consulting services have been estimated to have a net worth of $28.7 billion, or approximately 12% of the global consulting market. Behind the success is organisations choosing to outsource their HR processes to expert consultants, who streamline and organise, improving overall efficiency for the organisations they serve. Words by Vivaddhana Khaou Cambodia has seen a recent surge in the demand for HR consulting services, with a rapid influx of new companies looking to establish themselves here, as well as an influx of foreign investment - from Japan, Korea, China - that is creating new employment opportunities across the country. Firms are working to customise and implement sound HR systems to keep pace with the rapidly changing local business landscape. From humble beginnings, Human Resource (HR) consulting services have become a global phenomenon and grown into a multibillion dollar industry. Management Insider explores the work of these guns for hire and their staff specific expertise. Shaping the Scene A HR consultant has to be able to see the critical intersections between talent, assets and ideas for his/ her clients - it is this dynamic formula that ultimately drives success. Today, HR consultants are recognising the opportunity that the domestic market represents and are helping shape the HR landscape of Cambodia. HR consulting services include all aspects of advisory and implementation activities related to the aspects of people management, and, carried out strategically, create value and boost organisational performance. The key lies in the experts understanding the internal workings and needs of your organisation before recommending any kind of transformation to support human capital issues. This should not be confused with HR management, which is an internal function of an organisation that focuses primarily on recruitment and people management. While parts of HR management can outsourced to HR consultants, both HR consulting and HR management can very easily act as complimentary services, improving and supplementing each other when an organisation makes the decision to utilise an HR consultant on top of its HR management scheme. Yet, hiring an HR consultant is a luxury, while HR management is most considered to be a necessity for any organisation. HR consulting services have been estimated to have a net worth of $28.7 billion, or approximately 12% of the global consulting market. © Shutterstock 36 | Management Insider Management Insider | 37 A variety of HR consulting services target specific outcomes HR Audit - Build an efficient HR department that is dynamic across all divisions, while improving inter-organisational HR communication tools - Assess current HR capabilities and build the training and coaching plan of your key HR people - Forecast HR requirements for the coming year: How many staff, and what skills will be required? - Assure overall compliance with the local labour regulations Recruitment & Retention Policy; Talent Management - Audit your current reward programme in order to achieve optimum efficiency - Align the value of reward programmes with individual performance, business performance and work culture - Undertake all steps of talent management to support the development of your key staff Compensation & Benefits Policy; Salary Benchmark - Identify salary and benefit trends and key facts within your industry Employee Engagement Survey - Understand employees’ perception, satisfaction, motivations and effectiveness at work - Identify key drivers of teamwork, dedication, turnover rates, absenteeism - Improve HR policies and people management to decrease turnover rates, and increase engagement and productivity Personal Record Administration, Payroll, Outsourcing - Outsource employee administration to experts - Save time by outsourcing monthly payrolls www.saintblanquat.com 38 | Management Insider Value for Money HR consulting services, which are both tangible and intangible, come at a cost but should be considered as a long-term investment in an organisation’s HR strategy. There is no doubt that large organisations can greatly benefit from hiring an external HR consultant. With a larger amount of employees and a higher recruitment rate, the number of tasks to manage, from health and benefits to human capital, can become overwhelming and create mistakes and inefficiencies. But for small and medium enterprises (SMEs), which make up a significant part of Cambodia’s business world, can we consider if this is a model that is suitable for them? Any firm or organisation can benefit from an outside-in perspective, however depending on what stage of maturity and growth the company is in, the range of offerings requested will vary. For example, a startup may seek assistance for daily HR tasks like payroll management, understanding labour laws and so on, while a more mature organisation might seek support with building critical skills, executive coaching and other such services. Today, HR consultants are recognising the opportunity that the domestic market represents and are helping shape the HR landscape of Cambodia. Different Strokes Consultants can provide SMEs with customisable services to support certain HR tasks like recruitment or even litigation. However, ineffective recruitment strategies can easily incur heavy losses, potentially thousands of dollars, for a SME. The use of consultants can bring about a more productive workforce, through more suitable strategies that will effectively minimise the cost per hire. Similarly, litigation can become a heavy burden for a SME, many of which do not have an HR team dedicated to this. Consultants can again provide solutions such as handling and investigating formal and informal complaints about employment practices, and can help mediate workplace disputes that in effect helps save considerable amounts of resources that would be otherwise spent on litigation. While full HR consulting services can be costly, they can help companies, big or small, invest in more efficient HR strategies for the long run. Cambodian companies have an opportunity to function at Western standards, from an HR perspective, which adds great value to the overall business strategy. © Photograph supplied MANAGEMENT CAMBODIA | HUMAN CAPITAL CONSULTING. A JOB FOR THE EXPERTS Strength in Numbers Team-building sessions and retreats are increasing in popularity among progressive workplaces, with employers benefitting from increased synergy within their teams. Camilla Zanzanaini, a researcher and strategist for innovation lab 17Triggers, explains how her staff trip to Kep changed how she and her colleagues interact. “Mul shee suh yo!” Sophy yelled out the Korean phrase that had just been passed around in a game of Chinese Whispers. Our Korean colleague laughed in surprise, “That is actually really close!” Chinese Whispers begins with one person whispering a phrase to the person sitting next to them. That person then whispers the phrase to the next person, and so on, until it eventually makes its way around the circle to the last person, who calls out the phrase to see how much it has changed. We were sitting at the dinner table during our staff retreat and were trying this game with multiple languages. To our amusement, we failed to complete the circle with any phrase resembling the original, until Korean. From then, it was decided, jokingly, that the language of choice for communication between our foreign and Khmer colleagues should be Korean. Improving communication was probably the biggest advantage of being with colleagues on a team-building retreat for two days. For me, this began with sitting next to our finance manager on the bus from Phnom Penh to Kep. I rarely get to talk to her, and while asking about her family and children, I found out that it was actually quite difficult for her to be away from her children even if just for one night. “I think foreigners are more used to leaving their children for a day or two, but I also understand it is important for the company for us to be all together,” she told me. Being together in a space away from the office was important, because it gave us a chance to get to know people in a different context and in a more relaxed environment; we got to know each other as real people, and we were lucky enough to be in a beautiful seaside location in Kep. The retreat was a chance to discuss aspirations, challenges and future directions of the company, in an informal setting for a change, which created a mood where everyone felt comfortable speaking up. I felt that this was particularly important for our Khmer colleagues who are usually more quiet with their opinions and thoughts on how the company is run. Our company is foreign owned, and sometimes having a more open and friendly work culture actually makes it more difficult to know what to say and what not to say in the workplace. Here, we all felt free to voice opinions. Playing games was another way to break the ice and get to know each other as people rather than colleagues, being friendly rather than formal. We were split into competitive teams assigned by the facilitators, so, in a way, were “forced” to work with people that we didn’t know so well. We were given creative and playful challenges, my favourite being when we had to build a rocket out of marshmallows, spaghetti sticks and paper. A seemingly silly game perhaps, but in a way quite similar to a real-life work scenario. We had to discuss a plan together, hear other people’s ideas, and agree on what to do. Being a highly visual exercise, everyone could sketch their ideas and this eliminated language barriers. In the end, working together mentally and physically to build a structure to support five big beach stones is no easy feat. At the end of the day, the test is when everyone is back in the office where it is easy to slip into old habits and patterns. I do now find it a bit easier to approach certain colleagues for help and vice versa. Maybe this also just suggests it is worth doing more informal activities together, like having lunch or organising an event to get people out of their cliques but also to create a nicer and more productive atmosphere in the office. It certainly can’t hurt. Management Insider | 39 PHOTO ESSAY | BIG TALK Big Talk H.E. Lord Puttnam sharing his thoughts on developing education in Cambodia during a one-on-one interview just before the start of QuestionTime II: The Future of Skills in Cambodia, organised by BritCham and ASEAN Forum. © IZstudio 40 | Management Insider Management Insider | 41 PHOTO ESSAY | BIG TALK Big Talk H.E. Dr. Ing. Kantha Phavi, Minister of Women’s Affairs (centre), leading a discussion on the role of education and women, with fellow panellist, Simeth Beng (left), Senior Operations Officer at World Bank, Amaury de Saint Blanquat, Managing Director at Saint Blanquat & A. (right) and H.E. Lord Puttnam, the UK’s Prime Ministerial Trade Envoy to the British Embassy in Cambodia. © IZstudio 42 | Management Insider Management Insider | 43 PHOTO ESSAY | BIG TALK Big Talk Opening the floor for questions – guests took this opportunity to ask the panellist questions about the role of online education for the future of Cambodia and how the government was planning on investing more in training and education. © IZstudio 44 | Management Insider Management Insider | 45 $alary COVER STORY | SALARY SHAKE UP Shake Up “ The key in a slowdown phase is to reduce fixed costs, which employers will do immediately they are always first to adjust - and wages are one of the first places to make cuts Amaury de Saint Blanquat gives an insider’s perspective WAGES HAVE BEEN SPIRALLING UPWARD FOR YEARS IN CAMBODIA, BUT WITH REGIONAL ECONOMIC UNCERTAINTY REFLECTING LOCALLY... ...THINGS ARE ABOUT TO CHANGE. © Illustration by Hamid Saatchi 46 | Management Insider Management Insider | 47 COVER STORY | SALARY SHAKE UP Cambodia’s labour market is at a crossroads, with a number of powerful forces converging in a nexus that has the potential to drag us into a new phase of the perpetual business cycle. The economy - both globally and regionally - is slowing, and investment here is sure to take a dive. - Amaury de Saint Blanquat, Managing Director, Saint Blanquat & A. Across the board, the quality of local employees - from entrylevel to executive - continues to rise, matching, and in many cases exceeding, the foreign counterparts who have long held a near-monopoly on the most sought after positions. The competition is strong, however, and middle managers - good middle managers—are harder than ever to find; their salaries have spiked due to their scarcity, making them more difficult than ever to retain. The Labour Law, developed in 1997 but mostly dormant for 10 years after that, is being applied more fully than ever, with international companies demanding international standards, allowing employees to do the same. Expectations have risen across the board. On the back of many consecutive years of intense growth, the private sector has now well and truly taken over as the greatest driver of salaries in the Cambodian economy, displacing the non-profit sector by enticing the best employees across the divide with the means to offer better remuneration and benefits than ever before. But the economy - both globally and regionally - is slowing, and investment here is sure to take a dive. As a leading investor, all eyes are on China as its economy wavers in uncertainty. The situation is tense. Locally, two pillars of the Cambodian economy - tourism and agriculture - are in the midst of a noticeably poor season, with visitor numbers slowing at the number-one drawcard, Siem Reap, and a long dry season restricting the yields of rice and other crops. The other two pillars - garments and construction - are on unsteady ground, with the newly-signed Trans Pacific Partnership set to shake up global trade patterns, including the garment sector, Cambodia’s biggest employer, while a scent of doubt drifts across the construction sector even as buildings continue to rise into the Phnom Penh skyline despite many remaining partly vacant. This all amounts to a test of the Cambodian economy, perhaps the biggest since it modernised more than 20 years ago. Things are changing fast and something has to give. © Photograph supplied 48 | Management Insider Management Insider | 49 COVER STORY | SALARY SHAKE UP Why Is Middle Management So Expensive? The short answer is that it’s because they are the best. The explanation is not so simple. As employers do not place all their faith in resumes and diplomas, most university graduates go into a professional setting on roughly the same entry-level salary of $180 to $300, regardless of what they have studied or how well they performed (Cambodians who have studied overseas receive slightly more, up to $400, because they are seen to be further in tune with international standards and expectations). Those who show something extra - the faster thinkers and advanced English speakers - have been quickly identified and given extra responsibilities in their job and then, in turn, extra pay. It really does not take much to stand out from the crowd, get the attention of the bosses, and then the salary can just go boom. Your fast tracker then becomes a recruitment target for other firms, who might offer them up to $600 and a title of supervisor or junior manager, capitalising on your work. So, you are left with a decision: raise the salary or lose your young achiever. Employers have been forced, as such, to adapt very quickly to rising costs, with some young achievers able to almost double their salaries every time they move - which many are doing every couple of years, or sooner. This process repeats itself all the way up the employment ladder and is one of the main reasons we now have a class of young, relatively inexperienced Cambodian middle managers, earning anywhere between $500 and $1,200 a month - better than in many other ASEAN countries. The Salary Ladder Managing director, CEO of middlesized enterprise, etc. Employment can be broadly divided into six categories, with salaries comparable across industries. And while the unqualified worker has minimal opportunity to advance beyond the lowest pay bracket, all others are on a ladder with clear opportunities for progression. Source: Saint Blanquat & A., 2015 Cleaner, security guard, construction worker, garment worker, driver, etc. $60 $190 Unskilled and low-skilled workers 50 | Management Insider Team leader, junior supervisor with two to four years experience, Receptionist, junior etc. accountant, fresh graduate with a Master’s degree, etc. $180 $300 Entry-level employees $280 $600 Supervisor/ Junior Manager Supervisor, programme manager, senior consultant, etc $500 $1,200 Middle Manager CFO, HR manager, quality manager, marketing manager, etc. $1,000 $4,000 Executive $3,000 $7,000 Senior Executive Local companies that might have started here 15 years ago with a team of two are expanding operations, and staff, which has also stretched resources. These employers and others are more than ever leaning toward an increasingly capable class of young Cambodian professionals, who also come with the obvious benefits - language, local knowledge - of hiring local. And with the international companies have come the international standards and a focus on corporate social responsibility, which employees have certainly tapped into. When I founded my company in 2012, Cambodians did not ask for insurance; now it’s completely different. Local employees demand insurance, annual leave, public holidays, allowances and phones. And so they should - that’s all in the labor code. The game changed and we have seen the candidates driving the market, completely, with many executives calling for salaries up to $4,000. To Get Where You’re Going, Know Where You’ve Been This economy we now work within was rebuilt with the money of foreign donors and NGOs, which have remained one of the biggest and most consistent employers since arriving some 24 years ago. Prior to that, there were literally almost no jobs in post-war Cambodia - the only formal higher education came for the lucky few sent to countries such as the USSR, East Germany and Cuba. Then, in 1992, the first non-profits arrived, employing thousands of locals and injecting a much-needed boost into a stagnant economy. In the late 90s, the garment industry took off, with employers making use of a large pool of cheap labour; and then tourism became a serious money-spinner, employing people across a range of industries as Cambodia became open to the world. But until recently the non-profit sector remained the greatest driver of salaries, handpicking the best talent and paying them much more than anyone else could offer, equipping them with all sorts of skills along the way. Then, after a number of false starts, the private sector began to truly emerge in 2008 and 2009, with international companies and investors following a wave of local success into Cambodia, causing the labour law to be dusted off and eventually turning the labour market on its head. The non-profits no longer dominate the employment market; it is often the private companies doing the headhunting, targeting the best from among the pool of professionals and offering salary packages too good to refuse. As a result, an avalanche of technical skills has rushed back into a thriving private sector over the past three years, and with it, salaries have rocketed. French Traditional Cuisine A la Carte & Weekly Specials All Day Breakfast, Lunch & Dinner Meeting Rooms Centrally located in Boeung Keng Kang, 4 fully equipped, multi functions rooms, to organize your conferences, trainings, seminaries, cocktails, private dining... for events up to 100 people. Catering at your door Coffee Breaks, Cocktails, Buffets...for opening ceremonies, conferences, anniversaries, private parties… for events up to 500 people. comme à la maison , R E S TA U R A N T, D E L I S H O P & C AT E R I N G french art de vivre in Cambodia since 1996 Management Insider | 51 13-15 STREET 57, BOEUNG KENG KANG 1 73 TONLE SAP QUAY, CHROY CHANGVAR 023 360 801 - 012 951 869 commealamaison-delicatessen.com CommealamaisonPhnomPenh COVER STORY | SALARY SHAKE UP Salaries in the Construction Industry The boom in construction has two immediate effects on staff and their employers: - Salaries have increased by upwards of 30% in the past three years - Technical competencies are in more essential as projects increase in size and complexity. As a result, attracting staff with skills and profiles has become increasingly difficult, and the shortage has driven expectations even higher. Employers need to provide more than just a competitive salary to get basic staff, and workers are demanding as much: accommodation, food allowances ($1/day), insurance, and a safe working environment. Employment level for engineers and architects in the construction industry $3,500.00 $3,500.00 Averageper SalaryMonth per Month Salary $3,000.00 $3,000.00 $3000 $2,500.00 $2,500.00 $2,000.00 $2,000.00 $1,500.00 $1,500.00 $1500 $1,000.00 $1,000.00 $600 $350 $300 $800 $500 Young Graduate Junior Level (1 to 3 years) Mid Level (3 to 5 years) Senior Level (5 years +) Junior Level (1 toLevel 3 years) Mid Level (3 to 5 years) Senior Level (5 years +) Employment for Engineers and Architects in the Construction Industry Employment Level for Engineers and Architects in the construction industry Young Graduate $45.00 Employment level for construction industry $23 Salary per Day $40.00 $30.00 - Respect of annual leave (18 days per year) and public holidays. $25.00 $40 $20.00 $12.5 $15.00 $10.00 $5.00 $- Source: Saint Blanquat & A., 2015 “FRINGE BENEFITS” A remuneration package is more than just a salary: Each job offers fringe benefits that must be taken into account, and some of them are more important than others. The following are becoming more entrenched in the Cambodian employment market, and are worth considering. $35.00 52 | Management Insider The non-profits no longer dominate the employment market; it is often the private companies doing the headhunting, targeting the best from among the pool of professionals and offering salary packages too good to refuse. $1200 $500.00 $500.00 $$- “ The Coming Shift Global stock markets have been off to a shaky start in 2016. China, which pours hundreds of millions of dollars into the Cambodian economy each year via investments, loans, grants and employment, experienced its slowest growth rate in a quarter century in 2015. Across Asia, investors are warily waiting out the economic slowdown, including here, where the number of construction cranes in the city skyline could be a false guide to the future. The four pillars of the Cambodian economy - garments, tourism, agriculture and construction - are each experiencing some turbulence, and that is only compounding the worries of investors, who are already holding their collective breath as the construction industry threatens to fall off the edge, global trade deals come into effect, and elections loom in 2017 and 2018. Being a small market, Cambodia’s economic cycles are fairly brief and equally dramatic - as we have seen, when we are growing, we are growing fast, people are being employed and up-skilled. And when there is a slowdown, it strikes fast and companies go bankrupt, leaving employees out in the cold. We are entering a new part of the cycle. Growth is predicted to slow in 2016, and that will have an immediate effect on salaries, which have peaked alongside years of intense growth. Expensive expats are already losing jobs. The hiring of executives on $7,000 salaries with schooling packages for the children will stop, for a while at least. People are going to have to reassess. The key in a slowdown phase is to reduce fixed costs, which employers will do immediately - they are always first to adjust - and wages are one of the first places to make cuts. Employees tend to adapt slowly, however, and will likely continue to demand the same salaries they have become accustomed to, for a few months at least. And many of them will not find a job. In the long run, though, the market will adjust, as it always does, and, one way or another, our employment cycle will have entered a new era. $5 $10 - Decent accident and health insurance. $15 - A phone allowance ($10 to $50 per month), as most Cambodians will use their personal phone at work. - Paid sick leave, often limited in internal regulations to five to seven days per year. $7.5 Worker - No work on Saturday. More and more companies work from Monday to Friday, 40 hours per week, even though the legal working time is 48 hours. Qualified Worker Supervisor Employment Level in the construction industry Senior - Meal/travel allowance of $1 to $2 per day, particularly for those travelling from the provinces (specific to the construction industry). Management Insider | 53 BUSINESS ASIA | IN THE CLUB In The Club Through the creation of a range of alumni groups, students returning from study abroad have populated online-based communities to share opportunities with each other and maintain career prospects in their host countries. It’s estimated some 650 Cambodian students study in France each year, with 100 scholarships provided by the French government and its partners, or through private sponsorship. Words by Steve Noble Fourteen years after the introduction of the prestigious Chevening Scholarship to study in the UK, a group of scholars and fellows in 2007 formed the BCAAC (British Chevening Alumni Association of Cambodia) to bring together all of those who had gained higher education through the institution, or been part of a senior management exchange programme. “Currently we have 96 Chevening scholars and fellowship alumni,” explains Oum Syvan, the president of group. “The purpose of the association is to keep networking among our members in country and outside the country, to promote public understanding of the benefits and participation in the programme, to facilitate and to coordinate among Chevening members with other alumni associations, government institutions, investors from UK and in the country and to participate in social activities that serve the community.” Syvan said the BCACC actively maintains communication and keeps graduates who return to Cambodia with one eye on international options. The Chevening alumni are not alone, however, with other similar clubs forming over time. One of the more recent to launch, France Alumni Cambodia, in November 2015, is for all Cambodians who have studied in France. It is backed by the French government, with 70 inter-university partnerships currently in place between the two countries and an estimated 7,000 Cambodian students enrolled in French-speaking curricula around the world in 2015. © Illustrations by Hamid Saatchi 54 | Management Insider Management Insider | 55 BUSINESS ASIA | IN THE CLUB In Touch Plans for the partnership between France and Cambodia looking forward have changed, according to Michael Gras, head of research and higher education at the French embassy’s Service for Cooperation and Culture, with the focus to shift away somewhat from large scale projects to focus more on “offering tools to support Cambodians and let Cambodians lead the changes, with the embassy supporting where possible.” It’s estimated some 650 Cambodian students study in France each year, with 100 scholarships provided by the French government and its partners, or through private sponsorship. Gras says the alumni network was serving as a tool for Cambodians to connect among themselves after returning home, and for them to maintain contact with their professional network in France, or wherever they had studied. “Opportunities will arise through the online groups and the site will have a dedicated magazine with fresh content, which will help new students coming to study in France.” The rise of the number of alumni groups in the country can quickly be assessed by looking at the participating groups at the Global Alumni Convention (GAC) in Phnom Penh this January, where stakeholders lined up to exhibit and speak. The convention was “designed around the themes of reconnecting with learning, knowledge-sharing, and being inspired to fulfil education, professional, and business potential,” says the event website. Full Exposure Vinich Vireak, a recent graduate of Royal University of Phnom Penh’s department of foreign languages, became a member of YSEALI: Young Southeast Asia Leaders Initiative and of FUSAAC: Fulbright and Undergraduate State Alumni Association of Cambodia in 2013 after returning from a YSEALI-sponsored six week trip to the US for a climate change programme. She said that getting involved with these groups had created untold benefits. 56 | Management Insider “For me, the networking and opportunities to develop working relationships, identify people in networks and seek advice are great, as is having access to mentors for new graduates.” But while alumni groups are a great platform for candidates to network and develop skills through mentoring, they do not equate to guaranteed employment, according to Sereyleak Prom, managing consultant at Saint Blanquant & A. “Employment really depends on the skills you can bring to the table.” Alumni members do, however, “benefit from an intricate network system that allows them to see all available employment opportunities and get strong recommendations from a group or from individuals that are familiar with the candidate through the alumni network,” she adds. Gras speaks highly of the alumni groups, urging students to make the most of their international education by registering to be a member as soon as possible and utilise the network from the moment they arrive. “Don’t wait to come back to register with alumni, as soon as you are in France use the network and share information on where to go, where to eat, and network with other alumni to will help lessen culture shock. You can use it to get advice from peers who have been through it all.” Alumni members benefit from an intricate network system that allows them to see all available employment opportunities and get strong recommendations from a group or from individuals that are familiar with the candidate through the alumni network. Management Insider | 57 BUSINESS ASIA | GREAT MINDS Great Minds Words by Steve Noble Business leaders, government figures, entrepreneurs, educators and diplomats gathered to discuss current trends and needs in the business sector, and Management Insider was there to bring you a rundown. By xxxx Captains of industry gathered at the Intercontinental Hotel in Phnom Penh during the last weekend of January for the 2016 Global Alumni Convention (GAC), which played host to panel discussions on the hot topics currently shaping the dynamic business sector here. Branding, the media and the push to upskill Cambodians in science and technology were discussed at length, and organisers hailed the convention “a great success with delegates of 24 nationalities graduating from 16 countries contributing actively in one capacity or another at the event.” Former Commerce Minister H.E. Sun Chanthol gave the opening speech of the Business & Education Networking Reception, where he discussed the importance of branding and announced a number of exciting ventures, including the announcement that Lord David Puttnam had been approached to assist the ministry in hand-choosing 20 local products to be rebranded for the market in 2016. The minister encouraged a collective effort to improve Cambodia’s brand, in a bid to entice ever more investment, and also laid out plans to complete the drafting of the eCommerce law as well as a Consumer Protection Law. STEM (Science, Technology, Engineering and Math) education, one of the hottest topics in schools right now, was dedicated its own panel discussion, including Dr. Byrony Mathew, deputy head of mission for the British Embassy, who leads the embassy’s project on STEM education in Cambodia. The panel raised key points including the need to identify the skills gaps in the local market, and the urgency to bridge the gaps as Cambodia strives to compete in a global market where innovation and new skills are essential. New teaching methods are needed for these subjects, the panel discussed, meaning that current teachers had to themselves be upskilled, and new ones trained for the job. The panel unanimously agreed that supply was not able to meet demand and urged employers to support local talent by training and employing Cambodians and then encouraging them to train , building their capacity. © Photograph supplied by IDP Education, 2015 58 | Management Insider On the topic of media as a “gateway to the world,” the discussions focused on media partiality and quality as well as looking into how increased Internet penetration was affecting the media landscape. The speakers all noted that media had to adapt to the current climate and that the digital audience had a tendency to be very critical, while also emphasising the need for the media to remain free from being used to perpetuate propaganda. The panel highlighted the ease with which a media outlet can be set up and owned in Cambodia, and agreed that information was relatively free and accessible, particularly compared with other countries in the region. Some panellists pointed out that there is a dearth of quality professional journalists in the country, a point that was rebuked by some. As interesting cross section of speakers sat on a panel for Women and Entrepreneurship, where some spoke of positive changes for women in Cambodia and others said there was still a need to foster the empowerment of women to become leaders and entrepreneurs. The panel also felt that a positive change of mindset among men was assisting this empowerment, with education acknowledged as key to encouraging open minds and a break from traditional norms. Lim Sok Hourng, director of Himawari Hotel Apartments, added that, to be a successful working mother, a clear separation between family and work was essential. Within the banking and finance sector, “The Importance of Evolving Systems” was the theme. The panel included H.E. Chea Serey, director general of the National Bank of Cambodia, who announced that fast online electronic payment systems (only in Riel) with initially no online transaction fees would be launched this year. The panel keenly discussed the need to move from a cash dominant society to electronic payments, but warned there was a need for education on this and discussed its potential implications for bank branches and staff. De-dollarisation was a key topic, with it expected to help fight money laundering. The panellists discussed creating a love of the local currency among citizens in order to wean people off the US dollar. Finally, Michael Lor, CEO of Canadia Bank, suggested there is a great dearth of staff qualified to deal with changes to systems and understand risk profiles two skills he said were essential to staff in the banking sector. Management Insider | 59 EXPERT INSIGHTS | ABOVE BOARD Above Board Business Operators Have Enjoyed Relative Freedom in Cambodia, but Enforcement of Labour Laws Is Increasing and the Wise Move Now Is to Comply Contribution by Yun Sophal Sophal has knowledge of Cambodian labour law and labor dispute resolution. Sophal earned her Bachelor’s and Master’s degrees in Law from Transnational Law and Business University, South Korea. She is currently heading the Labor Practice Group and is an associate at Sciaroni & Associates. © Photograph supplied, Sciaroni & Associates, 2016 60 | Management Insider As in other countries, legal compliance is an important consideration when conducting day-to-day business activities in Cambodia and there are a wide range of laws and regulations in force that govern as such. The Labour Law remains one of the most scrutinised, yet, with respect to compliance, has traditionally been largely neglected. But while many businesses continue to attempt to “fly under the radar” of the Labour Law, hoping to go unnoticed and unregulated, its scope, application and reach is extensive and its enforcement has increased greatly over the past two years. For these reasons, Labour Law compliance and the resultant advantages must - from legal, business and human resources perspectives - be recognised and understood by owners and managers in Cambodia more than ever before. Real Penalties Both civil and criminal penalties apply to various Labour Law violations, and jail time is possible. Chapter 16 of the law deals with applicable penalties, and says “those guilty of violating the provisions of the Articles in Chapter 16 of this law shall be fined or imprisoned or both.” Fines are determined by using a multiple of the “daily base wage” for calculation. In accordance with Joint Prakas No. 377, recently issued by the Ministry of Labour and Vocational Training and the Ministry of Justice, the daily base wage was raised from 8,000 to 40,000 Riels (approximately $2 to $10). By way of example, according to Article 369 of the Labour Law, breaches of certain articles may result in a fine of “sixty-one to ninety days of the base daily wage or to imprisonment of six days to one month.” Image Points From a business perspective, breaching Cambodia’s labour laws may significantly impact upon the reputation of a company and will be viewed as a failure to meet corporate responsibilities, an increasingly relevant component of a company’s public image in Cambodia. Serious violators of labour rights will likely see their sales impacted upon negatively and buyers or clients may boycott products and/or services. Compliance also saves costs and time for business operations. The cost of rectifying and/or compensating for a breach of the Labour Law (including resolving labourrelated disputes with employees) can be significantly higher when compared to the cost of being compliant in the first place. The time required for rectifying noncompliance issues or resolving labour-related disputes in particular could instead be used for the purpose of enhancing a business. A compliant employer avoids fines and potential costly lawsuits. Compliance Over Conflict Finally, a compliant, worker-friendly, working environment will likely lead to improved productivity. As Virgin Group founder Richard Branson puts it, “take care of your employees, and they will take care of your customers.” Compliance will mitigate potential conflicts that prove stressful to both employers and employees, and it will reduce the potential for conflict or misunderstanding between your employees and your customers. People work more productively in compliant companies and, with a more a dynamic and competitive business environment evolving in Cambodia, companies that meet their compliance obligations will attract a better labour force for the growth of their businesses. www.sa-asia.com Management Insider | 61 Leading & Learning Contribution by Susanna Coghlan Master a Few Simple Intricacies of Learning to Maximise the Development of Your Staff Learning is essential for growth in an organisation, but how can we make sure we are getting the most out of our investments in training and development? While training gives your workforce new skills and knowledge, building the habit of using these to improve performance requires creating the right support and context for your people. Here are a few suggestions on how to make sure you get the most from your training and development activities this year. 1. Remember, your staff may not be coming to this with the same experience and understanding as you. For example, a person who has never experienced good customer service himself may find it difficult to understand how to deliver an exceptional customer experience to others. Likewise, it can be hard to convince a manager of the benefits of coaching staff when she has never experienced that herself. As a leader, you may need to work to get people engaged in the concept of training before building on their skills and knowledge. For example, if you want to do customer service training, you could start with asking people to assess customer service in outlets they visit. Maybe take the team out to visit a coffee shop or location with great customer service. Then talk through the experience with them, particularly how it made them feel as a customer. Or, start by using coaching approaches with your managers before asking them to do this with their staff. 2. Build a habit of learning among your people and make the most of learning opportunities. Learning and development is not limited to training and formal activities. 62 | Management Insider After an important event or meeting, take the time to run a debriefing with your staff or team. Or run an internal role play before the event to help them prepare. Use on the job coaching questions with staff daily. Make this part of your regular conversations with team members. These actions will help people to become more independent workers, and to build the habit of learning from experiences. 3. Reinforce what is learned. Over time, good behaviours and skills can slip if they are not reinforced. For front line service and other entry level roles, a short refresher session every three months can be helpful for keeping skills sharp and up to date. For all positions, attention needs to be given to helping people to use new behaviours in the workplace, and recognising and supporting people when they do make this effort. As a leader, be prepared to dedicate time and attention regularly to following up on new skills and behaviours from a training or learning session. This can take the form of direct conversations, refreshing key points in team meetings, posters and job ads around the workplace. It is also important to consider the overall context of the work and culture of your organisation when you are planning your learning programmes. How can we expect someone to deliver great service to external customers, when help, communication, and support are in short supply inside the organisation? If you want to build the spirit of teamwork among your people, look at how their varying duties and jobs are organised. Does a task require people to work together and create reliance on each other? Are team results rewarded more than individual results? If not, and rewards are structured around individual performance, then it might be hard for people to focus on working as a team. When deciding to engage in learning and development look at how the outcomes you are seeking are reflected in the work, structure, and culture of your organisation. As leaders, we play a critical role in how our people approach learning and training, and how well new learning is integrated into our business. You will be the role model for how much energy your staff invest in learning events and in using new learning in the workplace. Be proactive in following up, talking about it, and getting involved in supporting the programme to get the most out of your investment in training this year. © Photograph supplied, AAA Cambodia Ltd. 2016 EXPERT INSIGHTS | LEADING & LEARNING Susanna joined AAA Cambodia Ltd. in 2006, and specialises in communications, people management and developing human resources functions to support organisational goals. She holds an MSc in Human Resource Management and Development from the University of Manchester. Susanna has authored numerous training programmes as well as two internationally published resource books for educators and information professionals. Management Insider | 63 WORKING CAMBODIA | STYLE COLLABORATION “ Style ONE OF THE MAIN THINGS I TRY TO TRANSMIT TO THE TEAM IS PATIENCE: PATIENCE TO DO THEIR THINGS, PATIENCE WITH EACH OTHER, PATIENCE TO TAKE CARE OF THEIR DRAWINGS, AND PATIENCE WITH TAKING CARE OF CLIENTS. - Marco Franz Vaccara, Lead Architect, Beyond ” Collaboration Words by Vivaddhana Khaou IN THEIR NATURAL HABITAT, A TEAM OF DESIGNERS FLOURISHES Among a showroom of shapes and colours, it’s the first thing that demands attention in the Beyond design studio in Phnom Penh: An entire wall, from ceiling to floor, covered with the circular roof tiles seen on traditional homes across the country, this installation finished in a glossy hue that morphs from deep forest to electric green. “We take something traditional and make it modern, do something different, change the rules of things,” says Marco Franz Vaccara, Beyond’s lead architect. 64 | Management Insider Management Insider | 65 WORKING CAMBODIA | STYLE COLLABORATION I t’s a striking feature, and the Italian’s explanation serves as something of a metaphor for the way Beyond has evolved into a leading design hub over the past three years: Take what you have got, and make something different that works make something outstanding. Some ten years into a career as an architect, Vaccara moved from Italy to Phnom Penh, freelancing before taking the helm at Beyond. While working with a staff of just one or two, he could sense saw a shift in the scene. “I arrived in a moment when I could see the market for interior design and architectural design changing, improving. Clients were starting to demand more from the designer. It was no longer about copying something found on Google image search, they wanted something original,” he said. And he seized on the opportunity. Finding the right people to build his team was difficult, however, with education programmes lacking in the technical skills and nuances that are essential in what is such a fine craft - where one small mistake can destroy a project. “The creativity was there, amazing creativity, I could see the energy, loved the ideas, but to turn the ideas into something real, there are technical skills,” he said. “Sometimes, they were missing the ABC.” “You find some people with this light, and usually when I find the people with this light, they are the people I take,” MARCO FRANZ VACCARA AND TEAM © All photographs supplied, Beyond 2016 he said, referring to the team of eight, who he said held a range of complimentary skills and techniques, as well as a certain desire. “I see that they see something more than just decoration and profit.” Let it Grow Design is a unique profession and requires a unique set of skills and characteristics. Instinctive qualities - imagination, vision, ideas - must be accompanied by very definite, measurable skills such as mathematics and drafting, all while maintaining collaboration with a client who may or may not have good taste, and may not care. In fostering the creativity of his staff, Vaccara also had to counter some entrenched societal norms, such as encouraging people to speak up, to think outside the box, to disagree, to express different ideas. “This is something Cambodians are not used to. There are these things in place that are hard to move past, like the way that people from different age groups are expected to treat each other,” he said. There is also the issue of young staff having to deal with clients, who are often coming from more privilege and may be accustomed to giving orders rather than working with designers. “I try to put everything on the same level and see what comes up.” The young team at Beyond has been steeled to deal with clients, to foment their own ideas, and to express those ideas, by being thrown in the deep end - handed all the responsibility. “I will say, ‘here, this is your project, now you will manage this.’ But that doesn’t mean that you are left alone to complete the project, and the rest of us don’t want to know anything about it. It means you are leading the project but everything remains a discussion for the team.” Most members of the team are in their mid or early twenties; some have come from the Royal University for Fine Arts, Limkokwing, Norton, Setec; most are in their first professional position; and all hold certain skills that are essential to the team, and which are being shared from project to project. Each member has a grounding in the company, as they know their skill is highly valued, and every employee has something to learn from all others. Between them, they have carried out contracts for clients such as R&T, The Blue Pumpkin, Sajibumi, Total and Cellcard. Frontier Design “One of the main things I try to transmit to the team is patience: Patience to do their things, patience with each other, patience to take care of their drawings, and patience with taking care of clients,” he said. You have to be patient in this job. It’s all about patience.” And Beyond is patient with them, allowing staff to take long breaks, which Vaccara says aids their professional improvement. “This is something I push a lot for. After two years, yes, go. Go refresh. Do something different. You need to see different things, see the world. It helps with creativity. And it allows us to maintain strong relations with our people.” Stacked with young, ambitious designers - including three now employed in Beyond’s year-old satellite studio in Siem Reap - Vaccara sees endless possibilities for the firm. The morphing world of style is now as open than ever to new hybrids, and the team at Beyond, with the freedom to go outside the box, could be at the forefront of a new era. “This Western style, it is something that will disappear soon because now there is a lot of Asian style coming, a really modern style. It is a mix of the West and Asian, in a very nice way. And that is what all the young designers are doing now, taking something old and making it fresh.” Along these lines, the Beyond design studio is preparing to move to a new creative space that is intended to facilitate the research and creative needs that are being developed each day. There will be an expanded space for mock-up and materials, as well as meetings. “It will allow us to smell, touch and try everything to do with design,” Vaccara said. “It will a place where the magic happens.” Increasingly, Beyond is taking requests from clients who are also adapting to this new taste, and his young staff are stepping up to lead the jobs. “We might take timber from an old house in Battambang and make a coffee table with a great story,” he said. “We have people who specialise in certain aspects of design, so we work as a team and that allows us to be very flexible.” Discover Beyond www.beyondinteriors.biz 66 | Management Insider Management Insider | 67 WORKING CAMBODIA | CAREER FORUM CAREER FORUM JOB OPENINGS IN CAMBODIA CANDIDATES LOOKING FOR A PROFESSIONAL CHALLENGE General Manager For a wholly owned subsidiary of PPSEZ Head of Project Management Office and Quality Assurance For a Cambodian mobile telecommunications company ERP Implementation Project Manager For a Southeast Asian trading company Finance Controller For a luxury hotel Salary: up to $1,500 Salary: up to $2,500 Salary: up to $2,000 Lead and facilitate the growth of the business by setting strategic direction and vision. Ability to work within a multi-disciplinary environment required along with strong communication, negotiating, and organisational skills Lead project management organisation in the technical division as well as develop project management procedures. The candidate should ensure good relations with related team. Attention to detail and focus on results essential. Ref: SDGMSH1603 How to apply Please send you CV and cover letter at apply@saintblanquat. com For more positions and detailed information, please visit the website: www.saintblanquat.com General Manager For a luxurious resort in Siem Reap American | Project Director / COO Cambodian | Sales Manager Indian | Head of Design Salary Expectation: $6,000+ Salary: up to $2,800 Salary: up to $2,500 Salary Expectation: $2,500 to $3,500 Finalise some projects and start new ones in different countries. Need a candidate able to travel and stay abroad for short-term missions. Accounting background is clearly a plus. Implement accounting policies and procedures, interpret financial results and provide management with the necessary tools. Must have at least five years working experience in the same position and strong analytical skills. Lead all aspects of the resort to turn it into an outstanding venue. Previous leading position in similar size and standard hotel, knowledge of Cambodian culture and tourism market trends necessary. Ref: SHHPMSA1511 Ref: BSMEIPME1603 Ref:PRHFCCH1603 Ref: LRGMM1603 Executive construction professional with over 20 years accumulated experience in both small and large scale commercial, residential and industrial projects worldwide, focusing on project management, development, coordination and organisation at the decision-making level. Highly organised and efficient candidate offering outstanding talent in client relations, budget management, design improvements, team building and understanding of construction technologies and methodologies. Salary Expectation: $2,500 $3,000 Dynamic and professional Sales Manager with more than 10 years of experience in sales management with three leading companies located in Cambodia. Has worked as a sales person for leading engineering products company and one of the major international suppliers of highly technical and agriculture equipment in Cambodian provinces. Holds a Master’s in Business Management and is fluent in English. With over 12 years experience, exceptional design skills and experience in conceptualising, designing, detailing and coordinating both architectural and interior design projects, this candidate has an evolved sense of aesthetics, a passion for design and a deep knowledge of engineering. Combined with excellent communication, public relations and leadership skills, the individual is a highly valuable employee and team leader. Head of Marketing and Communication For an international school Software Product Manager For an International company specialised in microfinance General Manager For a Hotel in Sihanoukville Cambodian | Finance Manager Cambodian | Head of Sales French | Textile Expert Salary: up to $2,500 Salary: up to $3,000 Senior Merchandiser For one of the world’s largest supermarket and hypermarket chains Salary: up to $2,200 Salary Expectation: $2,800 $3,500 Salary Expectation: $3,000 $3,500 Salary Expectation: $2,500 $4,000 Responsible for development, planning and execution of all marketing and public relations activities to ensure overall school objectives are achieved. Seeking a highly initiative and hard-working native English speaker. Will have competencies in business and IT. The candidate must be willing to travel to other Asian countries such as Laos and Indonesia. Strong project management skills needed. Ref: PRHHMCCIS1603 Ref: BSMSPMG1603 With almost 15 years experience in accounting and finance, this native Cambodian candidate is also fluent in English and Chinese. Successfully graduated from a BBA in Accounting and Finance and is a certified ACCA candidate. Looking for a challenging position as a Finance Manager to provide the highest level of financial support to the company. Sales professional whose talents shine in a competitive, innovative and creative environment with excellent track record of increasing sales, improving client retention, and growing customer base. Results-oriented candidate who reveals customer needs and delivers relevant solutions. Providing leadership and account management for more than 8 years. This candidate is a strong strategic thinker and proactive problem solver. Holds a diploma in Management of Industrial Purchase Institute and has 17 years of management, procurement and development experience, including 13 years in Asia (China - Hong Kong - Thailand - Bangladesh). High-energy, reliable, proven ability to generate support and cohesion in crosscultural and multi-lingual teams to achieve process and quality standards. Fluency in English and working knowledge of Chinese. Salary: up to $1,700 Responsible from sourcing to product development, production and deliveries and anticipating customer needs. Minimum 3 to 5 years experience in purchasing/ sourcing. Must have excellent problem solving and negotiation skills. Ref: BNSMCF1511 Ensure that the day to day operations are running smoothly by providing supervision and training to the staff. The candidate must have experience in similar environment and excellent communication skills. Ref: LRGMN1603 Contact our Head of Recruitment Basile Magnin for detailed information at [email protected] 68 | Management Insider Management Insider | 69 WORKING CAMBODIA | TOP 5: KNOW YOUR ROLE Top 5 : Know Your Role What a CEO Expects from an HR Manager role of an HR manager is to evolve toward 1. The playing a key role in supporting the managing director and members of the management committee. This support should be seen both in the application of the company culture and in employees’ level of commitment to projects. CEOs like their HR managers to focus more on carrier management tasks, on optimising training programmes according to the company’s needs, and on management coaching where human resources are concerned. The HR managers should implement principles of career management in order to anticipate the needs and expectations of the company. An individual development plan for each employee should be established, with conditions of both performance and experience put into perspective. managers should be involved in all company 2. HR decisions. The importance is revealed in the execution of a strategic plan being a key phase that is rather under-estimated and where the role of HR managers fully contribute to the development of the strategic plan. The success of such an execution can only be encountered with the full availability, commitment and support of HR managers. Should the HR managers be involved at the earliest stages, only then can he or she be able to provide professional support by recruiting the right people, by developing training courses, by relaying appropriate internal communication, by recommending the right career move to employees according to their talent and aspirations. At Total, our HR manager is part of all strategic decision-making as he is a member of the management committee. HR manager plays a central role in assuring 3. The that employee aspirations and company needs come together. A HR manager’s priority is to make sure that these two points form a balance that allows for the highest benefits to both parties at collective and individual levels. A company cannot perform economically without its employees performing both individually and collectively. The driving force of performance remains motivation. The role of the HR manager is to assure good working conditions, to develop company culture, to make sure equity and openness are present in wage policy, to be receptive to expectations, to communicate the company’s vision to employees on managerial values and management of human resources. Then, employees’ commitment can be mobilised toward a particular company project. 70 | Management Insider As an illustration of this approach, Total puts in place the MS Way concept around five principles that create efficiency: a. “Think Total. The competition is outside” b. “Trust and empower” c. “Dare to say it…. respectfully” d. “‘Yes and’ better than ‘yes but’” e. “Need help? Ask for it” The MS Way leads to an application of the principles transversely. Thus, we noticed in the results of our biannual satisfaction survey with employees, carried out in December 2015, that we increased the level of commitment (leadership, work organisation, efficiency and excellence), by six points, scoring a positive 79%. distinguish four main axis. The first is to assure 4. Ismooth industrial relations and to develop positive social cohesion within the company. The second is to spread the company’s values and turn them into the DNA of the company. The third is to highly contribute to the company’s performance through career management, efficient recruitment, and training programme development, by being a real motivation booster through wage policy packages, work conditions and social events giving to employees the feeling of belonging within to the company. Furthermore, the HR manager, as all managers, should have his own balance scorecard with KPIs because we can only manage what we measure. Thus, the HR manager will be able to identify whether the process used is efficient and the key factors that lead to success, such as how many days are needed to recruit someone, how is the internal mobility when jobs are to be fulfilled, what is the participation rate of our employees to satisfaction surveys, and so on. 5. International careers are very much present within Total. Therefore, it is essential that Cambodians with high potential to become executives are offered the opportunity to work abroad to enhance their professional experience. When they are back in their country, they can share this new experience with the rest of the company. Those high potentials need to be identified as being able to live abroad, and adjust outside their comfort zone, in a different language. Due to lacking skills, expectations of turnover are high in emerging countries. Yves Jassaud became Managing Director for Total Cambodia in September 2014. He has been with the Total Group for more than 30 years, of which 11 years were spent in Europe and Asia. In addition to his current postion, he is also group representative of the Total Group for Cambodia. 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